Dynamic Environment in Strategic Management

Dr. Mombang Sihite, MM

 AGILE STRATEGY
AGILE STRATEGY MANAGEMENT IN THE BUILDING THE AGILE
MANAGEMENT : TECHNIQUES DIGITAL AGE, BUSINESS THROUGH DIGITAL
FOR CONTINUOUS HOW DYNAMIC BALANCED TRANSFORMATION
ALIGNMENT AND SCORECARDS TRANSFORM NEIL PERKIN & PETER
IMPROVEMENT, SOREN DECISION MAKING, SPEED ABRAHAM
LYNGSO AND EFFECTIVENESS, DAVID
WIRAEUS • JAMES CREELMAN

MANAGING UNCERTAINTY,
STRATEGIES FOR SURVIVING
AND THRIVING IN
TURBULENT TIMES, MICHEL
SYRETT AND MARION DEVINE

Book References
Contents
1. Introduction: Managing in an Uncertain World
2. Understanding VUCA
3. Strategic Anticipation
4. Navigational leadership
5. Agility
6. Fundamental Trends Shaping Marketing
7. New Frameworks for Marketing in the Digital
Economy
8. Mid Test
9. Tactical Marketing Applications in the Digital
Economy
Cont..
10. Strategy Quality and Strategy Success
11. Team Building for a Strategic Initiative
12. Agile Strategy Management
13. Decision Making Under Uncertainty
14. Model Uncertainty
15. Uncertainty in Technological and
Economic Factors in EPA’s Decision Making
16. Final Test
Strategy Quality and
Strategy Success
Strategy Quality
and Strategy
Success
• Why and how a strategy can be quality managed to deliver successful results.
The problem with a strategy based on pure luck is that we cannot learn from it,
there is no way we can repeat the process that leads to the high quality strategy.
In order to be able to quality manage a strategy; such a strategy must be established
and implemented based on sound and visible processes that can be documented,
evaluated, improved, and (re-)used.
 KNOWLEDGE SHARING
The initial knowledge based on practice in project and program
management governing information system development and
implementation in support of strategic business change and
development initiatives. Related to methods, techniques, and
standards as proprietary or confidential.
There are a few reasons for this attitude:
•Once an idea is born, it is the foundation for even better ideas—if you
share it.
• To share knowledge with clients and partners
• We do not regard our methods as unique or the best, but we want
them to be world class and at least as good as the best.
• We learn as much from clients and partners as they learn from us.
• We are here to have fun, not to live in fear that someone will steal
our ideas
Based on this need for
knowledge transfer and
sharing, our methods of agile
quality management and our
agile principles in general were
developed under the name of
the Lyngso Model which is a
comprehensive collection of
methods and techniques for
the conduction of strategic
initiatives.

Lyngso method and technique framework.

The needed synchronization is a
never-ending process of
change. The change is managed
in order to ensure that the most
competent resources get
involved at the right time to
produce the solutions that are
the best fit to the market
conditions and the client needs
and expectations, when these
solutions are ready for the
market.
Strategic initiatives most often comprise
planning, development, and
implementation of new Information
Systems and adaptation to already
implemented ones in support of:
• Establishment of new business
• Changes to organization structure
• Implementation of new technology
• Implementation of improved production
methods
• Implementation of improved logistics
The information system makes it possible
to obtain the required
result of the strategic initiative, but the
information system is worth
nothing if it does not correspond to
business processes that deliver real
customer benefits.
 • Let me tell you about a failed strategic initiative of Information
System
improvement that ended up in a pure catastrophe because the
The Importance synchronization of business behaviuor, organization, and
information systems was
of not done.
A major distributor of big and small electrical household
equipment
Synchronization decided to swap its Information System because the current
system was
getting very expensive to maintain and was very slow.
The IT installation comprised an old-fashioned mainframe with
attached
PC workstations that the distributor wanted to swap with state-
of-the-art
Microsoft-based servers with Windows workstations.
A true strategic angle to
Information Technology and
Information System solution
development and
implementation. Today, more
than 25 years later, we are
not first anymore, and probably
not even unique, but we do
have some
stories to tell (

