HAS 6400

Session Six

Dr. Burton

• “A strategy that cannot be evaluated in terms of whether of not it is being achieved is simply not a viable or even useful strategy.”

C. H. Roush and B. C. Ball

Exhibit 11 – 1 (4th ed): Strategic Fit

Strategy•Directional strategies•Adaptive strategies•Market entry strategies•Competitive strategies

Service DeliveryStrategies•Pre-service•Point-of-service•After-service

Support Strategies•Culture•Structure•Strategic Resources

Unit Action Plans•Objectives•Actions•Timelines•Responsibilities•Budgets

StrategicLeadership

StrategicLeadership

Exhibit 11 – 2 (4th ed): The concept of control

MeasureActual

Performance

MeasureActual

Performance

CompareObjectives

WithPerformance

CompareObjectives

WithPerformance

DetermineReasons

ForDeviation

DetermineReasons

ForDeviation

Take Corrective

Action

Take Corrective

Action

Set ObjectivesOr

RedefineObjectives

Set ObjectivesOr

RedefineObjectives

The Characteristics of Control

• Based on accurate, relevant, and timely information

• Directed at controlling only the strategy-critical elements

• Flexible• Cost-effective• Simple and easy to understand• Timely• Emphasize the exceptions

• Manage Simply

“Everything should be made as simple as it possibly can, no simpler.”

Einstein

Less management is better than more management

• Managing is controlling, but controlling may not be managing

• Create teams and promote teamwork by teaching the team how to manage itself

• Minimize rules, policies, and procedures

• Ask teams to think

Broad strokes are better than narrow strokes

• Vision and future orientation are essential

• Avoid micromanagement

• Be a leader-management without leadership is bureaucracy

Processes are not ends in themselves but are viewed that way over time

• The objectives are the ends, focus on the objectives

• Encourage the constant questioning of “why is it done this way?” and reward innovation and change

• Never permit “Its always been done this way?” to remain an acceptable process.

Managers will never get it quite right

• Objectives, needs, influences, solutions, and systems constantly evolve

• Interpret striving for perfection as continuous improvement

• Never make perfection a prerequisite for progress

One size does not fit all

• Although some order is necessary, blind application of one solution or pattern leads to a dysfunctional workforce

• When choosing between centralization and decentralization, customize to fit the situation. When in doubt, decentralize

• Be aware that there are many problems with common systems such as personnel evaluations, salary ranges, etc.

All solutions are temporary

• Remember that “necessity is the mother of invention”

• Don’t work so hard for closure to a problem, be open to and encourage change and innovation

Do what is best for each individual and the organization will prosper

• Usually what is best for the organization is the sum of what is best for the individuals in the organization

• Pay employees as much as possible

• Encourage and allow people to do what is best for themselves

• Encourage learning and fun

Practice “one level” management

• Deemphasize organizational hierarchy

• Treat everyone as a peer

• Peers can and will share ideas, opinions, and solutions

• Remember that you – as the boss – are just not that important

• The team deserves respect

• Casual is better than formal

Give everyone a piece of the performance

• Ownership is powerful

• Create opportunity for everyone to “keep what they don’t spend”

• Eliminate job descriptions, except for “do what is needed to get the job done and, in the face of adversity, find a way to achieve the objectives.

Make the manager’s job harder and other’s easier

• Identify and satisfy internal customers

• Remember subordinates are customers too

• Constantly seek to identify barriers

• View the job as that of removing barriers, whatever they may be

Find happiness

• Happiness, a good attitude, and optimism are contagious

• Take a break and live one once in a while

• Sometimes think rather than do; staring out the window can be productive

Source: Andrew Rucks & Peter Ginter

Exhibit 11 – 3, 4th ed: The concept of control and a framework for strategic control

Set objectives or redefine objectives

Measure performance

Compare performancewith objectives

Determine reasonsfor deviations

Establish or confirm performanceStandards – Mission, Vision

Values, and Goals

Measure organizationalperformance

Compare performancewith standards

Are strategic assumptions still valid?External factorsInternal factors

Are the Directional Strategiesstill appropriate?

Are the Adaptive Strategiesstill appropriate?

Are the Competitive Strategiesstill appropriate?

Are the Market Entry Strategiesstill appropriate?

Are the Implementation Strategiesstill appropriate?

Take Corrective Action

Concept Control Strategic Control

Take Corrective Action

Perspective 10 - 2Resistence to Change

• Stage one: Resistance

• Stage Two: Passiveness

• Stage Three: Convince Me

• Stage Four: Hope

• Stage Five: Involvement

• Stage Six: Advocacy

Perspective 11-64th Ed.

1950s•Theory “Y”•Management by Objectives•Quantitative Management•Diversification

1960s•Managerial Grid•T-Groups•Matrix Management•Conglomeration•Centralization/Decentralization

1970s•Zero-based Budgets•Participative Management•Portfolio Management•MBAs

1980s•Theory Z•One-minute manager•Organization Culture•Intrapreneuring•MBWA (Management by• Wandering Around)•TQM/CQI

1990s•Strategic Thinking•Customer Focus•Quality Improvement•Reengineering•Benchmarking

2000s ?

• “This, then, is the basic meaning of a learning organization – an organization that is continually expanding its capacity to create its future. Peter M. Senge

The Fifth Discipline