Strategy in Action13: Resourcing Strategies

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Learning Outcomes (1)

Analyse the resource management issues that are important to achieving strategic success in four key resource areas:The management of people

Access to and processing of information to build capabilities and change business models and/or managerial processes

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Learning Outcomes (2)

The management of finance to create financial value, fund strategic developments and address the differing financial expectations of stakeholders

The management of technology to address changing competitive forces on an organisation and improve strategic capability

Address the integration of resources and competences across resource areas to underpin the success of strategy

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Exhibit 13.1 Resourcing Strategies

People Information

Finance Technology

Organisationalstrategies

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What are Resourcing Strategies?

Resourcing strategies are concerned with the two-way relationship between overall

business strategies and strategies in separate resource areas such as people, information, finance, and

technology.

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Exhibit 13.2 Strategy and People

Strategy

People as a resource

Organisingpeople

People and behaviour

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Traditional HR Activities Viewing People as Resources

Audits

Goal-setting and performance assessment

Planning of rewards

Recruitment and retention

Training and development plans

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People and Behaviour

Understanding the need to change organisational paradigms

Seeing role as ‘shapers of context’

Understanding the relationship between behaviours and strategic choices

Being realistic about the difficulty and time-scales in achieving change

Being able to vary style of managing change

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Roles of the HR Function

Service provider Regulator

Advisor Change agent

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Customer Relations at KLM

Were KLM’s HR policies adequate for delivering on the promise of the Reliable Airline?

How did the behaviour of front-line staff influence the actual service delivery?

What could be changed to improve the consistency of service delivery?

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Exhibit 13.3 Competitive Advantage Through People

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Exhibit 13.4 Strategy and Information

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Information and Strategic Capability

Improving product/service features

Competitive performance

Ease/difficulty of imitation

Competitive positioning

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Information and Product/Service Features

Lower prices

Improved pre-purchase information

Easier, faster purchasing

Shorter development times

Product or service reliability

Personalised products

Improved after-sales service

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What is Data Mining?

Data mining is the process of finding trends, patterns, and connections in data in order to inform and improve

competitive performance.

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Information and Competitive Positioning

Routinisation – Cost Reduction

Mass customisation – more Product Features

Customisation – advanced information

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Information and Business Models

Electronic processing

Extended functions

New functions

Internal changes

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Exhibit 13.5 Changing Business Models

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ZOPA Leverages DIY Craze

How has ZOPA changed the business model for lending and borrowing?

List the advantages and disadvantages for lenders and borrowers of dealing with ZOPA instead of a bank.

How could the banks respond?

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Exhibit 13.6 Strategy and Finance

Strategy

Managing for value

Financialexpectations

Fundingstrategies

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What is Managing for Value?

Managing for value is concerned with maximising the long-term

cash-generating capability of an organisation.

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Value Creation

Funds from operations

Investment in assets

Financing costs

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Exhibit 13.7 Financial Aspects of Value Creation

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Funding Strategies

Sources of fundsBusiness and financial risks

Portfolio issuesMergers and acquisitions

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Exhibit 13.8 Balancing Business and Financial Risk

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Exhibit 13.9 Strategy and Technology

Strategy

Technology and the competitive situation

Organisingtechnology

Technology and strategic capability

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Exhibit 13.10 Matching Technology Strategies to Markets

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Exhibit 13.11 Developing or Acquiring Technology

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Organising Technological Development

Location and funding

Global vs local development

Organisational processes

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Exhibit 13.12 Funding and Location of R&D

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What is a Stage-Gate Process?

A stage-gate process is a structured review process to assess

progress on meeting product performance characteristics during

the development process and ensuring that they are matched with

market data.

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Exhibit 13.13 Resource Integration in a New Product Launch