Crafting a Strategy - Essay Example

Strategy and Change Name Institutional Affiliation Strategy and Change Introduction The success of organisations today depends on their abilities to incorporate accurate strategies about the management practices and include an element of innovation. As globalisation and external market conditions promote competition in the markets, the components of strategy and change become imperative for any existing business. Mansfield and Fouries (2004) identify strategy as the component for competitive advantage whose functionality depends on the business model (BM) applied in the business. The imperative in BM is their particular components addressing the structure of a firm and the performance processes directed to meet its mission, vision and values. Similarly, Demil and Lecocq (2010), recognise BM as the articulation of building blocks to generate value to the consumer and the organisation. The articulation follows two approaches that enhance the understanding of the relevance of BM to both the strategy and change management. A static model considers BM as a way to create value, whereas the transformational approach views the BM as a tool addressing change and focusing on innovation in the organisation. Throughout the course, my attention is drawn to the various topic addressing strategy and change as a component of an organisation. It is these topics that formulate my reflection on the course, specifically focusing on the weekly journal entries of what is a strategy, strategic analysis, crafting a strategy, theories of organisational change, hard and soft methods of managing change, and leading change. A reflection about these entries enhances my learning and understanding of the functionality of change and strategy within the organisation. Week 6: What is Strategy? The current business environments experience a continuation of inevitable changes necessitating the application of strategies to cope with the ongoing change. According to Mansfield and Fouries (2004), I understand strategy to be a form of management behaviour where there is making of choices and performing deliberate actions towards a particular goal. Mansfield and Fouries (2004) also identify it as a pattern influencing the decisions by the management defining the firms’ products, objectives and plans. In this case, I realise a shift from a traditional model where the development of strategy centred on top management following a centralised organisation structure. Mintzberg, Lampel, Quinn and Ghoshal (2014) present different ways to look at the term strategy including a five P model. Interestingly, much as the model takes a different approach from the view of the statement form of strategy comprising of the mission, vision, and values, the components of the P formula links with a traditional perspective of defining strategy. Contributing to the understanding of the term strategy is the work of Cherp, Watt and Vinichenko (2007), where I learn of the further expansion of these P’s to develop different schools of thoughts. The imperative of these schools is their ability to shape management practices based on the characteristics of the business environment. Moreover, there are the elements of strategy including choice, implementation, and position. In my view, implementation follows the binary distinctions of Cherp et al. (2007) including deliberate and emergent strategy formation. Despite their differences, Mintzberg et al. (2014) conclude that formulating and implementing a strategy are one and the same. Thus, I understand strategy as a continuous process refining the present model to cope with the current situation. The case of the Arsenal FC continually managing successful seasons sets an example of the ongoing nature of strategy. For the club to survives the progressive hurdles in the form of financial, economic and social dynamism and provide value to the public, it adopted a dynamic BM (Demil and Lecocq, 2010). Therefore, the topic and the example enhance my abilities to employ efficient strategies in my future organisation, especially those that are dynamic in capturing and mitigating different challenges in the operations of the business. Week 7: Strategic Analysis Strategy takes a form of social and analytic processes which shape its formulation and implementation to the organisation. By definition, Savaneviciene, Vaitkevicius and Merkys (2006) and Johnson, Whittington, Scholes and Pyle (2011) include strategy analysis as the process of understanding the internal and external environments of the organisation with respect to its goals. In my understanding, the analysis forms a vital component in the implementation and formulation of strategies since it accounts for significant factors influencing the success of a strategy to its company. Moreover, strategic analysis requires the application of active mindset in the form of worldly experiences, collaboration techniques, reflection and action models. In this case, I learn of the dependent nature of the analysis to other components which together lead to organisation success. The imperative in managing a strategic analysis is the classification of the analytical tools according to function and applicability in managing an organisational plan. According to Johnson et al. (2011), I learn that classification of analytical tools may focus on different level including the external environment, the organisation, competitors and markets, industry, and