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TABLE OF CONTENTS

WEEK 7-9: Strategy Implementation

Unit Learning Outcome (ULO A) 60

Metalanguage 60
Essential Knowledge 60
Strategy Implementation 60
Process organization 62
Cross Functional Structure 62
Downsizing 63
System and Systems Thinking 64
McKinsey’s 7S Framework 64
Soft Strategy 65
Strategic Planning-Revisited 65
Strategic Control 66
The Review Wheel 66
Strategic Performance Management 67
Focus 68
Alignment 69
Integration 70
Review 70
Levers of Strategic Control 70
Strategic Leadership 72
Four Competencies of Leadership 73
Leadership Styles 74
Leadership and Management 75
Strategic Change 78

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Module 2: Strategy Implementation (7-9 weeks)

Unit Learning Outcomes: At the end of the unit, they are expected to:

1. Assess the factors that may influence a company's decision to adopt a type
of organizational structure.

2. Track and evaluate the strategic management of intent, objectives, and

strategy of an organization; this includes the organization and management of
adjustments and improvements during the strategy's ongoing implementation.

Metalanguage:

To implement the organization's strategies successfully. Its structures must

support its unique system while the company's entire machinery must be aligned with
the direction it wants to go. The company's functional strategies should complement
the much-desired goals; hence, fitting between and among organizational elements,
including departments and small business units, is essential.

Essential Knowledge:
Strategy implementation

Strategy implementation is the creation of the appropriate organizational

structure and processes to execute the strategic plan.

Organizing is central: the last twenty years have moved away from
traditional hierarchical frameworks to favor ideas on organizing to develop and
design research that encourages collaboration and process management.

The organizational structure includes four basic types – functional,

product, matrix, and regional structure.

A process is a sequence of related tasks to deliver an objective.

Cross-functional working involves teams with individuals from different

functional areas of an organization working together to meet an objective.

McKinsey's 7S framework is a conceptual framework of seven

interrelated variables for organizing change management, which emphasizes
organizational values and strategy, structure, and systems.

Strategy implementation defines and organizes processes and

procedures for the strategic management of an enterprise. The most critical
aspect is the creation of a suitable organizational framework (Daft, 2012). The
structure is organizing action into a cohesive and functional body. A

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characteristic of almost all companies is the hierarchical hierarchy of

responsibilities. It allows for unified decision-making and controls the number of
organizational levels and reporting direction. There are four structural forms
groupings broadly: functional, product, area, and matrix. The lines between the
boxes indicate the principal reporting paths between the different pieces.

Functional structure is the division of labor into specialized operations,

such as divisions specializing in buying, manufacturing, marketing, finance, etc.
This training is required to develop skills for teams and individuals to be able to
do work effectively. A center must efficiently manage the different sections to act
as an integrated system; the structure is hierarchical as the center at the top of
the organization administers the transition process's overall design.
As companies increase in size, they usually become multi-product and
multi-market businesses and organize their operations into product and regional
region-based divisions. These are grouped into practical activities with their

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organizing center and often managed by a general manager whose staff reports
its headquarters. This kind of multi-divisional structure is called the M-form
organization.

The M-form allows each division to be focused either on unique products

(or brands) or on a distinct regional market. The divisions allow companies to
stay close to clients to recognize and respond to evolving business needs easily.
Executives at headquarters are responsible for the overall management of the
divisions. One drawback is that divisions can find it hard to coordinate when
inter-divisional and inter-departmental projects are required.
Inter-divisional projects are essential to an organization's core business.
Organizations that employ a matrix structure, project teams, and divisions are
structured to report to the public and product management collectively.
Organizing matrixes is often challenging to handle due to an inherent conflict
between the various product preferences and regional management. A project
manager grapples with shared responsibility and authority complexities, which
are frequently vague in the matrix organization.
Differences in organizational hierarchy differ in the complexity of
approaches to thinking about effective strategies. Alfred Chandler (1962), an
economic theorist and one of the first to write about organization and strategy,
thought policy should be made at the center of an organization, while divisions
should include only operations. For classical strategic management, the idea
that planning is distinct from operations is a key one. It is the belief that strategic
planning is mainly a central and long-term task, while its execution is achieved
by short-term management control and middle management operations.

Last twenty years, the opposite has occurred when many multinational
companies have flattered their organizations to the number of middle managers
and the scale and number of centralized roles at a corporate headquarters. In
part, it represents a move towards a more customer-focused organization based
on business processes like lean working.

From a strategic management viewpoint, functional-based research has

many drawbacks. Strategic goals are likely to be disrupted as vital business
processes are split into disjointed sections and distributed through several
departments. It can result in hand-offs between operations, lengthening
completion time, increasing delays, and communication and overhead costs.
There is a risk that the essentials related to strategy will fall through
departmental cracks or become lost in functional silos. Breaking strategy into
specific parts is to lose sight of strategic imperatives' motives, resulting in
workers refusing to follow up and ensure the policy is being applied.

