Change Target

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Change Target

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

2
The cultural web
3
MAPPING REQUIRED CHANGE (1)
FROM WHAT IS
ST
SY
RR
P
TARGETING OUTPUTS
PS
CS
OS
TO WHAT IS NEEDED
ST
SY
RR
P
PS
CS
OS
4
MAPPING REQUIRED CHANGE (2)
FROM WHAT IS
ST
SY
RR
P
TARGETING BEHAVIOUR
PS
CS
OS
TO WHAT IS NEEDED
ST
SY
RR
P
PS
CS
OS
5
MAPPING REQUIRED CHANGE (3)
SY
ST
TARGETING BEHAVIOURS TO GET VALUE CHANE
RR
P
PS
P
CS
OS
Via communication, education, trainin, personal
development
ST
SY
RR
P
TARGETING VALUES
PS
CS
OS
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Understanding the Cultural context for change in
local government
(a) Technical Services -- Current
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Understanding the Cultural context for change in
local government
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The 7-S Framework
Structure
Systems
Strategy
Superordinate Goals
Style
Skills
Staff
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• Corporate purpose and aspirations
• Ownership
• Mission and strategic intent
• Scope and diversity
• The global dimension

DEVELOPMENT STRATEGIES
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
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(No Transcript)
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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

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Core competence

• critically underpins the organisations
  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

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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

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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

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Porters 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

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Porters Generic Strategies
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Bowmans Strategy Clockquoted in Johnson
Scholes (1999)
High
Differentiation
Focused differentiation
Hybrid
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3
5
Perceived added value
2
6
Low price
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Strategiesdestined for failure
1
No frills
8
Low
High
Low
Price
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Porters Five Forces (Porter 1985)
Threat of New Entrants
Rate the strength ofthe force
Define the industry/ segment
Power of Suppliers
Industry Rivalry
Power of Buyers
Threat of Substitutes
Focus on the major issues
Consider ways to improve company position
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Porters 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 Low-cost product
design Government policy Expected retaliation
Power of Suppliers Switching costs Differentiation
of inputs Supplier concentration Presence of
substitute inputs Importance of volume to
suppliers Impact of inputs on cost differentiatio
n Threat of forward/backward integration Cost
relative to total purchases in industry
Power of Buyers Buyer concentration Buyer
volume Switching costs Buyer information Buyer
profits Substitute products Pull-through
Price sensitivity Price/total purchases Product
differences Brand identity Ability to
backward integrate Impact on quality/performance D
ecision makers incentives
Industry Rivalry Industry Growth Concentration
balance Fixed costs/value added Intermittent
overcapacity Product differences Brand identity
Switching costs Informational complexity Diversity
of competitors Corporate stakes Exit barriers
Threat of Substitutes Relative price performance
of substitutes Switching costs Buyer propensity
to substitute