Information Technology and

Strategic Management
Teaching Block 2
School of Mechanical and Design Engineering
Michel Leseure
Strategy Implementation and Change
Management
• Implementation is about
making things happen
• Difficult to do…
• … and to teach…!
• Two dimensions:
• (1) Change management
• (2) Planning and control
The Management Side
• Leadership
• Motivating and inspiring
• Leading by example
• Change Management
• Learn/Unlearn
• Benchmarking and best practices Hersey & Blanchard
• Supportive culture
• Training
• Branding and Identity
• HR
• Collaboration, compliance
• Corporate Allegiance

Force Field Analysis

(Kurt Lewin)
Change Management
• Concerned with accompanying a new
strategic initiative and to overcome
resistance to change
• Several possible causes
Cause
Parochial self-interest
Misunderstanding
Different viewpoints of the
situation
Low tolerance of change
How to deal with it
Negotiation (offer incentives
to those resisting)
Education and reassuring
people
Participating, involving
potential resisters
Force, then support
Planning and Control
Planning
• Performance Management Setting objectives
Selecting resources
• Strategic alignment of all
organisational systems
• Reinforce the engagement of
leaders Revise
Objectives
Action
• A positive culture of improvement
• Not an administrative, Adjustment
‘bureaucratic’ burden
• Not a punishment tool
Monitoring
• Continuous improvement
• A communication tool (Mendoza et al., 2005)
The Balanced Scorecard
Financial Results Causal Chains between
performance measures
“What are our
shareholders
expectations?”

Customers Internal Processes

“What processes
Strategy and are required to
“What are our satisfy our
customers Vision
customers and
expectations?” shareholders? »

Organisational Learning

“How can we
manage change
and
improvements?”

(Kaplan et Norton, 1998)

Financial Perspective
Strategic financial dimensions
Growth and Cost reduction Asset utilisation
Diversification of and productivity
turnover improvement

Growth Sales growth Sales per employee Investments/Sales

% of sales growth from R&D / Sales
new customers

Consolidation Segment profitability Production cost Working capital

Cross-selling (compared with turnover
competition) Asset turnover
Share of new
applications in sales Rate of cost Returns on asset
reduction
Profitability /
customer/product Indirect
expenses/Sales

Maturity Profitability / Unit costs Break-even point

customer/product
(Harvest) Margins
% of unprofitable
customers
Customer Perspective
• Five generic measures
• Market share
• Customer retention
• New customer acquisition rate
• Customer satisfaction
• Profitability per segment
• Linked to one another by causality relationships
Internal Process & Learning Perspective
• Internal Process Perspective
• Account for excellence in process
management
• Transversal view of the firm
• Innovation
• Production
• After sales service
• Learning Perspective
• According to Kaplan et Norton, this is the
foundation for building performance in the
other 3 dimensions
• Three component
• Human capital (the potential of employees)
• Information systems capacity
• Organisational climate
• Satisfaction, loyalty, productivity
 Balancing
Budget
Financial Perspective

Causal Chains Example

Training and
education Growth of
alternative Cost
growth
income streams reduction
Employers
Loyalty

(Business School)
Student Brand
Satisfaction Employers Development
Satisfaction
Customer Perspective

Quality
New (Adequacy to Process Management
labour by
Internal Processes Programmes ComplianceCommittees
market)

Learning Database
Climate

Competitive Personal
Intelligence Devlopment
Six Batteries of Change
• Bring both strategy implementation
mechanism together

Source
Questions?