Sustainable Development and Organizational Change
1 like1,220 views
The document discusses sustainable development within organizations, focusing on strategy formulation, key analytical models, and the evolution and revolution of firms as they grow. It highlights the importance of understanding the macro and micro environments, the resource-based view of the firm, and Greiner’s growth curve, which outlines challenges organizations face at different growth stages. Conclusively, it emphasizes the necessity of integrating sustainable growth into strategy to ensure long-term success.
Sustainable Development and Organizational Change
- 1. Sustainable Development and Organizational Change (featuring: evolution and revolution as organizations grow) Richard Brooks 20th May 2010 www.k-international.com
- 2. Agenda • Formulating a strategy • Models used • So what? • Development of firms (evolution and revolution as organizations grow) • Another so what/sum up www.k-international.com
- 3. Text www.k-international.com
- 4. Formulating a Strategy Strategy needs a process. It’s a science not an art Going to show you • PEST analysis • Five Forces • Resource Based View of the Firm How many people here use/ THE FIRM/COMPANY/ know these tools? ORGANIZATION MICRO ENVIRONMENT MACRO ENVIRONMENT www.k-international.com
- 5. The Macro Environment • Political, Economic, Social, Technological (and sometimes Environmental & Legal) framework helps with clarity of thinking. • Brainstorm ideas under each topic making sure you have defined the market space beforehand. Score each item and place on a probability matrix. Action the red first. Political Economic HIGH • Spread of socialism • Low cost of capital • War • Low growth PROBABILITY • Environmental issues • High unemployment • Tax changes • Value of $/£ MED Social Technological • Healthcare reform bill • Google translate LOW • Social Media • Workflow/TMS • Aging Population • E-Procurement • Level of Education • 100 mbps Broadband LOW MED HIGH IMPACT www.k-international.com
- 6. The Macro Environment • Political, Economic, Social, Technological (and sometimes Environmental & Legal) framework helps with clarity of thinking. • Brainstorm ideas under each topic making sure you have defined the market space beforehand. Score each item and place on a probability matrix. Action the red first. • Environmental issues • Workflow/TMS Political Economic • War HIGH • Healthcare reform bill • Tax changes • Aging Population • Google translate PROBABILITY • Spread of socialism • Social Media MED • Low cost of capital • Value of $/£ • Low growth Social Technological • Level of Education LOW • E-Procurement • 100 mbps Broadband • High unemployment LOW MED HIGH IMPACT www.k-international.com
- 7. The Micro Environment Threat of a NEW ENTRANT Bargaining power The Rivalry within Bargaining power of SUPPLIERS the INDUSTRY of CUSTOMERS Threat of SUBSTITUTE product or service Adapted from Michael Porter, “How Competitive Forces Shape Strategy”, Harvard Business Review 1979 www.k-international.com
- 8. The Micro Environment Threat of a Threat of a NEW ENTRANT NEW ENTRANT ning power Bargaining power The Rivalry within Bargaining power Bargaining powe PPLIERS of SUPPLIERS the INDUSTRY of CUSTOMERS of CUSTOMERS Supply Chain Threat of Threat of SUBSTITUTE SUBSTITUTE product or service product or service Adapted from Michael Porter, “How Competitive Forces Shape Strategy”, Harvard Business Review 1979 www.k-international.com
- 9. The Organization • The Resourced Based View of the Firm examines the link between ‘the internal characteristics of a firm and a firm’s performance’. • States that a firm can be regarded as a bundle of resources. And it’s the resources which are simultaneously valuable, rare, imperfectly imitable, non-substitutable that provide the firm with the main source of sustainable competitive advantage. • List your resources… are they valuable? Are they easy to imitate? Are they easy to leverage? Do you have any VRIN resources? Is it? Imperfectly Non Resource Valuable Rare Imitable Substitutable Key Learning Points MAKE RARE Buildings RESOURCES VALUABLE YOUR REPUTATION IS Workflow system VERY IMPORTANT IN THIS INDUSTRY Databases TACIT KNOWLEDGE is a key VRIN resource Reputation COMPARE WITH COMPETITION – WHERE Staff ARE THE DIFFERENCES? Adapted from Barney “Firm resources and sustainable competitive advantage”, Journal of Management 1991 www.k-international.com
- 10. Greiner’s Curve Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 11. Greiner’s Curve Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 12. Greiner’s Curve Crisis of LEADERSHIP Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 13. Greiner’s Curve Crisis of LEADERSHIP Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 14. Greiner’s Curve Crisis of AUTONOMY Crisis of LEADERSHIP Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 15. Greiner’s Curve Crisis of AUTONOMY Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 16. Greiner’s Curve Crisis of CONTROL Crisis of AUTONOMY Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 17. Greiner’s Curve Crisis of CONTROL Crisis of AUTONOMY Growth via COORDINATION Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 18. Greiner’s Curve Crisis of RED TAPE Crisis of CONTROL Crisis of AUTONOMY Growth via COORDINATION Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 19. Greiner’s Curve Crisis of RED TAPE Crisis of CONTROL Growth via COLLABORATION Crisis of AUTONOMY Growth via COORDINATION Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 20. Greiner’s Curve Crisis of ??? Crisis of RED TAPE Crisis of CONTROL Growth via COLLABORATION Crisis of AUTONOMY Growth via COORDINATION Crisis of LEADERSHIP Growth via DELEGATION Growth via DIRECTION Growth via CREATIVITY Larry Greiner, “Evolution and revolution as organizations grow”, Harvard Business Review August 1972 www.k-international.com
- 21. To sum up • Traditional strategy tools are vital but can lead to generic strategies (eg Porter’s 3 generic strategies (low cost, focus and differentiation)) – watch out for them at your competitors. • RBV lets you explore the internal characteristics of your own companies and see what works and what should be invested in. • Need to look at time factors when developing corp strategy – this can be your company’s developmental stage AND/OR the state the surrounding industry is in. • Sustainable growth needs to be designed into the strategy, it won’t just happen. • The ALC will help you with your research. www.k-international.com
- 22. Thank you Richard Brooks K International plc, UK Tel: 0044 1908 572600 Richard.Brooks@k-international.com http://uk.linkedin.com/in/richardbrooks http://twitter.com/K_International www.k-international.com/blog www.k-international.com