1. Strategy in Action 13: Resourcing Strategies

2. Learning Outcomes (1)
Analyse the resource management issues that are important to achieving strategic success in four key resource areas:
The management of people
Access to and processing of information to build capabilities and change business models and/or managerial processes
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3. Learning Outcomes (2)
The management of finance to create financial value, fund strategic developments and address the differing financial expectations of stakeholders
The management of technology to address changing competitive forces on an organisation and improve strategic capability
Address the integration of resources and competences across resource areas to underpin the success of strategy
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4. Exhibit 13.1 Resourcing Strategies
Information
People
Organisational
strategies
Finance
Technology
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5. What are Resourcing Strategies?
Resourcing strategies are concerned with the two-way relationship between overall business strategies and strategies in separate resource areas such as people, information, finance, and technology.
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6. Exhibit 13.2 Strategy and People
as a resource
Strategy
People
and behaviour
Organising
people
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7. Traditional HR Activities Viewing People as Resources
Audits
Goal-setting and performance assessment
Planning of rewards
Recruitment and retention
Training and development plans
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8. People and Behaviour
Understanding the need to change organisational paradigms
Seeing role as ‘shapers of context’
Understanding the relationship between behaviours and strategic choices
Being realistic about the difficulty and time-scales in achieving change
Being able to vary style of managing change
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9. Roles of the HR Function
Service provider
Regulator
Advisor
Change agent
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10. Customer Relations at KLM
Were KLM’s HR policies adequate for delivering on the promise of the Reliable Airline?
How did the behaviour of front-line staff influence the actual service delivery?
What could be changed to improve the consistency of service delivery?
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11. Exhibit 13.3 Competitive Advantage Through People
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12. Exhibit 13.4 Strategy and Information
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13. Information and Strategic Capability
Improving product/service features
Competitive performance
Ease/difficulty of imitation
Competitive positioning
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14. Information and Product/Service Features
Lower prices
Improved pre-purchase information
Easier, faster purchasing
Shorter development times
Product or service reliability
Personalised products
Improved after-sales service
Use Amazon. Begin with 1:58 – key challenge and go to 2:50.
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15. What is Data Mining?
Data mining is the process of finding trends, patterns, and connections in data in order to inform and improve competitive performance.
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16. Information and Competitive Positioning
Routinisation – Cost Reduction
Mass customisation – more Product Features
Customisation – advanced information
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17. Information and Business Models
Electronic processing
Extended functions
New functions
Internal changes
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18. Exhibit 13.5 Changing Business Models
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19. ZOPA Leverages DIY Craze
How has ZOPA changed the business model for lending and borrowing?
List the advantages and disadvantages for lenders and borrowers of dealing with ZOPA instead of a bank.
How could the banks respond?
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20. Exhibit 13.6 Strategy and Finance
Managing
for value
Strategy
Funding
strategies
Financial
expectations
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21. What is Managing for Value?
Managing for value is concerned with maximising the long-term cash-generating capability of an organisation.
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22. Value Creation Funds from operations Investment in assets
Financing costs
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23. Exhibit 13.7 Financial Aspects of Value Creation
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24. Funding Strategies Business and Sources of funds financial risks
Portfolio issues
Mergers and
acquisitions
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25. Exhibit 13.8 Balancing Business and Financial Risk
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26. Exhibit 13.9 Strategy and Technology
Technology and the
competitive situation
Strategy
Technology and
strategic capability
Organising
technology
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27. Exhibit 13.10 Matching Technology Strategies to Markets
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28. Exhibit 13.11 Developing or Acquiring Technology
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29. Organising Technological Development
Location and funding
Global vs local development
Organisational processes
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30. Exhibit 13.12 Funding and Location of R&D
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31. What is a Stage-Gate Process?
A stage-gate process is a structured review process to assess progress on meeting product performance characteristics during the development process and ensuring that they are matched with market data.
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32. Exhibit 13.13 Resource Integration in a New Product Launch
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33. Chapter Summary (1)
There is a two-way relationship between resource management and strategic success
In all resource areas, the critical question is how resource management systems contribute to the creation and integration of knowledge
People affect success both formally and informally
Information is a key resource of particular importance given the advances in information technology
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34. Chapter Summary (2)
Finance is a resource of central importance in all organisations
Technology development affects the competitive forces of an organisation and its strategic capability
Organisations needs to be able to integrate resources and competences across resource areas to support current and new strategies
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35. Key Debate: Resources or Revolution?
Compare the resources of Nestle and Starbucks in the late 1980s and early 1990s. Why didn’t Nestle lead in the creation of the coffee bar fashion?
What implications does the failure of Nestle have for other powerful incumbents in their present markets?
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36. Case Example: Video Games
Identify how the ‘business model’ for the industry changed as information technology capability improved. Where might the next changes of business model be?
What were the human resource implications of the changing ‘shape’ of the games industry to the different ‘players’?
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37. Case Example: Video Games
Use Exhibit 13.8 to undertake a critique of the extent to which financial strategies are appropriate to the industry.
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