Strategy Implementation

Session-1
Introduction to Strategy Implementation
Prof. Muneza Kagzi
1
Contents
• About the Course
• Why
• What
• How
• Evaluation

• Session-1 Introduction to Strategy Implementation

2
• 2 Credit course
• 20 hours
• 8 sessions (2.5 hours each)
• Jan-April 2022

3
Why this course?

4
Course objectives
• Understand the strategy formulation-implementation linkage
• Apply frameworks to comprehend the organizational complexities of
strategy implementation
• Identify specific roles of leaders, functional areas, organization
systems and processes in the success of a strategy

5
Important topics
• Introduction to strategy implementation
• Strategy and structure
• Management Control and Process
• Organization Culture
• Performance and control- Balance Scorecard
• Challenges in Strategy implementation
• Leadership and strategy implementation
• Sustainability

6
 Evaluation

Assessment Tool Percentage Description

End term Exam 50 This component checks and evaluates the understanding of
concepts and ability to apply appropriate tools and techniques.
Class Participation (including Case 20 Participants are expected to discuss and analyze case questions.
Analysis & Class Exercises) Class exercises will aid in the understanding of concepts.
Considerable learning also comes from discussions including
sharing of work experiences.
Project (Group) 30 This activity facilitates students to demonstrate the ability to
integrate the information and the skills accumulated in the course to
analyze a real company and its efforts to implement a strategy. It is
also an exercise in written communication.

7
 Project
Objective To identify and analyse a problem faced by company while implementing the strategy

Company Preferably Indian Company (Listed)

Time duration Last 5 years (2017-2021)

• Diagnose the root cause of the problem

• Highlight the strategy implementation process by which the problem was or can be solved
Analysis
• Usage of course content is expected in analysis
• Data source- Annual Report, News, Research articles, Company’s Website

Group Project (5 members)

Submission
Written submission + Presentation- 10 pages
8
Teaching approach
9
 Teaching Pedagogy

Group discussion

10
What is strategy?

11
What is strategy?
Strategy as 'a pattern in a stream of
decisions’
What leaders of the organization plan to
do in future
An analytic process for establishing long
range goals and action plan
It allows company to outperform
competitor
Ex.- scale, variety, know-how, processes etc

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 Strategic Management Process

3. External
Analysis

1. Mission 2. Objective 4. Strategy 5. Strategic 6. Competitive

formulation Implementation Advantage
3. Internal
Analysis

13
How do strategies form in organizations?

14
 Prof. Henry Mintberg-Faculty of Management, McGill University, Montreal,
Quebec, Canada

Mintzberg, H. and Waters, J.A., 1985. Of strategies, deliberate and emergent. Strategic management journal, 6(3),
pp.257-272
15
16
 How do strategies form in organizations?

Mintzberg, H. and Waters, J.A., 1985. Of strategies, deliberate and emergent. Strategic management journal, 6(3),
17
pp.257-272
 Intended and Realized Strategy

Intended Strategy: Deliberate strategy: Realized strategy:

A strategy a firm thought An intended strategy a The strategy a firm is
it was going to pursue firm actually implements actually pursuing.
J&J is
J&J
presently in
originally consumer
into products
antiseptic
gauze

Emergent Strategy:
Non-realized strategy:
is an unplanned strategy
An intended strategy a
that arises in response to
firm does not actually
unexpected opportunities
implement
and challenges

18
TATA- Air India Handover-Intended Strategy

• Oct 2021- 18,000 crore

• Grooming SOP
• Revamping aircraft interiors
• Customer experience
• Key officials from Air India continue
• Positioning- Vistara vs Air India
• Regaining the image and reputation

19
 • Billionaire Mukesh Ambani stated that he sees the future in electric vehicles and clean
energy.
• He also made it clear that the land around Jamnagar owned by Reliance  will be
converted into solar power plants. Not only that the land will be able to generate atlas
100 GWH of Solar Energy.
• This will be almost 20% of India’s capacity to produce solar energy by that time. 

https://economictimes.indiatimes.com/industry/renewables/tesla-not-working-on-small-electric-car-elon-
musk/articleshow/89145817.cms
20
 Emergent Strategy
• Chennai-based packaged consumer goods company CavinKare launched hand
sanitizers under its popular personal care brands – CHIK, Nyle, and Raaga.

• Jubilant Life Sciences Limited, a Jubilant Bhartia Group company, on Friday

announced that its research and development team has developed
formulation for hand sanitizer using ethanol produced at its plants. 

https://www.livemint.com/news/india/covid-19-impact-sanitiser-market-sees-more-entrants-
11585647091736.html

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Types of Strategy
1. Pure deliberate and pure emergent strategy
2. Planned Strategy
3. Entrepreneurial strategy
4. Ideological strategy
5. Umbrella Strategy
6. Process Strategy
7. Unconnected Strategy
8. Consensus Strategy
9. Imposed Strategy
22
Planned Strategy
• Leaders at the centre of authority formulate their intentions as
precisely as possible and then strive for their implementation
• Translation into collective action—with a minimum of distortion,
'surprise-free’.
• Articulation of intention in the form of plan
• Suitable for predictable business environment
• Mining companies that require large investments

Planned Strategy
23
Entrepreneurial strategy
• Relax the condition of precision
• Firm tightly controlled/owned by entrepreneur
• Family owned/controlled firm
• General sense of direction but allows adoption
v2

v1

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25
Ideological strategy
• Members in the organizations share a vision and identify so strongly with it
• System of belief
• Exhibits patterns in the behaviour
• Ahimsa/only veg business

26
Umbrella
Strategy

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Umbrella Strategy
• Leaders have partial control over organization
• Set general guidelines for behaviour
• Define the boundary- umbrella
• Suitable when environment is complex
• Light touch, maintaining a subtle balance between proaction and
reaction
• Architectural firms, NASA- sets general goals

28
Process Strategy
• Similar to umbrella strategy
• Controls the process of strategy making
• Uncontrollable and unpredictable business environment
• Larger boundaries/targets sets
• CISCO- Acquisition process strategy
• Conglomerates- HQ create structure, an appoints divisional managers
to create their own strategies

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The unconnected strategies
• One part of the organization has discretion- does it own things
• Subunit-full autonomy
• Hospitals and universities

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The consensus strategy
• Many different actors naturally converge on the same theme
• Convergence evolve
• Driven from collective action rather collective intention

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The Imposed strategy
• Strategy is imposed on the organization by powerful individuals
• The environment is the diver of strategy

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Why do some companies consistently outperform
their competitors?

