Exploring team mental model dynamics during strategic change implementation in professional service organizations. A sensemaking perspective

The purpose of this paper is to provide a deeper process understanding of team mental model dynamics in a context of strategic change implementation. To do so, we adopt a change recipient sensemaking perspective with the objective to identify salient determinants of team mental model dynamics. We aim to contribute to the managerial and organizational cognition literature by identifying critical micro-foundations that shape team cognition and interpretation processes during strategic change implementation. This adds to the field’s understanding of the under-researched collective dimension of strategic processes in general and strategic change implementation more specifically. Through an explorative case study conducted at a professional service organization, we identified five determinants of team mental model dynamics: coherence between ostensive and performative aspects of organizational routines, equivocality of expectations, dominance of organizational discourse, shifts in organizational identification and cross-understanding between departmental thought worlds. Case findings reveal that implementation processes of strategic change become intricate and difficult if change recipient sensemaking is not effectively acted upon. The five determinants identified require adequate managerial attention in order to avoid slipping into organizational inertia. As a consequence, professional workers are unable to ‘drop their tools’ and fail to integrate the strategic change effort in updated team mental models.     

Top Management Team Heterogeneity,Strategic Change and Operational Performance*

This study examines the role of top management team (TMT) heterogeneity in facilitating strategic change. Based on the upper echelons literature, we argue that heterogeneous management teams are better able to handle the simultaneous and conflicting demands of refocusing the organization strategically and keeping up operational performance. We expect this to be true only for teams that are heterogeneous with respect to factors directly related to job requirements, however. Data were collected from 92 full TMTs of hospitals in Spain that were confronted with institutional pressures that challenged their current strategies. In support of our hypotheses, the results show job‐related TMT heterogeneity moderates the relation between strategic change and operational performance. No moderating effect is found for non‐job‐related TMT heterogeneity.     

Using strategic planning to drive strategic change

This article describes a case history of strategic planning, learning and change within a major division of Dowty plc. At Dowty CASE, a telecommunications company, the management team used strategic planning as a structured learning process to generate strategic change. There are many lessons which academics and practitioners alike can learn from this case of strategic planning and change in action.     

Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

Top management team constellations and their implications for strategic decision making

Two major themes in the upper echelon decision making literature are the efficacy of the CEO and the composition of the top management team (TMT). Little research has examined their intersection. This study addresses the call to reveal the social processes within TMTs, by focusing on CEO-TMT member interaction in decision making. Drawing on video ethnographic data of two TMTs, we explore the patterns of interactions between CEOs and TMT members in their strategic decision making meetings. Through an analysis of 20 issue discussions, we identify five “constellations”, a team level construct capturing the core relational dynamics that are created through mutual CEO-TMT member influence during a team's discussion of a strategic issue. We explain how these constellations unfold and their implications for the processes and outcomes of TMT strategic decision making. We then elaborate how our findings contribute to the TMT and upper echelon literatures, as well as our understanding of team politics.     

Strategy restoration

Discussions of strategic change generally assume that managers strive to break free from the constraints of their organization's past so that they can forge ahead into the future. However, some organizations instead opt to reinterpret and reenact abandoned strategies drawn from their own history. Such actions are largely unaccounted for in the literature on strategic change. Accordingly, we propose here a conceptualization of a distinct type of strategic change that we call “strategy restoration.” We first outline how strategy restoration fills a gap in current understandings of strategic change. We then elaborate conditions that motivate and enable organizations to pursue strategy restoration rather than other types of strategic change. Two components of the framework—organizational traditionality and memory—characterize the organization itself, and two—nostalgia and perceptions of the organization's authenticity—characterize the market in which the organization operates. The proposed conceptualization of strategy restoration and discussion of its underlying mechanisms carry implications for researchers and managers.     

The interface of the top management team and the board: A dynamic managerial capabilities perspective

Although top management teams use their human capital, social capital, and cognition (i.e., dynamic managerial capabilities) to drive strategic change in their firms, faultlines within these teams may dampen the strategic change that they produce. While boards can enable but also restrict these change efforts, we know little about how precisely a board's monitoring and advice-giving condition the impact of the top management team's dynamic managerial capabilities on strategic change. We clarify how intense monitoring and advice-giving affect strategic change when faultlines between the top management team's and board's dynamic managerial capabilities are more or less salient. We explain that intense monitoring further stifles both the breadth and speed of strategic change that can be accomplished, and that this is more pronounced when the faultlines between the two bodies are strong. Furthermore, we outline that intensive advice-giving can be beneficial in improving the breadth of strategic change, but more so when these faultlines are weak and less so when they are strong. Notably we illuminate that the reverse happens in terms of speed of strategic change: intensive advice-giving can be detrimental engendering a further dampening of strategic change speed which is more pronounced when these faultlines are strong but less when they are weak.     

