During this process the company identified specific

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: trategy-making process into five stages: analysis, formulation, implementation, tracking and revision. During this process, the company identified specific responsibilities or roles for each level, the levels being the CEO and the Board of Directors, the second level, and the executive committee. The second level managers, mainly business unit managers, and the CEO made up the executive committee, considered as the collegiate body in which bottom-up and top-down sources converge. This committee was the arena in which relations between top management, including the Board and the CEO, and unit managers was conducted. The duties of top management, unit managers and the executive committee are summarized in Table 1. 10 Table 1. Description of the strategy-making process and the behavior of each management level Behavior/Stage CEO and Board of Directors Second and Third Level Manager Executive Committee: Relationship between levels Analysis Formulation Implementation Tracking Revision - Objective function (O.F.) setting - Invitation to participate - Rank projects - Test for fit with O.F. - Coordinate and facilitate generation of strategic initiatives - Resource allocation according to previous ranking - Delegation of responsibilities - Monitor evolution of strategic initiatives - Feedback from key indicators - Monitor and control objective achievement - Assess reasons for achievement - Individual reflection and group deliberation - Propose strategic initiatives - Scratching for value adding potential - Each area proposes a strategy - Request resources for projects - Disseminate underlying reasoning to organizational levels - Unit evaluation meetings - Day-to-day tuning - Look for solutions to emergent problems - Contingency detection - Task force reaction, scratching and gather information - If necessary, issue selling - Group deliberation - Ranking of objectives - Reach agreement - Legitimation of analysis and goals - Assistance of external consultants as facilitators - Fit with objectives - Agreement based on reasoning on objectives and performance indicators - Legitimation of strategic initiatives - Balanced scorecard model - Strategic conversation - Discriminate which strategic initiatives to promote and which to hold back - Supervising area feedback - Executive committee evaluation meetings - Communication of global performance - Revision of under or overdeveloped strategic initiatives and objectives - If needed, propose major revision of strategy The formal strategy-making exercise at RACC took place over a period of five months, from May to September 2000. This exercise covered the stages of analysis and formulation, as shown in Table 1. Participation was sustained as a key feature. About eighty managers were said to have played a part in the making of strategy. In a first phase, thirtyfive people from four levels below that of CEO identified and debated four strategic dimensions, resulting in a rank by agreed priority. Then, the same thirty-five people, working in small groups, deri...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online