Direction-driven organizational change

Realized direction
Unintended consequences Organizational change Realized strategy Emergent strategy Unanticipated events Deliberate strategy
1

Desired direction

Behavioral responses

Articulated direction
(Targets) Performance measures

Mission / vision

Objectives

OBrien, Frances & Dyson, Robert (2007) Supporting Strategy, John Wiley & Sons, West Sussex

Ten Strategy Making Schools

1. Design

2. Planning
3. Positioning 4. Entrepreneurial 5. Cognitive

Ten Strategy Making Schools (cont)

6. Learning

7. Power
8. Cultural 9. Environmental 10. Configuration

Recent approaches
Approach Dynamic capabilities Resource-based Soft techniques Constructionism Chaos & evolutionary Institutional Schools Design, Learning Cultural, Learning Plan, Learning or Power Cognitive, Cultural Learning, Environmental Environmental, Power or Cognitive Intrapreneurship Environmental, Entrepreneurial Revolutionary change Configuration, Entrepreneurial Negotiated strategy Power, Positioning Strategic Positioning, Power maneuvering

QUESTION: What do you think:

Are these schools different approaches to strategy formation OR Different parts of the same process?

Strategy Formation as a Single Process

Environmental

Cultural
Positioning Cognitive Learning Planning
Desig n Entrepreneurial

Power

Configuration

Strategy Formation as Many Processes

unpredictable

Environmental

Cognitive
Learning Power (micro)

External World as

Cultural Configuration Power (macro)

controllable

Positioning Planning
rational

Design
Internal Process as.

Entrepreneurial
natural

Strategic IT Investment Framework*

Business solutions Process Improvement Experiments

Shared infrastructure

Renewal

Transformation

Short-term profitability

Long-term growth

Strategy Objective
*Jeanne

Ross & Cynthia Beath (2001), Beyond the Business Case: Strategic IT Investment

Various IT Portfolio Categories

Lights on categories Applications Infrastructures Services Management New investment Strategic Factory Mandated Future Strategic

Service related Maintenance of existing Improve existing Develop new

Technology scope vs. Strategy Objective Process improvement Renewal Experiments Transformation

Intersection of Business & IT Strategy5

Theme: Reactive Business Strategy

Info Tech

Result: Stand-along IT Vision

5. Albrecht, Bob, et al, Information Technology Alignment Higher Education, ECAR, Vol 3, 2004

Intersection of Business & IT Strategy6

Theme: Alignment Business Strategy

Info Tech Result: Business Drive IT Vision

6. Albrecht, Bob, et al, Information Technology Alignment Higher Education, ECAR, Vol 3, 2004

Strategic Alignment Model

Business Strategy IT Strategy

Business Scope
External

Technology Scope

Distinctive Competencies

Business Governance

Systemic Competencies

I/T Governance

Strategic Fit

Automation

Linkage

Administrative Infrastructure

Architectures

Internal

Processes

Skills

Processes

Skills

Org infrastructure & processes

I/S infrastructure & processes

Business Functional Integration

Information Technology

Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Four dominant alignment perspectives 7

1. 2. 3. 4.

Strategy execution Technology transformation Competitive potential Service level

7. Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Strategy execution alignment perspective 7

Business Strategy

Organizational infrastructure
Driver: Role of Top Management: Role of I/S Management: Performance Criteria:

I/S infrastructure Business Strategy Strategy Formulator Strategy Implementor Cost/Service Center

7. Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Technology transformation alignment perspective 7

Business Strategy I/T Strategy

I/S infrastructure Driver: Role of Top Management: Role of I/S Management: Performance Criteria: Business Strategy Technology Visionary Technology Architect Technology Leadership

7. Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Competitive potential alignment perspective 7

Business Strategy I/T Strategy

Organizational infrastructure
Driver: Role of Top Management: Role of I/S Management: Performance Criteria: I/T Strategy Business Visionary Catalyst Business Leadership

7. Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Service level alignment perspective 7

I/T Strategy

Organizational infrastructure
Driver: Role of Top Management: Role of I/S Management: Performance Criteria:

I/S Infrastructure
I/T Strategy Prioritizer Executive Leadership Customer Satisfaction

7. Henderson, J. C & Venkatraman, N. (1999) Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal, Vol 38, Nos 2&3, pgs 472-484

Intersection of Business & IT Strategy6

Theme: Collaboration Business Strategy

Info Tech Result: Blended strategy

6. Albrecht, Bob, et al, Information Technology Alignment Higher Education, ECAR, Vol 3, 2004