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What really works?

34
 Management Practices (4+2)

Primary (four) Secondary (Any two)

Strategy Culture Talent Leadership

Mergers and
Execution Structure Innovation
Partnerships

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Strategy

• Sharply defined strategy

• Clearly communicated
• Well understood by employees, customer, partners and investors
• Keep focused. Grow your core business, and beware the unfamiliar.
• Apple’s focused strategy- Differentiation

36
Culture
• Holding high expectations about performance matters a lot more
• Inspire all managers and employees to do their best.
• Empower employees and managers to make independent decisions
and to find ways to improve operations-including their own.
• Pay psychological rewards in addition to financial ones.
• Netflix open culture

https://www.youtube.com/watch?v=pl4UYZfVmTA&t=123s

37
Execution
• Develop and maintain flawless operational execution.
• Standardization (Fleet)
• You might not always delight your customers, but make sure never to
disappoint them.

38
Structure
• by product, geography, customer, and so on
• Winners show that what really counts is whether structure reduces
bureaucracy and simplifies work.
• Promote cooperation and the exchange of information across the
whole company.
• Promote cooperation and the exchange of information across the
whole company.

39
Secondary Practices
1. Talent
Winners hold on to talented employees and develop more.

Fill mid-and high-level jobs with outstanding internal talent whenever possible.

2. Innovation

Relentlessly pursue disruptive technologies to develop innovative new products and

services.

Don't hesitate to cannibalize existing products

40
Secondary Practices

3. Leadership
Choosing great chief executives can raise performance significantly

4. Mergers and Partnerships

Internally generated growth is essential, but companies that can master mergers and
acquisitions can also be winners.
- CISCO

41
https://www.youtube.com/watch?v=N_PG8OsjnuM&t=23s

https://tesrex.com/article/the-last-20-cisco-acquisitions/
42
Guess who?

43
 Natarajan Chandrasekaran

https://www.youtube.com/watch?v=c3o7UJttWEA&t=2s
44
 Simplify, Synergize, Scale

Simplify Synergy Scale

Companies under Tata Group E commerce

Verticals that could be
consolidated into single
entities to make organization
simpler, like the
Aerodynamics and Defense
vertical.
would work together where it
made business sense to forward
each other’s causes. For example,
Tata Motors delves into EV
technology with help from Tata
Capital for financing and Tata
Power for charging infrastructure.
High growth and scale
Tata Motors too saw a
turnaround with a fresh line of
products and market share
gains in the passenger vehicle
business in the last few years
have shed Rs 22,000 crore in
debt since 2017.

45
46
Simplify- Organization’s structure

• Companies will be classified into 7-8

sectors rather than over 100 operating
companies currently
• TCS- Independent cluster
• Tata steel- Independent cluster
• Tata Motors- Independent cluster
• Aerospace, defence and infrastructure-
one cluster
• Financial services
• Smart cities, Smart mobility

47
48
Research
• Evergreen Project
• 1996-2000
• involved more than 50 leading academics and consultants
• Total return to shareholders (TRS)
• 160 companies- 4 groups
• Market Capitalization-$100 Million and $6 Billion
• 200 practices- 1 to 5 scale
• Coded data

49
• Meaning and types of Strategy
• Best practices for strategy implementation

50
References
• Nohria et al., 2003. What really works. Harvard Business Review,
81(7), pp.42-52

• Mintzberg, H. and Waters, J.A., 1985. Of strategies, deliberate and

emergent. Strategic management journal, 6(3), pp.257-272

51
Thank you

52
 Session-2
Strategy
and
structure
Prof. Muneza Kagzi
EPGP Course
IIM Kozhikode

53
• Recap of the previous session
• Discussion- Group Project
• Strategy and structure
• Case discussion
• Q&A
• Summary- key learnings

54
Recap- Previous session
• Introduction to strategy implementation
• Linkage between strategy formulation and implementation
• Strategy Formulation-types
• Best practices for successful organization (4+2)

55
 Management Practices (4+2)

Primary (four) Secondary (Any two)

Strategy Culture Talent Leadership

Mergers and
Execution Structure Innovation
Partnerships

56
Discussion on Group Project

• Group formation
• Selection of topic- Problem in
implementation- 2 examples
• Selection of companies-2
• Deadline- Sunday evening
• 6th Feb 2022

57
 Project
Objective To identify and analyse a problem faced by company while implementing the strategy

Company Preferably Indian Company (Listed)

Time duration Last 5 years (2017-2021)

• Diagnose the root cause of the problem

• Highlight the strategy implementation process by which the problem was or can be solved
Analysis
• Usage of course content is expected in analysis
• Data source- Annual Report, News, Research articles, Company’s Website

Group Project (5 members)

Submission
Written submission + Presentation- 10 pages
58
Guess?
59
 Vistara to coexist with Air India, merger talks on hold

Bhaskar Bhat, chairman of Tata SIA While Air India as a structure will be untouched for a year
(Singapore) Airlines, which owns Vistara.

