Lecture Strategic management Strategic challenges ...

1

Strategic Management

IEC - Institute of Executive Capabilities der Steinbeis-Hochschule Berlin SHB

Lecture

Strategic management

Strategic challenges & strategic architecture

Prof. Dr. Mario Vaupel

2

Strategic challenges

Changing landscape of leadership – period of transition

3


Sustainable Change Driver

2008 2027 2048

Demography:

Developments differentiated by continents and

countries

Socio-technicalinterdependencies:

Knowledge and finance global; goods

traffic international

Social relationships:

Power balances are shifting continually

4


Sustainable Change Driver – level of impact

SustainableChange Driver

1. Level of impact e.g.decreasing

power differences

e.g. Decreasing/increasing

population

e.g. Closer and wider

interdependencies

Demography

2. Level of impact e.g.informalization

e.g.instable

social systems

e.g.increasing

pace of change

3. Level of impactDevelopment of

markets, products, services,

technologies,social standards

Development ofmarkets, products,

services, technologies,

social standards

Development ofmarkets, products,

services, technologies,

social standards

Social relationships Socio-technical

interdependencies

5


Changing landscape of leadership – implications

‟Executives will have to understand the realities of the Next Society and will have to base their policies and strategies on them.”

Peter Drucker

Managing in the Next Society,1993, xii

Average company lifespan on S&P 500

Index ( in years)

Development of the average lifetime of

companies in different stock indices

between 1987 and 2001:

■ FTSE from 9,7 to 4,1 years;

■ CAC-40: from 13,3 to 9,2 years;

■ S&P-500: 17-10 years;

■ DAX: 45 to 18 years

Quelle: Seifert 2002, 55

... and in different Indices:

Innosight, 2012

6

Strategic Architecture

PURPOSETHE REASON YOU EXIST

BEYOND MAKING MONEY(NEVER CHANGES)

MISSIONA MASTER PLAN FOR

CREATING VALUE(5-20 YEARS)

VISIONA SHARED PICTURE OF MISSION SUCCESS(5-20 YEARS)

GOALSSHORT-TERM OBJECTIVES THAT SUPPORT YOUR MISSION AND

VISION (1-5 YEARS)

Focus

Implemen-

tation

Fit Alignment

7

objectives

for

employees

corporate strategy

department objectives

division objectives

motivation

ideas /

possibilities

pro

ducts

/

activ

ities

HRD

objective

agreement

orientation aid

quality criteria

no conflicts

of objectives

Levels of objectives

Dialog process


MbO as a System

8

Strategic Architecture - Focus

Vision (1)


The vision statement helps to inspire

and motivate people in organizations

with future goals.

The vision stands with both feets in

the future and shows a picture how

this future of the organization will look

like.

9


Vision (2)


Focus of the Vision Statement lies on the future; its purpose is to motivate and to inspire. It defines the future of the organization as well as the future of its industrial sector and social environment which shall be influenced by it.

▪ The vision statement defines the future.

▪ It gives detail on future goals and where you wish to be in the future. It motivates to succeed.

▪ It explains why you choose to work for it.

▪ When your company develops, it may be tempting to change the vision. But keep in mind that mission and vision are the foundation of everything – so change shall be as minimal as possible.

10


Vision (3)

NEEDS OF A VISION STATEMENT

should be clear and simple

should avoid elaborate language

should be easily explained by those involved

should not be confused with a mission statement

QUESTIONS ANSWERS

Where do we want to be in the future?

……

What needs to be changed?

……

Why should issues be addressed?

……

What are our strengths and advantages?

……

What is our dream end-state?

……

What would success look like?

……

11


Vision (4)


12

Strategic Architecture – Focus & Alignment

Mission (1)


The mission statement gives people in

the organization and stakeholders

an orientation on which particular

services (products, services,

technologies) are sought to serve the

customer and the world.

The mission stands with one foot in

the present and with the other foot

in the future.

13


Mission (2)


Focus of the Mission Statement lies on the present; it defines the customers, critical processes and it gives information on the level of performance which is desirable.

▪ The mission statement: deals with the present and leads to the future.

▪ Includes company objectives and serves internal purposes. Defines the key measure or measures of the organization's success and is created to inform leadership, team and stockholders.

▪ The mission statement can change over time, but it should be still connected to core values, customer needs and vision.

14


Mission (3)


15


Mission (4)


16

Fields of

functionsGuidance basis

Control

parameters

Temporal

horizon

Strategic

Leadership

Operational

Leadership

Sub-stitu-tion

time /curve

orLife-cycle

of busi-nesses

New

Technical

solutions

CustomerProblems

Experience& learning

curve

MarketPosition

Results(Balance

Sheet)

Expenditure& revenue

Income &expendi-

ture

future

success

potentials

Current

successpotentials

success

liquiditiy /solvency

Complexity

Short term

Middle and long term

Strategic Architecture – strategic & operational leadership

Corporate Navigation System according to Aloys Gälweiler

17

Business areas, departments,

projects have to realize the strategic

fit to ensure sustainable

competitiveness; cross-functional

alignment has to be ensured

Point-to-

Point,

Routes

between.

Med-Sized

Cities

Limited

Passenger

Service

Frequent,

Reliable

Departures

Lean, Highly

Productive

Ground and

Gate Crews

High

Aircraft

Utilisation

Very Low

Ticket

Prices

No seat

assign-

ments

No

meals

No

baggage

transfers

No

connections

with other

airlines

15-Minute

Gate Turns

Automatic

Ticketing

Machines

Limited

use of travel

agents Stan-

dardised

fleet of 737

aircraft

High

employee

compen-

sation

Flexible

union

contracts

High

employee

stock owner-

ship

“South-

west, the

low-fare

airline”

Southwest Airline: Market share rose from 5% (1987) to 70 % (2004)

risk:

Automatization of resources and

competencies

leadership:

Coordinate activities of the value

chain consistently


Strategic Fit

18


Strategic alignment with the Balanced Scorecard

Strategy and Vision

Finances

What do we want to achieve

financially?

x

xx

x

Mea

sure

s

Targ

et

Ind

ex

Stra

tegi

c go

als

Customers

How can we satisfy the

needs of our customers?

xx

x

x

Mea

sure

s

Targ

et

Ind

ex

Stra

tegi

c go

als

Learning and Development

How can we stay flexible and

capable of improvement?

xx

xx

Mea

sure

s

Targ

et

Ind

ex

Stra

tegi

c go

als

Internal Processes

Which processes must be

executed excellently?

xx

xx

Mea

sure

s

Targ

et

Ind

ex

Stra

tegi

c go

als

19


Strategic alignment and fit with the Balanced Scorecard

20

To

p-D

ow

n

Top-Down-Strategy

Bottom-Up-Stategy

Wedge-Strategy

Nuclei-Strategy

Bottom Up

1

3

4

1

2

2

3

4


Implementation Approaches

21

change

confusion

uncertainty

no change

frustration

missing orientation

Vision Competencies Incentives ResourcesImplemen-

tation plan

Competencies

Competencies

Competencies

Competencies

Vision

Vision

Vision

Vision

Incentives

Incentives

Incentives

Incentives

Resources

Resources

Resources

Resources

Implemen-

tation plan

Implemen-

tation plan

Implemen-

tation plan

Implemen-

tation plan


Implementation Matrix

Date post:	04-Feb-2022
Category:	Documents
Upload:	others
View:	7 times
Download:	0 times

Lecture Strategic management Strategic challenges ...

Documents