Strategy as Competitive Advantage - Competences, Assets, and Outcomes - Case Study Example

MAKING STRATEGY Executive Summary This making strategy report document seeks to give a breakdown on what happened during a strategy preparation process. The content comprise of four parts where first part entails mapping the system issues and providing statement of strategic intent 1 – Issue Management. The second part comprises of map 2 and map 3; representing mapping laddering up and goal system respectively. In this second part, statement of strategic intent 2 – purpose is also discussed appropriately. The report’s third part entails map 4 - competences, assets and outcomes and map 5 - most distinctive aspects of competence system with statement of strategic intent 3 – competitive advantage. Lastly, the report is concluding part comprises of integrated statement of strategic intent and process commentary. MAP 1 Issue system This part demonstrates strategy as issue management process. Issue map are known as tidied hierarchical map having priorities marked. In addition, this section analyses strategy as the prioritisation and management of key issues (Ackermann and Eden 2011). The general point concerning making strategy is about agreeing on which strategic issues to practically concentrate cash, energy, effort and emotion (Raimond and Eden 1990). Management and prioritisation and of key issues (Best and Barnwell 2009); The relevant time horizon for the strategy is about 2 to 5 years. The strategic issues that need to be resolved in order to assure the long term success of the organization over next 2 to 5 years concern revenue gain for Edinburgh airport (Edwards 2004). The issues are shown in strategy as a management issue map below (Ackermann and Eden 2011). Surfaced issues concerning opportunities Edinburgh airport is facing such as round robin (procedural justice), negative issues and opportunities, cause and effect and action orientation issues (Ackermann and Eden 2011). Linked issues: Strategic issues are not autonomous, they influence one another. The process of linking issues adds significance to the workshop in different ways. The first advantage is that through the linking procedure participants (team members) can start to recognize in more aspects how the surfaced issues connect to each other (Raimond and Eden 1990). Significantly, the procedure progress from thematic clusters to action where a number of the connections are identified transverse the thematic clusters also within them. This issue map is action-oriented since it captures a means-ends framework where each connecting arrow denotes a ‘means’ statement and an ‘ends’ statement (Ackermann and Eden 2011). Statement of Strategic Intent (SSI) from Issue Management In the discipline of management and organizational expansion, strategic intent is expressed as a persuasive statement about where a corporation is going that concisely conveys a sense of what the organization needs to achieve within a stated period of time (Edwards 2004). The key goal of Edinburgh Airport for the short term (2 to 5 years) period is to boost or increase the profit per passenger, increase the destinations the airport is linked to thus boost airlines using the airport (Raimond and Eden 1990). The strategy of boosting profit per passenger is to increase the number of time utilized by the clients in the airside. This is achievable through increasing the amount of commercial floor capacity. However, because of the increased time utilized in the terminal, passenger satisfaction may be adversely impacted. Eventually, reinstating the amount of client’s throughput to current international levels will guarantee achievement of the objective of boosting profit per customers (Ackermann and Eden 2011). To boost the profit generation, it is essential to increase the number of destinations that the airport serves. Destination increment should also boost the number of airlines utilising the Edinburgh airport. This will consequently need boosting the landing slots in the airport (Edwards 2004). Communication between departments should be reviewed so as to deliver quality customer service. This is to facilitate maintaining passengers’ confidence in airline by delivering professional advice and delivering excellence in service quality and administration. Another strategic intent concerns responding to tax pressure put by government, the airline to pursue opportunities to make savings. Staff encouragement through consideration and advancement of employees pays whilst maintaining access to professional principles (Raimond and Eden 1990). Strategy as issue management map Source: decision Explorer The priorities denote essential perspectives of strategy; a bargained agreement concerning where to input energy, finances, effort and emotion so as to increase Edinburgh airport’s capacity (Edwards 2004). This concept of strategy engages managers and is frequently missed by the analytical and formal approaches to strategy (Ackermann and Eden 2011). The first duty for the team to be tackled was role recognition. The team understood that there was no precise practices in the industry selected (airline); however, the group has an affluent diversity of backgrounds. The group agreed to practically assign responsibilities identical to personal experience of every member of the