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4 major aspects of strategy implementation and change mgmt ((Designing and…

- - - - project and program managment
        
        table 6.2!!!!!!!!!!!!!!!!! #
    - - How does an organisation successfully lead change management
        
        key steps of change
        
        implementing change!!!!!
        
        Components of the communication plan
        
        Communication goals;
        
        Communication audiences;
        
        Key messages;
        
        Communication methods and tactical communication planning; and
        
        Communication measurement and evaluation
        
        Communication channels and vehicles to use
        CAKEGM
        
        Communication issue:
        
        Lack of buy-in
        
        Strategic plans are usually devised by senior managers who often do not seek input from line managers and employees who have important roles in executing the strategic plan
        a. Plan will not be well understood or gain the commitment necessary
        
        Kotters 8 step process for leading successful change
        
        Kotter’s 8 process to address the success factors
        
        Establishing a sense of urgency. (Compelling case  to avoid inertia)
        
        Forming a powerful guiding coalition.
        a. This does not necessarily mean a group of managers, but could be people at all levels who can motivate others towards the new ‘to be’ state and support the need for change in the organisation.
        
        Creating a vision. (to avoid  Confusion)
        
        Communicating the vision to all level. (Communication mechanism  to avoid doubt)
        
        Empowering others to act, and eliminating obstacles. (Building capacities  to avoid frustration)
        
        Planning for and creating short-term wins.(Motivation  to avoid crawl)
        
        Consolidating improvements and producing still more change.
        
        Institutionalising new approaches.(Sustainability of the change  to avoid change benefit not staying)
        UCVCESCI
        
        key elements for successful change
        
        Has a compelling case been clearly articulated? If this element is missing, there may be inertia. If it is not clear why change is required, people will move slowly or make little effort to change.
        • Is there a clear vision? If this element is missing, there may be confusion about the change. People will be unsure about the merits of the change if it is not clear what is changing.
        • Is there a well-defined strategy? If this element is missing, there may be diffusion of effort. Without a clear road-map for achieving the vision, people will focus on tasks that may not deliver on the desired end state.
        • Are there adequate resources? If this element is missing, there may be frustration because people will be discouraged if there is not the budget or means to achieve the vision.
        • Is there the organisational/physical capability? If this element is missing, there may be fatigue because the organisation does not have the necessary skills to lead the change.
        • Is there sufficient motivation? If this element is missing, there may be crawl. If people are not enthusiastic about the change, they will move slowly and change will take longer than anticipated.
        • Are there robust communication mechanisms? If this element is missing, there may be doubt. Without adequate communication about the change and its progress, people will be uncertain about the likelihood of success. CiVcSdRfCfMcMcd
        
        Other:
        
        What is the purpose of change management?
        •Designed to ensure that an organisation and is people transition effectively from the current
        to future statements and support the realisation of business benefits
        •to minimise the productivity dip that occurs at the point of implementation
        
        Strategic initiatives, programs and projects are the most common vehicles for change, assisting the organisation to move from its current state to its desired future position. These programs and projects may last for several years, working through phases of change to achieve the strategic goals
        
        Why does strategy implementation fail
        
        What are the challenges of implementing strategy?
        
        Having a plan simply for plans sake
        
        Not understanding the environment or focusing on results
        
        Partial commitment
        
        Not having the right people involved
        
        Writing the plan and putting it on the shelf
        
        Unwillingness or inability to change
        
        Having the wrong people in leadership positions
        
        Ignoring marketplace reality, facts and assumptions
        
        No accountability or follow through
        
        Unrealistic goals or lack of focus and resources
        (forbes above)
        
        Too much focus on analysis and formulation and not enough in the ways in which resources
        are allocated and operational decisions are made.
        
        Strong resistance from the organisation and individual level
        
        Too political
        SrWsRpPsTaMrPcIcUgRUe2p
        
        PERTT
        The challenges of implementing strategy
        _ The challenges of implementing strategy:
        
        Transforming strategic thinking into action:
        
        Strategies are designed without sufficient regard for the context and situations in which they
        will be implemented
        
        Disconnection between strategic planning and implementation
        
        Majority of employees are not aware of or do not fully understand their organisation’s strategy
        
        Lack of coordination between the strategy and its functional units, processes and systems
        
        Disconnection between strategy and resource allocation
        
        Disconnection between strategy and information systems (inability to utilise effective
        information systems, and to change strategy accordingly)
        
        Paralysis by analysis:
        
        Managers are trained to formulate but not implement strategy (focus on analysis over
        implementation such as resources allocation and decision-making processes)
        
        Resistance:
        
        Strategic inertia
        
        Limited implementation focus Organisational level resistance
        
        Group inertia
        
        Power relationships
        
        Habit and security
        
        Economic factors Individual level resistance
        
        Selective information processing
        
        Politics: interests are different
        
        Political pressures pose a number of threats to the process
        
        Environmental uncertainty
        
        Unforeseen environmental changes put pressure on managers to revise and adapt their
        implementation plans
        
        resistance!!!!!!
        
