Week 96 (15.2.09)

Learn

Organisational Politics and Networks -
Exploring Corporate Strategy by Gerry Johnson and Kevan Scholes

Strategy development can also be explained in political terms. Powerful internal and external interest groups in organisations can influence the different inputs into decisions.

• Different interest groups (or stakeholders) may have different expectations and may even be in conflict; there may be differences between groups of managers, between managers and shareholders, or between powerful individuals. These differences are resolved through processes of bargaining, negotiation or perhaps edict.
• Powerful individuals or groups may also influence the sort of information that is seen to be important. Information is not politically neutral, but rather can be a source of power for those who control what is seen to be important;
• Powerful individuals and groups may also strongly influence the identification of key issues, the objectives of the organisation and even the strategies eventually selected. Differing views may be pursued not only on the basis of the extent to which they reflect environmental or competitive pressures, but also, because they have implications for the status of influence of different stakeholders.

Organisations are not depicted as hierarchies or power groupings, so much as different interest groups or operations which need to co-operate with each other, negotiate what should be done and find ways of accomodating different views.

Unlearn

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Relearn

Understand better on decision making, strategies may emerge through processes of bargaining and negotiation. For example, in recent hospital vacant position, in view of the network that builds up over time, it is easier to discuss among National Sales Manager to accomodate the best option for filling up the position.

Week 95 (8.2.09)

Learn

Strategy development as the outcome of Cultural and Political processes -
Exploring Corporate Strategy by Gerry Johnson & Kevan Scholes

• Organisational culture is the 'deeper level of basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion on organisation's view of itself and its environment.
• Such taken-for-granted assumptions are likely to exist at the organisational level - organisational paradigm - can be especially important as an influence on the development of organisational strategy.
• The relationship between the paradigm and organisational strategy needs to be made clear.
• Environmental forces and organisational capabilities do not in themselves create organisational strategy; people create strategy.
• The forces at work in the environment, and the organisation's capabilities in coping with these, are made sense of in terms of the individual experience of managers and the collective assumptions within the paradigm.
• However, environmental forces and organisational capabilities, while having indirect influence on strategy formulation, nonetheless impact on organisational performance more directly.

Unlearn

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Relearn

As consumer buying behaviour and buying power changes to become more centralised, it is good to recognise the impact of such changes. Champix, a drug for smoking cessation, should be easily made available at all pharmacies in Malaysia. The environmental forces permit Champix to be marketed and continue to gain its market share because it is Category C drug; which means can be dispensed without prescription.

Week 94 (1.2.09)

Learn

Strategy development as Managerial Intent -
Exploring Corporate Strategy by Gerry Johnson & Kevan Scholes

Strategy should come about through highly systemised forms of planning. Formalised planning can, however, be useful in various ways:

• It can provide a structured means of analysis and thinking about complex strategic problems, requiring managers to question and challenge what they take for granted.
• It can be used as a way of involving people in strategy development, therefore helping to create ownership of the strategy and contributing to the co-ordination of resources to put it into effect.
• Strategic planning may also help to communicate intended strategy.
• It can be used as a means of control by regularly reviewing performance and progress against agreed objectives or previously agreed strategic direction.

There may be danger if managers responsible for the implementation of strategies, usually line managers, may be so busy with the day-to-day operations of the business that they cede responsibility for strategic issues to Sales Executives.

Unlearn

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Relearn

Consciously aware that I need to have regular field visit to branch office, to ensure that my managers implement 2009 strategies successfully.

For example, in our Lipitor new pricing strategy took effect in February, i had been engaging with my managers via telecom after 2 weeks of implementation to solicit market feedback. Also, recently i had visited Melaka and Penang to meet up with internal and external customers in following through customers response towards Lipitor new pricing strategy.

Week 93 (25.1.09)

Learn (Strategic Management in Practice-
Exploring Corporate Strategy by Gerry Johnson and Kevan Scholes)

• Elements of strategic management - strategic analysis, strategic choice & strategy implementation.
• These elements make up a model - to help readers think about strategic problems and formulate strategy.
• It is useful to have a clearer understanding of how strategies come about (3 parts):

1. Patterns of strategy development - strategies are developed over time in organisations. The conclusion reached is that strategic changes may take different forms, but they do not usually occur as major, one-off changes in direction; rather, they are more gradual, incremental developments, with only occasional, more 'transformational' change.
2. Three general explanations of strategy development in organisations:

• First, strategies develop as a result of deliberate managerial intent
• Second, strategies can be better explained as the outcome of cultural and political processes in and around organisations
• Third, strategy development is imposed on organisations.

Unlearn

I used to think that strategy is about a long term direction which develop through one-off major changes. It is a mistake to conceive it that way. Strategic development is better described and understood typically in terms of continuity; which established strategy remains unchanged or changes incrementally.

Relearn

Pfizer Malaysia, in 2009, has recently taken back the diversified products from Pharmalink to be promoted by our sales team. This is a 'transformational' change, in which there is a fundamental change in strategic direction which, itself, guides decisions on the strategic move for Pfizer.

This process lead to a quite significant shift strategy, but incrementally. Incremental change might therefore be seen as an adaptive process to a continually changing environment; corresponds to 'fit' concept of strategic management.

Week 92 (18.1.09)

Learn (The Challenge of Strategic Management -
Exploring Corporate Strategy by Gerry Johnson & Kevan Scholes)

• Success was the result of the strategies pursued by the firms and the effective development of those strategies by management.
• Baden-Fuller and Stopford concluded that the success they observed arose from managers' abilities in identifying strategies for growth, typically on an international scale, 'stretching' organisational capabilities and embedding strategic thinking throughout the organisation, not just at the top.

1. To a much greater extent, strategic management is concerned with complexity arising out of ambiguous and non-routine situations with organisation-wide rather than operational-specific implications. This is a major challenge for managers who are used to managing the resources they control on a day-to-day basis. It can be a particular problem because of the background of managers who may have been trained, perhaps over many years, to undertake operational tasks and to take operational responsibility.
2. To develop an ability as a strategist therefore requires that the manager is able to conceptualise key strategic issues. Most aspects of management involve:

• Analysis and planning required to gather and organise information about the situation or issue faced.
• Action to undertake tasks: this may vary from action in the form of arranging for analysis to take place, to action in terms of ensuring that change takes place.
• Conceptualisation of problems and choices: this is not simply a matter of analysis, but has to do with making sense of the situation.

3. A major challenge for the strategic manager is to help develop an organisation which is able simultaneously to meet stakeholder expectations while building capabilities and competencies which provide bases of internal efficiency, as well as meeting the needs of customers better than competitors within a changing environment.

Unlearn
The success of an organisation is not about just the product it has, learning from this, it is the strength of a team context in rejuvenation of the business through strategic managers.

Relearn

As a leader, i will continue to aspire my manager, or influence them to build their strategic thinking through developing their capability to take an overview, to conceive of the whole rather than just parts of the situation facing an organisation. There is a need to build my team's capability in strategic response and action.

Week 91(11.1.09)

Learn ( Strategic Management as "fit" or "stretch" - Exploring Corporate Strategy Book, Pg 25 - 27)

2 types:

The processes of strategy development raise a issue which concerns the extent to which the emphasis is on developing strategy on the basis of "fit" with the environment as management understand it; or "stretching" the organisation on the basis of resources and competences which can create opportunities for strategy development.

(1) The notion of fit sees managers trying to develop strategy by identifying or being sensitive to the organisation's environmental forces and developing the organisation's resources to address these. Here it would be seen as important to achieve the correct positioning of the organisation; for example, in terms of the extent to which it meets clearly identified market needs.

(2) Success may result from creating strategies not so much on existing market opportunities, but on the basis of views of the future in which competences unique to the organisation provide advantages over competition or create new opportunities, even new markets. This stretch view of strategy development emphasises the need to be acutely aware of the special competences of the organisation.

Unlearn

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Relearn

Practicality and traditionally, Pfizer emphasis on developing strategies adopting the more incremental path of development ie to place most of its investments in businesses which have found successful market positions or have identified attractive markets.

However, with Pfizer's new structure as Emerging Market Business Unit (EMBU); Pfizer is transforming into a culture of new approach in the market; with trying to identify businesses with particular competences which it can help develop to give competitive advantage or create new opportunities.

Week 90 (4.1.09)

Learn (Exploring Corporate Strategy - Strategy Implementation, Pg 22)

• Strategy implementation is the translation of strategy into action.
• Successful implementation of strategy is likely to be dependent on the extent to which these various components work together to provide, in themselves, competences which other organisations find it difficult to match.
• Questions likely to be important in planning strategy implementation can include the following:

1. Who is responsible for carrying through the strategy?
2. What changes in organisational structure and design are needed to carry through the strategy?
3. There may also be a need to adapt the systems used to manage the organisation.
4. What will different departments be held responsible for?
5. What sort of information systems are needed to monitor progress?
6. Implementation will also involve resource planning, including the logistics of implementation.
7. What are the key tasks needing to be carried out?
8. What changes need to be made in the resource mix of the organisation?
9. Is there a need for new people or the retraining of the workforce?

The implementation of strategy also requires the managing of strategic change; and this requires action on the part of managers in terms of the way they manage change processes, and the mechanisms they use for it.

These mechanisms are likely to be concerned not only with organisational redesign, but also with changing day-to-day routines and cultural aspects of the organisation, and overcoming political blockages to change.

Unlearn

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Relearn

Interesting to learn and apply the appropriate mechanisms on managing strategic change, which involves changing the normal day-to-day routines and cultural aspects of the organisation. It could be a big challenge!!