The Tata Group is focused on making Air India a success but not
at the cost of Vistara and vice versa

https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/no-merger-talks-for-now-vistara-to-coexist-with-air-india-bha
60
skar-bhat-tata-sia-airlines/articleshow/89233156.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 Simplify- Organization’s structure
• Companies will be classified into 7-8
sectors rather than over 100 operating
companies currently
• TCS- Independent cluster
• Tata steel- Independent cluster
• Tata Motors- Independent cluster
• Aerospace, defence and infrastructure-
one cluster
• Financial services
• Smart cities, Smart mobility Natarajan Chandrasekaran
Chairman of Tata Sons

61
Apple’s organization structure- Strategy

https://www.youtube.com/watch?v=5hENFA3CJUY

Podolny, J. M., & Hansen, M. T. (2020). How Apple is organized for innovation. Harvard Business
Review, 98(6), 86-95.
62
Strategy - Structure fit

63
What is there in the case?
64
Case summary
• The Beijing EAPs Consulting Inc is among the
one of growing consulting companies
• First consulting company in Mainland China
• Provides employee assistance Programs (EAPS)
• Stress management
• Increase the job satisfaction and well being
• Started with 6 employees (increased to 20)
• Work pressure among the employees

65
Which are the major issues in the case?
66
 Major issues in the case

• Conflict among the project and department

managers that confuse the employees as they have
to perform multiple tasks at the same time.
• The company has multiple authorities that create
confusion among employees to whom they have to
report and which authority has the power in order
to make the final decision.
• More tasks and strict timelines
• Delay in work

67
1.Describe and evaluate the organization structure at BEC.

68
Organization Structure
• Meaning
• Types (Advantages and limitations)
• Attributes

69
 Organization
structure

• Designing an organization structure

involves defining organizational
roles, determining reporting
relationships, establishing how to
group individuals, and creating ways
to coordinate employee

70
 Attributes of Organization structure

Hierarchy of authority Degree of centralization Formalization

Formal reporting This might also be called

Refers to where in the bureaucracy.
relationships among levels
structure the decision It describes the extent to
and across functions and
making authority lies. which formalized rules,
departments
policies, and procedures
exist within the
organization and the extent
to which people
Tall Flat Centralized Decentralized actually follow them.

71
 1. Hierarchy of authority
Tall Organization structure Flat organization structure

72
Research findings
A study involving over 200 senior managers demonstrates that overall
firm performance is strongly influenced by how well a firm’s business
strategy is matched to its organizational structure

Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005). The importance of

structure and process to strategy implementation. Business horizons,
48(1), 47-54.

73
 Organization Structure at BEC

Matrix Organization
Structure

In a matrix structure, individuals work across teams and projects as well as

within their own department or function

74
 Organization
structure

• Designing an organization structure

involves defining organizational
roles, determining reporting
relationships, establishing how to
group individuals, and creating ways
to coordinate employee

75
 Types of Organization structure
Simple structure

Functional structure

Multidivisional structure

Matrix Organization
Structure
https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/
understandingorganizationalstructures.aspx 76
Simple Organization structure
Owner- manager makes all major decisions and monitors all activities while the staff serves as an
extension of the managers’ supervisory authority

Useful for small and simple product lines

77
Functional Organization structure
CEO and a limited corporate staff with functional line managers in functional areas such as- R&D,
production, sales etc.

Focuses on functional specialization, appropriate for single product

78
Multi divisional Organization structure (M form)
Diversified company- different product, geographies, market (retail store, e-commerce,)

Corporate office and operating division- separate business

79
Matrix
Organization
structure
• In a matrix structure, individuals
work across teams and projects as
well as within their own
department or function.
• For example, a project or task
team established to develop a
new product might include
engineers and design specialists
as well as those with marketing,
financial, personnel and
production skills.

80
History
• It originally arose out of the aerospace industry in the
1960s when firms who wanted to contract with U.S.
government employees needed to create specific
charts to show the structure of the project
management team.
• The matrix structure has continued to be adopted by
organizations that need to take on large-scale and
complex projects that may not be efficiently completed
within a single department in the organization.

81
Benefits and challenges- Matrix structure

• Useful for project-based companies

• Collaboration between different departments
• Combines project and functional management structures
• Allows interdepartmental communication
• Employees can develop new skills
Challenges
• Increased span of control- dual reporting structure
The area of activity and number of functions, people, or things for
which an individual or organization is responsible.
• Conflicts and delay
82
 2. What caused the conflict between the
project managers and the other employees?

83
 2. What caused the conflict between project managers
and the other employees?

The role of project manager did not seem to be well accepted among the departmental staff.

Conflict of interest- employees decides the priority

Employees perceive their departmental manager as their direct supervisor- view as functional department

No clear authorities defined for project managers

Project manager- temporary leader

84
3. How would you design the authorities of a project
manager at BEC?

85
 3. How would you design the authorities of a project
manager at BEC?

• Project manager- Ms. Song’s authority is not clearly defined

• Not clearly understood by other employees in organization
• Ensuring competencies for project managers
• Communication skills, team work, and ability to handle multiple tasks
• Orientation training program
• Inclusion of functional and project managers- emphasis on collaboration
• Job rotation

86
4. For the future, do you have any suggestions for Mr.
Zheng about the growth of BEC?

87
4. For the future, do you have any suggestions
for Mr. Zheng about the growth of BEC?

• Continue hiring professionals

• Clearly defined authorities to project
managers
• Power to allocate resources
• Support from top management
• Call a meeting of all employees and
communicate the change
• Social gathering

88
 Key point for Strategy and
Organization structure in practice structure

• Combination of various
organization structure

• Careful revision at regular

interval

89
Key learnings- Summary
• Strategy and structure fit
• Types of Structures
• Importance of regular revision

90
References
1. Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005). The importance of structure
and process to strategy implementation. Business horizons, 48(1), 47-54.