stakeholder. Focusing on the external environment, I am made aware of the PESTEL and scenario analysis tools which predict the future events and inform the organisation on appropriate changes. Comparatively, for the industrial sector, Johnson et al. (2011) apply the tools of industry life-cycle and Porter’s competitive forces. In my opinion, the industrial life-cycle analysis takes an upper hand by examining the growth rate of the firm. Concerning the competitors and market, I identify tools such as strategic groups, blue oceans and market segment as imperative analytics focusing on the characteristics of the market and the possible competition (Johnson et al. 2011). From the study, I find the analysis of the shareholders and the organisation interesting since it focuses on the internal environment including the areas of the personnel, resources and technologies available to the business. In summary, strategic analysis is a sensitive process whereby through consultation with the relative parties, its effectiveness becomes enhanced. Week 8: Crafting a Strategy The development and implementation of a strategy follow two parallel thoughts of either a traditional perspective or the new model. As previously identified, traditionally strategy constitutes a plan whereas the new paradigm considers it as an emergent event born from a combination of activities including the collaboration of personnel (Mintzberg et al. 2014). From the lesson, I learn that the decision to follow a particular craft depends on the nature of change such as during a drastic change; emergent strategies become a priority over the planned model. Moreover, it is important for the leader to manage change and stability to avoid making a bad strategy (Rumelt, 2012). Contributing to my understanding of the craft is the work of Burgi, Jacobs and Roos (2005) including the physiological, psychological and social dimension of the craft. Therefore, the development of a strategy incorporates creativity and physical action of a leader. Examining the traditionally planned paradigm, I identify the making of the strategy as a component of planning, external forces, and strategic leadership. The three components develop the disadvantages of rigidity, lack of ownership, paralysis by analysis, and detachment from reality (Mintzberg et al. 2014). Comparatively, I am made to understand that emergent crafting follows the ongoing actions of an organisation facilitating organisational learning. The advantage of the emergent model is its abilities to turn limitations into creativity and opportunities. I relate the case to Lehman Brothers where the increased interest rate of the mortgage by the government saw the firm tapping into more risky markets for a small equity price (Rumelt, 2012). Based on this lesson, I am convinced that umbrella strategies should work best to provide excellent strategies that not only accounts for the future but are capable of managing dynamic changes in the business. Week 9: Theories of Organizational Change Change in the contemporary society and the business environment is inevitable following external factors such environmental changes and globalisation (Samson and Daft, 2012). One of the main issues I identify in the lesson is the focus on four myths of change including the consistency of change, the necessity of change following the underperformance of current methods, the assumption that change is good, and the opinion that change is easy to manage. I find the myths relevant, challenging what is actually happening compared to the expectations of a change. Therefore, to address the issues raised through the theories, Gosling and Mintzberg (2003) introduce the concept of action in change. In my understanding, an action for change advocates for a direct collaboration of the management with the subordinates in structuring a plan to introduce and maintain the change. Addressing the continuity of change and the need for action to enact changes is the work of (Samson and Daft, 2012). From these reading, I am made to understand the continuity of change include its macro examples reflected in the form of technology, social, environmental and economic innovations. More importantly, I realise the types of changes which follow a binary form of classification with the examples of hard and soft changes, planned and emergent, and the intentional and unintentional changes. The lesson includes three vital areas where changes are paramount including the system and processes, the structure and the culture. In my view, although these areas attract more innovation, they are prone to higher risks. Therefore, it is important to analyse the need for change prior to introducing one. Week 10: Hard and Soft Methods for Managing Change Effective management of change applies the use of analytic tools to solve the technical problems within the organisation. However, the application of the tools is not without challenge influenced by the complexity of the problems. Senior and Swales (2010), enhance my understanding of the difference between the hard and soft problems. In particular, I realise the preference by managers to tackle hard challenges through the application of analytical mindset. Soft problems prove more problematic following the human factors involved in their emergence. The preference to manage the hard changes includes the sequential, easy to follow 8 steps method provided by (Senior & Swales, 2010). Although the logical analysis significantly