Process Organization

A business cycle is a series of activities to attain a business objective.

Classically, processes are informal cross-functional activities that transcend an

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organization's vertical and hierarchical structure. The hierarchical structure

provides a stable institutional framework, and the structures within the
framework are the organizing operation. Following Japanese experience, a
modern concept of business processes came into being – that expert planners
and designers should structure them around the pull of consumer expectations
instead of driving them top-down. The business processes determine the items
expected from the specialists for business process management from the
bottom up. Deploying a top-level plan, however, also involves teamwork across
functional areas.

Cross-Functional Structure

Companies like Toyota say that balancing cross-functional priorities

through their organizational domains is a crucial strategic tool. It requires
crossing a horizontal woof (or weft) over a vertical warp to create a solid garment
compared to producing fabric. The functional areas of a company are woof, and
centrally organized cross-functional committees serve as a warp by performing
regular reviews of the management of strategic goals in functional areas.

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Downsizing
Increasing environmental dynamism and volatility brought on by
globalization and the advent of new types of hyper-competition, such as internet
companies, have made common consolidation and downsize. Yale sociologist
Richard Sennett (2006) wrote about the new capitalism's versatile organization:
state-of-the-art companies need employees who can learn new skills, rather
than cling to old skills. He claims that the dynamic organization underscores the
need to process and interpret evolving knowledge and practice bodies. A
person's value as a strategist is less their skill based on previous experience
and more about their ability to deal with new topics and issues.

Downsizing is synonymous with the re-engineering of business processes,

which was initially described as the use of information technology to
fundamentally overhaul business processes but usually meant the overhaul of
business processes resulting in a revolutionary shift. The idea is for a senior
management team to consider how to structure a company to its strategic intent
to be reorganized from scratch. It typically leads to the development of flatter
system with less middle management. It may negate a significant organizational
benefit as it reduces the collective corporate memory.
Downsizing also includes outsourcing. It shifts internal tasks to an external
organization; these are usually activity relations that do not directly contribute to
profit and can be carried out more effectively. Outsourced services include other
support roles, often referred to as back-office operations, such as recruitment,
accounting, and IT. It is dangerous if a service breakdown affects critical
operations because it is not easy to monitor its response.

System and Systems Thinking

Systems are formal structures, written protocols, rules, and pro-certificates

that condition routines and standard working methods. These are important for
an organizational organization since they explain roles and procedures for
reporting. Large parts of an organization span system boundaries and have
interconnected components that work together. A 'systems' way of thinking
means that people can see the whole picture, while there is always a danger of
sub-optimization in a function-ally top-down organization. A strategic
management approach to processes is to take a holistic view of an
organization's operations and include an integrative analytical structure to direct
strategic decision making. The best-known of these is the 7frameworkrk of
McKinsey & Company.

McKinsey's 7S framework

The concept was presented in their Bestselling book In Search of

Excellence (1982) by Tom Peters and Robert Waterman. Seven variables are
crucial for driving change when looking at an enterprise as a whole, but the key

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thing about them is that they're interlinked. Neither factor can be treated in
solitary confinement; they must function together.

1. Strategy: those actions an organization plans in response to, or anticipation of,

changes in the external environment, customers, and competitors
2. Structure: the organization that divides tasks and provides for their coordination
3. Systems: the processes, procedures, formal, and informal
4. Style: the perception a senior management team creates of itself in the organization.
5. Staff: the socialization of managers in terms of the business.
6. Skills: the organization's characterization in terms of what it does
best, its dominating attributes, or capabilities
7. Shared values (or superordinate goals): the guiding beliefs or fundamental ideas
around which an organization is built.

Changing strategy, structure, and systems can be implemented quickly, but the
other factors must also be strategically managed, especially shared values, a concept
that is virtually the same as core values, to be fully effective. It may take years to
achieve improvements in non-strategy and structure factors; the real speed of change
is primarily a function of all seven variables.

Soft Strategy

Throughout the 1980s, around the time the 7frameworkrk was adopted,
management writers and consultants emphasized the so-called 'softball' essence of
competitive advantage throughout having an undefined corporate culture and
associated interdependencies that are hard to replicate for rivals. Others went on and
argued in support of a soft-based approach to managing organizations. Sumantra
Ghoshal and Christopher Bartlett (1997) argued in favor of replacing what they called
hard elements. The strategy, structure, and system – with soft ones, namely the

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purpose, which they viewed as setting a strategic direction; the method, the use of
self-directing teams; And people, or the facilitation of engagement and interaction.
Thus, it suggests a lack of formal structure, which will undoubtedly make it difficult for
strategic management to coordinate.