Strategies for planning

In recent years there has been a good deal of discussion amongst planning specialists and academics about the gap which exists between the theory of planning as set out in journals and textbooks, and the practice of planning in private and public organizations. Planners are continually complaining about the resistance to planning by top management and operating managers in divisions and departments.In this article the author aims to produce a reconciliation between theory and practice and to discuss what alternative strategies are open to planners in devising planning systems for their organizations.He suggests that the problem has its origin in the fact that corporate planning theory was first developed by management scientists as a total systems approach. Corporate planners have failed to sell an integrated planning system either as programme budgeting or as corporate planning. Research suggests that a management team can only adopt and implement a comprehensive planning system in very special circumstances, e.g. when the organization's survival is threatened, a new management team has been appointed and the staff of the organization are ready to accept radical change.In normal circumstances the planner is wrong to advocate a ‘root and branch’ solution. He must diagnose the planning needs of the organization and his objective must be not merely to establish a particular planning procedure but rather to discover how he can best improve the quality of management decisions.Recent studies on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to the problem of improving the quality of management decisions.The paper reviews various approaches to planning and considers how they relate to organizations with different strategic problems, with differing organization structures and various management styles.     

Planning training programmes to support business initiatives: a model for business and training partnership

The ‘Model for Business and Training Partnership’ (MBTP) draws upon insights of HRD and adult education programme-planning scholars, integrating training and development processes with a typical business-planning model. It is a practical, client-focused programme-planning model designed to promote strategic alliances between the HRD practitioner and business manager at all levels and development phases. The model may be utilized on a cross-functional group project for implementation of a customer relationship management (CRM) system or other large system change initiative within a large organization. This model has not been tested empirically.     

Archetype Change in Professional Organizations: Survey Evidence from Large Law Firms

This paper examines the proposition that the traditional archetype of the professional partnership is said to have changed into a more 'business-like' entity, the managed professional business. It broadens the restricted case sample base on which much of the evidence has been adduced, by developing a survey questionnaire through which 197 large British law firms were sampled. Change, consistent with the notion of a more commercially oriented and consciously managed organization, is concentrated in the market-facing area of the firm but coexists with areas of continuity in the governance of the firm and its strategic management. The findings reveal a more managerial form of organization in which the core elements of the traditional form of professional organization have not been transformed. These results contest the assertion of either transformational or sedimented change found in other, case-based research and suggest that archetype change needs theoretically to be distinguished from the general phenomenon of greater managerialism within the professional service firm.     

Getting New Staff to Stay: The Mediating Role of Organizational Identification

Newcomer turnover is a major cost to organizations, and the quality of new employees' experiences in the first few months is critical in determining whether they decide to stay or leave. In a study that focused on the first stage of newcomer socialization, we investigate the impact of perceptions of social validation from the team and the team leader, and perceived fairness of treatment on newcomers' identification with their work team and the organization, specifically measuring the group self‐investment components of identification. The mediating role of these levels of group self‐investment and of the imbalance (i.e. difference) between levels of self‐investment on turnover intentions was also tested. New staff (N=569) joining a large public‐sector organization completed a questionnaire about their socialization experiences in their first 6 months of their employment. Structural equation modelling revealed that social validation by the team and team leaders, and fairness of treatment, predict increased investment with the organization and with the team. Organizational‐level self‐investment and an imbalance in favour of investment with the organization over that of the team mediated decreases in turnover intentions. We conclude that organizations should provide newcomers with validation that promotes identification with their organization during this critical stage of socialization.     

MNE dynamic capabilities in (un)related diversification

While we know that dynamic capabilities (DCs) are important for multinational enterprises (MNEs), little is known about the multiple DCs they may exercise and how they configure the DCs to support their related or unrelated diversification activities. Our qualitative empirical case study findings illuminate how an MNE does so. We confirm that DCs rest on the ostensive microfoundations that encompass the three principal DC processes of sensing opportunities, seizing opportunities and transforming resources. Furthermore, we explicate their performative microfoundations. We reveal that for all the DCs, performative microfoundations of sensing include information gathering and strategic analysis. The performative microfoundations of seizing include a capacity to experiment, then formulating a course of actions. Finally, the microfoundations of transforming include resource structuring, then capability renewal (for unrelated diversification) or capability improvement (for related diversification), and capability implementation. While the process flow of ostensive microfoundations is uniform across DCs, the transforming process flow of performative microfoundations differs for related and unrelated diversification activities. Alongside evidencing the different exploitative/explorative learning and involvement of lower/top-level management associated with the DCs supporting related/unrelated diversification activities respectively, we foreground DCs' configurational nature and extend the IB DC literature on MNE diversification and DCs' microfoundations.     

Empowerment fördern,neue Firmenkultur etablieren,Nachhaltigkeit sichern

In contrast to many other change processes that are often led by a defined process architecture with clear targets and a strategic framework that mainly addresses company leaders, this systemic approach within a medium-sized company fostered high participation and an organically growing change management. Focusing on the empowerment of employees from the start serves two parallel objectives: the development of a new organization and the transfer of the experience from the existing organization. In the following example, this dialectic challenge is targeted by an iterative process. The organic intertwining of operative and change specific tasks enables a participative target frame that step by step includes and fuels a new culture, modern leadership principles, and contribution.     

