Managing strategic change--strategy, culture and action

One of the major problems facing senior executives is that of effecting significant strategic change in their organizations. This paper develops a number of explanatory frameworks which address the links between the development of strategy in organizations, dimensions of corporate culture and managerial action. In considering such linkages, and by illustrating them with examples from work undertaken in companies, the paper also seeks to advance our understanding of the problems and means of managing strategic change.     

Designing communication support systems for strategic planning

While as a distinct and intermittent managerial activity planning is slowly dying, in a systematic and continuous context it is rapidly growing! More and more organizations are beginning to realize that planning entails ongoing learning and adaptation of people rather than one-shot, pseudo-scientific analysis of abstract problems. To facilitate this fundamental transformation in organizational thinking, new electronic management support systems are being created. These systems will facilitate collaborative problem exploration through improved managerial communication. In effect, they will actively assist managers to understand and manage the relationships between the strategic planning process and the other corporate processes such as budgeting, capital investment, performance evaluation and employee compensation.     

Changing Strategy Processes and Strategy Content in Public Sector Organizations? A Longitudinal Case Study of NPM Reforms’ Influence on Strategic Management

New Public Management reforms have been argued to intensify the use of strategic management in public organizations, but there is a need to understand how reforms influence specific aspects such as strategy processes and strategy content. The NPM reforms are expected to formalize and professionalize strategy processes and strategy content towards greater competitiveness, but this may counter cooperation between organizations, which is essential in many areas for overall service provision. Research has provided little empirical knowledge about the simultaneous competition and cooperation in the public sector. This study offers such knowledge via a panel case study of five Danish upper secondary schools over a ten‐year period during a large NPM reform. The study includes three rounds of interviews with school principals before, during and after the reform, combined with secondary data. The study shows that, during reform implementation, strategy processes become more formalized and professionalized, and that teachers, in particular, lose influence. Regarding strategy content, the authors find an increase in external focus and competition, though schools maintain a focus on cooperation. The results suggest that NPM reforms can significantly change strategic management in public organizations, and that this is not necessarily at the expense of cooperation, at least in the short run.     

Strategic planning in Tanzania

The Tanzania Wood Industry Corporation is one of the very few parastatal organizations that have developed and introduced a strategic corporate planning process. The novelty of the idea, the many operational problems that surround the managers and the lack of adequate training are some of the problems that have retarded the development and introduction of corporate planning in Tanzania. In 1980 the new CEO of TWICO contracted a Finnish management consulting firm to audit the whole corporation and to recommend a better management practice. Systems manuals were then developed and a grassroots based strategic corporate planning process was then introduced. Now in its third year, the impact on management is very encouraging.     

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.     

Beyond the “silo view” of strategic management and corporate governance: evidence from Fiat,Telecom Italia and Unicredit

While corporate governance and strategic management have for a long time suffered from artificial separation and, therefore, generally been tackled in a secluded manner, their combined organizational impact makes them stringently related to one another in the firms’ evolution. In this paper, we argue that, transcending the “silo view” of corporate governance and strategic management, time has come to acknowledge that, depending on circumstances and time periods, within a firm is possible to detect the relative dominance of corporate governance over strategic management, rather than the leadership of strategic management over corporate governance. Drawing on a contingency approach, we dissect the relationships (and the mechanisms that control it) between the strategic function (i.e., which defines the firms’ strategy and supervisions its implementation) and the governance function (i.e., the congruence assessment between the firm strategy selected and the interests of the ownership and of other relevant stakeholders represented in the board of directors and the effectiveness appraisal of the entrepreneurial action). Then, by performing a thorough retrospective qualitative analysis of three relevant case-histories of Italian firms (Fiat, Telecom Italia and Unicredit) operating in three different industries (automobile, banking and telecommunications), we surmise that, either in corporate governance (board) oriented or in strategic management (CEO) oriented companies, the ‘real’ problems arise when the quality of corporate governance or strategic management is poor. Interestingly, we eventually suggest to adopt a value-based approach to the relationship between corporate governance and strategy that may fruitfully complement the contingency perspective taken at the onset of the work.     