A similar concept is a strategic architecture used to refer to networks and

infrastructural components, including a mixture of formal and informal management
structures and organizational culture, organized to connect activities and influence
actions. Architecture is hardwired into an organization, just as designing a building will
condition the way people work. This concept may be compatible with providing a
dynamic strategic capacity to reconfigure and retain core competencies or strategic
assets.

Karl Weick (1979) presented a dynamic definition of strategic organizing. He

argued that what defines how an organization performs as an entity is how
organizational components often and loosely come together. Weick argued using
concepts originally associated with biology that means are loosely connected to a
purpose, in the sense that they reflect alternate pathways. However, traditional
administrative views that complex systems should be decomposed into stable
subassemblies. Weick argued that strategic management should be loosely linked,
involving impermanence, dissolvability, and tacitness. Managing strategic goals is
more like scoring goals in a football game than, say, moving your car towards a pre-
programmed destination.

Strategic Planning – Revisited

Where does strategic planning leave? Days of classic strategic planning are
gone. Strategic initiatives have been more programs in the shorter term, more focused
on priorities, and less precise on how applications and services are being carried out
at the local level. Strategic planning now has less to do with structured strategic
decision-making and more with a structure to coordinate how people handle
strategically related activities in action. Implementation is achieved through an
organization's structure and control structures, but it is widely accepted that policy
evolves through day-to-day management during its execution.
Strategic planning for many large and complex organizations is mainly an
execution practice, and it operates across medium-term strategies. The medium-term
business plan is a guiding structure for the information to be carried out at an average
management level during annual planning.

Strategic Control

Strategic control is the monitoring and reviewing of an organization's strategic

purpose, objectives, and strategic management; this involves organizing and
managing adaptations and changes during the strategy's ongoing execution.

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Since introduced, the role of strategy in operations has been a neglected field of
strategic management.

Strategy execution is strategy management during day-to-day management and

operations once a strategy has been implemented within the organization.

Strategic performance management is a strategically controlled framework that

allows the implementation management to deliver its strategic goals at a senior level.

Strategic control levers are four information-based mechanisms that can be used by
senior managers to direct an enterprise into a desired decisive role.

Strategic control is the overall regulation of the top management's strategic

strategy's efficacy, including its components in the longer and shorter term. It involves
implementing a policy guided by an organizational-wide evaluation framework in day-
to-day management (Kaplan and Norton, 2008). The strategic review is central to
strategic control. It plays a critical role in the learning process of strategy and brings
together the organization's leadership team to focus on long-term improvement.
However, assessments and evaluations of strategically related activities are
performed across the business. Therefore, to ensure that strategic evaluations at the
top of the organization are successful, the entire multi-level organizational evaluation
structure will be reviewed on its own.

The Review Wheel

The interpretation of an organization's evaluation program can be defined by

three factors: long-term purpose, objectives, and strategy; short-term implementation
and execution; and overall performance input in light of meaning. The shaded boxes
at the top left to denote the long-term purpose, objectives, and strategy. The shaded
boxes at the top right represent implementation and execution (the strategic
performance management for the short term) (Witcher and Chau, 2014).

A review wheel is positioned at the bottom left to show several periodic review
levels. At its heart is the day-to-day management of activities, where processes are
controlled continuously, according to the PDCA principle; regular operational analysis
is frequent and single-looped, requiring rectifying and exploitative learning. The next
level involves less frequent strategic reviews of the progress of strategically linked
priorities; these are mainly dual-looped and affect explorative learning. The wheel's
final step is an annual diagnostic or company analysis of handling the organization's
core areas.

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Both layers of analysis feed into one another to inform a top-level analysis of
long-term purpose, objectives, and strategy so that they can be modified, followed up,
and updated. A shaping, evaluating, and analyzing practice would be reviewing the
longer-term components of strategic management. Implementation of the strategy to
the right as a downward box by emphasis, alignment, incorporation, and analysis – is
about strategy in practice.

Strategic Performance Management

Strategic performance management is the translation into the day-to-day

management of longer-term goals and strategies. Top management deals with
implementation by establishing organizational structures and systems, but they're also
an organizing framework for executing daily management strategy. Strategic goals are
converted as medium-term plans into organizational management, defined as annual
KPI metrics to be used in process management.

KPIs are interpreted as goals to drive continuous and gradual change in business
processes. Around the same time, it provides a limited range of ambitious strategic
objectives to use as overall strategic priorities. Usually, these include a rethink of how
procedures are structured and executed. The strategic performance management
mechanism is focused on an ongoing succession of strategic focus, alignment,
integration, and review – a continuous FAIR period (Witcher and Butterworth, 1999).

