STRATEGIC MANAGEMENT:
LEADERS AS A STRATEGIST
- Tarak Bahadur K.C., PhD
- Basanta Raj Sigdel
2074/2/19
Leadership and Management Training for Senior Officers of Nepal Army
Session outline
2




Framework of Strategic
Management
Environmental Analysis
Strategy Formulation
Strategy Implementation and
Control
Forethought
3
“If you don’t have a strategy, you
will be …. part of somebodyelse's strategy.”
- Alvin Toffler
Exercise
4

What comes to your mind while talking about Strategy?
Please create a PICTURE/DIAGRAM that expresses the
term- ‘Strategy’.
o Each officer will get 1 minute for drawing
o Succeeding officers should build on the concept already
drawn
o Officers are requested not to communicate while
drawing
o Circulate your drawing to other groups
o Share learning in the plenary
Strategy
5
What do you think
about King Prithvi
Narayan Shah?
 What he did in
the process of
unification of
Nepal?

5 Ps of Strategy
- H. Mintzberg
7
Plan
Perspective
Strategy
Position
Pattern
Ploy
Strategy as a…
8

PLAN
o Consciously
intended course of action, a set
of guidelines to deal with the situation

PLOY
o Specific
maneuver intended to outwit an
opponent or competitor

PATTERN
o In
a stream of actions…consistency in
behavior whether or not intended
Strategy as a…
9
POSITION
o Means of locating an organization in an
environment
 PERSPECTIVE
o An engrained way of perceiving the
world

Strategic Thinking
10
Impact
Fundamental
and
sustained
Strategic Thinking
Core Enabler
Strategic Management
Integrated Systems
Strategic Planning
Methods
Limited
1960s
Time
Strategic Thinking
11
J Chartrand (2012)
Self Assessment
12
Assess your strategic
thinking abilities


Time 10 minutes
Part II: Scoring
Use the following table to interpret your score.
13
104–125 Exceptional: You’re a talented strategic thinker who possesses
many of the traits, behaviors, attitudes, and cognitive capacities
that are necessary for thinking strategically.
78–103 Superior: You’re a highly effective strategic thinker in many
areas but would benefit from refining some of your skills.
51–77 Adequate: You know and practice many of the basics of
strategic thinking. However, you can increase your success by
further extending your skills.
25–50 Deficient: You’ll need to work broadly on your strategic
thinking skills so that you can learn how to analyze
opportunities and problems from a broad perspective and
understand an action's potential impact on others.
Strategic Management is…
15
“Managing strategically”, in other words:
o ‘Diagnosing situation strategically’ and
‘applying knowledge strategically’
 “…. continuous, iterative process aimed at
keeping an organization as a whole
appropriately matched to its environment.”

-

Certo and Peter
… is an ongoing process and involving a
series of steps to be followed.
16
Strategic Planning Framework
Strategic Planning is …
17
… an organization's process of defining its
strategy, or direction, and making decisions on
allocating its resources to pursue strategy.
 … a disciplined effort to produce fundamental
decisions and actions that shape and guide what
an organisation is, what it does, and why it does
it with a focus on the future. It is defined as the
process of addressing the following questions:
o Where are we? SWOT – Analysis
o Where do we want to be? – VMO
o How do we get there? – Strategy Formulation

Strategic Plan
18
In order to determine where we are going,
where we stand, then determine where we want
to go and how we will get there. The resulting
document is SP for performance improvement to
achieve desired goals.
 A living document that has ability to create
successful future of the organization NOT large
document with detailed plans created arduously
over months at great effort and abandoned
after they have been duly acknowledged and
then filed away.

Strategic Planning Process
19
Getting ready (agreement)
2. Environmental analysis (SWOT analysis)
3. Strategy Formulation (Identification of
Strategic Issues, Vision/Mission, Objectives,
Roles, Strategies
4. Strategy Implementation (Strategic
Actions/Action plan- Tasks/Activities, By
whom, By when, Critical Success Factors etc.)
5. Evaluation and Control
1.
1. Getting Ready (Agreement)
20
Assessing readiness
o Commitment of leadership
o Ability of leaders to devote attention to
the ‘big picture’
 The purpose is to develop initial
agreement among key internal decision
makers about overall planning process for
their support and commitment

Steps in preparing for planning
21





Obtain formal commitment
Select a strategic planning committee- a combination of
‘visionaries’ and ‘actionaries’ or a planning liaison to
spearhead the process, and clarify roles
Develop a work plan or a plan to plan that outlines who
is responsible for each outcome and time frames
Consider the adequate level of resources (money and
time) required for appropriate planning process
Identify the information that must be collected to help
make sound decisions
2. Environment Analysis
22
Internal- in terms of Resources,
Processes, Structure, Performance,
Culture, etc.
 External- Political, Economic, Social,
Technology, Legal, etc.

3. Strategy Formulation
23


Identifying Strategic Issues- fundamental policy
question/choice which affects an organization’s
mandate, goal, programs, management processes,
organization structure and culture etc.
An effective strategy is…
o Technically workable
o Politically acceptable to key stakeholders
o Accords with the organization’s philosophies and
values
o Ethical and legal
o Deals with the issues supposed to address
4. