Revisiting Organisational Strategic Management (2 .

3y ago
42 Views
3 Downloads
442.72 KB
12 Pages
Last View : 1m ago
Last Download : 2m ago
Upload by : Jerry Bolanos
Transcription

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonRevisiting organisational strategic management (2)Augmenting a recursive strategic management model toaccommodate changes impacting outcomes and benefits 1By Alan StrettonINTRODUCTIONThis is the second of a series of articles in which I revisit some aspects oforganisational strategic management. The first article (Stretton 2020l) developed arecursive organisational strategic management model, and discussed the crucial role ofkey management responsibilities at each of three levels for the effective prosecution ofthe stages in this model. The model is reproduced in Figure 2-1 below, but withindividual strategic initiatives replaced by all strategic initiatives in the bottom sector onStrategic initiative management.EXECUTIVE MANAGEMENT(ongoing)1. Establish/ re-establishorg. strategic objectives6. Ongoing strategicReviews and responsesAll strategies and operationsSTRATEGIC INVESTMENTPORTFOLIO MANAGEMENT(ongoing)All strategic initiatives2. Develop strategic initiativeoptions, evaluate, choose bestSTRATEGIC INITIATIVE MANAGEMENT.(includes program and/or project mgt.and other strategic work)All strategic initiatives5. Achieve strategicobjectives3. Elaborate/consolidatestrategic initiatives4. Execute strategicinitiativesFigure 2-1: Responsibilities for managing stages of recursive organisational strategic mgt.In that article, it was specifically noted that, regarding the Stage 5processes, the key strategic objectives to be achieved areoutcomes and benefits – therefore strategic investment portfoliomanagement responsibilities in this context are ongoing evaluationof performance in achieving the desired outcomes and benefits ofall current strategic initiatives – and that these quite complicatedtopics would be discussed in more detail in this second article.5. Achieve strategicobjectives.Achieve strategicoutcomes andrealise benefitsBefore going on to do so, this article first summarises some attributes of, andresponsibilities for, outputs, outcomes and benefits, as previously discussed in Stretton2020e and 2020i.1How to cite this article: Stretton, A. (2020). Augmenting a recursive strategic management model to accommodatechanges impacting outcomes and benefits; Revisiting organisational strategic management (2); Series article. PMWorld Journal, Vol. IX, Issue XII, December. 2020 Alan Strettonwww.pmworldlibrary.netPage 1 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonSTRATEGIC INITIATIVE OUTPUTS, OUTCOMES AND BENEFITSSome definitions/descriptorsIn Stretton 2020i I distinguished between project/program-related outputs, outcomes,and benefits as follows, using definitions from the project management literature.Output: The tangible or intangible product resulting from planned activity. (OGC 2007:247)Some synonyms for Outputs:Capability (OGC 2007),Results, Deliverables, Products (Driver & Seath 2015).Outcome: The result of change, normally affecting real-world behaviour and/or circumstances. (OGC 2007:247)A virtual synonym for Outcomes: Uses (Driver & Seath 2015).Benefit: The measurable improvement resulting from an outcome perceived as an advantageby one or more stakeholders. (OGC 2007:245)Some detailed differences between outputs, outcomes and benefitsI also noted that OGC 2007 had more to say about these differences than any othersource I have come across, as represented in the following figure.Project outputs/capabilityOutcomeBenefitEnables a new outcome in part of theoperational organisationIs the desired operational resultIs the measurement of an outcome or a part of anoutcome. An end benefit is a direct contribution to astrategic objectiveDescribes a featureDescribes part or new operational stateDescribes an advantage accruing from the outcomeAnswers at least in part the fundamentalquestion: What new or different things willwe need to realize beneficial change?Answers the question: What is thedesired operational state of theorganization using these new things?Answers the question of what a project delivers: Whyis this required?An example of an output: a new hospitalbuildingAn example of an outcome: an additionalhospital is now operational and servingregional demand for hospital carethereby reducing waiting listsAn example of a benefit from this outcome might be:reduced waiting times for hip operations to anaverage three weeks from ten weeksFigure6:output:OGCan2007Another