Samenvatting
Summary of all articles of Strategy Implementation
- Instelling
- Tilburg University (UVT)
In this summary document you will find a clear summary of all compulsary reading articles for Strategy Implementation.
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Voorbeeld van de inhoud
Strategy Implementation – Strategic Management – 2022/2023Inhoud
Article 2.1: Leading Change – Kotter (2007)..............................................................................................2
Article 2.2: Organizational behavior; Leading organizational change – Raffaelli (2017)...........................4
Article 3.1: Note on organizational structure – Bernstein & Nohria (2016)............................................10
Article 3.2: Designing organizations for performance – Simons (2007)..................................................12
Article 3.3: Informal networks – Krackhardt & Hanson (1993)...............................................................14
Article 4.1: On the folly of rewarding A, while hoping for B – Kerr (1975)..............................................15
Article 4.2: Incentives within organizations – Hall (2006).......................................................................15
Article 4.3: Centralized control or decentralized diversity – Brown (1993).............................................17
Article 6.1: Control in an age of empowerment – Simons (1995)...........................................................19
Article 6.2: Fit control systems to your managerial style – Cammann & Nadler (1976)..........................19
Article 6.3: From strategy to implementation – HBS Press (2006)..........................................................20
Article 6.4: Strategy Execution Module 12 – Simons (2016)...................................................................21
Article 6.5: Evolution toward fit – Siggelkow (2002)...............................................................................23
Article 9.1: Turning great strategy into great performance – Mankins & Steele (2005).........................24
Article 9.2: Measuring performance – HBP (2009).................................................................................25
Article 9.3: Using Balanced Scorecard as strategic management system – Kaplan (1996)......................27
Article 9.4: Strategy maps – Kaplan & Norton (2004).............................................................................28
Article 10.1: Borealis – Jorgensen (2008)................................................................................................32
Article 10.2: Note on flexible budgeting and variance analysis – Young (2013)......................................32
Article 10.3: The real budget crisis – Pfeffer (2007)................................................................................33
Article 11.1: Leading by leveraging culture – Chatman & Cha (2003).....................................................33
Article 11.2: The leader’s guide to corporate culture – Groysberg & Lee & Cheng (2018).....................35
Article 11.3: Note on organizational culture – Sorensen (2009).............................................................37
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,Strategy Implementation – Strategic Management – 2022/2023
Article 2.1: Leading Change – Kotter (2007)
Basic goal of change:
To make fundamental cahnges in how businesss is conducted in order to help cope with a new, more
challenging market environment.
Lessons of succesfull implementation:
1. Change goes through series of phases (which require length of time)
a. Skipping steps creates illusion of speed and never produces a satisfying result
2. Critical mistake in any phase can have devastating impact, slowing momentum and negating hard-won
gains.
Error 1: Not establishing a great enough sense of urgency
Without motivation, people won’t help and the effort goes nowhere.
What are reasons for failure?
- Underestimate how hard it can be to drive people out of their comfort zone
- Overestimate how successful they have already been in increasing urgency
- Lack of patience
- Paralyzed by the downside possibilities
What are reasons for good performance?
- Individual or group facilitates a frank discussion of potentially unpleasant facts
o To make the status quo seem more dangerous than launching into the unknown
- Manufacture a crisis
o When the urgency rate is not pumped up enough, the transformation process cannot succeed
and the long-term future of the organization is put in jeopardy
Error 2: Not creating a powerful enough guiding coalition
Develop a picture of the future that is relatively easy to communicate and appeals to customers,
stockholders and employees.
What are reasons for failure?
- Underestimate the difficulties of producing change and thus the importance of a powerful guiding
coalition.
- No history of teamwork at the top and therefore undervalue importance of coalition
- Expecting the team is led by a staff executive from HR, quality, strategic planning, etc.
Error 3: Lacking vision
A vision helps clarify the direction in which an organization needs to move.
Without sensible vision transformation effort can dissolve into a list of confusing and incompatible
projects that take organization in the wrong direction or nowhere at all.