team. This was one aspect the team decided to input strategy aspect of agreeing where to pragmatically concentrate energy, finance, effort and emotion (Raimond and Eden 1990). The subsequent interaction was linked to raising key issues that the team put as purpose to encourage two core things, procedural justice and participation. The team employed the round-robin, in which the group put the goal to acknowledge every concept of view from the team members considering the recommendations (Best and Barnwell 2009). Fascinatingly, whereas it is an influential value generator, it is not simple for teams to acknowledge different perceptions. It was additionally acknowledged that a number of issues were not worded purposely (Ackermann and Eden 2011). This was substantial of misinterpretations in the round-robin technique, since by permitting any issue there were a number of recommendations not adhered to as less than six words could make the concern to puzzling to others. This led to confusion later in procedure because of the uncertainty of the concepts. The process resulted in 21 issues, as required by the demonstrated though less by 4 concerning 25 standard descriptions in MOSS surfacing in 30-45 minutes (Ackermann and Eden 2011). While describing the linkages between the issues the team realized that most of the issues were functional rather than strategic (Raimond and Eden 1990). According to MOSS, this is in order since operations and strategy ought to be seen as integral to one another. By exhibiting the issues on DE (as illustrated above) assisted both clarify and reshape a number of the issues because the team was outline of a map projection that allowed the instantaneous analysis of every member (Ackermann and Eden 2011). The projection also influences the classification of central issues during negotiations in establishing the priorities as shown in MOSS (Ackermann and Eden 2011). The strategy as issue management map, publicly revealed, acts as a structure to facilitate negotiation. Some team members had extra hands on with the instrument and this led in them being the facilitators during the entire procedure, so the team made a decision to start the subsequent stage of the procedure facilitating the negotiations. In retrospect, the team concluded that the procedure can be flourishing just with trade-offs. The two key issues are time and procedural justice and time and quality of recognized priority (Ackermann and Eden 2011). Comprehending causality facilitates to diverse approaches or concepts all of that are valid since all negotiations are founded in the exclusive manner individuals observe the future. MAP 2 Laddering up map MAP 3 Goal system map In the procedure of agreeing objectives, the negotiation techniques of the team members’ act as a major role. The fact that an important accord is not essential satisfying all team members leaves constantly a mark that will regularly come back in subsequent debates (Ackermann and Eden 2011). If a team identifies issues and they are discarded, then groups can become disillusioned more than if the matters had not been identified at all. Whereas instituting purpose, the group was easily capable to differentiate those key standard goals from the business goals. However, the team got stuck in finding group criteria to decide whether the endpoints were goals or not. The break released tension among the participants and promoted a fresh perspective of those previously identified goals indicating the teams’ energy, as recommended in MOSS (Ackermann and Eden 2011). Having a break, mid-forum, can also permit a physical and mental break and provide the supervisor or manager-client with a chance for resting and getting ready for the subsequent part of the discussion (Raimond and Eden 1990). The break also let to a holistic concept of the goal map because, in the instant the team acquired in the room once more, the complete map was only deal with the team, occasionally giving one stride reverse is sufficient find a resolution (Ackermann and Eden 2011). This international perspective was facilitated by the extra of a number of key goals that the group failed to spot in the catharsis during round-robin session. Statement of strategic purpose The statement of strategy intent from purpose comprises the purpose and goal that as a team we sort to enhance making strategy within the selected airline. Increasing the capacity of airlines able to use the airport is a main goal for the Edinburgh Airport (Edwards 2004). By accomplishing increase of airline capacity the airport will boost both capacity of passengers and revenues. In addition, this will also profit the airport to reduce unit costs using economies of scale (Raimond and Eden 1990). Involvement in technology to minimise noise and air contamination are necessary to gain and sustain economic development in surrounding communities (Ackermann and Eden 2011). The investment, government integration and community involvement will begin to propel Edinburgh Airport through a mutually reinforcing capacity, which will boost its international standing through constructive publicity. Transforming to one of Scotland’s leading airfield, also the encouragement of Scottish tourism will supplementary create increased interest, thus propelling the objectives of augmented airlines and passenger figures to current