DC`s for Gavin - Sage Publications

Report
Files mounted on the Making Strategy Sage web site
Six sets of PowerPoint slides:
Introduction to Making Strategy
Strategy as the Prioritisation and Management of Key Issues
Strategy as Purpose: Agreeing Goals and Aspirations for the Organisation
Strategy as Competitive advantage
Closure
These slides are intended only as a supplement to the book and do not represent a complete
picture of the theory, concepts, or practice that lie behind the approach to strategy. They
provide some further examples and pick out some main themes.
They have been designed so that they can be modified and added to. However, the copyright
of the material lies with the authors.
Four sets of PowerPoint slides that list the tasks for each of the four forums. These are
directly from the book and save retyping them if required.
A 2-page quick guide to the use of Decision Explorer. This guide provides the majority of
the ‘hot-key’ instructions that used extensively during the Making Strategy process.
Videos introducing the use of Decision Explorer in the issue management forum. This
provides a quick way of ‘getting the hang’ of using the software at a basic level.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Group Explorer
There is also available a Group Support System that allows participants to enter
statements and links directly in to a publicly displayed Decision Explorer model. The
system also allows for the rating of statements, and the indication of preferences about,
for example, options to focus on, undesirable options, leverage on goals, etc.
The significant benefits of the system are higher productivity, anonymity when
appropriate, the ability to monitor development consensus, and facilitator monitoring of
levels of participation and type of participation. The system has been used extensively
over the past 10 years by a number of Business Schools, managers, and consultants. It
has been used with top management teams of MNC’s as well as with pressure groups.
The system requires the purchase of the Group Explorer software from
Ackermann&Eden at Strathclyde Business School, a full copy of Decision Explorer,
Windows Server, and 2 laptop computers (one running Windows Server and the other
Windows 7).
See:
Ackermann, F. and Eden, C. Negotiation in Strategy Making Teams Group Support Systems and the Process of
Cognitive Change. Group Decision and Negotiation. 2011; 20(3)293-314.
Andersen, D.; Richardson, G. P.; Ackermann, F., and Eden, C. Using a Group Support System to Add Value to
Group Model Building. System Dynamics Review. 2010; 26(4)335-346.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Making Strategy:
Mapping Out Strategic Success
STRATEGY AS STAKEHOLDER
MANAGEMENT
Chapters 9 and 10
Fran Ackermann; Colin Eden
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Please note, these slides are
designed to be used in addition
to the book:
Making Strategy: Mapping Out Strategic Success.
by Ackermann & Eden, Sage, 2011


They are not designed to be used in a ‘stand-alone’
manner, or to replicate theory and practice presented
in the book.
The assignment design represents one possibility for
a 20 credit MBA course (thus each of the 4 parts
represents approx 5 credits + Closure).
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategic Management
is about agreeing
which stakeholders to
practically focus
energy, cash, effort,
emotion
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Making Strategy
in 4x~3hr workshops (2 days)….
Or single half day workshops

Workshop 1 – morning
• Strategy as the Prioritisation and Management of Key Issues
• Statement of Strategic Intent

Workshop 2 – afternoon
• Strategy as Purpose: Agreeing Goals and Aspirations for the Organisation
• Statement of Strategic Intent

Workshop 3 – morning
• Strategy as Competitive advantage
• Statement of Strategic Intent

Workshop 4 – afternoon
• Strategy as Stakeholder Management
• Statement of Strategic Intent

DELIVERABLE OVERALL:
• Statement of strategic intent (SSI) encompassing: issue management,
purpose, competitive advantage, stakeholder management
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Stakeholder Management?
“The best way to eliminate
any enemy is to make him a
friend”
John M Capozzi, 1997
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Stakeholder Analysis and
Management
“... stakeholder analysis has a utilitarian aim;
that of identifying stakeholders who will, or
can be persuaded to, support actively the
strategy of the organization.
Organisations will also need to be concerned
with those who will seek to sabotage the
successful management of the strategy
Refer to Chapter 9
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Why pay attention to stakeholders?