The annual series continues by focusing the organizations first on the strategic
targets. These are then used to align strategically the action plans and the systems

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used at the operational level for routine annual planning. Regular management is
carried out to incorporate the strategic objectives into operations based on these
strategies. Eventually, the success and implementation of strategic goals are checked
at the end of the process. The results are used to guide the reorientation of the next
process's priorities and the following year.

Focus

Senior managers, who are part of a team typically composed of departmental

and functional heads, are the primary participants in the cycle focus phase. The first
concern is to determine corporate operational needs. The goal here is to ensure the
organization's core areas work towards optimizing value. A second issue is the
development of cross-functional requirements to ensure that department-wide
strategic goals are in order. Those are shown listed as balanced scorecard goals on
the left-hand side of the chart. KPIs are developed by the senior management team,
which addresses both the departments' customized value creation needs and the
organization's strategic cross-functional needs. The KPIs are used to drive continuous
improvement in day to day management.

Ultimately, the senior management team chooses a limited number of annual

strategic targets that serve as overarching priorities to bring about a degree of creative
progress that would otherwise not be accomplished by routine management. Their
purpose is to encourage exploratory organizational learning – as they are typically
ambitious and ask an organization to rethink their existing organizational routines.

The content of an annual strategic goal will depend on two main things: a need
to address an issue that is concerned with the mission of the organization and a need
to move the organization forward to a new visionary position significantly. The critical
point is that these strategic targets are annual objectives to be discussed by all and
that they must also be very few, say, between one and four: that is, they are called the
critical few.

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Alignment

The critical few in a company are taken as their strategic objectives to be used
in routine local preparation and used at other levels. Although planning is mainly based
on local priorities and KPIs, the critical few objectives take precedence as a tool for
organizing daily schedules. It includes preparing plans of action and moving them
between teams to reach agreements with potential partners on achieving the targets
in daily operations.

Developing action plans is an iterative activity. Affected parties and potential

participants sound it out; passing possibilities to and from is like a catch game, and
this activity is called a catch ball. Junior teams typically have to bring their ideas to the
superiors and change their plans, perhaps several times. For carrying out projects,
both objectives and the means to achieve them are considered together.

Some strategic goals may need a long period of development to sort out their
day-to-day management implications. Typically, for several activities, including

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departments, these need to clarify the extent of their relevance. Such an event that
solves problems is usually a job for project management. Once the catch ball is
approaching completion, departmental management supervises the agreements'
ramifications to verify that the necessary workload and resource level is feasible.

Integration

When plans are completed, teams start implementing their operations as part of
their regular management practices with the newly defined targets. During integration,
management principles and market methodologies get into their own. The guiding
concept for managing goals is the PDCA cycle; work is tracked to plan (objectives),
and teams respond by problem-solving to correct anomalies and ensure that
improvements are successful. A hallmark of proper process management is to make
sure priorities are clear and appropriate. Departmental heads have to ensure that
budgets, staff reviews, and benefits are compatible with program management. It is
essential to ensure that individuals are not overwhelmed and can provide the
development support they need.

This approach is somewhat different from the management by objectives (MBO),

which is still commonly used in organizations. MBO is an approach that deploys
strategy and cascades goals down through an organization's levels by subdividing
them so that the purposes of a superior become sub-goals of subordinates, which in
turn pass their goals their assistants, and so forth. It emphasizes achieving the goals
rather than on how-to, or process, to make them.

Review

Systematically, the annual FAIR cycle review phase includes the top executive
and senior manager level's involvement in analyzing how an organization's core areas
are being handled concerning strategy and target. This operation goes under various
names; the 'executive audit' and 'president's diagnosis' are the most common. It
requires the involvement of top and senior management levels. The aim is to diagnose
the most critical issues by listening to reports and personal accounts provided by staff
in different organization sections.

It happens at the end of the annual FAIR process and reflects its evaluation
phase. Top-level participation as auditors is essential, as it provides a basis for
understanding how the organization's strategy is being implemented at the operational
level. It also provides for the next focus process with information. The auditing activity
brings senior managers into touch with the organizational realities, and their
involvement helps to provide an overall strategy for leadership and encouragement for
lower-level management. Thus, the operation offers a lever for strategic control that
promotes organizational learning and new strategies emerging.

The Nissan Motor Company identifies 13 core business areas for creating value
(Witcher, Chau, and Harding, 2008). It also specifies seven core competencies: daily

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control; the determination of the vital few objectives; the coordination of the essential
few through development and deployment; the establishment of control items (targets
and means); analytical and problem- solving abilities; check and action taken; and
leadership and participation by high-ranking personnel.

