Strategic Implementation MNG3702

types of strategic change

Adaptation (incremental) Reconstruction (sudden) Evolution (incremental) Revolution (fast and disruptive)

Explain the different types of strategic change and the issues involved.

Adaptation (incremental) - only adapt to new situation, organisation can handle it Reconstruction (sudden) - a sudden alteration in the market conditions; reconstruct processes and policies Evolution (incremental) - fundamental changes over time. Lack of urgency may create strategic drift Revolution (fast and disruptive) - fundamental changes as a result of sudden and fast-changing conditions. Issues to consider Time - how quickly the change is needed? Scope - is it dramatic revolutionary change or moderate change? Diversity - what is the level of homogeneity in the organisation? Capacity - does the organisation have the capacity in terms of the resources needed to change? Readiness - are the employees ready for the change? Refers to the level of resistance to change. Capability - do the organisation's employees and managers have the capabilities to implement the change?

Describe the components of organisational architecture.

Capabilities are distributed to the various stakeholders through the different organisational processes. The structure/system, KSA's (knowledge, skills and abilities) and technology specific to each organisation shape these processes, which are all in turn underscored by the organisational culture. The integrated organizational architecture is a strategic response that draws together key dimensions of the organization (such include items as organizational structure, leadership, organizational culture, policies and strategies, etc.) to guide strategic planning and implementation. It provides a blue print of the internal and largely invisible workings of the integrated organization. The diagram of organisation architecture must be read from right to left.

strategic change process

Identifying the areas of change Managing resistance to change Power and influence The learning organisation

Explain why corporate governance is important in strategy implementation.

In the context of strategy implementation, corporate governance is the responsibility of the Board of Directors to oversee the implementation of strategy. The King reports on corporate governance and the Public Finance Management Act (PFMA) is examples of corporate governance guidelines/frameworks. Some reasons for its importance (there may be additional reasons, but these are some of the main reasons why corporate governance is important in strategy implementation): • It focuses on sustainability. • It ensures that adequate controls are in place. • It promotes high ethical standards. • It makes sure that reward systems are reasonable and beneficial to the organisation. • It aims at reducing the risk of failure. Good corporate governance and corporate citizenship are equally important in strategic planning and implementation. The board of directors is responsible to ensure that management implements chosen strategies and monitors that implementation. Strategy implementation should take issues such as social responsibility, environmental responsibility, stakeholder engagement and sustainability into account.

drivers of strategy implementation

Leadership Organisational culture Reward systems Organisational structure Resource allocation

Describe the drivers of strategy implementation.

Leadership: a strategic leader must have the ability to anticipate, envision, maintain flexibility and to empower others to create strategic change and to motivate others. Organisational culture: refers to the way an organisation does things or its personality. It is the beliefs, behavioural norms and values that the members of an organisation share. Reward systems: defined as the umbrella term for the different components considered in performance evaluation and the assignment of monetary and non-monetary rewards. Organisational structure: refers to the framework within the strategic process to achieve the organisation's goals. Resource allocation: it is essential that resources be allocated in such a way that they support the organisation's long-term goals, chosen strategy, structure and short-term goals.

five basic parts of an organisation

Strategic apex The middle line The operation core The techno-structure The support staff

Discuss the concept of a learning organisation.

The concept entails the ability to think continually about strategy and to create synergy by sharing knowledge and ideas and by generating actions that will continue positively to the whole organisation. •Learning must be a continuous process •Employees work and learn as a team •Management development and personal growth are important •Shared visions of the future •Employees' skills are the most important asset in the organisation •Reconsider organisational habits •Systems approach must be applied when analysing and viewing the business environment

Comment on the strategic change process.

The strategic change process deals with identifying the areas where change has to take place, managing resistance to change and using power and influence to persuade members of the organisation to support the change. This implies that the employees in the organisation accept the importance of continuous learning. Managing change involves a process with four stages: Identifying the areas of change - when a gap is identified between the desired performance of the organisation and its actual performance. Once the need has been determined, the source of the problem must be identified through environmental analysis. Managing resistance to change - change disrupts normality - employees and managers resist change because of fear, uncertainty, and lack of interest or different personal ambitions. Resistance to change is an obstacle to the successful strategy implementation process. Various strategies exist to overcome resistance to change. Power and influence - this stage involves persuading organisational members to support the change. An appropriate organisational culture will support the desired changes in strategy. Managers must have the necessary power to implement the decisions that will bring about change. Managers need to use their power to influence people and to bring about the necessary change. The learning organisation - entails the ability to think continually about the strategy and to create synergy by sharing knowledge and ideas, and by generating actions that will contribute positively to the whole organisation. This deals with continuous learning.

strategic change - Issues to consider

Time Scope Diversity Capacity Readiness Capability

Explain any five of the issues involved in strategic change.

Time - how quickly the change is needed? Scope - is it dramatic revolutionary change or moderate change? Diversity - what is the level of homogeneity in the organisation? Capacity - does the organisation have the capacity in terms of the resources needed to change? Readiness - are the employees ready for the change? Refers to the level of resistance to change. Capability - do the organisation's employees and managers have the capabilities to implement the change?

Why strategy implementation might fail

Vision barrier Management barrier Resource barrier People barrier

Discuss the five basic parts of an organisation.

• Strategic apex-is the home of top management and strategic leadership in the organisation • The middle line - all the managers in direct line relationship between the strategic apex and operating core • The operation core- actual operational task of an organisation are performed to produce the products and service of the organisation • The techno-structure - all staff analysts who design the systems by which work process and the output of others in the organisation are formally designed • The support staff - support for the organisation outside its operating workflow, corporate communications, legal and tax specialists and catering

Discuss five reasons why strategy implementation in an organisation might fail.

• Vision barrier - The Balanced Scorecard Collaborative found that only 5% of the work force understand the vision and strategy. • Management barrier - 85% of top management teams spend less than an hour on strategy. Too often they are focused on solving short term problems • Resource barrier - Sixty percent of organisations do not link their resource allocation plans or budgets to the chosen strategy or strategies. • People barrier - only 25% of rewards linked to strategy. No incentive to alignment with daily task, strategy and rewards

four "levers" that are considered when designing strategic control systems

•diagnostic control systems •belief systems •boundary systems •interactive control systems

six basic coordinating mechanisms of organisational design

•mutual adjustment •direct supervision •standardisation of work processes •standardisation of outputs •standardisation of skills and knowledge •standardisation of norms