Conjoint effects of interacting strategy-making processes and lines of defense practices in strategic Risk Management: An empirical study

The ability to contain adverse effects of major risks under turbulent conditions and exploit the opportunities they present are fundamental concerns in strategic management and various institutions promote enterprise risk management (ERM) to deal with these challenges. Yet, our knowledge about how ERM affects performance and interacts with corporate strategy-making processes is limited. The ERM frameworks impose first and second lines of defense practices to integrate business operations and corporate risk oversight. Emergent strategies generate responsive initiatives and strategic planning coordinates updated actions. Hence, this study analyzes the conjoint effects of these ERM practices and strategy-making processes based on a large corporate sample and finds that ERM practices depend on strategy-making to attain effective risk outcomes. The application of ERM frameworks can, therefore, not be assessed in isolation, but must consider corporate strategy-making. This has implications for the way we conduct research on strategic risk management, how executives approach risk oversight and policy-makers impose formal risk governance requirements.     

Corporate expatriate career development

Western business expatriates assigned to Hong Kong responded to a mail survey regarding availability and usage of corporate career development activities. Despite the strategic need for expatriation, it was found that corporate development activities had a low availability indicating little interest on the part of parent organizations to assist in the development of expatriate careers. Large-size parent organizations, with substantial interests in international business operations, generally provide more expatriate career development assistance as opposed to small and medium-sized enterprises with fewer resources and little experience to cater to such needs. Experienced expatriate managers generally use more career development activities than less experienced managers, which could pose a problem for the procurement and advancement of new generations of expatriate managers. Implications of these findings for managers and their employers are discussed in detail.     

董事会对公司战略过程评价:逻辑架构与指标体系

公司的战略管理是所有管理活动的重中之重.它包括战略判断、计划与预算活动、战略执行以及适威Adaptive)与交互(Interactive)性的战略控制体系.而现代公司治理原则要求董事会应关注和评价公司的战略管理活动.本文进一步认为,在资本市场不够发达的情况下,董事会应关注公司战略管理的奎过程为此,我们提出了一个针对公司战略管理体系有效性评价的基本框架和评价指标体系,目的在于使公司治理有效地作月于管理过程,最终为企业创造价值.     

A review of analytical models in strategic planning

Strategic management is a process that deals with the entrepreneurial work of the organisation, with organisational renewal and growth, and more particularly, with developing and utilising the strategy which is to guide the organisation's operations. Strategic management approaches emphasise the processes of strategic decision-making and adaptation to change. The paper reviews the literature to date and the modern strategic management paradigm and examines strategy formulation from an analytic perspective.     

What is strategic leadership? Developing a framework for future research

We attempt to bring clarity to the concept of strategic leadership and guide its development by reviewing and synthesizing the existing management literature on how top managers and board directors influence organizations. We propose a new definition of strategic leadership and offer a framework organized around the essential questions of what strategic leadership is, what strategic leaders do, why they do it, and how they do it. To answer these questions, we organize our review around the eight functions strategic leaders serve, the key attributes of strategic leaders, the theories scholars have used to relate these functions and attributes to outcomes, contextual factors, and the organizational outcomes that strategic leaders affect. We identify how strategic leadership research is concentrated in five streams that rarely interact with each other, and offer suggestions for connecting these streams. Our review provides a big picture of what is known about individuals at the top levels of organizations and highlights the key areas where future investigation is essential.     

A framework to study strategizing activities at the field level: The example of CSR rating agencies

This paper responds to recent calls to bridge strategy and organization research by combining Strategy-as-Practice and Neo-Institutional Theory through re-theorizing the notion of strategic actor. We problematize the notion of strategic actor at the field level, and rely on insights from management and organization studies and sociology to advance a theoretical framework that conceptualizes organizations as social actors at the field level. We demonstrate our theoretical framework by drawing on corporate social responsibility rating agencies. We see corporate social responsibility rating agencies as supra-individual, social actors that are predisposed to assume an active role in defining and revisiting structural parameters within the society through their purposeful, meaningful actions and interactions. Our main contribution is to the development of the Strategy-as-Practice literature, achieved by re-theorizing the notion of strategic actor at the field level. This contribution responds to the micro-isolationism critique, and proposes a new focus for Strategy-as Practice research.     