international levels (Edwards 2004). Increasing the service level of passenger satisfaction will assist to improve the reputation of the airport, while optimising repeat industry thus increasing passenger capacities yearly for the next 5years. These abovementioned issues will create greater revenues per airline and passenger (Ackermann and Eden 2011). In addition, these rising numbers will help in attaining minimising operating cost because of improved economies of scale. The entire factors chip in to the airport’s crucial objective of increasing overall profits (Edwards 2004). MAP4 Competences, Assets and outcomes Strategy as Competitive Advantage Map of competencies with distinctive competencies indicated. The strategy as competitive advantage reveals all of the surfaced competences, assets, distinctive competences, distinctive competence outcomes, distinctive assets and competence outcomes (Ackermann and Eden 2011). Map of Competencies Basis for DC pattern This distinctive competencies patterns illustrated on a separate map. It shows what the team believes to be the outstanding distinctive pattern (feedback loop portfolios, or others) (Ackermann and Eden 2011). Team members discovered it at first hard to differentiate between competencies, assets and competencies results. As recommended in making strategy, the effort was not just in team effort but in general, lack of clarity among the results from competencies and the competencies particulars (Ackermann and Eden 2011). The team decided to differentiate assets from the competences as those products the organisation have rather than capabilities. In addition, disappointment came while making effort to recognize the distinctive competencies for Edinburgh airport, as indicated in the Mapping out Strategic Success textbook (Ackermann and Eden 2011). According to Mapping out Strategic Success textbook, it is indicated that members of a management team get it hard to classify distinctive competences (Raimond and Eden 1990). So as to trounce this paralysis by analysis, the team members illustrated the benchmark extent of the simulation and result concluded that Edinburgh Airport was contrasted against the other international European and other region airports (Ackermann and Eden 2011). The team discussion led to a decision that Edinburgh Airport does not actually have considerable competitive distinctiveness as evaluated with other provincial airports. Conversely, key differentiator recognized was the capability to register the fresh generation aircrafts this is since it is an individuality that can be urbanized and managed by the airstrip as Mapping out Strategic Success, DC are characteristics of an organisation that can be controlled (Ackermann and Eden 2011). The entire competency surfacing procedure was fatiguing for a number of team members. Furthermore, a lack of disengagement and motivation of members was recognized. It was evident that encouraging them to listen both compassionately and analytically to one another is unavoidably overwhelming of both energy and time. The team made a decision to have a brief feedback meeting to identify the reasons and describe corrective actions. One outstanding cause was that the group had not put the rule to generate substantial deliverables at least twofold daily. The implemented resolution was to accumulate the initial draft manuscript with every the preceding stepladder. Noticeably, there were some concerns or issues not completely analysed, however, as indicated in MOSS, there is by no means sufficient time to assess every issue (Ackermann and Eden 2011). This resolution permitted team members to observe the outcome of the preceding effort and approximate the outstanding work. In addition, it was concluded to systematize the inductions in a way that outcomes were generally approved. It is accurate to conclude important that the statement of strategic intent is created either at the conclusion of the opportunity or soon after (Ackermann and Eden 2011). MAP 5 SSI from competitive advantage The main competency of Edinburgh Airport is the capability to make Scotland’s main intercontinental hub. The competency is determined by application of the landing highway that is capable to obtain huge aircraft. In addition, being component of the broader airline family will help in maximising regulation and procedures thus attainment of capability to make a robust international route hub. Making associations with local entrepreneurs, societies and the distribution of proficient cargo functions will result in improved customer service and influential customer associations created. These issues will jointly strengthen and fortify one another to conclude in a resourceful passengers’ service to airlines utilising the aerodrome also ensuring improved customer contentment (Ackermann and Eden 2011). These abovementioned issues or matters will lead to the airport’s significant competency of making Scotland’s excellent global hub. A supplementary strategy to sustain competitive advantage is to create the airports rail connection to Edinburgh and key major cities. Aggregate SSI It is apparent that the objective of Edinburgh airport is to increase their profit margin and develop one of the Scotland’s dependable airports. In its pursuit to be the most important airfield of Scotland and accomplish increased