Strategy Implementation Lectures
General information
,Simulation 1 information:
4 scenario’s for simulation are necessary. Not all in the same order.
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Convince 18 people.
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,Low urgency:
In low-urgency scenarios (1 and 2), an incremental change strategy is most
successful. The change agent starts with the least disruptive levers in order to
mobilize the organization, uses the mildly and moderately disruptive levers to build
momentum, and then institutionalizes the changes with the moderately and highly
disruptive levers. In sum, the disruptiveness of the change levers should be
gradually increased over the course of the change program in non-urgent situations.
,Lecture 1.
Challenges of strategy implementation:
1. Different scope than analysis
2. Need for coherence
3. Complexity; Interactions and the number of elements.
1 - Scope
The Strategic Management Process
Moving from Creation to Implementation
2 - Coherence
The strategy of a company has to be aligned with the different components. The strategic
goals have to be coherent with the people, the leadership, the structure, the incentives, the
supporting activities and the culture. It all has to be aligned together.
A good way to check if a strategy is coherent on all fronts is by making a check list of each
component and working them out. If a component does not align, specify the problem and
what needs to be done to correct it.
3 - Complexity
All the elements have their own pro’s and con’s and connection to eachother. This results in
a very complex web of strategic choices.
,Lecture 2 - Leading Change
The reason for firm failures is often not because of insufficient funding, but other reasons
like lack of commitment by senior management & lack of clearly defined and/or
achievable milestones and objectives to measure progress.
Strategic Drift
‘’Strategic drift can be defined as a gradual deterioration of competitive action that results in
the failure of an organization to acknowledge and respond to changes in the business
environment.’’
Change fatigue = tiredness about things that are not stable, but constantly changing.
Examples of changes
,A formulaic approach to Strategic Change
Context-sensitive approach to Change
Depending on the context of a situation, you may advance a bit differently with the
change management you are doing.
Overview of Simulation Model - additional information
Questions dealing with simulations.
1. High or Low urgency?
2. High or Low authority?
4 distinct scenario’s of change
, - Low urgency with a low power agent, will take the longest. Not a lot of credibility /
power. You need to gain credibility before delivering important messages. If a new
person calls for a meeting to discuss change, attendance will be low compared to a
more credible person calling the meeting.
Reactive change = emergency, drifted too far from being efficient. Closing a performance
gap between what is and what should be.
Proactive change = low emergency, what could be in x amount of years? Closing an
opportunity gap between what is and what could be.
Three Distinct Organizational Change Phases (Lewin)
Mobilization Phase Movement Phase Sustain Phase
1. Mobilization phase is creating awareness that you need to make a change.
2. Movement phase is actually making the changes.
3. Sustain phase is Institutionalize change, means making sure the change is
sticking. It has to sustain, establish the new way of doing things.
Kotter’s 8 steps of leading change
, The formula required for change according to Harvard:
Reasons for individual resistance to change:
- Direct Costs,
- Saving Face,
- Fear of the unknown,
- Breaking routines,
- Incogruent systems,
- Incongruent team dynamics.
Raise dissatisfaction
- Communicate the need for change and the costs of not changing.
- Performance / opportunity gap analysis (both internal and external)
- Compare using data
- Contextual landscape analysis
- Benchmarking
- Employee attitudes
- Sharpen the awareness of the gap analysis. → There is a gap with the
others / the environment meaning we DO need to change. Make others
aware of this.
- Involve key players in the company.