The Case for Managerial Ruthlessness1

This paper summarizes relevant literature and reports on a study which has examined the behaviour and attributes of managers in British mid-sized companies in which growth is a strategic objective. The study used a grounded, interpretive methodology, which allowed the development of theoretical propositions which have not been subject to previous empirical examination. This paper deals with one aspect of the findings, namely ruthlessness on the part of managers in dismissing or otherwise dealing with poorly performing members of staff. This aspect of management was an important factor in the subject organizations' ability to achieve their chosen strategy, and is a phenomenon which does not appear to have been developed in any previous models of effective managerial behaviour. Managerial ruthlessness influences strategic implementation in a number of ways – it affects control of the organization, team building and the ability to respond to changes in the environment or undo mistakes in appointments. This paper also outlines attributes and characteristics of both the individual manager and the organization which allows ruthlessness to be developed and used effectively, for example self-confidence; the ability to ensure that criticism or dismissal is not seen as personal; the separation of work and social life; and the ability to focus on objectives rather than the person. Organizational support and training in such behaviour also appeared to be helpful contributors to the development of such behaviour.     

How French managers deal with radical change

Top management are increasingly concerned with the flexibility of their companies and with the problem of implementing strategy. This article presents a model of strategic change derived from the managers' experience and perceptions in some companies which achieved radical transformation. Indepth studies were carried out in four diverse companies. The experience of top managers revealed that the management of strategic change required an integrated approach to six interrelated areas—formulating a strategic project, managing the development of resources and skills, negotiating with the environment increasing internal communication of strategy, dealing with power, influencing the norms of behaviour and developing a team of transformation-minded managers.     

Strategic control at the CEO level

This study of 108 corporations is intended to identify and validate those strategic control factors that contribute directly to the success of strategic decisions made at the level of the CEO which are subsequently implemented throughout the organization. In direct response to a comprehensive questionaire, 61 CEOs rated nine strategic control factors. Only the ratings of CEOs were accepted and processed in this study. Their ratings revealed areas of obvious strength and correctable weakness in their perceptions of strategic control within their respective organizations. These ratings tended to validate a conceptual process model of strategic control.     

战略变化的特征研究

战略变化往往被研究者和管理者当作帮助组织在"超竞争环境"中获得持续生存的根本动力之一.本文对战略变化的可能性、方向、幅度、速度等特征进行了研究,并指出对战略变化特征的研究需要多特征的综合研究,才能更好地揭示企业战略变化的过程.     

Towards better strategic management

Strategic management is concerned with determining the long-term goals on an enterprise and deciding on the most appropriate course of action to achieve them, considering changing environmental conditions, resources available and risk attitudes.

The deliberate practice of strategic management is still regrettably rare and rudimentary despite wide recognition of the threats to corporate survival under conditions of rapid change. Better use must be made of the tools of business planning and many more managers skilled in strategy development will be required.

The purpose of this article is to discuss some of the difficulties in inculcating a strategic climate within an organization and to propose some approaches for improvement.     

The sense of it all: Framing and narratives in sensegiving about a strategic change

Managers leading strategic change processes have to be skilled language users in order to convince others of the necessity of change and to shape the interpretations of their followers in a preferred direction. This paper asks how and why managers employ certain forms of language in their sensegiving during strategic change, and when these managers are effective in their language use to change the sensemaking of others in the organization. On the basis of a longitudinal case study of a European multinational corporation, we find that effective sensegiving is about providing organizational members with a pragmatic form – a way of making sense rather than, as previous research suggests, about providing them with pre-packaged meanings. We extend prior research by distinguishing the effects that the different linguistic forms of managerial sensegiving have on organizational sensemaking. Furthermore, the managers we studied were effective in their sensegiving when they combined framing and narratives. These two forms of language supported each other by amplifying the overall effect on organizational sensemaking. This notion of a combined use of framing and narratives complements previous research, which has largely studied them separately.     

Chief Executive Officer Behavior: The Catalyst for Strategic Alignment

Organizations facing the need for significant change must determine both adirection for change and a means to realize the strategy. Implementing astrategy for change is dependent upon aligning organizational parametersproperly at the system level: structure, culture, training and development,recruitment and hiring, resource allocation, leadership, information systems,reward systems, coordination mechanisms, and control systems. The chiefexecutive officer must be the catalyst for strategic alignment. Four clustersof behavior are particularly important for the chief executive officer toexhibit in implementing strategic change: Communication, StrategicInteraction, Resource Utilization, and Leadership. Specific behaviors withinthese clusters are identified. The chief executive officer has an importantrole to play as the catalyst for strategic alignment, but the ultimate purposeof that role is to make it possible for the organization to see itself as abroader community responsible for the long-term success of the organization.