total profits, Edinburgh airport object to augment the standard of traveller fulfilment and to enlarge the amount of airlines utilising the airport. To accomplish these objectives, the airport will set the entire efforts into improving its global reputation and drawing the key airlines of the globe. In addition, via the airports already strong dedication to the surroundings and devotion to surrounding local communities, the airport will be capable to promote its increasing stature as a communally accountable airport (Ackermann and Eden 2011). The efforts will jointly strengthen each other and assist to attain the essential increase in passenger capacity consequently leading to better revenue collection (profits). A improving a number of competencies that influence the tacit capabilities like making Scotland’s best worldwide hub, the capability to create associations with the domestic entrepreneurs also the capability to create regional transmits attains powerful client associations. Edinburgh airport plans to use favourable assets, like being an element of airline body and having a landing strip that is capable to take huge aircraft to extend these capabilities further to create powerful client associations (Ackermann and Eden 2011). Boosting the amount of destinations that the airfield has links with is crucial for Edinburgh Airport to in cooperation improve its global reputation, also to cultivate its capability to construct Scotland’s most excellent global hub. Sequentially to boost on its capability to hub the innovative creation of aircraft, there is a necessity to boost number of staffs. In addition, a strategic assess that the airfield requires to embark on is to create the airport rail connection linking the airport to Edinburgh and major cities. The accomplishment of a strategy like that not only assists the airport to strengthen its capability to make Scotland’s most excellent international system but also assists the airport to encourage Scottish hospitality industry through commercial connections (Ackermann and Eden 2011). Commentary The process brought confusion and friction among team members. However, after the friction and perplexity during the issue and competency phases the procedure of merging the SSI was cooperatively easier and more fruitful. The initial phases had been additionally animated; it is also significant to acknowledge that it was motivated because of the relationship of the team members with the issues and their perspectives. At the same time as the friction has to be controlled in any team practice, the nonexistence of friction may also denote lack of participation or integration of the procedures as recommended. The authors of making strategy: MOSS claims that rather than the ordinary conjecture that corporation politics are a dreadful occurrence, on the divergent perspective, organisational political perspectives will time and again be a symbol of genuine arguments that lead to agreements (Ackermann and Eden 2011). The exhibition of the competencies, issues and goals on a solitary screen permitted the team to in cooperation observe the apparent linkages also discuss the uncertain ones. The procedure was more good-natured for the statement that the competencies and the goals given by the team harmonized one another and thus simpler to combine into a solitary SSI. Whereas every SSI’s depicts a brief discussion of a given procedure, SSIs were not as meaningful independently when the subsequent step was completed (Ackermann and Eden 2011). Integration of SSI’s issues, competencies and goals gave an accumulation and more absolute image of the organisations strengths and the suitability for the goals. Evaluating the last SSI with the previous one’s gave a crucial education of the procedure; the necessity to make sure the explanation of the SSI at each phase on conclusion of that exact stage as recommended (Ackermann and Eden 2011). The incapability of the team to indicate the SSI at the prearranged phase led in the SSI not providing a brief preview of the indicated activity but also indicating elements of the subsequent phases. However, study of every SSI’s also gave the surge of the procedure right from the initial phase of issues up to the final stage of connecting competencies to objectives and the series of an easy outburst of emotions via issues to a junction of priorities and competencies with goals. The conflicts at this phase were fewer also because of the fact that the entire process (Ackermann and Eden 2011) psychologically exhausted the group. The lessons acquired at the competencies phase also made sure the team was extra responsive to others perspectives and thus gave inter team frictions. References Ackermann, F., & Eden, C. (2011). Making strategy: the journey of strategic management. London: SAGE. Best, N., & Barnwell, H. (2009). T4: test of professional competence in management accounting. Burlington, MA: Cima Publishing. Brightman, R. J. (2002). An introduction to Decision Explorer. Decision Explorer workbook 1: Banxia Software Limited. Version 1.4. Retrieved on 7th August, 2014 from http://www.branxia.com Edwards, B. (2004). The Modern Airport Terminal: New Approaches to Airport Architecture. Taylor & Francis Raimond, P. & Eden, C. (1990). Making Strategy Work. International Journal of Strategic Management, 23: 97-105. Read More