Week 8 organising for success

3BM020 Organisational Strategy and Decision
Making

Week 8

Organising for success


Promoting ethnic diversity on campus

We need a group of students to work with an expert in race equality in higher education - to share your views and
experiences and tell us what you would like to see happen at the University.
This is a students-only event. At the end, senior members of the University management team will listen to you and use your feedback to influence change across
the University, and make York St John a better place for everyone in our community.
Please join us!

Booking is not essential but to help with numbers please register – scan QR code or contact
Marije Davidson,
Equality and Diversity Adviser
E:
or Whatsapp: 07880 921743.

Monday 21

st

November

1.30 - 3pm
Students’ Union coffee lounge

Housekeeping

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Abstract, citations, reference page, appendices

– Not included in the word count
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12 Temple Hall today – session on employability

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Week 10 – check seminar changes, however you can stay in your own
groups if these changes do not suit you


Outcomes covered in this session

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Contextualise ‘real world’ strategy issues
Identify key challenges for organising success
Analyse strengths, weakness and choices associated with organisational
structures

In the news – ‘real world’ examples
Resources can be physical –
including stores: what is the strategic
rationale for this decision?

Why is such an approach needed?
Has M&S been over reliant on the
sources of previous success? Have core
competencies become core rigidities?


In the news – further expansion
from week 5

from week 5

from week 6
from week 6


In the news – further expansion
from week 3

from week 4

from week 2


In the news – labouring the point
“From week x….”

Various ways/routes to understand and interpret strategy
Strategy does not mean one thing – interpretation, built from supported analysis, matters
You, however, have to be strategic with your assessment(s)
Consider what you are trying to do in the context of the report– we tell you to be selective and focused:

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Demonstrating quality understanding is essential
Making links between concepts, supported by relevant examples, supporting evidence and a critical writing style is key
Using appropriate concepts will depend on such issues as the position of your company, what it does, how it does it, what others
in the industry do, how well it is received, how long it has been in operation – and many other things


One article, lots of Strategy
Stuck in the middle?

Strategic leadership
+turbulence
+strategic drift
+emergent
+transformational
PESTLE

Social and Technological


Organising for success

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Ability to execute strategy can be more important than strategy
itself (Kaplan and Norton, 2001).

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The fatal problem with strategy implementation is the de facto
success rate of intended strategies. In research studies it is as
low as 10 percent (Judson, cited in Raps, 2005)

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Despite 97% of directors having a 'strategic vision', only 33%
reported achieving 'significant strategic success'. (Source: Why
do only one third of UK companies achieve strategic success? - I
Cobbold & G Lawrie, 2GC Ltd., May 2001.)


Organising for success

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A recent commercial for a major computer company’s e-business
consulting practice showed a CEO, in a state of high excitement,
expostulating about a thick book he held in his hands.
“Here it is,” he exclaimed, “it cost $2 million. The best strategy ever! Now
the question is, ‘is it implementable?’” We then watch his face fall as, one
by one, his executives consider the question and reply “No.”

Organising for success

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Traditional view: strategy decided ‘at the top’ and fed down where it is
picked up at an operational level in a very mechanistic and bureaucratic
way.


Basic elements of the implementation process (Lynch,
2009:491)

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Identification of general strategic objectives
Formulation of specific plans
Resource allocation and budgeting
Monitoring and control procedures


Organisational configurations


Organising for success

• Variation in implementation caused by:

1. Degree of uncertainty in the environment
2. Size of the strategic change

– Comprehensive implementation programmes
•

Clear-cut, major change [PRESCRIPTIVE]

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More responsive to environmental circumstances – flexible approach [EMERGENT]

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Major programme developed in selective areas only

– Incremental implementation programmes
– Selective implementation programmes


Organisational configuration

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What is organisational configuration?

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‘An Organisation’s configuration consists of the structures, processes &
relationships through which the organisation operates’

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Organisation’s configuration

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How structures, processes and relationships work together consistently

Sometimes also known as Organisational Architecture

Johnson, Scholes & Whittington (2008)


Structures

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Roles, responsibilities and lines of reporting

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Structure is not the key to success but is important for the implementation
of strategy nonetheless

Simple structure (control resides within one individual)

Other forms

– Functional
– Multidivisional
– Etc.


A functional structure


A multidivisional ‘M’ shaped structure


Advantages & disadvantages of the ‘M’ structure

Advantages

Disadvantages

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Focuses on business area

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Expensive duplication of functions

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Eases of functional co-ordination problems

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Divisions may compete against each other

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Allows measurement of divisional performance

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Decreased interchange between functional specialists

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Can train future senior managers

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Problems over relationships with central services


A Multinational matrix structure


Advantages & disadvantages of matrix structure

Advantages

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Close co-ordination where decisions may conflict

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Adapts to specific strategic situations

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Bureaucracy replaced by direct discussion

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Increased managerial involvement

Disadvantages

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Complex, slow decision making: needs agreement by all
participants

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Unclear definition of responsibilities

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Can produce high tension between those involved if teamwork
of some parts is poor

Team-based Structure
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Combines both horizontal and vertical co-ordination through cross functional teams
Often built around business processes
Contains mixture of specialists
Advantages

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Good for knowledge sharing
Flexible
Highly motivated

Disadvantages

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Complexity

Difficulties of control
Problems of scaling up


Project-based Structure (1)

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Teams created, undertake the work, then dissolved
For large expensive items or limited time events
Constantly changing organisational structure

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Collection of project teams
Created and steered by small corporate group

Set up ad hoc taskforces

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for new elements of strategy
to provide momentum

Project-based Structure (2)

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Advantages

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–
–

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Flexible
Good accountability and control (clear tasks/defined time)
Effective knowledge exchange
Attract international members due to short project times

Disadvantages

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Possible lack of coordination
Proliferation of projects
Breaking up teams hinders knowledge accumulation