2. The Strategy Change Cycle is not over once strategic plans
have been implemented. Times change, situation change,
and coalitions change.
In this last step in the Strategy Change Cycle, leaders,
managers, and others stakeholders review strategies that
have resulted form previous steps or emerged along the
way to determine whether they should be maintained,
significantly altered or terminated.
Desired Outcomes
1. Maintenance of good strategies through appropriate
reforms or plan revisions, and elimination undesirable
strategies.
2. The mobilization of energy and enthusiasm to address
the next important strategic issue that comes along
3. In some cases, another desired outcome is construction
and maintenance of a strategic management system to
ensure ongoing effective strategy management of the
organization.
3. Benefits
1. The assurance that institutionalized
capabilities remain responsive to important
substantive and symbolic issues.
2. The resolution of residual issues that occur
during sustained implementation.
3. The continuous weeding, pruning, and
shaping of crowed strategy areas.
4. Improved organizational knowledge and
collaboration across all levels of the
organization.
5. Fosters development of the energy, will,
and ideas for reform of existing strategies.
4. Process Guidelines
General Guidelines are presented first , and then
specific suggestions are offered for strategy
maintenance, succession, and termination.
General Guidelines
1. Stay focused on what is important
2. Focus on signs or indicators of success or failure
3. Review the issue framings used to guide strategy
formulation in the first place
4. Use existing review opportunities, or create new
ones
5. Create a review group
6. Challenge institutional and organizational rules that
favor undesirable inertia
7. Remember that organizations usually have greater
staying power than their strategies
5. Strategy Maintenance Guidelines
1. To maintain existing strategies, seek little
change in current organizational arrangement
2. To maintain or marginally modify existing
strategies, rely on implementers, invite
focused input from consumers, and involve
supportive advocates
3. Invest in distinctive competencies necessary
for the success of the strategies
Strategy Change or Succession Guidelines
1. To facilitate or move to new strategies,
significantly alter existing arrangements
2. Create occasions to challenge existing
meanings and estrange people from them an to
create new meanings and facilitate their
enactment
6. Strategy Change or Succession Guidelines, con’t
3. Be aware that strategy succession may be more difficult
than adoption of the existing strategy was because the
existing strategy is now likely to have a coalition of
supporters in place
4. Remember that both implementers and beneficiaries of
existing strategies are likely to be more concerned with
strategy implementation details than with policy
innovation
5. To make major strategy changes, rely on key decision
makers, along with implementers and beneficiaries
6. To avoid strategy succession, consider a move to either
split aspects of the strategy or to consolidate strategies
7. Consider building a new system without dismantling the
old system
8. Invest in distinctive competencies that continue to be
relevant, and build the new competencies that are needed
7. Strategy Termination Guidelines
1. Think of strategy termination as an
extreme version of strategy change
2. Engage in cutback management when
programs need to be eliminated or severly
reduced
8. Building a Strategic Management System
Note: This is considered supplemental material and will not be
discussed as part of the course though it is found in Chapter 10
of your text.
- As indicated earlier, one of the Desired Outcomes of this step:
In some cases, another desired outcome is construction and
maintenance of a strategic management system to ensure
ongoing effective strategy management of the organization.
-The author is ambivalent about attempts to institutionalize
strategic planning and management. What often happens when
attempt are made to do this is that systems become excessively
formal and bureaucratic. These systems, in many instances,
drive out wise strategies and action. Just remember, whenever
any strategic management system (or strategic planning
process ) threatens to drive out wise strategic thought, action,
and learning, you should scrap the system (or process) an get
back to promoting effective strategic thought, action, and
learning.
9. Building a Strategic Management System
There are basically six main types of systems
although any strategic management system in
place will probably be a hybrid of the six types.
The six types are:
1. Integrated units of management approach
2. Strategic issues management approach
3. Contract approach
4. Collaboration approach
5. Portfolio management approach
6. Goal or benchmark approach
Guidelines for Building a Strategic Management
System
1. Apply the strategic management system to the
whole organization
10. Guidelines for Building a Strategic Management
System, con’t
2. Build on performance measurement and management
approaches already in use in the organization
3.Focus on a small number of key results and indicators
4. Use a common set of categories for performance
measures
5. Connect performance measures to specific programs,
services, and activities
6. Support the linking of organizational performance
and individual performance
7. Use the strategic management system to support
planning, decision making, budgeting, evaluation and
learning
8. Review and update the system on a regular basis