The Practice of Strategy The Strategist. Exploring Corporate Strategy 8e, © Pearson Education 2008 BLB10089-3 pjc: Core Text Exploring Corporate Strategy

The Practice of StrategyThe Practice of Strategy

The StrategistThe Strategist

BLB10089-3 pjc: Core Text Exploring Corporate Strategy 2008/2001 , © Pearson Education 2008/2011BLB10089-3 pjc: Core Text Exploring Corporate Strategy 2008/2001 , © Pearson Education 2008/2011 22

Exploring Corporate Strategy 8e, © Pearson Education 2008

Learning Outcomes (1)Learning Outcomes (1)

Identify key people involved in strategy making, Identify key people involved in strategy making, including top management, strategy consultants, including top management, strategy consultants, strategic planners, and middle managersstrategic planners, and middle managers

Assess which people should be included in Assess which people should be included in strategy making for different kinds of issuesstrategy making for different kinds of issues



Learning Outcomes (2)Learning Outcomes (2)

Evaluate different approaches to strategising Evaluate different approaches to strategising activity, including analysis, issue selling, activity, including analysis, issue selling, decision-making structures and communicationsdecision-making structures and communications

Recognise key elements in the various Recognise key elements in the various methodologies commonly used in strategising, methodologies commonly used in strategising, including strategy workshops, projects, including strategy workshops, projects, hypothesis testing and writing business cases hypothesis testing and writing business cases and strategic plansand strategic plans



Exhibit 15.1 The Pyramid Exhibit 15.1 The Pyramid of Strategy Practiceof Strategy Practice

Strategists:Who?

Strategising activities:

What?

Strategising methodologies:

Which?



The StrategistsThe Strategists

Chief Executive Officer

Top management team

Non-executive directors



Characteristics of Characteristics of Effective Strategy LeadersEffective Strategy Leaders

Mastery of analytical concepts and Mastery of analytical concepts and techniquestechniques

Social and influencing skillsSocial and influencing skillsGroup acceptance as a playerGroup acceptance as a player



What is a Strategic Planner?What is a Strategic Planner?

Strategic plannersStrategic planners, also called , also called corporate development managers,corporate development managers,

are managers with a formal are managers with a formal responsibility for contributing to the responsibility for contributing to the

strategy process. strategy process.



Tasks Performed Tasks Performed by Strategic Plannersby Strategic Planners

Information and analysis

Managers of the strategy process

Special projects



Roles Played by Roles Played by Strategy Consultants Strategy Consultants

Analysing, prioritising, and generating options

Transferring knowledge

Promoting strategic decisions

Implementing strategic change



Exhibit 15.2 The Access/Exhibit 15.2 The Access/Execution ParadoxExecution Paradox



Exhibit 15.3 Who to Include Exhibit 15.3 Who to Include in Strategy Making?in Strategy Making?



What is Strategic Issue Selling?What is Strategic Issue Selling?

Strategic issue sellingStrategic issue selling is the is the process of winning the attention and process of winning the attention and

support of top management and support of top management and other important stakeholders for other important stakeholders for

strategic issues. strategic issues.



Aspects of Aspects of Strategic Issue SellingStrategic Issue Selling

Issue packagingFormal or

informal channels

Sell alone or in coalitions

Timing



Guidelines for Guidelines for Strategic Decision MakingStrategic Decision Making

Build multiple simultaneous alternativesBuild multiple simultaneous alternativesTrack real-time informationTrack real-time informationSeek the views of trusted advisorsSeek the views of trusted advisorsAim for consensus, but not at any costAim for consensus, but not at any cost



Elements of a Elements of a Communications StrategyCommunications Strategy

Focus Impact

MediaEmployee

engagement



Strategy MethodologiesStrategy Methodologies

Strategy workshops

Strategy projects

Hypothesis testing

Business cases and strategic plans



What is a Strategic Workshop?What is a Strategic Workshop?

Strategic workshopsStrategic workshops, also called , also called strategy retreats, away-days, or off-strategy retreats, away-days, or off-sites, involve groups of executives sites, involve groups of executives working intensively for one or two working intensively for one or two

days, often away from the office, on days, often away from the office, on organisational strategy.organisational strategy.



Workshops seeking to challenge Workshops seeking to challenge existing preconceptions should…existing preconceptions should…

Insist on prior preparationInsist on prior preparation Involve participants from outside the Involve participants from outside the

senior executive teamsenior executive team Involve outside consultants as facilitatorsInvolve outside consultants as facilitatorsBreak organisational routinesBreak organisational routines



Workshops connecting Workshops connecting to subsequent action should…to subsequent action should…

Make an agreed list of actionsMake an agreed list of actionsEstablish project groupsEstablish project groupsCirculate agreed actionsCirculate agreed actionsMake visible commitment by the top Make visible commitment by the top

managementmanagement



What is a Strategy Project?What is a Strategy Project?

Strategy projectsStrategy projects involve teams of involve teams of people assigned to work on people assigned to work on

particular strategic issues over a particular strategic issues over a defined period of time.defined period of time.



Success Factors for Success Factors for Strategy ProjectsStrategy Projects

A clear brief or mandate

Top management commitment

Milestones and reviews

Appropriate resources



What is a Business Case?What is a Business Case?

AA business casebusiness case provides the data provides the data and argument in support of a and argument in support of a particular strategy proposal. particular strategy proposal.



Chapter Summary (1)Chapter Summary (1)

The practice of strategy involves critical choices The practice of strategy involves critical choices about who to involve in strategy, what to do, and about who to involve in strategy, what to do, and which strategising methodologies to usewhich strategising methodologies to use

Top managers, strategic planners, consultants, Top managers, strategic planners, consultants, and middle managers are all involved in and middle managers are all involved in strategisingstrategising

Middle manager involvement in strategy can Middle manager involvement in strategy can suffer from the CEO access/implementation suffer from the CEO access/implementation responsibility paradoxresponsibility paradox



Chapter Summary (2)Chapter Summary (2)

Strategising activity involves analysing, Strategising activity involves analysing, issue selling, decision making, and issue selling, decision making, and communicatingcommunicating

Practical methodologies to guide Practical methodologies to guide strategising activity include strategy strategising activity include strategy workshops, strategy projects, hypothesis workshops, strategy projects, hypothesis testing, and creating business cases and testing, and creating business cases and strategic plansstrategic plans



Key Debate: Key Debate: What Good Are Strategy What Good Are Strategy

Consultants? Consultants? What measures can a strategy consultant What measures can a strategy consultant

take to reassure a potential client of his or take to reassure a potential client of his or her effectiveness?her effectiveness?

Are there any reasons to suspect that Are there any reasons to suspect that some people might want to exaggerate some people might want to exaggerate criticisms of strategy consultants’ conduct? criticisms of strategy consultants’ conduct?



Case Example: Ray OzzieCase Example: Ray Ozzie

Why was the Semiahmoo retreat not successful Why was the Semiahmoo retreat not successful in creating sustained momentum around the in creating sustained momentum around the issue of Microsoft’s core?issue of Microsoft’s core?

Why was Ozzie more successful in creating Why was Ozzie more successful in creating follow-on action after the Robinswood retreat?follow-on action after the Robinswood retreat?

Comment on Ozzie’s communications strategy Comment on Ozzie’s communications strategy with regard to the Internet Services Disruption.with regard to the Internet Services Disruption.

Documents

The Practice of Strategy The Strategist. Exploring Corporate Strategy 8e, © Pearson Education 2008 BLB10089-3 pjc: Core Text Exploring Corporate Strategy