Corporate headquarters reviews its subsidiary organizations annually to

understand and influence how Nissan managers and employees use the core
competencies in business core areas. Once completed, a two-page status report is
published throughout the corporate group to compare how the subsidiaries score for
each of the competencies' development level. The findings are made evident in this
way. If the center appropriately manages the input, the flaws of a plan would be
apparent.

Levers of Strategic Control

Robert Simons (1995), a Harvard Business School accounting specialist, has

offered a strategic control framework for understanding how senior managers gather
information to advance strategy. In doing so, he observes that control systems need
to accommodate the intended strategy and those to emerge from local
experimentation and initiatives of independent personnel. Four types of structures are
identified: values, limits, diagnostic control, and interactive control. Senior managers
may use these tools to transform a company into a competitive position they prefer.

Lever 1: Belief Systems

Belief systems encourage the quest for new opportunities and guide them. It is
done through a specific set of purpose statements formally communicated by senior
managers and systematically reinforced to provide the organization with the
fundamental values and direction. The notion of conviction suggests that an
organization's life's ideals must be profoundly ingrained and based on the intent.
Initially, Simons did not include opinions but later changed his mind, reflecting a new
emphasis on vision and its relevance to leadership.

Lever 2: Diagnostic Control System

Boundary systems set limits for belief systems' opportunities-seeking behavior.

They consist of sets of rules and sanctions that restrict search but, at the same time,
help clarify those areas of risk that should be avoided by the organization. There are
various organizational constraints in boundary systems, such as specific and strict
codes of conduct. These may be influences on such topics as regulatory requirements
and public and political opinion. Senior management's function is to state and cascade
an organization's core values and goals, assess market risks, and concentrate
subordinates to ease exerted pressure by scope and size.

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Level 3: Diagnostic Control System

Diagnostic control systems motivate and monitor organizational behavior to

achieve specified objectives. These are structured structures designed to track target
progress in implementing and executing strategic and related plans. They provide a
diagnostic check on the workings of strategy. Often, they inspire, track, and reward
the achievement of particular goals. There are feedback mechanisms that are central
to managing management. Managers get input from their superiors to match the
company's operations with the organization's priorities.

Simons outlined three diagnostic control capabilities: measuring a process's

outputs, predetermining standards against which the results are compared, and
correct deviations from those standards. These ensure that managers can control
outputs through careful input selection and address critical performance variables
representing a strategy's essential dimensions. Therefore, it is possible to pass
diagnostic control systems to local management. Unlike boundary systems,
individuals can accomplish the desired ends because subordinates have already
agreed to the process specification. It is only by necessity that senior managers may
get involved.

Lever 4: Interactive Control System

Interactive management systems promote an organization by stimulating

emerging new ideas; these include hierarchical information systems used by
managers to participate in delegated decision-making processes on a daily and
personal basis. Several forms of interactive controls are used, but the critical element
is senior managers' engagement in-progress reviews, particularly for face-to-face
cross-functional meetings. They encourage senior managers to seek to create new
strategies for improvement. This activity helps shape the agendas for broader debate
and includes gathering information from normal channels outside.

Simons notes three distinctive characteristics of integrated control systems. First,

senior managers create and present the system; operating managers of certain
organizational levels must regularly review the system. The data produced must be
discussed face-to-face at all levels. This program is a trigger and catalyst for all an
organization's action plans.

Simons argues for a control balance between positive and negative control to
harmonize the restrictive attributes of boundary and diagnostic systems with the more
expansive characteristics of belief and interactive systems. Strategic performance
management puts diagnostic and interactive control under pressure. However, a
strong emphasis on daily management's overall main strategic goals is required for
successful strategic management, concentrating on 'how to get things done' rather
than 'what to do.' If things are done correctly, if the right things are done, it will become
more apparent. Therefore, it still has to believe in the importance of information and
evidence in addressing this.

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Strategic Leadership

Strategic leadership how top management and other executive levels guide the
company to work to accomplish its purpose.

Since strategic management's primary direction is a top-down activity, it is

essential to have the top management's approach to lead and influence the rest of the
organization.

The four leadership competencies comprise the skills of attention, meaning,

trust, and self, each of which must be managed.

Leadership styles are the distinctive manners in which leaders act to influence
the strategic management of their organizations.

Leadership and management may have different characteristics; it is essential

to understand their differences if they work together to promote effective strategic
management.

The primary responsibility for the project strategy and ensuring it works is at the
top of the company. The executive and other senior managers are expected to direct
the company to achieve its objective. Effective strategic leadership is the foundation
for using the Strategic Management process successfully.