2. Chapter- 11-Structure and Controls with Organizations- Book- Strategic

Management Book-Hitt, Ireland, Hoskisson and Manukutti (9th Edition)

91
Thank you
92
 Sesion-3
Management
Control Process
Prof. Muneza Kagzi
EPGP
IIM Kozhikode 93
• Recap of the previous sessions
• Elements of Strategy fit
• Case study discussion- New Balance Athletic Shoe Inc.
• Breakout rooms- group activity

94
• Deliberate and emergent strategy
• Strategy and structure
• Simple
• Functional
• Divisional
• Matrix

95
What is there in the case?

96
New Balance Athletic Shoe

97
What is the key issue in case?

98
What is the • Whether New Balance
Athletic Shoe company need
key issue in to alter its unique strategy in
case? response to transition?

99
1. Evaluate the existing strategy fit in New Balance Athletic Shoe?

100
Which strategies are likely to run among organizations?

101
 McKinsey 7S Framework

Waterman, R.H. 1982. The Seven elements of strategic fit. Journal of Business Strategy, 3, pp. 68-72.
102
 7 S Framework
1. Strategy- Coherent Set of actions aimed at gaining sustained competitive advantage

2. Structure- Organization structure representing reporting relationships and tasks

3. Systems- Process and flows that mentions how an organization gets things done from day to day (Capital budgeting,
manufacturing, quality control etc.)

4. Style- How management behaves? Attention and symbolic behaviour

5. Staff- The people in the organization

6. Skill- Set of capabilities possessed by organization as a whole

7. Shared value- Superordinated goal

103
1. Strategy
• Unique strategy- Differentiation Strategy
• Appeal to customer needs for performance and fit
• Not fashion
• Flagship 990 series
• Provide high level of service to independent retailers
• Emphasis on manufacturing over marketing

104
2. Systems
• Manufacturing systems
• Local manufacturing- 25%- 5 factories
• Outsourcing- 75%
• Cut through assembly
• Sourced upper
• Lean Manufacturing

105
3. Shared value
• Shared common belief
• Consistent and reinforced values by founders
• No celebrity endorsement
• Performance product
• Socially responsible company- not lager and wealthier
• Long lasting commitments to society
• 2004- Tsunami donation- $2 million
• Entrepreneurial
• Cross functional teams
• Change
106
4. Staff
• Human element of the organization
• Distribution network
• Big box chains- Wal-Mart, Target, Sears
• National sellers- Foot Locker, The Sports Authority, Finish Line, The Athlete’s
Foot
• Smaller Urban chains
• Team work
• Ability to work smoothly in cross functional teams

107
5. Style
• Culture
• Team work

• Emphasis on collaboration
• Partnership with Asian suppliers

108
6. Skills
• Capabilities
• Manufacturing capabilities
• Having Strong ties with partners

7. Structure

109
Which are the prevailing tensions in the
organizations? How to deal with it

110
Breakout Room activity
• Group activity (Project group)
• Time for brainstorming and analysis within group- 10 Min.
• Presentation by each group- 5 min

111
NB2E initiative
FOR Against

•Solidifies New Balance’s differentiation from

•24-hour delivery target may be unattainable
competitors by providing even better
without significantly increasing finished goods
responsiveness to retailers
inventory
•Pursuing a “stretch goal” builds process
•24-hour delivery is unnecessary, as New
knowledge and is consistent with continuous
Balance is already well ahead of competition on
improvement even if that goal is not achieved.
this dimension of responsiveness.
•Increased responsiveness provides significant
•Distracts senior management from other
option value, as it would allow New Balance to
strategic issues (e.g., potential acquisitions, new
move into more fashion-oriented products with
product development) that may prove more
short life cycles while avoiding stale inventory
critical to company’s future success
and markdowns

112
 Business Risk

Foreign Moderat Lower

e control control

Offshoring decision

High Moderat
Domestic control e control

Owned Contracted
Partnership Risk
Outsourcing decision
113
 Managing the right tensions

Profitability Short term Whole organization

Growth Long term Parts

Dodd, D. and Favaro, K. 2006. Managing the right tension. Harvard Business Review, 84(12), pp. 62-74

114
Data and findings
Data
• 20-year performance of more than 1,000 companies worldwide
• Survey of 200 senior executives
• conducted in-depth discussions with 20 chairmen and CEOs of large corporations

Findings
• Most companies struggle to succeed in managing the three tensions.
• Between 1983 and 2003, only 38% of the companies we studied achieved both
positive profitability and real revenue growth in the same year more often than
they failed to do so.

115
How to solve tensions?
• Managers identify the tensions
• Lacks the leading objectives to meet the same
How they could best strengthen the factor that unites the two sides of each
tension
For the profitability/growth tension, that common bond is customer
benefit.
For the short term/ long-term tension, it is sustainable earnings.
For whole and parts, the common bond -Diagonal assets: (Capabilities and
resources that help companies improve stand-alone business unit
performance and create corporate synergy at the same time)
116
References
• Waterman, R.H. 1982. The Seven elements of strategic fit. Journal of
Business Strategy, 3, pp. 68-72.

• Dodd, D. andFavaro, K. 2006. Managing the right tension. Harvard

Business Review, 84(12), pp. 62-74

117
Thank you

118
 Session-4
Organizational Culture and
Strategy
Implementation

Prof. Muneza Kagzi

EPGP
IIM K

119
Contents
• Recap of the previous sessions
• Discussion on culture and strategy implementation
• Case study
• Bancolumbia: Talent, culture and value creation management in mergers
• Role play activity

120
 What is organization culture?
In cognitive terms, organizational culture
is often broadly defined as the shared
values, beliefs, ideologies, and norms held
by organizational members that influence
their behavior

In behavioral terms, organizational culture

can be defined simply as a set of
contingencies of reinforcement applicable
to members of an organization who share
a common knowledge
Bushardt, S. C., Glascoff, D. W., & Doty, D. H. (2011). Organizational culture, formal reward structure, and
effective strategy implementation: A conceptual model. Journal of Organizational culture, communications121and
conflict, 15(2), 57-70
Strategy and culture

Mooij, M. (2010). Tailoring your strategy to fit the culture. IESE Insight, 2(5), 23-30.