        The following tactics for managing interpersonal politics and conflict are drawn from the work of Eisenhardt,
        Khawaja and Bourgeois (1997).
        • Work with more information and debate matters on the basis of facts.
        • Develop a range of alternatives to strengthen the debate.
        • Maintain a balanced power structure.
        • Resolve issues without forcing consensus.
        
        Forbes Magazine published ‘10 reasons why strategic plans fail’, drawing attention to some of the challenges faced during implementation:
        Having a plan simply for plans sake
        Not understanding the environment or focusing on results
        Partial commitment
        Not having the right people involved
        Writing the plan and putting it on the shelf
        Unwillingness or inability to change
        Having the wrong people in leadership positions
        Ignoring marketplace reality, facts and assumptions
        No accountability or follow through
        Unrealistic goals or lack of focus and resources (Aileron 2011).
        
        Issues that might encounter in strategy implementation process:
        
        Inter-group conflicts within the organisationif different group pursuing different goals, then no implementation
        
        Ineffective communication  Employee does not understand the reason behind change
        
        Consensus on change Partial commitment; Unwillingness or inability to change
        
        Consensus on criteria for measuring results divergent views about how to evaluate performance, they cannot implement strategy in a coordinated manner; No accountability or follow through
        
        Maintenance and change An organisation’s culture, once established, needs to be maintained
        
        Having a plan simply for plans sake, Writing the plan and putting it on the shelf
        
        Not having the right people involved; Having the wrong people in leadership positions
        
        Ignoring marketplace reality, facts and assumptions
        
        Managers more focusing on day to day running of the business (Refer to reward systems and KPM)
        
        Resistance – issues in strategy implementation
        
        Politics
        
        Political forces – internal rivalry, empire protecting, retention of information, selective communication and caution – can all impede successful implementation.
        
        Political forces become apparent when the strategy is published and communicated.
        
        Invisible plans can outline key considerations of strategy implementation where publication is inappropriate.
        
        Gaps can emerge between stated plans and business realities.
        
        Environmental uncertainty
        
        As part of the processual strategic approach, the strategy must confront unseen environmental changes
        
        Implementation must be ongoing and adaptive to deal with environmental uncertainty and change
        
        Why is change hard?
        
        Inhibited by organisation's complexity
        
        Inhibited by the changing environment
        
        Lack of technology integration
        
        Lack of implementation capability
        CTEC
        
        change is hard diagram!!!!!!!!!!!!!
        
        Individuals move through the curve at different speeds and sequences, and some stay in particular stages longer than others. While employees are working through these stages, they are likely to be less engaged in their work, which may lead to increases in errors, reduced productivity and low morale.
        These factors affect an organisation’s ability to maintain normal business standards and impede its efforts to implement strategic initiatives. Although employees may experience the stages of grief, negative effects can be mitigated with careful planning, support and engagement through organisational change activities that increase the chances of success.
    - - Manager’s role in strategy implementation
        
        Drive strategy throughout the organisation;
        
        Align organisational structure, culture, functions, processes and systems with strategy; and
        
        Manage the politics and resistance of strategy implementation
        DsAsMp
      - Requirements for successful strategy implementation
        
        Performance management plans, programs, projects
        
        Key Performance Indicators (KPI)
        
        Reward systems
        
        Action plans must be resourced and communicated: if necessary programs and projects should be prioritised
        
        Strategic initiatives must be clearly defined
        
        Strategic initiatives must be supported by tactical action, with timed targets for completion
        
        Support of staff must be obtained: resistance to change must be overcome
        KRAPSSidSit
      - 7-S Framework (McKinsey) - Strategy Implementation
        Implementing a strategic plan will often involve the need to introduce change to the organisation
        McKinsey 7S model: demonstrates the inter-connected nature and complexity of implementing change.
        • The different aspects of change (7Ss) all need to be considered together if change is to be managed successfully.
        • The 7 components will either support or reinforce each other to accelerate improvement, or undermine performance and drag each other
        
        Sv truct_trat stems kill_taft_tyle
        
        systems, structure,skills, staff, style, strategy, shared values
        
        Structure
        
        The hierarchy of positions, levels of management, delegation of authority and financial resources, and arrangement of workflow  must balance stability and change
        Typical questions when evaluating structure:
        
        How is the company/team divided?
        