Leadership is the capacity of a person or group of individuals to influence others

to attain the organization's intent and goals. Strategic leadership is the style and
general approach embodied and used by senior management to articulate purpose,
goals, and strategy to influence implementation and strategic control. Its nature varies
at different stages of an organization's development, particularly with scale when
senior levels become more distant from the daily management. Leadership styles
differ depending on the senior manager's personalities and group dynamics. Whatever
the shape and design, however, strategic leadership will foster synergy and harmony
around the organization.
A leader's common notion is that of an individual being pursued by others. There
may be many reasons to follow, but it is usually the leaders who exercise power to
influence events. In the sense of strategic management, a leader is one who has the
potential to move the company to a shared goal by manipulating others. Through this
sense, the most influential individuals inside a company are the executives and other
senior managers; they make the most critical strategic decisions. Although decisions
can emerge and be worked out involving many people, ultimately, only the top
managers make the decisions (or choose not to make them) for an organization as a
whole.

There will be people with leadership qualities and abilities at every organization
level: those who lead units, sections, teams, and specialists in essential areas of

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knowledge and skills. Many of these would be critical for motivating and inspiring
others located in various areas of an organization to create strategic change. People's
management ability is central, especially in developing core competencies.

Peter Senge (2006) argued in a book about organizational leadership's learning

organization that improves strategic skills and decision-making. A leader is someone
who can play three roles. First is the creator of organizational structures. It encourages
the kind of people who say 'we have done it ourselves;' Second, an instructor who
teaches people how to improve themselves in a way that is a priority for the
organization; and a steward who uses strategic intent to add a deep sense to the
ambitions of a person. Thus, there is also extra skill to use systems analysis to
understand its essential interdependencies that affect action and ties.

Observers usually say that a successful leader should seamlessly transfer skills
between various leadership types, depending on the situation they face at any time.
To some degree, this depends on emotional intelligence: an ability to identify and
appreciate one's own emotions and other's emotions. High emotional intelligence
includes articulating openly about feelings, controlling and using good effect emotions,
and empathizing with others. That may expect a lot, but it is essential to consider these
qualities, at least.

Executive leadership is by its very definition remote because there would be daily
interaction with top executives only for a small part of a large company's workers. In
this case, leadership appearance is essential. Writing regarding princes in the early
sixteenth century, Niccolo Machiavelli (1532) observed that men usually judge by their
eyes rather than by their ears. While all are in a position to watch, few can come in
direct contact with senior executives. All see what you seem to be; few experience
what you are. How leaders do is significant as an indication of reputation and
legitimacy, as reflected in the symbols and artifacts.

Four Competencies of Leadership

Warren Bennis and Burt Nanus (1985) identified four management competencies
for ethical leadership – attention, meaning, trust, and self.

The Management of Attention

It is an ability to attract and draw people to them, to sustain and encourage them
with their attentiveness. It is usually associated with charismatic leadership; At the
same time, a leader might be ordinary. It is the strength of an underlying dream that
inspires and provides a sense of certainty about what will happen next and that it will
happen.

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The Management of Meaning

It is a way of recognizing underlying patterns to express separate components

as a cohesive and understandable whole. In a chaotic environment, followers need to
see the path forward for coordinated energy and attention to react. Being educated is
not enough; the use of language and visual slogans that express clarity is essential.
Explanations should be kept clear, understandable, and abstract.

The Management of Trust

A leader needs to be trusted to keep a constant theme; in other words, while an

organization has to change goals periodically as events unfold, a leader must be true
to its underlying principles. It may not be articulated as such, but they should hold and
be conveyed in similar phrases and slogans, repeated over a sense of who the leader
is and what they stand for. When loyalty is to be sustained over time, others must feel
a constancy of intent or feel betrayed.

The Management of Self

A leader should know their skills and not stress about making decisions or
agonizing about improvement and outcomes. They must focus on mistakes for long
enough to learn from them and step quickly forward again. It gives others confidence;
it is not the leaders' trust that counts but the assurance of their influence and acts.

Leadership Styles

James McGregor Burns (1978), a political scientist, distinguishes transformative

and transactional leadership in his book Leadership. Trans-formational leadership is
empowering to take advantage of the follower's motivations and higher needs, thereby
engaging the 'follower's full person.' He implies that most leaders' and followers'
relationships are transactional when leaders approach followers to swap one item for
another; in most of the relationships between leaders and followers, bargaining is vital.
Such theories have informed Strategy Systems.

Transformational leadership combines individual self-interest with an

organization's broader mission to promote a shared sense of purpose. It generates
excitement when it is successful and raises enthusiasm for the challenges of bringing
change. On the other hand, transactional leadership is more mission-centric, and
certain specific management frameworks used to explain goals and commitments and
provide positive performance feedback.

A heightened type of transformational leadership is characterized by a

charismatic, dominant personality, which is a useful attribute to push past barriers to
things. Still, the kind of dramatic success that charismatic leadership produces can
lead to hubris and a leadership style that wants to micromanage. It is abrasive when
subordinates believe a chief executive can be a diligent listener and a collegial

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leadership style partner. A contrasting leadership style is a low key, mostly self-
effacing and quiet.