Unintended agency: Impression management support as a trigger of institutional change in corporate governance

In this paper we describe an emergent process of institutional change in which institutional entrepreneurs are unintentional contributors to the change process. Our theory suggests how change in the predominant institutional logic of corporate governance at public U.S. companies resulted not from deliberate attempts by corporate leaders to change the criteria by which governance is evaluated, but from the cumulative efforts of top executives to provide “impression management support” (IM support) for individual leaders of other firms. We first discuss how IM support has spread among corporate leaders through generalized social exchange. Then we suggest how individual leaders, in seeking to persuade journalists about the quality of corporate leadership at particular other firms, tend to invoke evaluative criteria that deviate from the prevailing institutional logic of governance. We further suggest how the rhetoric of IM support instigated a cascading social influence process that has contributed to changing perceptions about corporate governance among a broad range of other corporate stakeholders. We discuss the implications of our model for sociological perspectives on corporate governance and the corporate elite. Finally, we consider how the occasional negative commentary by corporate leaders about their peers, in combination with IM support, helps to sustain the credibility of the social system in which leaders, journalists, and other information intermediaries operate.     

A fundamental approach to strategy development

The problem of developing sound business strategy is probably more difficult now than it has been at any time since the war. In the midst of conflicting pressures of inflation, recession, unemployment, business failures, and social and political upheaval, today's businessman faces an environment which is both unfamiliar and uncertain. The lack of predictability concerning economic affairs can make it seem impossible to plan effectively for the future. Yet without sound strategy today, corporate survival itself may be called into question. What should be done?In this, the first of two articles, the author suggests that the key to strategy development now is to focus more than ever before on ‘fundamentals’. For the individual business, market share appears to be paramount, as is shown by the ‘experience curve effect’, a concept developed by the Boston Consulting Group in the course of its international work in advising companies on corporate strategy problems. Relative competitive position thus becomes the required simple but fundamental strategic goal. However, the quest for a superior market share must take place within the confines of an appropriately defined strategic business segment.In a further article in the February 1977 issue of LRP the author will go on to expand these conclusions concerning individual businesses, considering their implications for the sound development of strategy for the multi-business company.     

Environmental scanning—Does it help the chief executive?

Firms must correctly identify and analyze the nature of their strategic environments, their strategic oppurtunities and problems, and, formulate the precise strategy sets for corporate strategy for accomplishing the chosen organizational objectives and goals. This articles reports on a survey. Chief executives of industrial corporations provided their insights and experience (see Appendix I) and the findings are analyzed for the implications for other practising chief executives. The nature of environment which is strategic to a particular firm has considerable influence upon the firm's choice of strategies. The correct understanding of this influence is critical to the firm's organizational effectiveness. Only after a correct understanding can the chief executive formulate the precise mix of strategies and meld them in the strategy sets of the corporate strategy.The major findings indicate that the levels of difficulty experienced in accomplishing firm's objectives and goals depend upon the perceived nature of complexity, unpredictability and dynamism of the firm's strategic environments. The levels of clarity on strategic issues also depend upon these same attributes of environments. The formulation of strategy sets of corporate strategy are indicative of the ways by which the chief executive and his management team expect the firm to achieve its major objectives and goals by monitoring the strategy sets to keep in tune with the changing realities of the firm's strategic environments. General management, marketing and finance, were the vital group strategies, followed by production and research and development. External relations, personnel and procurement were the least important strategies. Firms operating in simple and stable environments experienced the least difficulty in achieving corporate goals, while firms in dynamic and complex environments experienced the greatest difficulty.     