122
Strategy and culture
Culture has strong impact on mission, vision and corporate identity

Mission statement- an explicit formulation of what a company stands for

Vision statement - where the company wants to be in the future

Corporate identity- providing a statement that expresses a company’s strategic intent, its philosophy, values,
ethics or operational effectiveness

123
 Cultural dimensions

Hofstede’s dimensions
https://hi.hofstede-insights.com/national-culture
124
Mission Statements
The mission statements of U.S. companies,
Tend to be strong statements of identity and reflect the need for consistency, performance, leadership,
greatness and growth – values that are shared among cultures that score high on individualism and
cultural masculinity, and low on long-term orientation, like the United States does
US company- Unilever has done, choosing not to use its corporate name on any of its different brands
and products

125
Asian culture
• Collectivistic cultures, such as those found in Asia, social harmony is prized and
companies function more like families.
• What the company stands for is more often expressed as “Harmony with People, Society
and the Environment,”
• Toyota. Or “All people, regardless of race, religion or culture, harmoniously living and
working together into the future,”
• Branding- Common brand name/corporate name for all products

126
Culture- global company

One Levi’s commercial showed two people running fast, to

communicate a positive brand value – freedom of movement.
In Spain, however, viewers saw not freedom but competition, which
they don’t much like.

127
128
Culture and communication
People of collectivistic or high-context cultures are more accustomed to symbols, signs
and indirect forms of communication,
In individualistic, low power-distance cultures, people actively acquire information via
the media – books, newspapers and so on – to prepare themselves for purchases.

People of individualistic, low-context cultures process information, which is more

verbal, explanatory, persuasive and rhetorical.
In collectivistic, high power distance cultures, on the other hand, people base their
buying decisions more on feelings and trust in the company, which they acquire via
frequent social interactions in which knowledge is absorbed unconsciously.

129
What is there in the case?

130
Case synopsis

Bancolombia Conavi Corfinsura

Colombian financial market during 2005 and 2006

The merger decision emerged from directors and seniors executives

Significant incoming market transformation — adjustments in industry regulation, enhancement of international

competence and consolidation of main players — and their further response in order to adapt to the new economic
conditions.

Reasons for successful merger- success rate of merger- what and how Bancolombia got some significant success?131
Conavi
• Conavi likes people and people liked Conavi
• High jo stability
• Friendliness and closeness
• Warm working environment
• Less importence on results- more on people
• Superior and personalised customer service

132
Corfinsura
• Industry leader- large corporate clients
• 47% market share- Investment bank
• Salesforce-
• Informed staff in advance about the merger and likely impact

133
 Up to the moment of the merger, the three companies had
been successful — they were leaders in the markets in which
they operated. Why not continue operations as they were?

134
Why merger?
• To fulfil all the financial needs- growth
• Regulatory changes
• Economies of scale
• Business growth

135
Which are the challenges faced by companies
during the merger?
• Integration of different business model
• Strategic priorities of business
• Cultural differences
• Conavi- Job satisfaction not outcome

136
Why do merger integrations succeed or fail?

137
2. do you think that the present integration really created value for
shareholders?

138
Bancolombia- Reasons for a successful mergers

• The results of climate surveys and the fact that

Grupo Bancolombia was ranked one of the 12 best
companies to work for in Colombia
• Legal approval
• Santa Marta meeting
• Top management of three companies- meeting
• Clarity of synergies
• Golden Rules of Integration (Exhibit-2)- planning
• Forming change leadership team
• Clarity on rule an integration

139
 Model
Strategy implementation-
culture and reward system
1. 4.
Low High
effectiveness of effectiveness of
Strong Strategy Strategy
Implementatio Implementatio
n n

Strength of
organizational culture
2. 3.
Moderately Moderately
Low high
effectiveness of effectiveness of
Weak
Strategy Strategy
Implementatio Implementatio
n n

Low High

Congruence of Organization culture with reward structure 140

 Organization culture an reward structure

Organization culture

Organization’s culture is
congruent with the
Organization’s formal reward organization’s formal reward
Strong/weak structure structure may range
from low to high.

Degree to which it is accepted

by and influences individual
behavior

Bushardt, S. C., Glascoff, D. W., & Doty, D. H. (2011). Organizational culture, formal reward structure, and effective strategy implementation: A conceptual
141
model. Journal of Organizational culture, communications and conflict, 15(2), 57-70
 Reward structure
System reward and individual reward

• System reward
• health, life, and dental insurance, paid holidays, sick leave, a parking space, a Christmas turkey,
and the prestige of being part of the organization, among others.
• Individual reward
• superior performance – including such things as merit raises, promotions, awards,
recognition bonuses, and praise

• The use of system rewards is generally recognized to motivate individual performance only
to a minimal level – that level necessary to retain employment.

• The use of individual rewards to motivate high levels of performance consistent with organization
objectives has met with mixed success

142
References

• Mooij, M. (2010). Tailoring your strategy to fit the culture. IESE

Insight, 2(5), 23-30. (Uploaded on Moodle)
• Bushardt, S. C., Glascoff, D. W., & Doty, D. H. (2011). Organizational
culture, formal reward structure, and effective strategy implementation: A
conceptual model. Journal of Organizational culture, communications and
conflict, 15(2), 57-70 (Uploaded on Moodle)

143
Thank you
144
 Session-5
Strategy
Implementation
and
Balance scorecard

Prof. Muneza Kagzi

EPGP
IIM K

145
• Summary of the previous session
• Balance Scorecard
• Case study discussion- (TWA Parts Abridged)
• Q&A

146
Balance Score card

147
What is there in the case?
148
Case synopsis
• Ellen Bright, the new CEO of U.S.-based Transworld Auto Parts, has inherited the
leadership of a company in deep trouble.
• 2008-09- troubles for the auto industry
• Bright and her executive team decided to radically change the company’s strategy,
closing the non-performing truck and mid-size car divisions in order to focus on the
luxury and economy divisions in Europe and Asia.
• Bright believed that the balanced scorecard and strategy map methodologies would
enable the luxury and economy division managers to develop effective implementation
plans to reach the corporate goals.
• However, after six months of implementation, Bright found that the luxury division had
met its financial goals but backtracked on others, while the economy division missed its
financial goals but exceeded on non-financial leading indicators such as process
improvements.