exampleof anecommerce system- Table7.1 Differencesbetweenoutputs,benefitsAn exampleof an outcome fromthisAn example outcomesof a benefit from andthis: increasedsalesoutput: ability to process fulfil and chargefor web-placed ordersrevenue of x%Figure 2-2: OGC 2007 - Table 7.1 Differences between outputs, outcomes and benefitsIn light of the above definitions/descriptors and examples, distinguishing betweenoutputs and outcomes would appear to be relatively straight-forward. However,distinguishing between outcomes and benefits is not always just as straight-forward.Distinguishing between outcomes and benefitsSome writers use one or other of the descriptors outcomes and benefits in a more orless interchangeable manner. Indeed, some actually combine the two. 2020 Alan Strettonwww.pmworldlibrary.netPage 2 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonFor example, in the abstract of their paper, Zwikael & Smyrk 2009 use the descriptoroutcomes (benefits). In effect, they are discussing “beneficial outcomes”.However, in many cases there are very clear distinctions between the two. In Stretton2020i I drew on OGC 2007 to illustrate a typically important difference betweenoutcomes and benefits. This is summarised in Figure 2-3 below, in which we can seehow OGC has distinguished between the internal outcome of a business changestrategic initiative, and (two stages of) subsequent benefits realisation in theorganisation’s external business operations.BUSINESS CHANGE INITIATIVE – INTERNAL EFFICIENCYProject Output(e.g. e-commercesystem)Business Change(e.g. preparationsand training)Outcome(e.g. new systemoperational, takingorders)IntermediateBenefit(e.g. increasede-orders)End Benefit(e.g. increasedsales revenue)StrategicObjective(e.g. increasedprofitability)BUSINESS OPERATIONS – EXTERNAL EFFECTIVENESSFigure 2-3: Based on OGC 2007, Fig. 7.3 Example of a project output to strategic objective chainThis is just one example of a typical situation where the subsequent benefits can onlybe realised some considerable time after the outcomes have been achieved. In someinstances such as with long-term productive assets this can be a matter of years, oreven decades.ADDING STRATEGIC INITIATIVE OUTPUTS TO THE RECURSIVE STRATEGICMANAGEMENT MODELWe start by representing planned strategic initiative outputs and their delivery in themodel as shown in Figure 2-4. It can be seen that I have put the delivery side ofstrategic initiative outputs in the form of a question as to their achievement, which is apattern I will also follow later with outcomes and benefits.EXECUTIVE MANAGEMENT(ongoing)1. Establish/ re-establishorg. strategic objectives6. Ongoing strategicReviews and responsesAll strategies and operationsSTRATEGIC INVESTMENTPORTFOLIO MANAGEMENT(ongoing)2. Develop strategic initiativeoptions, evaluate, choose best5. Achieve strategicobjectivesAll strategic initiativesSTRATEGIC INITIATIVE MANAGEMENT.(includes program and/orproject management andother strategic work)3. Elaborate/consolidatestrategic initiatives4. Execute strategicinitiativesAll strategic nedOutputs delivered?Figure 2-4: Adding strategic initiative outputs to the recursive strategic management model 2020 Alan Strettonwww.pmworldlibrary.netPage 3 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonResponsibilities for achieving outputsResponsibility for achieving these outputs is clearly with the strategic initiative manager.Management of the project/ program components of delivery of outputs is veryextensively covered in the project manager literature, and needs no further commenthere.However, if things go wrong here, ensuring outcomes or benefits may not be achieved,and we will be discussing relevant linkages later.ADDING OUTCOMES & BENEFITS TO THE RECURSIVE STRATEGICMANAGEMENT MODELEXECUTIVE MANAGEMENT(ongoing)1. Establish/ re-establishorg. strategic objectives6. Ongoing strategicReviews and responsesAll strategies and operationsSTRATEGIC INVESTMENTPORTFOLIO MANAGEMENT(ongoing)All strategic initiatives2. Develop strategic initiativeoptions, evaluate, choose best5. Achieve strategicobjectivesBenefits to be realisedRealising benefits?Outcomes to be achievedAchieving outcomes?STRATEGIC INITIATIVE MANAGEMENT.