Helping managers to develop strategies

Concepts within strategic management are defined and a framework for strategic analysis and planning is presented. Within the planning operation, corporate strategy and corporate integration are central to strategic management. The timetable largely prescribes the procedural steps involved in strategic analysis and planning, and the character of each of these steps is determined by the frame of reference, or the aims and purpose of strategic managers, which are established during strategic planning. As a practical management tool, the framework developed here offers the possibility to improve management performance and to increase corporate effectiveness and flexibility.     

Mind the gap: The role of leadership in multiteam system collective cognition

The increasing prevalence of team-based organizations places a premium on leadership that will “mind the gap” and enable smooth synchronization of activities across multiple distinct teams. Prior work shows that leaders can be trained to directly facilitate between-team coordination processes. Yet, relatively little is known about the intervening psychological mechanisms that enable between-team coordination. Here, we advance multiteam-interaction mental models—cognitive structures containing knowledge of appropriate between-team activities—as one mechanism that facilitates coordination among multiple teams. We use leader and team cognition data gathered in DeChurch and Marks' (2006) MTS study to test these ideas. Results reveal leaders' multiteam-interaction mental model accuracy “transfers” to teams through strategic communication, and leader strategic communication enables between-team coordination by promoting accuracy in followers' mental models. This study highlights the importance of leadership for developing collective cognition that allows teams to “scale up” from small stand-alone teams to larger and more complex systems.     

TMT异质性、战略变革与绩效改善的关系研究——基于绩效下滑的非多元化企业的数据实证

本文基于高阶梯队理论,针对以往TMT研究的关键问题,探讨绩效下滑的非多元化企业CEO继任后,TMT异质性、战略变革和绩效改善的关系。本文选取了沪深两市2005-2013年相关数据为研究变量,对2008-2010期间发生CEO变更的145家绩效下滑的非多元化企业进行实证研究,结果表明,TMT任期异质性对战略变动有显著负向影响,战略变动对企业绩效变化没有显著影响,战略背离对企业绩效变化有显著负向影响。当我们探索性的测量战略变革的方向时,发现战略变动与企业绩效变化呈U型关系,战略背离与企业绩效变化呈倒U型关系。本研究不仅为绩效下滑的非多元化企业转型战略研究提供一个新的视角,而且为绩效下滑企业选择高管团队提供了决策的依据。     

Strategic planning in a turbulent international environment

What we have argued in this paper is that fundamental changes in the multinational corporate environment are taking place raising proaches to multinational environmental surveillance and multinational strategic management. We arenot offering this as a forecast of what the future will bring. Instead, we are proposing this framework to point to the need for greater environmental orientation and adaptation. MNCs are now in a double squeeze and managers must unlearn past models and criteria to understand problem. But the challenge is more than conventional corporate planning. The problematique can be decribed as one of multinational strategic management. In the area of environment we need research and learning to address three basic questions:What is the MCE? What concepts of the environment should be considered for strategic management? What parameters should be monitored? What are some consequences of the concept of interdependence and turbulence?What multinational environmental surveillance should be done? What methodologies are needed? How can these be made operational? How can the corporation be educated to behave in the new mode required in view of these changes?What new strategic issues and challenges lenges emerges from the MCE? What new demands must be factored into the multinational corporate planning processes? What new content does the changing environment procedure? How can the broadening field of opportunities and threats be systematically mapped and understood?     

Managing strategies incrementally

When sophisticated large organizations make significant changes in strategy, the approaches they use frequently bear little resemblance to the rational-analytical systems so often touted in the planning literature. Such systems are rarely the source of overall corporate strategies. Instead, the processes used to generate major strategies are typically fragmented and evolutionary with a high degree of intuitive content. Although one usually finds imbedded in these fragments some very refined pieces of formal analysis, overall strategies tend to emerge as a series of conscious internal decisions blend and interact with changing external events to slowly mutate key managers' broad consensus about what patterns of action make sense for the future. Based on a multi-year study of how large companies change their strategies, this article summarizes why strategic managers do proceed incrementally and how they manage the complex process of generating an overall strategy.