PART ONE: ORIGIN OF STRATEGIC MANAGEMENT

London School of Commerce, Belgrade, 2012

What is Management ?
M anagement
The process of getting things done effectively and efficiently, with and through people

Effe c tiveness
Doing the right things, doing those tasks that help an organization reach its goals

Effic ienc y
Concerned with the means, efficient use of resources like people, money, and equipment

Four Management Functions

Planning
Defining the organizational purpose and ways to achieve it

Organizing
Arranging and structuring work to accomplish organizational goals

Leading
Directing the work activities of others

Controlling
Monitoring, comparing, and correcting work performance

Four Management Functions

Functions by Organisational level

Discussion

Human nature insist on a definition for every concept....

Discussion

...How would you describe a term

strategy in one sentence ?

Definition of Strategy
There is no universaly accepted definition Multiple definitions:
Strategy as a Plan Strategy as a Ploy Strategy as a Pattern Strategy as a Position Strategy as a Perspective

Strategy is a plan
Counsciosly intended course of action or set of quidelines to deal with situation Two essential characteristics:
Made with conscious and with purpose Made in advance

Strategy is a plan
In the army: drafting the plan of war... Shaping the
individual campaigns, deciding on the individual
engagements

In game theory: Strategy is a complete plan which

specifies what choices will player make in every possible situation

In management: Strategy is unified, comprehensive,

integrated plan .. designed to insure that the basic objectives of the company are achieved

Von Clausewitz, von Newman and Morgenstern, Glueck

Strategy as a ploy
Specific maneuver intended to outwit an opponent or competitor

Strategy is a pattern
A pattern is a stream of actions Ford T in black

Strategy is a position
In world of management the word position could be used as a niche, a product market domain, the place in the environment where resources are concentrated Plan Ploy Position

Strategy is a perspective
Strategy is a way of perceiving the world Strategy is Weltanschauung (world view) Strategies are abstraction which exist only in the minds of interested parties I-(pod,pad,phone) strategy

Discussion
Which term is most suitable for you as a description of strategy (if you were in position to choose only one)
Plan (voted: students) Ploy (voted: students) Pattern (voted: students) Position (voted: students) Perspective (voted: students)

Definition of Strategy

A strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.

James Brian Quinn

Definition of Strategy
A well-formulated strategy helps to marshal and allocate an organization's resources into a unique and viable posture based on its relative internal competencies and shortcomings, anticipated changes in the environment, and contingent moves by intelligent opponents.

Definition of other terms

Objectives
State what is to be achieved and when results are to be acomplished

Policies
Rules or guidelines that express the limits within which action should occur

Programs
Step by step sequence of action necessary to achieve major objectives

Discussion

Strategy vs. Tactics

Deliberate and Emergent Strategies

Intended Strategy Deliberate Strategy

Unrealised Strategy Emergent Strategy

Realised Strategy

Question
To what extent you agree or disagree with this statement

Business strategy is a mixture of luck and judgment, opportunism and design.

PART TWO: THE SCHOOL OF STRATEGY

London School of Commerce, Belgrade, 2012

Schools of strategy
Design school
Strategy as achieving the essential fit between internal strenghts and weaknesses and external threats and opportunities

Planning school
The process is formal and could be decomposed in steps and checklists, supported by techniques.

Schools of strategy
Positioning school (80s, M.Porter, BCG)
Strategy reduced to formal analyses of industry situations

Entrepreneurial school
Moved strategy from functional (design,process) to visionary process

Cognitive school

Strategy as mental (cognitiive, models, maps, schemas) process

Schools of strategy
Learning school
Strategies are emergent, could be foound throughout the organisation

Power school
Micro power, Macro power

Cultural school
Strategic changes influneced by culture

Schools of strategy
Enviromental school
Dependence or independence of strategic manuevers in and trough environment

Configuration school
Organisation is a configuration clusters of behaviors and characteristics. Strategy - transformation

Schools of strategy
Design school - Look before you leap Planning school - A stitch in time saves nine Positioning school - Nothing but facts Entrepreneurial - Take us to your leader Cognitive- I will see it when i believe it Learning If at first you dont succeed, try again Power Look out for number one

Schools of strategy
Cultural - An apple never fall far from the tree Environmental It all depends Configuration To everything there is a season

PART THREE : STRATEGISTS AND STEREOTYPES

O R F O U R M Y T H S A B O U T M A N A G E R ( S T R AT E G I S T S ) J O B

Good manager...
... does deals (Tom Peters) ... is thinker (Porter) .... is leader (Zaleznik) ... is controller (Fayol)

Myth No.1

The manager is a systematic planer

Fact No.1
Managers activity are characterised by variety, discontinuity and brevity Mintzberg: 50% of the activities lasted than nine minutes, 10% exceeded one hour, average 583 activities per day (study of 56 US foremen) Stewart: Managers were able to work for a half hour or more without interruption once every two day Aguilar: 93% of the verbal contacts were on ad hoc basis

Myth No.2

The effective manager has no regular duties to perform

Facts No.2

Managerial work involves performing a number of regular duties, including ritual and ceremony, negotiations, and processing of soft information that links organisation with environment

Myth No.3

The senior manager needs agregated information, which a formal management information system provides

Facts No.3
Managers strongly favor the verbal mediaphone calls and meetings Stewart: Managers spend 80% of their time in verbal communication. Verbal information is stored in the brains of people

Myths No.4

Management is a science and profession

Facts No.4
Scheduling time, processing infromation and making decisions remains locked deep inside the brains of managers.

Managers stil rely on words like judgment and intuition.

PART FOUR : STRATEGIC MANAGEMENT

Strategic management
Strategic management includes:
Understanding the strategic position of an organisation Making strategic choices for the future Managing strategy in action

Strategic management
Environment

Capability

THE STRATEGIC POSITION

Purpose

Culture

Business-level

Processes

Resourcing Corporate-level STRATEGIC CHOICES

International

Organising

STRATEGY IN ACTION

Innovation

Evaluation

Changing

Practice

Strategic position
Understanding the strategic position is concerned with identifying the impact on strategy of the external environment, an organisations strategic capability and the expectations and influence of stakeholders
The Environment Strategic Capability Stakeholder Expectations Cultural and Historical Influences

Strategic choices
Strategic choices involve the options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued.
Business-level Corporate-level International Strategy Entrepreneurship and Innovation Evaluation/Success Criteria

Strategic Actions
Organising strategy in action is concerned with ensuring that chosen strategies are actually put into action.
Strategy Development Process (intended and emergent) Structures, processes and relationships Resourcing Strategies to support overall strategies Strategic Change Practice of strategy (people, activities, methodologies)