1. Part 3: Strategy in Action

2. The Focus of Part 3: Strategy in Action (1)
How strategies develop in organisations; in particular, the organisational processes that may give rise to intended strategies or to emergent strategies
The way in which organisational structures, organisational processes and the management of relationships is important in organising for strategic success
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3. The Focus of Part 3: Strategy in Action (2)
The relationship between an organisation’s overall strategy and the resource areas of people, information, finance and technology
How strategic change might be managed and the importance of understanding organisational context and in managing change
Who strategists are and what they do in practice
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4. Strategy in Action 11: Strategy Development Processes

5. Learning Outcomes (1)
Explain what is meant by intended and emergent strategy development
Identify intended process strategy development in organisations including the role of vision and command, strategic planning systems, and externally imposed strategy
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6. Learning Outcomes (2)
Identify emergent processes of strategy development such as logical incrementalism, resource allocation processes, cultural processes, and organisational politics
Consider how different processes of strategy development may be found in multiple forms and in different contexts
Explain some of the issues managers face in strategy development
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7. Exhibit 11.1 Strategy Development Processes
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8. What is an Intended Strategy?
An intended strategy is an expression of a desired strategy as deliberately formulated or planned by managers.
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9. Stages of Strategic Planning
Initial guidelines
Business-level planning
Corporate-level planning
Financial and strategic targets
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10. Strategic Planning at Shell
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11. Possible Benefits of Planning
Help structure analysis and thinking about complex problems
Encourage questioning
Encourage longer-term view
Enhance coordination
Improve communication
Provide agreed objectives
Involve people
Provide a sense of security
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12. Dangers Associated with Strategic Planning Programs
Confusing strategy with the plan
Detachment from reality
Lack of ownership
Dampening of innovation
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13. What is an Emergent Strategy?
An emergent strategy comes about through everyday routines, activities, and processes in organisations leading to decisions that become the long-term direction of an organisation.
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14. Exhibit 11.2 Strategic Direction from Prior Decisions
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15. Reasons for Logical Incrementalism
Environmental
uncertainty
Generalised view
of strategy
Experimentation
Coordinating
emergent
strategies
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16. What is the Resource Allocation Process?
The resource allocation process (RAP) explanation of strategy development explains that realised strategies emerge as a result of the way resources are allocated in organisations.
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17. Exhibit 11.3 Strategy Development through RAP
Corporate level
Discrepancy
to resolve
Proposals
in line RAP
Business level
Discrepancy
to resolve
Proposals
in line RAP
Operating level
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18. Viacom
How did Viacom’s strategy development process differ from other strategic planning approaches?
Which of the corporate parenting approaches explained in Chapter 7 was being adopted?
How could Viacom have avoided its problems in1995?
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19. Influences on Organisational Politics
Personal experiences
Competition for resources and influence
Relative influence of stakeholders
Different access to information
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20. Vodafone Who are Vodafone’s key stakeholders?
Are the events reported at Vodafone exceptional?
What strategy has Vodafone pursued since 2006?
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21. Possible Configurations of Strategy Development Processes
Imposed
Political
Planning
Incrementalism
Incremental
Cultural
Political
Use Eurotunnel, begin at 1:25 and end at 2:15 or 2:46 (depending upon desired length); this section discusses board takeover.
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22. Exhibit 11.5 Managers’ Perceptions of Strategy Development Processes
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23. Exhibit 11.6 Strategy Development Routes
Emergent
strategy
Intended strategy
Realised
strategy
Unrealised
strategy
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24. What is a Learning Organisation?
The learning organisation is capable of continual regeneration from the variety of knowledge, experience and skills of individuals within a culture which encourages mutual questioning and challenge around a shared purpose or vision.
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25. Tenets of Organisational Learning
Managers facilitate rather than direct
Information flows and relationships are lateral as well as vertical
Organisations are pluralistic
Experimentation is the norm
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26. Exhibit 11.7 Strategy Development in Environmental Contexts
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27. Case Example: Intel
Identify the different strategy development processes operating in Intel. How different/similar were these processes within and between the different phases?
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