Pragmatically because it:
• Helps with the competing demands being made on
organizations
• Recognises and enables management of the
interactions that exist between stakeholders
• Acknowledges the influence both Internal and
External stakeholders can have
• Increases the likelihood of change and realisation
of aspirations

There is also a considerable body of
stakeholder literature
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Some Considerations (from the literature)
for Successful Stakeholder Management

Stakeholder management should:
• Apply clear and useful definitions of stakeholders
that attend to the stakeholder’s uniqueness
• Identify the relative significance of stakeholders
• Manage multiple and interdependent interactions
between stakeholders and potential stakeholders
• Determine how to intervene, when appropriate to
develop or alter the bases of individual
stakeholder significance
Refer to Chapter 9
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Stakeholder Analysis
• Range of complimentary techniques
• Power vs. Interest grid
• “Sanctions/Interests” Stakeholder
Management Web
• Actor Influence network maps
• Stakeholder role think
•Stakeholder dynamics
Refer to p240-245
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Power-Interest Grid
Refer to p231-235, 256
• Power to affect what happens (they can take actions that will
affect the outcomes of strategy)
• Stake in the situation (they like some possible outcomes better
than others)
Interest
(stake)
“Subjects”
“Players”
“Crowd”
“Leaders and
Context setters”
Power
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
PARTICIPANTS
SUBJECTS
Low Power
High Interest (could be +ve or –ve)
Management could encourage
coalitions to increase power of +ve
and convert them to players or
neutralise -ve
PLAYERS
High Power
High Interest (could be +ve or –ve)
Significant stakeholders who
deserve sustained management
attention
CROWD
Low Power
Low Interest
Can be seen as potential rather
than actual Stakeholders
Interest and/or Power could be
raised but unlikely to be worth
management time or effort
CONTEXT SETTERS
High Power
Low Interest
Can influence future overall
context. Management should seek
to raise awareness and develop +ve
interest and convert them into
players
POWER
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Refer to p257
Developing the
Power-Interest Grid

Refer to p231-235, 256
Analysis
• Surface a wide range of stakeholders which can be
structured on the grid – not untypical to have 100+ in public
sector organisations
• Dis-aggregate the stakeholders to a ‘management’ level
• Separate influencers (power) from stakeholders (interest) –
different options
• Consider the disposition of stakeholders
• Categorise stakeholders (e.g. internal, external, media,
government etc)

Management
• Determines which players must be considered - prioritisation
• Reveals instability in interest
• Highlights behaviour to be terminated/avoided, coalitions to
be encourage, stakeholders to be ‘bought in’
• Suggests new options
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The Power Interest Grid
with stakeholders positioned
Refer to p261 for an example
Interest
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
Subjects
Players
stakeholder
stakeholder
stakeholder
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Leaders or
Context Setters
Crowd
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Potential
stakeholder
stakeholder
Power
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Note: dotted arrows represent the extent and nature of instability and the solid arrows
suggest the direction of likely management of the power or interest of stakeholders
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For Making Strategy: Mapping Out Strategic Success, Sage, 2011
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Try it…
 In
DE construct a Power-Interest matrix
that includes >20 potential stakeholders
 Position them according to their relative
power and interest
 Check for appropriate disaggregation
 Colour according disposition
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 00:50/01:30
• Developing a first draft P-I grid (5090mins)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Actor Influence diagrams

Refer to p235, 263
Analysis
• Surfaces both formal and informal links (might be both)
• One sided versus equal relationships – nature of the link’s
directionality
• Allow analysis to be undertaken
– Revealing ‘potent’ relationships
– Revealing unique patterns of influence

