The document outlines the contents of a strategic planning for budgeting course, including chapters that cover strategic management essentials, external and internal assessments, implementing strategies related to management, operations, marketing, finance, research and development, and management information systems, and evaluating and controlling strategies. It also discusses key aspects of implementing strategies such as leadership, organizational culture, rewards systems, structure, and resource allocation. The chapter focuses on turning strategic plans into tasks and ensuring those tasks are executed to achieve strategic objectives.
The document outlines the contents of a strategic planning for budgeting course, including chapters that cover strategic management essentials, external and internal assessments, implementing strategies related to management, operations, marketing, finance, research and development, and management information systems, and evaluating and controlling strategies. It also discusses key aspects of implementing strategies such as leadership, organizational culture, rewards systems, structure, and resource allocation. The chapter focuses on turning strategic plans into tasks and ensuring those tasks are executed to achieve strategic objectives.
The document outlines the contents of a strategic planning for budgeting course, including chapters that cover strategic management essentials, external and internal assessments, implementing strategies related to management, operations, marketing, finance, research and development, and management information systems, and evaluating and controlling strategies. It also discusses key aspects of implementing strategies such as leadership, organizational culture, rewards systems, structure, and resource allocation. The chapter focuses on turning strategic plans into tasks and ensuring those tasks are executed to achieve strategic objectives.
The document outlines the contents of a strategic planning for budgeting course, including chapters that cover strategic management essentials, external and internal assessments, implementing strategies related to management, operations, marketing, finance, research and development, and management information systems, and evaluating and controlling strategies. It also discusses key aspects of implementing strategies such as leadership, organizational culture, rewards systems, structure, and resource allocation. The chapter focuses on turning strategic plans into tasks and ensuring those tasks are executed to achieve strategic objectives.
•Test 2 •Chapter 9: Implementing strategies: Marketing, finance, R&D and MIS issues Oct •Chapter 10 & 11: Strategy review, evaluation and control • Turn strategic plans into series of tasks
• Ensure that the tasks are executed in such a
way that the objectives of the strategic plan are achieved
Performing Adoption Interpretation of
plans
Communication Leadership style
Organisational Organisational culture structure
Strategy
Resource Reward allocation systems Leadership
1.Leadership Leadership
2.Organisational culture Leadership 3.Rewards systems 4.Organisational structure Organising
5.Resource allocation Organising Strategic Leadership – Ability to anticipate, envision, maintain flexibility and empower others to create strategic change Strategic Leadership – Ability to articulate vision and to motivate others to buy into it Strategic Leadership – Managing through others and influencing human behaviour to achieve goals Class discussion
- Examples of good leaders?
- What makes them good leaders?
Self awareness – Awareness and control of own emotions, strengths and weaknesses Self regulation – Control over emotions, feelings and impulses Motivation – Deep desire to achieve, driven to exceed expectations Empathy – Consider employee’s feelings in the process of making decisions Social skills – Ability to network and interact with different people Very important that the style is aligned to type strategy Example: Growth strategies need a leader who can communicate and manage relationships Example: Decline strategies need task oriented leadership Beliefs Assumptions Behaviourial norms Values
NB: Shared by members of the organisation
Affects how employees approach problems Affects how decisions are made Can determine values = Do’s and Don’ts Influences policies Influences stakeholder relations Influences ethical behaviour Strong -Values, norms and beliefs are deeply ingrained and difficult to eliminate Weak – Few traditions, beliefs and values are shared. Large existance of subcultures Unhealthy – Politicised internal environment, hostile resistance to change, polarised. Adaptive - Employees share belief that organisation can exploit opportunities and overcome threats with ease. Innovation and experimentation order of the day Strategy must be aligned to the culture or The culture must be redefined to match strategy Example: Growth strategies need an adaptive culture Example: Need to manage unhealthy Organisational culture when business going into new markets STRATEGY OR CULTURE? Motivate managers and employees to support the implementation of strategy Use rewards to generate commitment to implementation May be monetary or non monetary
What non monetary examples can you think of?
Share options – Help to create long term view, create personal ownership and reduce staff turnover Golden handcuffs – Pay bonuses in installments that are forfeited should one leave, which helps retain specialised skills Golden Parachutes – Attracts skills because rewards exist regardless if employee leaves because they are fired or resign or business performs or not Performance Bonuses – Bonuses paid out based on performance of the organisation Need to ensure there is alignment to type of strategy and the reward system utilised Example – Growth strategies could use performance bonuses Example – Golden parachutes useful to retain talent during decline stage of business 1. Framework within which the strategic process must operate in order to achieve the organisation’s objectives
2. Framework for setting short term objectives, tactics &
policies and resource allocation
Identify tasks Ensure
Specify who is necessary for Group the coordination Achieve responsible for strategy together between the strategic goals the tasks implementation tasks Entrepreneurial Functional Divisional Matrix Network Simple structure of owner-manager and employees Owner involved in day to day operations Inexpensive, easy communication and easy to communicate within organisation As organisation grows, difficult for manager to coordinate and control Divides the company based on specialty. This is your traditional business with a sales department, marketing department, customer service department, etc. The advantage of a functional structure is that individuals are dedicated to a single function. These clearly defined roles and expectations limit confusion. The downside is that it’s challenging to facilitate strong communication between different departments • Activities and responsibilities split according to divisions, products or projects • Decentralisation of power, creates focus for each division and clear accountability • Loss of economies of scale, duplication of resources, costly and difficult to achieve Consistancy The matrix structure is a bit more confusing, but pulls advantages from a couple of different formats. Under this structure, employees have multiple bosses and reporting lines. Not only do they report to a divisional manager, but they also typically have project managers for specific projects. Matrix structures come with a lot of flexibility and balanced decision-making. This model is also prone to confusion and complication when employees are asked to fulfil conflicting responsibilities The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more “flat”), more decentralized, and more flexible than other structures. In a network structure, managers coordinate and control relationships that are both internal and external to the firm. The concept underlying the network structure is the social network—a social structure of interactions. Open communication and reliable partners (both internally and externally) are key components of social networks. Proponents argue that the network structure is more agile than other structures. Because it is decentralized, a network organization has fewer tiers, a wider span of control, and a bottom-up flow of decision making and ideas. A disadvantage of the network structure is that this more fluid structure can lead to more complex relations in the organization Resources determines efficiency and effectiveness of an organisation Allocate resources in a way that it supports the achievement of organisational goals Budgets are used to allocate resources Financial
Physical Human
Resources
Technological Information 1. People barrier – resistance to change, demoralised workforce, lack of motivation etc. 2. Resource barrier – inadequate resources, outdated infrastructure, lack of access to resources etc. 3. Vision barrier – Lack of clear vision, lack of clear mission, lack of buy in from employees etc. 4. Management barrier – poor leadership, lack of top management commitment, weak management information systems etc.
The Balance Scorecard Collaborative
Translate the Compare objectives into actual Set the a set of Measure the Draw up plans Initiate performance Identify standards of standards actual to correct the corrective to deviations performance which describe performance deviations action predetermined the desired standards state