Without sound vision the reengineering project in any department will not add up in a meaningful way.
What are reasons for failure?
- Plenty of plans and directives and programs, no vision.
- Manamgemt had sense of direction, too complicated or blurry to be useful
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,Strategy Implementation – Strategic Management – 2022/2023
Rule of thumb:
If you cannot communicate the vision to someone in five minutes or less and get a reaction that signifies
both understanding and interest, you are not yet done with this phase of the transformation process.
Error 4: Undercommuncating the vision by a factor of ten
Three patterns to communication:
- Proceeding to communicate by single meeting or sending out a single communication (0.0001%).
- Head of organiation spends a considerable time making speeches to employee groups (0.0005%).
- Newsletters and speeches, but more visible senior executives still behave in ways that are antithetical
to the vision. Cynicism goes up, belief in communication goes down.
Successful transformation efforts:
- Executives use all existing communication channels to broadcast the vision.
- Learn to walk the talk (become a living symbol of the new corporate culture)
Error 5: Not removing obstacles to the new vision
Big obstacles have to be removed or replaced.
Error 6: Not systematically planning for and creating short-term wins
Successful transformation:
- Managers actively look for ways to obtain clear performance improvements, establish goals in yearly
planning system, achieve the objectives, and reward people involved with recognition, promotions and
money.
Error 7: Declaring victory too soon
Until changes sink deeply into a company’s culture, a process can take five to ten years, new approaches
are fragile and subject to regression.
Premature victory celebration kills momentum.
Instead of declaring victory, leaders of successful efforts use the credibility afforded by short-term wins to
tackle even bigger problems.
Error 8: Not anchoring changes in the corporation’s culture
Change sticks when it becomes the way we do things around here.
Two factors for institutionalizing change in corporate culture:
- Conscious attempt to show people how the new approaches, behavior and attitudes have helped
improve performance.
- Taking sufficient time to make sure that next generation of top management really does personify the
new approaches.
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, Strategy Implementation – Strategic Management – 2022/2023
Article 2.2: Organizational behavior; Leading organizational change – Raffaelli
(2017)
Three key assumptions:
- Organizations are systems – if you alter one, you will affect others
- Change is both a process and an outcome and how the process is managed will affect the outcome
- No correct formula for managing succesful change – leaders must address the many elements involved
in navigating change as it unfolds within specific organizations
Provide a roadmap for change that is tailorded to the organization and the situation effectively:
1. Diagnosis – why is change needed?
2. Design – what sort of change is called for?
3. Delivery – how can change be implemented? Who will most likely be affected?
4. Evaluation – how can the impact of the change be assessed and measured?
Diagnosing the Need for Change
Performance gaps require change that improves current organizational routines and practices.
Opportunity gaps require change that creates new routines and practices for the future.
Performance gaps:
- Arise from difference between expected and actual performance.
- Leaders should evaluate the organization’s:
o Ability to perform and produce output
o Capacity to foster individual learning and satisfaction
o Potential to adapt
- Closing a performance gap requires an effective leader to formulate and execute a plan.
Opportunity gaps:
- Arise when leaders look outside organization or current operations and anticipate what they need to do
to remain competitive in future.
- Defined as potential future problems or missed value-creating opportunities the organization will face if
it does not act today.
- Opportunity gasps arise in two ways:
o Evolving shifts in customer preferences and demands, competitor offerings, labor and capital
market constraints, public expectations, regulations, or technologies that promise new routes
for generating value and threaten existing ones.
o Succes organizations assuming their track records and capabilities will sustain them indefinitely.
Leader may need to characterize the necessary change as an opportunity in order to generate
the urgency for moving away from existing behaviors, competencies, and practices that appear
to those inside the organization to be working well.
Designing the Change Process
Reveals the SORT of change required. The four critical elements of change design and implementation:
- Scope – focus on the intended effect of change
- Origin – identifies where the change will emerge
- Rollout
- Timing
Scope of Change:
Decisions about scope are largely about the intended impact of the change on the organization’s core
practices, norms, identity, and member behaviors.
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