Change Target

• Employee values.
• Behviours.
• Outputs or performance.
 Stories Symbols

Rituals The Power

and routines Paradigm structures

Control Organisational
systems structures

The cultural web

 MAPPING REQUIRED
FROM
CHANGE (1)
WHAT IS
ST SY

TARGETING R&R P PS
OUTPUTS
CS OS

TO
WHAT IS NEEDED

ST SY

R&R P PS

CS OS
 MAPPING REQUIRED
FROM
CHANGE (2)
WHAT IS
ST SY

TARGETING R&R P PS
BEHAVIOUR
CS OS

TO
WHAT IS NEEDED

ST SY

R&R P PS

CS OS
 MAPPING REQUIRED
CHANGE (3)
ST SY
TARGETING BEHAVIOURS
TO GET VALUE CHANE R&R P
P PS

CS OS

Via communication,
ST SY
education, trainin,
R&R P personal development
TARGETING PS
VALUES
CS OS
Understanding the Cultural context for change in local government

Stories Symbols
• Leadership style • Reserved parking
• Characters • Management suite
• How things used to be • Secretaries as
• ‘Narrow squeaks’ ‘domestic support’
• ‘It’s their fault’ • Back-door entry for
staff
• Dress code

Rituals
and routines Paradigm Power
• Comittees • Good service • Chief officer
• Formal induction • Professsional • Triumvirate
• Post/email (the day to day) standing • Committees
• Do your job • Problem solvers • Members
• Overload
• Deference
• Blame Someone

Controls Organisation
• Budgets • Functional
• Service plan • Hierarchical
• Complaints • Branches/devolved
• Emergencies • Patriarchal/autocratic
• Members’ letters • Bureaucratic
• Contract compliance

(a) Technical Services -- Current

Understanding the Cultural context for change in local government

Stories Symbols
• We know where we • New front door
are going • Parking based on need
• Success stories • Social services
• Ownership of strategy

Rituals
and routines
Paradigm Power
• Good listening and
• Customer-focused • Empowerment
communication
service quality • Devolved responsibility
• Giving praise
• • Good partners
Appraisals
• • Good at balancing
Accountability
• Management by pritorities
walking about
• Celebration of
success

Controls Organisation
• Business plans • Open management
• Partnership • Flexible
agreements • Responsive
• Financial controls • Flat structure
• Clarity in devolution

(b) Technical Services -- future

 The 7-S Framework

Structure

Strategy Systems

Superordinate
Goals

Skills Style

Staff
 Corporate purpose and aspirations
 Ownership
DEVELOPMENT
 Mission and strategic intent
STRATEGIES
 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 6. Value Chain 9. Culture
4.Competitor Analysis 7. Resources & Capability 10. Learning & Innovation
5. Value Networks 8. Deploying Capability 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

Lower cost Differentiation

Competitive scope

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 Differentiation
Hybrid Focused
4
differentiation
3 5

Perceived
added Low 2 6
value price

7 Strategies
1
“No frills” destined for
8 failure
Low
Low High
Price
 Porter’s Five Forces (Porter 1985)

Define the industry/ Rate the strength of

Threat of
segment the force
New Entrants

Power of
Power of
Industry Rivalry Buyers
Suppliers

Threat of
Focus on the major Consider ways to improve
issues Substitutes 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
Power of Suppliers Low-cost product design
Switching costs Government policy Expected retaliation Power of Buyers
Differentiation of inputs Buyer concentration Buyer volume
Supplier concentration Industry Rivalry Switching costs Buyer information
Presence of substitute inputs Industry Growth Buyer profits Substitute products
Importance of volume Concentration & balance Pull-through Price sensitivity
to suppliers Fixed costs/value added Price/total purchases
Impact of inputs on cost& Intermittent overcapacity Product differences
differentiation Product differences Brand identity
Threat of forward/backward Brand identity Switching costs Ability to backward integrate
integration Informational complexity Impact on quality/performance
Cost relative to total purchases Diversity of competitors Decision makers’ incentives
in industry Corporate stakes Exit barriers

Threat of Substitutes
Relative price performance of
substitutes
Switching costs
Buyer propensity to substitute