21632 Chapter Notes - Chapter 15: Information Source, Decision-Making
The Practice of Strategy
Pyramid of Strategy Practice - Strategists, Strategising Activities, strategising Methodologies.
Strategists:
-Chief executive officer
-Top amendment team
-Non-executive directors
Strategy skills:
-Mastery of analytical concepts and techniques
-Social and influencing skills
-Group acceptance as a player
Middle managers:
•Information source - possess knowledge and experience
•Sense making - the explainers
•Champions of ideas - foundation of new strategies
Strategy issue-selling - process of gaining the attention and support of top management and other
important stakeholders for particular strategic issues.
Decision making bias:
•Confirmation bias - seeking data that confirms a decision that has already been made
•Anchoring bias - being tied to one piece of information that may no longer be relevant
•Risk bias - over-optimism reducing real risk
Strategy Methodologies:
-Strategy workshops
-Strategy projects
-Business cases and strategic plans
Strategy workshops - involve groups of executives working intensively for one or two days, often
away from the office, on organisational strategy, requiring:
-Agreed list of actions
-Project groups
-Nesting of workshops
-Visible commitment by top management
Strategy projects - involve teams of people assigned to work on particular strategic issues over a
defined period of time, requiring:
-Clear brief or mandate
-Top management commitment
-Milestones and reviews
-Appropriate resources
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Document Summary
Pyramid of strategy practice - strategists, strategising activities, strategising methodologies. Middle managers: information source - possess knowledge and experience, sense making - the explainers, champions of ideas - foundation of new strategies. Strategy issue-selling - process of gaining the attention and support of top management and other important stakeholders for particular strategic issues. Strategy workshops - involve groups of executives working intensively for one or two days, often away from the of ce, on organisational strategy, requiring: Strategy projects - involve teams of people assigned to work on particular strategic issues over a de ned period of time, requiring: Increased power as suppliers against buyers via collusion. Decreased incentives for buyers to look for substitutes. Game theory - the study of mathematical models of con ict and cooperation between intelligent rational decision-makers; how a strategy is implemented in reaction to an opponent.