149
1.Describe the business strategy of each
division

150
Divisions

Luxury Economy Mid price Truck

Discontinue-loss

151
Divisions- Strategy
Luxury Economy

• Product Differentiation Strategy • Cost leadership Strategy

• Innovation in new product • Low cost
development, • low prices
• superior performance • Quality
• High quality • Fuel economy

152
2. What must each division do well to
execute its strategy?

153
2. What must each division do well to execute its strategy?
Luxury Economy

• Partner with customers
• Be a leader in product innovation
• Shorten time to introduce new products
• Invest in CAD/CAM software
• Acquire and train the best design
engineers, scientists, and technicians
•Reverse engineer rival’s products and
acquire capabilities and technologies
•Improve quality
•Reduce costs
• Coordinate better with suppliers to be on
spec and on time
• Redesign products to reduce materials
costs
• Reduce unscheduled downtime
• Shorten product switchover time
• Improve preventative maintenance
• Master JIT manufacturing and lean
manufacturing
• Sign up new customers to drive up
volumes
• Improve quality 154
3. What was Transworld Auto Part’s rationale
for introducing a balanced scorecard?

155
 3. What was Transworld Auto Part’s rationale for introducing a
balanced scorecard?

It is a tool to implement strategy

The strategy map visually represents the various objectives the firm must meet to deliver on its
value proposition to its customers

It recognizes that financial metrics are often lagging indicators of firm performance, while
leading indicators include learning and growth metrics and internal process metrics.
Customer metrics, such as customer satisfaction, are often leading indicators of financial
performance but lagging indicators of internal process metrics.

156
4. Comment on the strategy maps and balanced scorecards of the
luxury car and economy car divisions? Which division manager
prepared a better balanced scorecard and strategy map?

https://www.menti.com/6vzrxpvjk1
The voting code 5141 7955 

157
Which division manager prepared a better balanced scorecard and
strategy map?

The Luxury Division BSC The Economy Division BSC

   
(+) Simple and easy to understand (+) More thorough and detailed

(+) Manage by exception – dig deeper (+) It captures the economy division’s

only if something is a problem strategy more faithfully

(-) Does not tell us the root cause of (+) Cause and effect relationships easier to
problems identify
(-) Overly weighted towards financial (-) Too complex with too many metrics
metrics

(-) Not targeted towards luxury segment  

158
 TWAP Luxury Division Revised Strategy Map

Increase Increase Increase Increase

Gross cashflow ROCE Asset
Financial Growth
Margin Utilization
Revenue

Valued High
Reputation Grow market
innovation quality
for share in
partner- provider of
Customer innovation Luxury
customer auto pats
segment

Reduce Excel at
Processes time to product
market development

Higher,
Align IT Increase
Retain and Develop
Learning capabilities employee
train R&D expertise
& Growth with strategic engagement
Professional in TQM 159
priorities
5. Which division manager has performed better?

A- Aaron Eckhard (Luxury Division)

B- Kim Kwon (Economy Division)
https://www.menti.com/cq5k872n5q
The voting code 5856 5489

160
5. Which division manager has performed better?
Arguments in favor of Aaron Eckhard-
Luxury division
 The Luxury Division delivered superior
financial performance
 The company may not get to the long-
term if it does not survive the short-term.
 The luxury division manager did what
needed to be done.
 Financial results are real, while non-
financials are more subjective and open to
interpretation and manipulation.
Arguments in favor of Kim Kwon-
Economy division
 The Economy Division is hitting ambitious
targets in Process and Learning & Growth
metrics.
 It may take time for Process and Learning &
Growth improvements to translate into better
customer and financial outcomes.
• If the company’s strategy is correct, the
Economy
• Division’s performance should translate
into superior financial performance in the
future.
 The Luxury division’s BSC does not reflect its
strategy very well.
161
References
• Kaplan, R.S. and Norton, D.P., 2000. Having trouble with your
strategy? Then map it.Harvard Business Review, 78(5), pp.167-176

• Kaplan, R.S. and Norton, D.P., 2001. Transforming the balanced

scorecard from performance measurement to strategic management:
Part I. Accounting Horizons, 15(1), pp.87-104.

• Atkinson, H., 2006. Strategy implementation: a role for the balanced

scorecard? Management Decision, 44(10), pp.1441-1460.

162
Thank you
163
 Session-6
Leadership and Strategy
Prof. Muneza Kagzi
EPGP
IIM K
164
Contents

• Recap of the previous sessions

• Strategy and leadership
• Meaning and importance-
example discussion
• Case- HCL Technologies (A)

165
Strategy and leadership

166
Strategic leadership- COVID times

167
 The CEO of UPS on Taking the Reins Amid Surging Pandemic Demand

Tome, C. B. (2021). The CEO of UPS on Taking the Reins Amid Surging Pandemic Demand. HARVARD
BUSINESS REVIEW, 99(5), 36-+.
168
 Strategic leadership during COVID times
United Parcel Service

https://www.ups.com/us/en/Home.page
169
170
About UPS

171
172
173
Carol B. Tomé
• Chief executive officer of UPS, in the late winter of 2019
• Having recently retired from Home Depot after 24 years of service,
nearly two decades of them as CFO, I wasn’t necessarily looking for a
new job
• company’s stock had been flat for six years, there was also an
opportunity to create value for shareholders

