This book sheds light on the processes and cognitions used by managers to successfully implement strategies while navigating the strategy and change interface.
It applies the latest thinking from the resource-based literature, in particular the idea that high performing organisations have become adept at honing and utilising value creating dynamic capabilities. Key processes and cognitions help organisational leaders sense opportunities and threats as well as shrewdly seize strategic opportunities to advantageously enhance performance. The book also adopts an institutional view; that is, it assumes that organisations must satisfy their stakeholders while navigating a range of influences, including other organisations, markets, laws, quality standards, conventions, and cultural norms.
This book conceptualises corporate strategy as an amalgam of four fundamental strategies: the organisation’s financial, customer value creation, resource, and non-market strategies. These strategies address the capital, product and services, and resource markets as well as various non-market institutions. Successfully integrating and implementing these four strategies allow organisations to enable their employees’ multidisciplinary talents. By approaching strategy in this way, the book demonstrates why it is important to monitor changes to the organisation’s strategic context and helps it identify the practices, collaborations, and projects necessary to achieve spectacular strategic change.
Author(s): Angelina Zubac, Danielle Tucker, Ofer Zwikael, Kate Hughes, Shelley Kirkpatrick
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 483
City: Singapore
Contents
List of Contributors
List of Figures
List of Tables
1 Introduction: Navigating the Strategy and Change Interface Successfully
Book’s Aims
The Corporate Strategy: The Market and Non-Market Domains
The Strategically Aligned Organisation
The Strategy and Change Interface
Thinking, Collaborating and Acting Strategically Together
The Strategy Process
The Financial Strategy
The Customer Value Creation Strategy
The Resource Strategy
Non-Market Strategies
Conclusion
References
Part I The Strategy Process
2 Introduction: The Strategy Process
Reference
3 A Social Context View of Strategic Cognition: Strategists Are Highly Emotional and Interactive Homo Sapiens!
Introduction
Misconceptions Due to Rational and Detached Thinking
Correcting the Misconceptions: Strategy’s Social Context
Cognitive Systems of Information Processing
The Two Systems
Conflicting Purposes and Characteristics
Contagion, Psychological Harm, and Emergence
Positive Conflict
Receiving an Affective Interaction
Determining an Affective Response
Giving an Affective Interaction
Cognitive Regulation and Kind Environments
Cognitive Styles
Conclusion
Implications for Future Research
References
4 Implementing Strategy and Avenues of Access: A Practice Perspective
The Implementation Problem According to the Theory of Practice
Implementation Requiring Avenues of Access
The Efficacy of Implementation Practices
Conclusion and Some Practical Implications
References
5 Strategy Implementation and Organisational Change: A Complex Systems Perspective
Introduction
Strategy and Systemic Interpretations of Organisational Change
Systemic Interpretations of Organisational Change
Planned Organisational Change
Specific Interpretations
Universal Interpretations
Strategy and Organisational Change
Complexity and Organisation: A Multitude of Approaches
Intuitive Complexity
Complexity and Cybernetics
Management Cybernetics
Systems Thinking
System Dynamics
Complexity Studies
Complexity Science
Stacey Matrix and Cynefin
Luhmann’s Complexity of Social Systems
Strategy Implementation, Organisational Change and Complexity
Strategy Implementation: Comprehensive Approaches
Cybernetics and Systems Thinking
Complexity Studies
Coevolutionary Perspective
Conclusions
References
Part II The Financial Strategy
6 Introduction: The Financial Strategy
Reference
7 Implementing a Financial Strategy: Managing Financial Capital, Investing in People, Balancing Risk and Developing Critical Resources
Introduction
Financial Capital and Its Transformation
What We Know About Financial Capital Management
The Theory of Corporate Finance
Debt Versus Equity and Cash
Internal Capital Markets and Capital Allocation
The Theory of Corporate Governance
Corporate Governance: An Evolving and Increasingly Stakeholder-Oriented Field
Corporate Governance and Organisational Decision-Making
The Theory of Organisational Design
The Transformation: Human, Risk and Resource Capital
Human Capital
Knowledge Capital
Social Capital
Risk Capital
A Clarifying Example
Risk Mitigation and Risk Appetite
Risk Management: Understanding the Different Categories of Risk in Order to Mitigate
Implementing Strategy and Risk
Resource Capital
Exploration and Exploitation: Sensing, Seizing and Transforming
Conclusion
References
8 An Evolution: Turning Management Accounting into a Strategic Function
Introduction
What is Management Accounting?