According to Jim Collins, big businesses have leaders who do not force change
or seek to inspire people directly; instead, they have leaders who work with the
organization's core values. Leaders are working to develop a balanced corporate
culture that can produce long-term success. It is not commanded and orders, but it
demands that everyone stick to a precise practice method. It is about allowing people
to participate in rational thinking and then pursue it with artful action. Collins believes
that the challenges of participation, commitment, motivation, and progress are melting
away as they take care of themselves in a straightforward, organized way.

Leadership and Management

There is often a distinction between leadership and strategy on the one hand and
management and control. This view encourages senior executives to think they are
doing strategy while others are doing management. Initially, this separation began with
the classical notion that the execution of the plan would obey formulation. There is a
growing belief that leadership is distinct from management.

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Abraham Zaleznik (1977) was the first to argue in the Harvard Business Review
that leadership and management are different roles: a leader is a shaper and mover
of change, while a manager is based on procedures, coordination, and working within
the current organization. The distinction is not readily known in certain national
cultures; in Japan, there are no equivalent leaders expected to manage the separation.

Warren Bennis (1993) described the differences between management practices

and leadership. While leading is about influencing people to go in a specific direction,
managing is about taking responsibility for actions.

The two hands, unfortunately, don't speak to each other much.

Strategimanagementnt needs leadership to understand how the company handles
mission, especially in those core business areas or processes critical for competitive
advantage. Domain awareness is essential in this; it's knowledge and understanding
of how an enterprise operates. It is a daunting environment for members brought in
from outside an organization. It is particularly so for strategic management, where the
competitive advantage is built on vital tools unique to the business.

Strategic Change

Organizational culture starts with the leadership given by the founder of an

organization. The core principles set in the early days and an organization's
development and growth ultimately imprints a distinctive character likely to continue
even after the initial founders and managers have left. When an entity expands, it

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recruits new members motivated by the original ideals and spreads them. The culture
of an organization, as its diversity becomes more similar, becomes more distinct. If
events call for radical change, group-thinking is a disadvantage, though.
If the need arises, perhaps because of a disaster, a new leader and team may
find it challenging to execute a change programmed. John Kotter (1996), Harvard
Leadership Professor, devised an eight-stage sequence to guide the strategic and
cultural transition. He argues that they are all important and that any failure to
implement them is why change programs fail:

1. Establish a sense of urgency: this makes others aware of the need for change
and works while motivation is strong.
2. Create a guiding coalition: put together a group with enough power to drive the
change and work as a team.
3. Develop a change vision: change direction to develop strategies for achieving
the vision.
4. Communicate the vision to others as many as possible. It needs to understand
and accept the vision with its associated strategies – a vision should be
communicated by a factor of 10, 100, even 1,000.
5. Empower action across the organization: remove obstacles to change; change
systems and structures that seriously undermine the vision; encourage risk-
taking and non-traditional ideas, activities, and actions.
6. Generate short-term wins: plan for achievements that can easily be made
visible and follow through with these to recognize and reward those employees
who were involved.
7. Never let up: continuously sustain and reinforce the increasing credibility of
the change, recruit, promote champions, develop these and other employees
who can implement the vision, and reinvigorate the change process with new
projects, themes, and change agents.
8. Incorporate changes into the culture: the new ways of doing things must be
seen to compare favorably with traditional ways, articulate the connections
between the new behaviors and organizational success, develop the means to
ensure leadership development and succession.

Kotter's sequence for change is logical, but perhaps perseverance is the most
critical change (and luck) leadership philosophy. However, it should be remembered
that most organizations are everyday affairs and that the people in them (including
clients) are human beings. Organizations and people are rarely prepared for strategic
management. So, being tough-skinned as well as open-minded is essential to leaders.
They have to run and manage their organizations regardless of the circumstances,
and necessarily, it's not a strategy, but how the procedure is handled that matters.

To be effective in strategic management, leaders must see and appreciate the

organization's larger picture in terms of mission – the external and internal. Various
and sometimes contradictory knowledge sources must be weighed against a wide
range of possibilities and tests. Goals should be both confident and yet realistic. Over
time, the strategies or tactics used to achieve strategic objectives should be reliable

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and transparent about competitive advantage. The organizational structure and

strategic planning should be conducive and contribute to its successful daily
management implementation. Leaders must understand their organizations and adopt
a suitable style fit for the long-term purpose.

Self-Help: You can also refer to the sources below to help you further understand
the lesson:

Flores, Marivic F. 2017, Business policy and strategy. Intramuros, Metro Manila:
Unlimited
Books Library Services and Publishing Inc.