contributes to the effective management of change, I realise the importance of creativity in providing viable options. Focusing on diagnosing change, I learn of the force field analysis, seven S, surveys, multiple-cause diagram and mind-mapping methods as applicable to manage effective diagnosing of the hard change. Comparatively, diagnosis for soft changes involves the application of subjective analysis, consultation, observation, intuition, and questioning approaches. In my opinion, these methods align with the organisation learning leading to organisation development. Their concentration on managing the human element develops an integrative system in the firm. Nevertheless, through the discussion, I find that the soft approaches attract challenges such as the resistance to change by the leaders and the employees. Consequently, Pollack (2009) suggest the application of a multimethodology approach combining both the hard and soft solutions. From Pollack (2009), I manage to identify grafting and embedding as an excellent combination of the hard and soft diagnosis for change. Week 11: Leading Change The main concern of leading change is the identification of a suitable process that addresses the organisation systems, structure, and the people without biases. According to Ganz (2010), a leader in a social setting such as an organisation is responsible for effective change. The imperative in my understanding is the ability of the leader to create conditions that either encourage or discourage the possibility for change. In my view, it is the leadership strategy that forges a social movement towards active changes or away from these innovations. An example is a top-down approach generating 8steps categorised in three classes of creating a climate for change, engage the organisation, and implement and sustain the change. Much as the top-down model is common in organisations today, it fails to consider the human factor. Therefore, an alternative approach includes the bottom-up model. In my understanding, the bottom-up system relies on a soft change management process addressing the various non-technical functions of the business. However, the application of either strategy is a factor of challenges such as culture, politics, human resistance, and communication. Based on Ganz (2010), a leader should manage the tensions of the organisations such as conflict that may arise about the aforementioned challenges. Moreover, Rothwell, Stavros, Sullivan and Sullivan (2009), address the change processes and models whose application considers factors such as the leadership style, power, and organisational structures. As a future leader, I am challenged to develop leadership skills that encourage interpersonal relationships and collaboration. The imperative of these skills is their ability to influence positive adaption to changes. Conclusion In summary, the success of business in the contemporary society involves the implementation of strategies and innovation. The strategy entails a behavioural pattern by the management in decision-making process pertaining to the firms’ plans and goals. The imperative in defining strategy are the models from both the traditional and contemporary paradigms including the P model, statement comprising of the vision, mission, and values, and the schools of thoughts. Having defined strategy, it is important to perform an analysis involving the application of analytical tools. The strategic analysis aims at understanding the internal and external environments of the organisation. It is for these objectives that the classification of the analytical tools follows particular levels along the sectors of the internal or external organisational factors. Despite the different classification of these analytic tools, it is important for the management to including a consultation exercise to enhance the performance and accuracy of the analysis. Concerning the crafting process, the primary issue includes the choice of the leader to view strategy as a plan or an emergent event. From a traditional perspective, strategic leadership, planning and external forces develop the craft, whereas the emergent paradigm relies on the ongoing events in the organisation. On theories of change, the imperative is the inclusion of action from a leader to the subordinate. However, the application of action should follow a collaborative strategy and identification of a need for change. Similarly, managing change involves a combination of models that addresses both the human and non-human factors. Lastly, leading change depends on the leadership skills that develop a positive influence in managing particular challenges of change. References Burgi, P.T., Jacobs, C.D., & Roos, J. (2005). From metaphor to practice in the crafting of strategy. Journal of Management Inquiry, 14(1), 78- 94. Cherp, A., Watt, A., & Vinichenko, V. (2007). SEA and strategy formation theories: From three Ps to Five Ps. Environmental Impact Assessment Review, 27(7), 624- 644. Demil, B., & Lecocq, X. (2010). Business model evolution: in search of dynamic consistency. Long range planning, 43(2), 227- 246. Ganz, M. (2010). Leading change: Leadership, organization, and social movements. Handbook of leadership theory and practice, 19. Gosling, J., & Mintzberg, H. (2003). The five minds of a manager. Harvard business review, 81(11), 54- 63. Johnson, G., Whittington, R., Scholes, K., & Pyle, S. (2011). 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