(includes program and/orproject management andother strategic work)3. Elaborate/consolidatestrategic initiatives4. Execute strategicinitiativesAll strategic initiativesDesired outputs definedOutputs delivered?Figure 2-5: Adding outcomes and benefits to the recursive strategic management modelComparing achieved outcomes and benefits with those plannedWhilst processes for delivering the outputs of program and project components ofstrategic initiatives are extensively covered in the project management literature, thesame cannot be said about achievement of outcomes and realisation of benefits. Whilstthe strategic investment portfolio management has overall responsibility for these, thedetailed responsibilities usually lie with the users of the outputs and/or outcomes.The literature has little to say about these more detailed responsibilities, which Idiscussed in Stretton 2020e and 2020i, as now summarised.Broad responsibilities for outcomes & benefits realisation management (BRM)The following figure is an amalgamation of Figure 9 from Stretton 2020e and anamendment to the Internal Efficiency Initiatives section made in Stretton 2020i. 2020 Alan Strettonwww.pmworldlibrary.netPage 4 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonEXTERNAL EFFECTIVENESS INITIATIVESINTERNAL EFFICIENCY INITIATIVESBusiness & Organisation ChangeInformation Systems (Software)Research & Development“Stay-in-Business” initiativesShorter-term Production-relatedProduct & Service DevelopmentEventsMedia & EntertainmentHealthcareResponsibilities for Outcomes If users have a formalorganizational representative, thelatter is responsible If there is no designated userrepresentative, then project/programmgt. is usually held responsibleResponsibilities for BRM Responsibility is with designatedmgr. interfacing with organisation’smarkets/customers – e.g. ProductMgr, Events Mgr, Producer Project/program mgt has no directinvolvement in ultimate BRMLonger-term Asset-relatedFacilities (commercial production;public infrastructure)Communication SystemsInternationalDevelopmentResponsibilities for BRMResp. for BRM Responsibility is with the Variesowners and/or designated user Often sharedrepresentativesbetween PPM Project/program mgt has no providers anddirect involvement in, orultimate userresponsibility for, final BRMrepresentativesAerospace/DefenseResp. for BRM Varies Benefits oftenfocus on utility ofproject/programdeliverablesthemselves. Figure 2-6: Types of strategic initiatives, & responsibilities for benefits realisation managementIt can be seen that, even in this summarised format, there is a great variety of users ofoutputs and/or outcomes from organisational strategic initiatives, and that detailedresponsibilities for achieving outcomes and realising benefits vary widely, as nowfurther discussed.Some detailed responsibilities for outputs achievement & benefits realisationPMI 2017, in its introductory section in Ch 4. Program Benefits Management, says:Various types of benefits may be defined and generated by programs. Some benefits,such as expanded market presence, improved financial performance, or operationalefficiencies, may be realized by the sponsoring organization while other programoutcomes may be realized as benefits by the organization’s customers or the program’sintended beneficiaries.The question of responsibilities for ensuring that the strategic business outcomes areachieved, and that the benefits are realised, is a very substantial one. It is also quite acomplicated one, because of great variations in the organisations involved, their setup(s), and how they relate with the provider of strategic outputs and/or outcomes. Thisis indicated, at least in part, in Figure 2-6 above. We will briefly discuss responsibilitiesattaching to its three primary groups of strategic initiatives.Internal efficiency strategic initiativesInternal efficiency strategic initiatives are widely discussed in the literature. I havedescribed the end results of such internal efforts as outcomes, rather than benefits, onthe basis that internal efficiency initiatives are virtually always undertaken to enhancethe effectiveness of the organisation’s external strategic initiatives, which is where theultimate benefits are realised.However, much of the relevant literature describes the results of internal strategicinitiatives as benefits, as will be seen in some of the following descriptors. 