        What is the hierarchy? How do departments coordinate activities?
        
        Is decision making centralised/decentralised?
        
        What are lines of communication? Is it all as it should be? Explicit or implicit?
        LDHD
        
        Principles of organisational design
        
        Centralisation and Decentralisation
        
        Centralised: manly levels of management, invests decision-making authority at the top, has narrow spans of control and is consequently hierarchical shape (Integration & Control)
        
        Business cycle downturn  more centralised to take control and monitor employee more closely
        
        Decentralised: fewer levels of management, devolves decision-making authority to junior and middle levels, has wide spans of control and a flatter shape (Flexibility & Responsiveness)
        
        Mechanistic versus organic systems
        
        2 more items...
        
        1 more item...
        
        Types of organisational structures:
        
        Strategy:  If an organisation wants to respond to the local market quickly greater flexibility  Decentralised
        
        Environmentstable environment: Centralised, changing environment: Decentralised
        
        TechnologyMass production: Centralised, IT has removed layers of middle management and made large organisations flatter
        
        SizeCorporate: Decentralised, SME: Centralised
        
        People and culturehighly skilled and independent staff: Decentralised & autonomy, front-line processing: Centralised
        STEPS
        
        Components of organisation structures:
        
        Complexity: greater the complexity, the greater the need for communication, coordination ,controlDecentralised
        
        Formalisation: the more standardising Centralised
        
        Centralisation: whether the authority to make decision is concentrated in one or a few roles or positions
        CFC
        Organisational structure must reflect the strategic challenges that an organisation faces . What
        are the three main components of organisational structures? [p432]
        
        Complexity: degree of differentiation, horizontally and vertically, between jobs and units;
        greater complexity requires more communication, coordination and control
        
        Formalisation: the degree to which jobs in an organisation are standardised and specified
        
        Centralisation: degree to which authority to make decisions is concentrated in one or a few
        roles or positions
        
        Organisational design
        
        Organisational design is critical for effective strategy implementation, and must balance the need for stability with the need for change. It is a broad concept that considers the configuration of the organisation’s structures, processes and relationships through which it operates.
        
        Organisational design aims to create an organisational structure that supports the strategic goals that have already been developed. The structure comprises the methods that an organisation uses to divide and coordinate its labour into distinct tasks and positions, setting out levels and roles, responsibilities and reporting lines.
        
        systems
        
        How business can use systems for:
        
        Real-time inventory management control;
        
        Predictive maintenance optimisation of machinery and equipment;
        
        Increased service reliability, speed and quality;
        
        Improved advertising and marketing information in online media;
        
        Automated purchasing processes; and
        
        Improved post-purchase services
        RAPSAP
        
        Typical question of organisational Systems:
        
        What systems run the organisation? from Financial, HR, comms & data storage perspective
        
        What are the controls? Constantly reviewed and monitored?
        
        Areas where companies can utilise big data include:
        • leveraging customer information from all points of customer interaction;
        • reducing loyalty program drop-out rates;
        • increasing customer acquisition through improved marketing provision of targeted
        communications;
        • adjusting prices dynamically based on supply and demand for certain products and
        services; and
        • enhancing post-purchase services.
        PIPAL
        
        Staff
        
        Managing teams during change
        Managers need to:
        
        Involve others in decision-making and issues that affect them,
        
        Encouraging and empowering the team,
        
        Providing recognition for effective performance,
        
        Building team spirit and morale, and
        
        Creating a common vision and purpose
        IVERT
        
        Managing culture during change (interlinked with Shared value)
        Organisation’s robust and inimitable strategic capabilities are driven by shared values, affecting its ability to develop new ways of thinking and doing things
        Culture definition: A set of patterns/ assumption as people learns to cope with its problems of external adaptation and internal integration— that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems
        
        Managing across culture during change
        International organisations must be sensitive to the values and attitudes that prevail in the countries and societies where they operate
        Typical questions of organisational Staff:
        
        What specialisations exist within the team?
        
        Are there any gaps in competences?
        
        Is there enough staff for the task?
        
        Do any positions need to be filled?
        PEGS
        
        Two hallmarks or indicators of an effective culture are:
        • managers who are committed to enduring business principles and stakeholders rather than to specific operating practices; and
        • employees who are receptive to a level of risk-taking, innovation and change that is
        appropriate to the organisation and its industry.
        