174
 Challenges
Company’s stock had been flat for six years, there was also an opportunity to create value
for shareholders

https://www.youtube.com/watch?v=1wZeYSD43mc
175
 Strategic leadership
Key priorities
1. Continue value of founder
(integrity, efficiency, constant
learning and improvement, and a
strong focus on both customers and
employees)
2. Brand relevance
(balance sheet and credit rating,
protect our dual-class ownership
structure, and continue to pay a
dividend)

https://www.youtube.com/watch?v=Qj9jtxydgpk
176
 Strategic leadership

“Moving our world forward by delivering what matters”

Grow their global business by serving customers, offering

excellence and value, inspiring their people and partners
to do their best, and leading by example as a responsible
company.

https://www.youtube.com/watch?v=Qj9jtxydgpk
177
Revamping decision making structure

Prior to 2020, when employees or teams

had an idea, they had to present it to one of
21 committees, which would then push the Review board- leadership team- finally approve
proposal up the ladder to a final sign-off by
the “management committee

178
Top down management to collaboration
• Change the name of our executive offices in Atlanta from the Plaza
(cold, intimidating, and formal) to Casey Hall (warm, inviting, and
casual).

179
Strategy
exercise
• to review a whiteboard of
top projects in progress at
UPS
• Put colored stickers next
to each one—red for stop,
green for continue.
• Green dots went up
immediately, but people
seemed hesitant to dole
out red ones.
180
UPS now

https://www.youtube.com/watch?v=X0ORw--z8wc
181
Key take away
• Setting up direction
• Strengthening purpose
• Mobilize taskforce
• Enforcing resource utilization

182
Strategy and leadership

Montgomery, C. A. (2008). Putting leadership back into strategy. Harvard business review, 86(1), 54.
183
https://timesofindia.indiatimes.com/business/india-business/twitters-parag-agrawal-becomes-youngest-and-12th-indian-
ceo-to-rein-over-global-tech-giants/articleshow/87998853.cms 184
 Case study
HCL Technologies (A)
Vinit Nayar

185
What is there in the case?

186
Case Summary
• When Vineet Nayar became president of HCL Technologies, a global IT services business
based in India, in April 2005, he knew the company needed drastic change.
• Since its founding as a hardware company in the 1970s, HCL had grown into an enterprise
with $3.7 billion in revenues and a market capitalization of $5.1 billion.
• The company had 41,000 employees in 11 countries, but it was ill- prepared for the
increasingly competitive market.
• With the shift from hardware to software and services, HCL had slipped behind its Indian
competitors and multinational companies.
• The case details the first phase of the transformation, dubbed “Employee First, Customer
Second,” which Nayar led in hopes of rejuvenating the industry pioneer.

187
1.What were the challenges facing HCL
Technologies when Vineet took over?

188
Challenges

189
Which are the initiatives taken ?
190
Initiatives

191
1. Unique employee environment
2. Drive inverted organizational structure
3. To create transparency and accountancy in
organization
4. To encourage value driven culture

192
Should Vineet announce the “Employee First, Customer Second”
(EFCS) initiative to his key clients?

https://www.menti.com/s4feqjgc1o
The voting code 3351 0674 

193
 194

3. How has the

organization
transformed? What’s
been accomplished
thus far?
3. How has the organization transformed? What’s been accomplished thus far?
Information Incentives
(What makes people step up and
deliver?)
Transparency through Competitive pressure
360 feedback, U&I, within the company.
Smart Service Desk  
(SSD)  
Portals and IT Intrinsic rather than monetary motivation
infrastructure
Internal competition Appropriate pay for performance directed only to
rewards transparency those who can control performance (top 15%), so trust
pay removed for others.

  Sales and delivery; incentives are aligned to key tasks

195
HCL Technologies

https://www.screener.in/company/HCLTECH/consolidated/ 196
References

• Tome, C. B. (2021). The CEO

of UPS on Taking the Reins
Amid Surging Pandemic
Demand. HARVARD
BUSINESS REVIEW, 99(5),
36-+.
• Montgomery, C. A. (2008).
Putting leadership back into
strategy. Harvard business
review, 86(1), 54.

197
Thank you
198
Changing context
of Strategy
Implementation

Prof. Muneza Kagzi

EPGP- IIM K
 Recap of the previous topics

Changing context of strategy implementation

Contents Sustainability and business

Case study- Unilever’s New Global Strategy:

Completing through sustainability

Summary

200
Changing context

201
Meaning of sustainability

202
Meaning and definitions of Sustainable development
Sustainable development is the kind of
development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs
(Brundtland Commission (1987)- United
Nations) .

Sustainability is the degree to which a

situation will maintain the three types of
capital
1. Social
2. Environmental
3. Economic

203
 History- definition of Sustainability

• Brundtland Report, also

called Our Common Future,
publication released in
1987

• Sponsored by the United

Nations (UN) and chaired
by Norwegian Prime
Minister Gro Harlem Norwegian Prime Minister
Brundtland, Gro Harlem Brundtland

* https://www.are.admin.ch/are/en/home/sustainable-development/international-cooperation/2030agenda/un-
204
_-milestones-in-sustainable-development/1987--brundtland-report.html
Sustainability and business

205
206
https://bettermarketing.pub/dont-buy-this-jacket-patagonia-s-daring-campaign-2b37e145046b
207
https://www.forestessentialsindia.com/
208
209
Climate Change

https://www.youtube.com/watch?v=jAa58N4Jlos

210
211
212
 The Climate Action (Amendment) Bill 2020
Ireland*
(News- 6th Oct, 2020)

Ireland has now published it’s Climate Action

Bill to achieve carbon neutrality by 2050.
The Bill includes:
• Setting of five-year carbon budgets
• Annually revising the Climate Action Plan
from 2021 onwards
• Strengthening the role of the Climate
Change Advisory Council. 

213
*https://greennews.ie/government-publishes-climate-bill/
DHL and Sustainability
• More recently, shipping giant DHL has announced a group-wide
environmental and social protection program

• Global targets
• Zero emissions by 2050
• 70% reduction in food waste transport costs.