2020 Alan Strettonwww.pmworldlibrary.netPage 5 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonDescriptors of people who have detailed responsibilities for achieving internal efficiencyoutcomes/ benefits vary widely. They include: Operations managers (Cooke-Davies 2002)Benefits managers (Morris 2013:84)Portfolio benefits managers (Smit 2017)Benefits management practice leaders (Hudson 2016:437-8)Dedicated benefits management team (Stewart 2016:202)Organisational change managers (O’Donovan 2018)Business change managers (OGC 2007:32)This listing certainly gives more than a hint of just how variable internal efficiencyinitiatives can be, particularly as regards responsibility for achieving outcomes and/orbenefits.Also, as indicated in Figure 2-6, if there is no designated representative of the users ofinternal efficiency initiatives in the organisation, then project/program management isoften held responsible for achieving the outcomes. However, it is still the actions of theusers which decide the extent of actual outcomes achievement.Shorter-term production-related external effectiveness strategic initiativesThis group of external effectiveness initiatives is epitomised by the product and servicedevelopment example in Figure 2-6, which says that responsibilities for benefitsrealisation management is with designated manager who interfaces with theorganisation’s markets/customers. I exampled Product Managers, Events Managers andProducers as such designated managers. In a more generalised context, I could wellhave added Marketing Managers, Sales Managers, and similar entities.However, if we look at the situation from the customer’s viewpoint, it could well beargued that “outcomes may be realized as benefits by the organization’s customers”, asnoted in an above quotation from PMI 2017.So, allocations of responsibilities between the delivery manager and the customer arenot necessarily all that straight-forward. Amongst other factors, they substantially dependon which user you are considering – i.e. the deliverer of the strategic initiative, or thecustomer to whom it is being delivered.Longer-term asset-related external effectiveness strategic initiativesThis was the most difficult of the three broad types of strategic initiatives, both to classify,and to allocate responsibilities. It can be seen in Figure 2-6 that I identified three groupswithin this classification.The most generalised of these is arguably the Facilities group, in which responsibility forbenefits realisation is generally with the owners, and/or designated user representatives. 2020 Alan Strettonwww.pmworldlibrary.netPage 6 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonThe other two broad groups, International development, and Aerospace/defence, are sodiverse that it is difficult to generalise on responsibilities for benefits realisation, as isindicated in Figure 2-6.However, the one attribute that they all share is that benefits will not normally be realiseduntil long after the delivery of outcomes – sometimes in the order of decades.This can certainly complicate the ability of strategic investment portfolio management inassessing the extent to which planned benefits are actually being realised, and reportingappropriately to the executive management strategic review and responses group, towhich we now turn.ADDING LINKS TO AND FROM THE EXECUTIVE MANAGEMENT STRATEGICREVIEW AND RESPONSE PROCESSESFigure 2-7 illustrates linkages between outputs, outcomes and benefits progress andthe executive management level strategic review and response group (Stage 6) forreview purposes, and between the latter and Stages 1 and 2 as avenues for relayingremedial response decisions, and modifying strategic objectives and strategic initiativesaccordingly.EXECUTIVE MANAGEMENT(ongoing)1. Establish/ re-establishorg. strategic objectives6. Ongoing strategicReviews and responsesAll strategies and operationsSTRATEGIC INVESTMENTPORTFOLIO MANAGEMENT(ongoing)All strategic initiatives2. Develop strategic initiativeoptions, evaluate, choose best5. Achieve strategicobjectivesBenefits to be realisedRealising benefits?Outcomes to be achievedAchieving outcomes?STRATEGIC INITIATIVE MANAGEMENT.(includes program and/orproject management andother strategic work)Desired outputs defined3. Elaborate/consolidatestrategic initiatives4. Execute strategicinitiativesAll strategic initiativesDesired outputs definedOutputs delivered?Figure 2-7: Adding links with executive management strategic review and response groupIn Figure 2-1 the direct link between Stage 6 and Stage 2 was originally put in placebecause strategic initiatives can be initiated and/or modified within the ambit of existingoverall strategic objectives, so that it is not necessary to go via Stage 1.But, in accelerated VUCA environments, this direct link also allows for direct rapidresponses which could be outside the ambit of the original overall strategic objectives,which would then need to be appropriately re-established later. 2020 Alan Strettonwww.pmworldlibrary.netPage 7 of 12