        According to Schein (1985), the following people and cultural issues are relevant to the strategy implementation process:
        
        Inter-group conflicts within the organisation. Conflicts within groups can prevent the development of a shared understanding, which is important for facilitating the implementation process.
        
        Ineffective communication. The right mix of group and organisational culture is vital for achieving effective communication and overall performance.
        
        Consensus on change. An organisation needs a common language and shared assumptions about how it will operate to succeed in implementing its strategy. Cultural changes may emerge over time as consensus is reached on how the implementation will take place.
        
        Consensus on criteria for measuring results. If members hold divergent views about how to evaluate performance, they cannot implement strategy in a coordinated manner.
        
        Maintenance and change: An organisation’s culture, once established, needs to be maintained and at times changed. Organisational culture can integrate people so that they work together in the implementation process.
        
        IgIcCRM
        
        Managing across cultures
      - First stage: translates the goals into an implementation and performance management plan that sets
        out the criteria for making day-to-day decisions, and provides a mechanism for assessing performance
        against the strategic plan
        
        Second stage: the development of specific actions and initiatives, projects and programs to
        implement the changes identified in the strategic plans
        
        Third stage: linking plans and initiatives to individual performance through key performance indicators
        (KPIs) and reward systems
        
        Last stage: ongoing monitoring and adaptation of the strategy and initiatives to emerging and
        changing circumstances, promoting flexibility and learning
        TDLO
        
        Successful strategy implementation:
        
        Strategies are supported by governance and decision-making
        
        Initiatives are supported by time-phased tactical actions which are adequately resourced
        
        Strategic initiatives/projects are realistic and achievable
        
        Initiatives are clearly defined
        
        All initiatives are managed as a central program
        
        Input received from staff
        
        Performance management:
        
        Effective performance management:
        _ Managers know what strategic goals they want to achieve and what strategic options have
        been selected
        _ Managers express these goals in practical and measureable terms
        _ Managers understand their current position in relation to these goals
        _ Managers appreciate the resource implications of achieving these goals
        _ Managers ensure that the goals and required action plans are well communicated and that key
        employees are accountable for their achievement
        
        Project and program management:
        
        Project management: management of a temporary endeavour – separate piece of work with
        one specific objective or goal that can be achieved in a shorter period of time
        
        Program management: management of a group of projects – a number of related or
        independent goals that must be met and take a longer time than a project
    - - Strategic Implementation Steps
        
        4 major aspects of strategy implementation and change mgmt
        
        Designing and developing detailed implementation plans and project briefs;
        
        Strategy implementation
        a. Strategy goals converted into an implementation plan. Budgets; resources allocated.
        b. Strategic plan initiatives mapped to Key Performance Indicators (KPIs) and reward systems
        
        Managing change; and
        
        Monitoring implementation and performance
        
        Role of CPAs in strategic implementation:
        
        Key role in financial strategy
        
        Resource allocation; budgets
        
        Setting short-term and long-term financial goals and targets
        
        Performance management: measuring KPIs
        
        Financial/accounting requirements for implementation
        
        Forecasting sales and revenues metrics
        
        Setting milestones for implementation
        FSRGtKArFsM
        
        The role of CPAs in strategic implementation: (p.449)
        
        Accountants and strategy: accountant plays a central role in both shaping and enabling the
        implementation of strategic plans
        
        Accountants and performance management: link strategy to business operations through
        financial and non-financial measures and goals
      - Project and Program Management
    - - Key Performance Measurement and indicators
        Must be created, selected, combined into reports and acted upon so that implementation has tangible outcomes.
        
        Effective KPM/KPI will be:
        
        There needs to be a clear cause and effect relationship between the indicators and strategic outcomes
        
        KPIs need to be carefully chosen because they will influence the behaviour of people (Reward system)
        
        Effective performance management requires the managers KMPRC
        
        Know what strategic goals and options have been selected
        
        Express these goals in practical and measurable terms
        
        Understand the current position in relation to the goals
        
        Allocate team resource to achieving these goals
        
        Ensure the goals are well communicated and the key employees are accountable for their achievement
        
        Reward system
        
        An organisation’s reward and appraisal system should reflect its desired values and beliefs.
        
        Reward system should aim to motivate employee performance consistent with current organisational strategy
        
        Poorly chosen measures may lead to employees choosing inappropriate methods to achieve the ‘right ‘outcome and gaining their rewards. (whether there is a loophole that employee can achieve the KPI without actually achieve anything)
        
        KPIs should focus on both the outcomes, and on the methods and ways those outcomes are pursued.
        RvMImKom