All method components are explained

with respect to the core quality
objects:
• Organizational requirements
• Process requirements
• Solution requirements
Agile Strategy Quality Management
• Te techniques and standards for team building and object-
oriented business analysis and solution design have been
developed to solve the broader and more complex tasks of
strategic Information System planning, development, and
implementation governed by Agile Strategy Quality
Management.
The Agile Quality Management standards used in strategic
initiatives comprise:
• Identification and activation of stakeholders to be involved
• Communication
• Team building
• Decision making
• Documentation
This capability is ensured by early visualization
of the complete solution structure and by
ensuring that solution
elements can be delivered and made
productive early during a strategic initiative;
that is:
• Complex solutions are broken down into fully
functional business solution components
without losing the overview of the total
solution.
• Early delivery of solution components allows
experience to be gathered early for improved
estimation, planning, and optimal adaptation
to risk events and conditions.
• Early usage of solution components allows
the users to gain benefits and to avoid major
problems.
Quality Management Objects
Quality management comprises three process management classes with
explicitly defined organization requirements, procedures, and result
standards:
Quality assurance ensures that a solution will satisfy the stakeholder
needs and requirements. Tis is handled by establishing agreed standards
for all resources, procedures, and solution elements to be involved or
delivered.
• Quality control is the ongoing effort to maintain the integrity of a
method to be able to achieve the required solution quality. We use
communication, interview, and review techniques combined with
advanced testing and verifcation procedures supported by standard
quality management information systems to perform and document
quality control.
• Quality improvement is the purposeful change of a method to improve
the reliability of achieving a required solution. We have improved our
standards and techniques periodically based on Lessons Learned.
For each quality management process class
we use three quality objects as a foundation
for evaluation of the performance of this
process class:
• The Solution object defines the properties
that are required from the
solution to be delivered.
• The Process object defines the properties
that are required for high
performance delivery of the required
solution.
• The Organization object defines the
properties that are required for efficient
communication, competence establishment,
and decision making.
STRATEGY AND STRATEGIC INITIATIVES
The Strategy

Corporate leadership establishes the strategy of a corporation. The strategy tells you
why the organization has been established the way it is:
• Organization structure and geographical locations
• Products
• Business operations
• The corporate vision statement that “paints” a picture of how the corporation would
like to be observed and how it observes itself in the future.
• The corporate mission that tells a story about how the corporation intends to
contribute to the happiness of its stakeholders. This is the strategy quality objective.
• The confidential corporate objectives known by and sometimes contractually
committed to by management tells you the direction followed by the corporation, for
example:
• Internationalization
• Growth by acquisition
• Profitability (Return on Investment, Return on Equity)
• Sustainability
• Technological superiority
The Strategic Initiatives

The strategic initiatives establish the WHY, the

WHAT, the WHEN, the HOW, and the WHO
concerned with sustaining, changing, and
improving business procedures and infrastructure
in support of the corporate strategy.
Strategic Initiatives usually comprise information
systems establishment or improvement in support
of business operations. When my companies have
been involved with corporate strategic initiatives,
this has always been the case.
AGILE PRINCIPLES
•
The agile principles of our methods framework ensure that the
strategy stakeholders are happy all the time.
Unfortunately, happiness is not the nature of Strategic Initiative
stakeholders and especially not when corporate strategy and
Information System implementation is concerned. Most often
conflicts and disagreements between owners, operators, and
unions about how to handle and manage the strategic initiative
pave the way for mistrust and insecurity.
There is a long history of failed strategies, missed
opportunities, and Information Systems that never were
delivered, disasters that unfortunately enough support the
normal stakeholder suspicion and mistrust.
On top of these bad experiences, the normal resistance to
change and the classical differences in objectives between
management and employees pave the way for unhappy
stakeholders.
SCOPE ESTABLISHMENT
• A strategic initiative can be concerned with reaching many different
objectives regarding different business situations.
Tis initial set of objectives provided by corporate leaders is an indication of
what kind of business and stakeholders that must be involved in the
establishment of the strategic initiative. In most cases in which we have
been involved, these objectives were not precisely defned to establish the
full scope of the strategic initiative on their own.
Only when we have asked key-stakeholders about their points of view
on the objectives do we get a more precise idea about the scope that can
comprise elements such as:
• Budget
• Competition
• Environment
• Technology
• Legal issues
Value Chain example
STAKEHOLDER IDENTIFICATION

