Culture Frameworks

Change Target • Employee values. • Behviours. • Outputs or performance.

Stories

Rituals and routines

Symbols

The Paradigm

Control systems

Power structures

Organisational structures

The cultural web

MAPPING REQUIRED CHANGE (1) FROM WHAT IS ST

TARGETING OUTPUTS

R&R

SY P

CS

PS OS

TO WHAT IS NEEDED ST R&R

SY P

CS

PS OS

MAPPING REQUIRED CHANGE (2) FROM WHAT IS ST

TARGETING BEHAVIOUR

R&R

SY P

CS

PS OS

TO WHAT IS NEEDED ST R&R

SY P

CS

PS OS

MAPPING REQUIRED CHANGE (3) ST

TARGETING BEHAVIOURS TO GET VALUE CHANE

R&R

P P CS

ST

TARGETING VALUES

R&R

SY P

CS

PS OS

SY PS OS

Via communication, education, trainin, personal development

Understanding the Cultural context for change in local government

• • • • •

• • • • • • •

Stories Leadership style Characters How things used to be ‘Narrow squeaks’ ‘It’s their fault’

Rituals and routines Comittees Formal induction Post/email (the day to day) Do your job Overload Deference Blame Someone

• • • • • •

Symbols • Reserved parking • Management suite • Secretaries as ‘domestic support’ • Back-door entry for staff • Dress code

Paradigm • Good service • Professsional standing • Problem solvers

Controls Budgets Service plan Complaints Emergencies Members’ letters Contract compliance

• • • • •

• • • •

Power Chief officer Triumvirate Committees Members

Organisation Functional Hierarchical Branches/devolved Patriarchal/autocratic Bureaucratic

(a) Technical Services -- Current

Understanding the Cultural context for change in local government

Stories • We know where we are going • Success stories • Ownership of strategy

• • • • • •

Rituals and routines Good listening and communication Giving praise Appraisals Accountability Management by walking about Celebration of success

Symbols • New front door • Parking based on need • Social services

Paradigm • Customer-focused service quality • Good partners • Good at balancing pritorities

Controls • Business plans • Partnership agreements • Financial controls

• • • • •

Power • Empowerment • Devolved responsibility

Organisation Open management Flexible Responsive Flat structure Clarity in devolution

(b) Technical Services -- future

The 7-S Framework Structure Strategy

Systems

Superordinate Goals Style

Skills Staff

DEVELOPMENT STRATEGIES

Corporate purpose and aspirations  Ownership  Mission and strategic intent  Scope and diversity  The global dimension

What basis? Corporate Level Strategy  Portfolio management  Financial strategy  The role of the corporate parent  The parenting matrix

Business Level strategy  Achieving competitive advantage  Price-based strategies  Differentiation strategies  Focus strategies Bases of strategic choice

Strategic Management Framework 1. Strategic Management 2. Competitive Advantage

Strategic Analysis Environment

Resources

Organisation

3. Industry Influences 4.Competitor Analysis 5. Value Networks

6. Value Chain 7. Resources & Capability 8. Deploying Capability

9. Culture 10. Learning & Innovation 11.Transnational & Global

Strategy development 12. Growth and Development 13. Restructuring & M&A 14. Decision Making Process

Strategy implementation 15. Implementation 16. Managing Change

Core Competences - Hamel •

Tests for core competence – – – – –

•

A bundle of constituent skills and technologies Not an “asset”, but an aptitude, an accumulation of learning, tacit and explicit knowledge A disproportionate contribution to customer-perceived value Competitively unique Provide an entrée into new markets

Types of core competence – – –

Market access competences Integrity related competences Functionality related competences

Core competence • critically underpins the organisation’s competitive advantage • a bundle of constituent skills and technologies • makes a disproportionate contribution to customer perceived value • competitively unique • provides an entry into new markets

Strategic capability • Strategic capability is related to: – the resources available to the organisation – the competence with which the activities of the organisation are undertaken – the balance of resources, activities and businesses within the organisation

• Resource audit – – – –

physical resources human resources financial resources intangibles

Criteria to evaluate competitive advantage • Resistance to erosion of competitive advantage by: – – – –

Imitation Substitution Resource mobilisation Resource paralysis

• Bundling of competences – – – – –

Product plus service Linkages of resources Intangibility Time-dependency Complexity

Porter’s Six Principles of Strategic Positioning •

The right goal – A superior long-term return on investment

•

Deliver a value proposition – Unique value for a particular set of customers or a particular set of uses

•

Distinctive value chain – – – –

•

Perform different activities than rivals Perform them in different ways Configure the value chain differently Tailor it to value proposition

Trade-offs – Forego some activities to be unique at others – Not try to be all things to all customers

•

Fit together – Mutually reinforcing choices

•

Continuity of direction – To develop unique skills and assets – To build strong reputations

Porter’s Generic Strategies Competitive Advantage

Competitive scope

Lower cost

Differentiation

Broad target

1 Cost leadership

2 Differentiation

Narrow target

3A Cost focus

3B Differentiation focus

Bowman’s Strategy Clock quoted in Johnson & Scholes (1999)

High Hybrid

Differentiation 4

3 Perceived added value

Low 2 price

1 “No frills” Low Low

Focused differentiation 5

6

8 Price

7 Strategies destined for failure High

Porter’s Five Forces (Porter 1985) Define the industry/ segment

Power of Suppliers

Focus on the major issues

Threat of New Entrants

Industry Rivalry

Threat of Substitutes

Rate the strength of the force

Power of Buyers

Consider ways to improve company position

Porter’s Five Forces (Porter 1985) Threat of New Entrants

Entry barriers: Economies of scale Brand identity Capital requirements Proprietary product differences Switching costs Access to distribution Proprietary learning curve Access to necessary inputs Low-cost product design Power of Suppliers Government policy Expected retaliation Power of Buyers Switching costs Differentiation of inputs Buyer concentration Buyer volume Industry Rivalry Supplier concentration Switching costs Buyer information Industry Growth Presence of substitute inputs Buyer profits Substitute products Concentration & balance Importance of volume Pull-through Price sensitivity Fixed costs/value added to suppliers Price/total purchases Intermittent overcapacity Impact of inputs on cost& Product differences Product differences differentiation Brand identity Brand identity Switching costs Ability to backward integrate Threat of forward/backward Informational complexity integration Impact on quality/performance Diversity of competitors Cost relative to total purchases Decision makers’ incentives Corporate stakes Exit barriers in industry

Threat of Substitutes

Relative price performance of substitutes Switching costs Buyer propensity to substitute