1. ISCAR Inventing the future 2014 Co-writer> Juha Tuunainen, assistant professor, Oulu University Supervisor: Yrjö Engeström, Helsinki University, professor and director of CRADLE Hannamari Heino, Helsinki University,CRADLE M.Sc. (econ), M.Sc. (educ.), PhD candidate

2. My background M.Sc. (econ) Finance ABM certificate (approved board member) Positions as CFO, secretary of board of directors, accountable director, member of advisory board Growth strategy, acquisitions, strategic management, Industries: HoReCa, real estate, food industry (coffee), professional services Activity theory (M.Sc. Educ.)

3. Objectives of the article To identify the expressions of resistance To indentify potential structural and/or managerial shortcomings To discuss resistance in relation to strategic performance

4. Strategic management process Primary contradiction Company’s real value vs. targeted value STRATEGIC ANALYSIS Strategy revision STRATEGY IMPLEMENTATION Strategy implementation Strategic analysis Strategic Choice

5. Strategy research outcomes e.g. 90 % of good strategies fail because of weak execution The most difficult obstacle: Inability to overcome resistance and direct the change

6. Gaps in strategy research Power as relational but management’s possession Resistance something to be overcome No empirical research or methodological concepts for resistance as a positive force The power school and SaP

7. Linking to activity theory in organisation studies Labour process theory | Spicer & Böhm (2007) Procedural perspective | Pettigrew (1997) Dialectic process theory | Van de Ven (1992) Field theory | Kurt Lewin (1997) Rhizome | Deleuze & Guattari (2005)

8. Contribution of activity theory Agency Resistance Contradictions

9. Finnish flag carrier Finnair

10. Finnair - Strategic change Industrial - Low cost carriers Challenges- The price of fuel New strategy- Growth strategy in Asia - Yield management program of 100 m€ - Cost saving program of 200 m€ Research Data- Media: TV debate, journals

11. Expressions of resistance Union worker: ”The top management does not participate in a way we expect. They should serve as an example and demonstrate that they trust to this strategy” Top manager : ”The same cost reduction model is not convenient for management. And board of directors has been making cuts in management salaries and some re- arrangements. Our presentation is reasonable”

12. Expressions of resistance Worker: “we have sold profitable companies” “we are still in the same situtaion than year 2006” ”the management’s strategic decisions cannot be trusted” Top manager: “we have done a lot in relation to the radical changes in the industry” “we have been very successful, I can say that Finnair is operationally the best airline in the world”

13. Current situation Negotiations ended without an agreement The gap: 12 m€ - 18 m€ p.a. 540 persons will be outsourced Turbulence in management The board is going to make every effort to start negotiations again

14. Activity system of Cabin Attendants Resistance Tools | Media, industrial actions Rules | Management power, strategic objectives Subject | Cabin personnel Community of Cabin Attendants and union representatives Object | To curb the wage cuttings Division of labour

15. Targeted activity systems Rules Subject | CAs Community Partially shared object Division of labour Subject | Top mgmt Division of labour Community Rules Tools | Cost saving program 18 m€ -> CAs Tools | Cost saving program 12 m€ -> CAs + mgmt Contradictions/ Resistance

16. Resistance as a springboard for change 1.Resistance (e.g. criticizing) 2.Questioning 3.Explicating new possibilities or potentials in the activity 4.Envisioning new patterns or models of the activity 5.Committing to concrete actions aimed at changing the activity 6.Taking consequential actions to change the activity Haapasaari et al. (2014)

17. Management’s higher proportion? Common (and correct) calculations? Partially shared strategy discussions? Premium, Hybrid, Low cost? Innovative strategy solutions? Strategic objectives versus the power of reputation?