• In order to establish a strategically aligned solution, you deal with a multitude

of stakeholders representing all the roles directly involved with development,
implementation, quality management, usage, governance, etc. of the solution, as
well as the not always visible stakeholders that potentially benefit or suffer from
the strategic initiative and its solutions.
When establishing a strategic initiative you make a serious effort to get
to know all the stakeholders that are concerned, that is, to have a dialogue with
key persons and organizations that potentially could benefit or suffer from it.
• This is especially true for the less visible and less obvious stakeholders such as
unions, politicians, government, legal bodies, and potential competitive
businesses and partners
AGILE TEAM BUILDING
Once we have defined and agreed to the larger
scope and the required activities and their
leaders and managers, we are ready to build the
teams for solution establishment, risk, and
change management.
The method to get the teams built and to
establish agreement about what the solution will
be is the continued PQA process. The initial PQA
Workshop invitation and the Workshop itself is
the very important initiation of the PQA Process.
PQA is a core element of Strategy Quality
Management. PQA ensures a precise scope
definition broken down into activities,
deliverables, resource requirements, process
ownership, and management responsibilities.
No Excuse for Failure Principle

• Much too often we have seen projects and major

programs moving along with weakly defined organization of
responsibility and activity defined on a level where
management is impossible.
Such situations lead to crucial lack of commitment from all
involved
stakeholders because:
• Results do not show up.
• Results show up too late to be useful.
• Results show up without the quality that was never
agreed on or
documented.
STRATEGY QUALITY AND
SUCCESSFUL STRATEGY
Quite often, the corporate strategy is confounded with the
corporate objectives or the corporate vision, but the objectives
and vision cannot be the strategy on their own because the
strategy is also the way, the method chosen to meet the
objectives and make the vision come true, that is, the strategic
initiatives.
Strategy is not confined to decision making on a board or
government level, it is just as much based on decisions made
by a department, a ministry, a business unit, or a cross-
organizational project or program organization performing
strategic initiatives.
Strategy Quality
and People
• People implement the
strategy by explicit
definition of, and agreement
to, all the quality objects
shown from initial visions
over performance of
projects, programs, and
business activity to strategy
governance.

Quality objects from vision to strategy governance

Strategy Quality and
Risk

• The result of strategic decisions is not

always the fulfllment of the objectives
that originally led to the decisions. When
a result is accepted to be better than the
objectives originally established,
everything is fine
Only when we visibly apply risk
management and visibly control the direct
outcome of our strategic initiatives from
initiation to final implementation and
governance can we talk about high quality
of the strategy.
Strategy Quality and Leadership
• There are, however, certain common characteristics of successful
leaders, such as their ability to communicate with the purpose to:
• Listen
• Sell an idea
• Motivate others
• Navigate
Tese communication capabilities allow leaders to drive strategies
through to success, even though the fnal result is quite different from the
one envisioned when the original objectives were set.
Te corporate leaders envision the initial strategy objectives, but the
chosen teams involved with the strategic initiatives define the final
objectives.
Te corporate leaders play an important role as listeners and promoters of
change for the better.
Contents
10. Strategy Quality and Strategy Success
11. Team Building for a Strategic Initiative
12. Agile Strategy Management
13. Decision Making Under Uncertainty
14. Model Uncertainty
15. Uncertainty in Technological and
Economic Factors in EPA’s Decision Making
16. Final Test