PM World Journal (ISSN: 2330-4480)Vol. IX, Issue XII – December 2020www.pmworldjournal.comSeries ArticleAumenting a recursive strategic managementmodel to accommodate changesRevisiting organisational strategic management (2)by Alan StrettonADDING THE ROLE OF USERS TO THE STRATEGIC MANAGEMENT MODELAdopting “users” to cover those responsible for outcomes and/or BRMIn light of the very many varying responsibilities for achieving outcomes and/o

Revisiting organisational strategic management (2) Augmenting a recursive strategic management model to accommodate changes impacting outcomes and benefits 1 By Alan Stretton INTRODUCTION This is the second of a series of articles in which I revisit some aspects of organisational strategic management.

Related Documents:

Unit 7: Organisational Systems Security Unit code: T/601/7312 QCF Level 3: BTEC Nationals Credit value: 10 Guided learning hours: 60 Aim and purpose The aim of this unit is to enable learners to understand potential threats to IT systems and the organisational issues related to IT security, and know how to keep systems and data secure from theseFile Size: 206KBPage Count: 8Explore furtherUnit 7: Organisational System Security : Unit 7: P1, P2 .unit7organisationalsystemsecurity.bl Unit 7: Organisational Systems Securitywiki.computing.hct.ac.ukLevel 3 BTEC Unit 7 - Organisational Systems Security .wiki.computing.hct.ac.ukUnit 7: Organisational Systems Security Cybersecurity .jadeltawil.wordpress.comUnit 7: Organisational System Security : Unit 7: P6, M3 & D2unit7organisationalsystemsecurity.bl Recommended to you b

toward organisational success. Namely, it is the ability to lead members to work voluntarily and cooperatively for organisation success (Kim et al, 2011). Leadership is a very important factor for accomplishing organisational goals because it can positively affect organisational effectiveness thus contributing to the

surrounding strategic human resource management (SHRM) and organisational performance. The relationship between SHRM and organisational performance has been a heavily deliberated issue over the last decade. A survey of literature on S HRM and its impact s in terms of pe rformance reveals that empirical results on this topic are ,

organisational behaviour and illustrates to show its application in practice. This block of the course has been developed to cover various approaches to organisational behaviour. This block also consists of 7 units. Unit-8 Motivation Unit-9 Decision Making Unit-10 Leadership Unit-11 Organisational Behaviour Unit-12 Personality

This course, BUS 831: Organisational Theory and Behaviour, exposes you to the review of major organisational theories, and to the concepts and practices of organisational behaviour as the bases for guiding the management of organisations. A good understanding of the study units will equip you to pass your examination comfortably. More importantly,

5. Organisational Behaviour – Dipak Kumar Bhattacharya – Oxford Publications 6. Organisational Behaviour – Dr Chandra sekhar Dash – International Book House Ltd 7. Organisational Behaviour – Meera Shankar – International Book House Ltd 8. Management & Organisational Behaviour – Laurie Mullins – Pearson Publications

PART ONE Introduction to Strategic Management and Business Policy 1 CHAPTER1 Basic Concepts of Strategic Management 2 1.1 The Study of Strategic Management 5 Phases of Strategic Management 5 Benefits of Strategic Management 6 1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 7 Impact of Globalization 8

ANSI A300 Part 4 ( American National Standards Institute, Standard for Lightning protection Systems For Trees ) recommends designing the earth (ground) termination based on a visual inspection of the soil and its moisture content. This is not possible as water is an insulator not a conductor; it is the dissolved salts in the water that give it its conductive properties. These salts are not .