• https://www.dpdhl.com/en/responsibility.html

214
How to drive sustainability?

215
How to drive Sustainability?

1. Getting the vision right 2. Emphasis on implementation

• Leadership
• Performing things in new way
• Strategy development
• Transforming business
• Management integration
• Differentiation
• Reporting and communication

Lubin, D. A., & Esty, D. C. (2010). The sustainability imperative. Harvard business review, 88(5), 42-50
216
Mukesh Ambani throws a $10 billion clean energy
challenge at ..

Read more at:

http://timesofindia.indiatimes.com/articleshow/8381
5417.cms?utm_source=contentofinterest&utm_med
ium=text&utm_campaign=cppst

217
218
Latest trends in sustainability
219
Machine learning (ML) and sustainability

• Machine learning allows an algorithm to identify associations from

available data and make a decision accordingly
• Machine learning is an approach that utilizes statistical techniques to
provide computerized systems with the ability to learn by themselves

Forecasting models (training an

Find association in data Saving resources
testing data set)

220
Application of ML

City planning

221
 Linear and Circular Economy
Liner Economy Circular Economy

https://www.youtube.com/watch?v=zCRKvDyyHmI 222
Circular
economy at
Timberland

223
 Circular economy at Timberland

• Timberland Tires are designed and created with

responsibility in mind:  after the tread wears out, the
tires live on, recycled into Timberland footwear. 

https://www.timberland.com/responsibility/stories/drive-recycle-wear.html
224
3D Printing in Automobile Sector

https://www.youtube.com/watch?v=WwvwvjNjQaQ
225
 Case study
Unilever’s New Global Strategy: Completing
through sustainability

226
What is there in case?

227
Case summary
Paul Polman’s appointment to lead a troubled Unilever, and his subsequent decision to
implement a bold new global strategy based on a platform of sustainability.

Polman, Unilever’s first ever outsider CEO, to turn around the company’s declining
performance.

CEO develops the Unilever Sustainable Living Plan (USLP) with three bold social and
environmental goals for 2020.

Set during a global financial crisis, in an environment characterized by doubt and skepticism, the
case describes how these broad goals are translated into specific metrics, and then rolled out
through a series of changes to a broad range of company policies, practices, personnel, and
processes.
https://www.youtube.com/watch?v=utSYAkQi5hY 228
1.How would you evaluate Paul Polman’s 2010 decision
to implement a new strategy based on the Unilever
Sustainable Living Plan?

229
Challenges

230
 2. Given all these barriers and concerns facing USLP, why
would Polman be willing to bet the company’s success – and
indeed his own career—on this strategy?

231
Why Polman implemented USLP strategy?

232
3.In early 2015, four years into the program, how effective do you think
the implementation of the USLP strategy has been?

233
USLP- 2015
Company is falling short on two of its
highest profile environmental
objectives – GHG emissions and water
use Increasing its operating margins in a
tough business environment

12 of its 67 specific ten-year targets

have already been met, and that 48
others are on track to achieve plan- Ex-
8 sustainable living brands” achieving one or more
USLP objectives are superior performers in
driving growth, reducing costs, and increasing
business resilience.

234
4. How CEO was able to overcome these obstacles and
implement such a successful radical transformational
change?

235
How CEO was able to overcome these obstacles and
implement such a successful radical transformational
change?

Establish a sense of urgency

Polman formed a powerful coalition to drive

Embedded in business model- agreements
implementation- (Keith Weed)

Polman invested a good deal of time to create a vision

that not only leveraged the strategic analysis already in Empowered others to act
progress, but also built on Unilever’s existing values

236
5.Limiting ourselves to the options identified by Polman and
his ULE team, which of the strategies would you advise
them to take?

237
 Continue USLP
• The USLP-based strategy is succeeding; this is no time to give up.

• The recent analysis of Sustainable Living Brands now provides clear evidence
that USLP is not just socially responsible, it makes good business sense.

• This fits USLP’s history of adaptive learning: the new metrics provide a tool to
expand Sustainable Living Brands, and experiments in holding managers
accountable offer the expertise to do so.

•Backing off from USLP commitments now would result in a major backlash from
consumers, the press, partners and NGOs.
238
Discontinue USLP
•It’s now time to respond to the changing economic reality: last year was our slowest growth
in a decade, with no foreseeable improvement.

•Top management has already acknowledged that “low hanging fruit” has been harvested
and that future implementation of this strategy will be more difficult – and more expensive.

•Unilever’s stock price has stalled. We now need to focus on our investors to ensure we
maintain the economic viability to drive strategy over the long term.

•In an environment of “more headwinds than tailwinds,” this is not the right time for a
strategy that requires significant upfront investment in return for long-term payoffs.

239
 USLP- latest update
• Journey conclude in 2020- 10 years- Partial fulfilment of goals
• Reaching 1.3 billion people through our health and hygiene programmes.
• Reducing the total waste footprint per consumer use of our products by 32%, and
achieving zero waste to landfill across all our factories.
• Reducing greenhouse gas emissions from our own manufacturing by 65%, and achieving
100% renewable grid electricity across our sites.
• Reducing sugar across all our sweetened tea-based beverages by 23%, and 56% of our
foods portfolio now meets recognised High Nutrition Standards.
• Enabling 2.34 million women to access initiatives aiming to promote their safety, develop
their skills or expand their opportunities, we've moved towards a gender balanced
workplace in which 51% of management roles are held by women.

https://www.unilever.com/news/press-and-media/press-releases/2020/unilever-celebrates-10-years-of-the-sustainable-living-
plan/ 240
References

1. Lubin, D. A., & Esty, D. C. (2010). The sustainability imperative. Harvard business
review, 88(5), 42-50.- R1005A-PDF-ENG

2. https://www.dpdhl.com/en/responsibility.html

241
Thank you

242