Traditional Management Accounting Roles and Activities
Limitations of Traditional Management Accounting
Costing
Budgeting
Performance Reporting
Financial Analysis
Strategic Management Accounting—Evolution of Tools and Techniques
Evolution in Costing
Analysis of Customers
Competitor Analysis
Performance Measurement
Budgeting
Management Accounting Tools and Techniques and Sustainability
Strategic Management Accounting as a Strategic Function—Supporting Management Decisions
Strategic Management Decisions
Strategic Management Accounting—Enabling Strategy Implementation
Conclusions
References
Part III The Customer Value Creation Strategy
9 Introduction: The Customer Value Creation Strategy
10 Business Models for Sustainability
Introduction
Sustainable Development
Organisational Sustainability
Organisations’ Role in Sustainable Development
Business Models
Sustainable Business Models
Stakeholders and Business Models
Organisational Culture and Sustainability
Characteristics of a Sustainability Culture
Changing Organisational Culture
Organisation Culture Change Barriers
Culture Change Steps
Embedding Sustainability
Leader’s and Manager’s Commitment to Sustainability
Sustainability Communication
Employee Involvement
Sustainability Reporting
Sustainability Education and Awareness Training
Employee Performance Measures, Rewards and Incentives
Conclusion
Appendix A
Cultural Values for Sustainable Business Models
References
11 The Customer Value Concept: How Best to Define and Create Customer Value?
Introduction
The Different Categories of Customer Value Definitions
Customers’ Willingness to Pay More Than the Cost to Produce: The Pros and Cons
Some Sort of Equity Position: Pros and Cons
A Multidimensional Concept: Pros and Cons
Woodruff’s (1997) Definition and the Contemporary Organisation: Two Frameworks
Understanding Customer Value and Investing in Resources to Create and Deliver Customer Value
Being Customer Centric and Applying Service-Dominant Logic
Value Networks: Institutionally Complex Ecosystems
Conclusion
References
12 Strategic Processes and Mechanisms of Value Creation and Value Capture: Some Insights from Business Organisations in Poland
Introduction
Value Creation and Value Capture—Some Theoretical Insights
Value Creation and Value Capture Processes and Mechanisms—Empirical Research Results
Research Methodology
Assessing VCVC Processes and Mechanisms
Empirical Variables Describing VCVC Processes and Mechanisms
The Impact of Value Creation and Value Capture on Organisational Performance
Summary
References
Part IV The Resource Strategy
13 Introduction: The Resource Strategy
14 Communicating and Shaping Strategic Change: A CLASS Framework
Introduction
The Phenomenon
The Developer
The Framework
The Fundamental Nature of the Strategic CHANGE: Additive or Substitutive?
The Strategic Change LEADER: Internal Appointment or External Hire?
ARTICULATION of the Strategic Change: Formal Plan or Informal Vision?
SYMBOLISM for the Strategic Change: Deductive or Inductive?
STAKEHOLDERS’ RESPONSE to the Strategic Change: Support or Resistance?
Application of the Framework
Implications and Conclusion
References
15 A Structured Approach to Project Management as a Strategic Enabling Priority
Introduction
Purpose
Research Methodology
Using a Project Management Framework to Create Strategic Alignment
Engaging with the Strategic Purpose and Goals
Portfolio Management
Portfolio Decision Making Steps
Project Portfolio Matrix
Pipeline Approach—Go/No-Go Assessment
Updating the Strategic Roadmap
Benefits of Portfolio Management
Programme Management
Effective Programme Management
Project Management
Governance and Reporting Structure
Life Cycle Guidelines
Project Sizing and Approvals
Effective Structured Project Management
Benefits Management
Benefits Definition and Measurement
Realising Benefits
Summary of Benefits of Structured Benefits Realisation Management
Establishing an Effective Project Management Framework
Further Research
Conclusion
References
16 Family Firms and Mergers and Acquisitions: The Importance of Transfer of Trust
Introduction
Mergers and Acquisitions in Family Firms
Organisational Trust and Family Firms
Framework
Factors which Influence Trust
Influencing Factors of Questioning Trust
Influencing Factors of Observing Trust
Influencing Factors of Regaining Trust
Recommendations and Conclusions
References
Part V Non-Market Strategies
17 Introduction: Non-market Strategies
18 Towards a Strategic Change Management Framework for the Nonprofit Sector: The Roll-Out of Australia’s National Disability Insurance Scheme (NDIS)
Introduction
Review of Prevailing Literature
Methodology Applied to This Research
Research Findings
Detailed Findings
NDIS Implementation Framework
Implications for Theory and Practice
How Do These Findings Inform the Theory of Planned and Strategic Organisational Change Management for This Sector?
What Do These Findings Mean for Nonprofit Disability Service Provider Organisations?
What Do These Findings Mean for Nonprofit Disability Service Provider Leaders and Managers?
What Do These Findings Mean for Government Agencies Dealing with Nonprofit Organisations?
Conclusion
References
19 When Everything Matters: Non-market Strategies, Institutions and Stakeholders’ Interests
Introduction: Non-Market Strategies
Institutions and Organisations
Two Organisational Literatures
Neo-Institutional Theory (Sociological/psychological)
Neo-Institutional Economics
Institutional Change: Institutional Entrepreneurship and Work
Institutional Strategies and Strategic Change: Achieving Legitimacy
Stakeholders and Organisations
Three Stakeholder Streams of Literatures—Descriptive, Instrumental and Normative
Stakeholder Identification and Effectively Governing
An Integrated Approach: Critical Knowledge Flows and Social Interactions
Conclusion
References
Index