Witcher, B. J. 2020, Absolute essentials of strategic management (1st Ed.) Routledge,

New York
Retrieved from https://b-ok.cc/book/5304725/25a98e

Young, F. C., 2015, Strategimanagementnt made simple. Manila: Rex Book Store

Let's Check

Instructions: Read the statement below and write your answer in the space provided.
_______1. Involves teams with individuals who come from different functional areas
of an organization working together to meet an objective.
_______2. The creation of the appropriate organizational structure and processes to
execute the strategic plan.
_______3. Sequence of related tasks to deliver an objective.
_______4. Organizing action into a cohesive and functional body.
_______5. The division of labor into specialized operations.
_______6. Act as an integrated system.
_______7. As the center at the top of the organization, Hierarchical administers the
transition process's overall design.
_______8. Allows each division to be focused either on unique products or on a
distinct regional market.
_______9. Described as the use of information technology to overhaul business
processes resulting in a revolutionary shift.
_______10. Formal structures, written protocols, rules, and pro-certificates that
condition routines and standard working methods.
_______11. The guiding beliefs or fundamental ideas around which an organization
is built.

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_______12. The essence of competitive advantage throughout having an undefined

corporate culture and associated interdependencies that are hard to replicate for
rivals.
_______13. Guiding structure for the information to be carried out at an average
management level during annual planning.
_______14. Involves organizing and managing adaptations and changes during the
strategy's ongoing execution.
_______15. Strategy management during the day to day management & operations
once a strategy has been put in place within the organization.
_______16. The strategically controlled framework allows the implementation
management to deliver its strategic goals at a senior level.
_______17. The day to day management of activities, where processes are controlled
continuously.
_______18. Action plans considered as an iterative activity that is sounded by
affected parties and passing possibilities.
_______19. An approach that deploys strategy and cascades goals down through
an organization's levels.
_______20. Set limits for belief systems' opportunities -seeking behavior that consists
of sets of rules and sanctions.
_______21. Systems encourage the quest for new opportunities and guide them.
_______22. A system that has structured designed to track target progress in
implementing and executing strategic and related plans.
_______23. Systems that promote an organization by stimulating emerging new
ideas.
_______24. The style and general approach embodied and used by senior
management to articulate purpose, goals, and strategy to influence implementation
and strategic control.
_______25. Distinctive manners in which leaders act to influence the strategic
management of their organizations.
_______26. Ability to attract and draw people to them, to sustain and encourage them
with their attentiveness.
________27. Leaders who have a clear view of purpose as a desired future state.
________28. Shaper & mover of change.
________29. Embody a strong & distinctive image.
________30. Put together a group with enough power to drive the change and work
as a team.

Let's Analyze

Activity 1. In this part, you are required to elaborate your answer to the
questions below:
1. Discuss the review wheel for strategy.

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2. What is your opinion about the lever of strategic control? What do you think
are the success factors to better control an organization and achieve strategic
goals?
In a Nutshell

Strategic implementation organizes processes and procedures for

the strategic management of an enterprise. In this portion of the unit, you
will be required to state your arguments or synthesis relevant to the topics
presented.

1. Boundary systems set limits for belief systems' opportunities seeking

behavior.
2. ______________________________________________________
______________________________________________________
3. ______________________________________________________
______________________________________________________
4. ______________________________________________________
______________________________________________________
5. ______________________________________________________
______________________________________________________
6. ______________________________________________________
______________________________________________________
7. ______________________________________________________
______________________________________________________
8. ______________________________________________________
______________________________________________________
9. ______________________________________________________
______________________________________________________
10. ______________________________________________________
______________________________________________________

Question & Answer:

This section allows the students to list down all emerging questions or
issues. Ask questions in the LMS or other modes.

Please write answers after clarification.

Questions/Issues Answers

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KEYWORDS INDEX

Strategic Downsizing Focus

Implementation
Organizational Soft Strategy Alignment
Structure
Process Strategic Control Integration
Cross-functional Strategic Execution Lever of Strategic
Control
Mckinsey's 7s Strategic Belief System
framework Performance
Management
Functional structure Review Wheel Boundary System
Process Diversification
Organization Diagnostic Control
System

COURSE SCHEDULE-Week 7-8

Activity Date Where to submit

Big Picture: Let's Check Activities TBA LMS
Big Picture: Let's Analyze Activities TBA LMS
Big Picture: In a Nutshell Activities TBA LMS
Big Picture: QA List TBA LMS
Quiz-1st TBA LMS
Forum 1- 3 TBA LMS
Quiz-2nd TBA LMS
Third Exam TBA LMS

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COURSE SCHEDULE-Week 9

Activity Date Where to submit

Assignment TBA LMS
Forum TBA LMS
Quiz TBA LMS
Final Requirement TBA LMS
Final Exam TBA LMS

Thank You

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