Management
• Identify new bases of power
• Identify where special relationships need to be built
• Reveals potential coalitions through dynamic behaviour – game
theory
• Shows communication flows and thus management option
opportunities
NOTE: The richer the picture the more confidential it becomes
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Using Decision Explorer to create an
actor influence diagram
e-business employees
interest
Charlie Watt
e-business teams of
LECs
Independent advisors
working for SEN [P
3G]
ell committee
Locate in Scotland
[P 3G]
Scot Exec Joint
Performance Teams
[P]
Independent advisors
not working for SEN
Brittish Telecom [P
5R 2G]
Global Crossing
NTL
Sun
Energis
Telecoms companies
Key Suppliers
Oracle
Cisco75
Maclay, Murray &
Spence
SuFi
Small Business
Gateway
Royal Bank of
Scotland [P 3R 7G]
robert crawford [P
6G]
Network Executive
Chairman [P 5G]
Team [P 1R 4G]
SE Board [P 4G]
wendy alexander [P
1R 14G]
client companies of
e-bus network
Scottish media [P other SE teams [P 1R
18R 1G]
4G]
Business
Transformation Team
[P 4R 2G]
Jane Morgan [P 4G]
Microsoft
UK National Media [P
7R]
ScotlandIS
Banks [P]
business dvpt teams
of LEC
Scottish Exec
(Procurement) [P 2R
2G]
Highlands& Islands
Enterprise
Steve Hamson [P 4R
1G]
Scottish Cabinet [P
1R 1G]
Ukonline for
Business [P 6G]
CBI
consultancies
e-envoy
Scottish Power
EU DG INFO Soc
dg learning &
culture
Linc
Scottish Equity
Partnership
Colleges
chambers of commerce
Local Economic
Forums
Scottish Finacial
Enterprise
scottish parliament
[P 1R]
Ebusiness Suppliers
[P 1R 2G]
SEN employees
Scottish Trade
International [P 4G]
companies that
software suppliers
promote Scotland [P]
[P 1R 3G]
Higher & Further
professional
local
authorities
[P
Education Funding
advisors [P]
5R 2G]
Councils [P]
FE Principals [P]
Oftel [P 2R]
DTi [P 3G]
Local Enterprise
Companies [P 2R 6G]
Client companies of
Network [P 2R 1G]
Top 50 Companies in
Scotland [P 1R]
trade assocs
Institute of
Directors
voluntary
organisations
Scottish industry
champions
Universities [P]
Entrepreneurs (eg
Chris Gorman, Tom
Hunter)
professional bodies
ICANN (Internet
Authority)
'e' pioneers
Electronic Scotland
Scottish Research
and Development
technology R&D
cos/institutions
ex pats - flag
fliers for Scotland
Connect
Utility Companies
dg enterprise
Scottish Executive
[P 5G]
CE of LECs
fsb
Overseas Media
Non client companies
aw are of SEN [P 3R]
PC manufacturers
the public
European parliament
x
© Colin
Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
power
News of the World
Hacking case as seen by
the Guardian newspaper
August 2011
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Actor-Influence Diagram
Try it…
On the DE map put in links to show informal
(dashed) and formal influences [arrow goes
towards the stakeholder being influenced]
 On a new DE view, remap the influence
network to show structure
 Re-assess positions on P-I grid to show
changes in power as a result of centrality in
network

© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 01:30/02:25
• Developing an influence network and
reviewing P-I grid (40-55mins)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Stakeholder Management Web

Analysis – captures a richer detail
Refer to p241-245,
p266-270
• Determines what specific strategies are monitored
(interests)
• Identifies the support mechanisms and sanctions
available to stakeholders
• Helps check whether there are commonalities
between monitoring/action
• Uses both relationships and PI position

Management
• Helps clarify particular action plans for stakeholder
management
• Takes a holistic view rather than just a discrete
one
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Support
Tactic 1
Power Base
Stakeholder actions
Refer to p244, 269
Sanction 3
Support
Tactic 2
Support
Tactic 1
Sanction 2
Sanction 1
player
Power
Player
Interest
player
Interest 2
Interest 4
Interest 1
Interest 3
player
Interest 5
Interests & Interpretation of strategy
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Refer to p269
POWER BASE
INTERESTS
ovals and thick arrows show formal influence network links, other arrows are causal
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Try it…
 Construct
management webs for at
least the top three in the high
power/high interest corner of the P-I
grid (top right)
 Determine stakeholder management
strategies
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Stakeholder Management
Refer to p245, p268
Helps
organizations better manage the
interface between competing demands of
stakeholders
Increases the probability of strategic success
Provides both an analytical and social focus
“There is nothing more difficult than to achieve a new
order of things with not support from those who will
not benefit from the new order, and only lukewarm
support from those who will”
Machiavelli, The Prince 1514
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 02:00/03:30
• Developing 3 management webs and
determining strategies for stakeholder
management (30-65mins)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Assignment: Part 4
Refer to assignment details slides
Save
DE model
• File name= ‘group name’_SH
Write
and Save SSI Refer to p245-247
Write Reflections piece
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011

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