Strategy in Action 13: Resourcing Strategies

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Strategy in Action 13 Resourcing Strategies
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Learning Outcomes (1)

• Analyse the resource management issues that are
  important to achieving strategic success in four
  key resource areas
• The management of people
• Access to and processing of information to build
  capabilities and change business models and/or
  managerial processes

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Learning Outcomes (2)

• The management of finance to create financial
  value, fund strategic developments and address
  the differing financial expectations of
  stakeholders
• The management of technology to address changing
  competitive forces on an organisation and improve
  strategic capability
• Address the integration of resources and
  competences across resource areas to underpin the
  success of strategy

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Exhibit 13.1 Resourcing Strategies
Information
People
Organisational strategies
Finance
Technology
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What are Resourcing Strategies?

• Resourcing strategies are concerned with the
  two-way relationship between overall business
  strategies and strategies in separate resource
  areas such as people, information, finance, and
  technology.

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Exhibit 13.2 Strategy and People
People as a resource
Strategy
Organising people
People and behaviour
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Traditional HR Activities Viewing People as
Resources

• Audits
• Goal-setting and performance assessment
• Planning of rewards
• Recruitment and retention
• Training and development plans

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People and Behaviour

• Understanding the need to change organisational
  paradigms
• Seeing role as shapers of context
• Understanding the relationship between behaviours
  and strategic choices
• Being realistic about the difficulty and
  time-scales in achieving change
• Being able to vary style of managing change

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Roles of the HR Function
Service provider
Regulator
Advisor
Change agent
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Customer Relations at KLM

• Were KLMs HR policies adequate for delivering on
  the promise of the Reliable Airline?
• How did the behaviour of front-line staff
  influence the actual service delivery?
• What could be changed to improve the consistency
  of service delivery?

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Exhibit 13.3 Competitive Advantage Through People
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Exhibit 13.4 Strategy and Information
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Information and Strategic Capability
Improving product/service features
Competitive performance
Ease/difficulty of imitation
Competitive positioning
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Information and Product/Service Features

• Lower prices
• Improved pre-purchase information
• Easier, faster purchasing
• Shorter development times

• Product or service reliability
• Personalised products
• Improved after-sales service

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What is Data Mining?

• Data mining is the process of finding trends,
  patterns, and connections in data in order to
  inform and improve competitive performance.

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Information and Competitive Positioning
Routinisation Cost Reduction
Mass customisation more Product Features
Customisation advanced information
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Information and Business Models
Electronic processing
Extended functions
New functions
Internal changes
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Exhibit 13.5 Changing Business Models
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ZOPA Leverages DIY Craze

• How has ZOPA changed the business model for
  lending and borrowing?
• List the advantages and disadvantages for lenders
  and borrowers of dealing with ZOPA instead of a
  bank.
• How could the banks respond?

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Exhibit 13.6 Strategy and Finance
Managing for value
Strategy
Financial expectations
Funding strategies
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What is Managing for Value?

• Managing for value is concerned with maximising
  the long-term cash-generating capability
  of an organisation.

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Value Creation
Funds from operations
Investment in assets
Financing costs
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Exhibit 13.7 Financial Aspects of Value Creation
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Funding Strategies
Sources of funds
Business and financial risks
Portfolio issues
Mergers and acquisitions
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Exhibit 13.8 Balancing Business and Financial
Risk
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Exhibit 13.9 Strategy and Technology
Technology and the competitive situation
Strategy
Organising technology
Technology and strategic capability
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Exhibit 13.10 Matching Technology Strategies to
Markets
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Exhibit 13.11 Developing or Acquiring Technology
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Organising Technological Development
Location and funding
Global vs local development
Organisational processes
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Exhibit 13.12 Funding and Location of RD
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What is a Stage-Gate Process?

• A stage-gate process is a structured review
  process to assess progress on meeting product
  performance characteristics during the
  development process and ensuring that they are
  matched with market data.

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Exhibit 13.13 Resource Integration in a New
Product Launch