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Unformatted text preview: ved seven main strategic tracks in order to approach the external
scrutiny. Using these tracks as valuable insight, a total of eighty people, enlarging each of the
previous groups, worked out the external scrutiny. The internal scrutiny was carried out in an
analogous way, but devoting less effort. After this extensive reflection, top management
studied and then ratified the analysis carried out by the different groups. Top management set
and conveyed the objective function (of reaching exponential growth) and translated the
conclusions of the external scrutiny into strategic organizational objectives. The objective
function was embodied in five strategic lines. From these lines, bearing the strategic intent in
mind, teams within each company unit were formed to generate strategic initiatives in line
with the strategic objectives. The resulting initiatives were presented to top management,
who ranked them according to strategic objectives. The number of proposed initiatives was
greater than could be carried out, due to limited human and financial resources. Accordingly,
the previously devised strategic lines and objectives were used to rank initiatives and provide 11 guidance for resource assignment. The proposed initiatives were evaluated at the team level
and then either ratified or rejected by top management.
This participative strategy-making process made a broad base of managers face and
explore strategic issues. In the numerous meetings they attended, they were able to take part
in decisions. Whether or not the decision was subsequently ratified by top management,
middle and lower level managers had been exposed to the arguments and possible
alternatives that justified ratification or rejection. Participation was used not only to generate
new ideas, but also to diffuse strategy throughout the organization. The purpose of the
strategic exercise, as described by the CEO, was to reflect, ponder and mull over ideas,
drawing nourishment from managers and organizational participants. As seen by the
respondents, “the purpose of the strategic plan was not to produce a document, but to mull
over ideas sufficiently, so managers could subsequently keep them in the back of their
minds”. Although significant effort was involved, managers had gained an understanding of
strategic issues, as well as having had the opportunity to argue the case for or against.
Evidence at RACC suggests that better understanding and joint resolution of strategic issue
ownership produced a higher quality of strategy than restricted participation. In this case, as
in Wooldridge and Floyd (1990), involvement in strategy-making not only improved the
quality of strategy, but also helped managers to internalize strategy and develop a sense of
Four basic columns supported the implementation stage. The first column was the
measurement system, via key indicators, which were based on the Balanced Scorecard
model. This model was designed initially to monitor the progress of strategic objectives...
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This document was uploaded on 02/26/2014 for the course BUSINESS Human reso at Silliman Institute.
- Spring '14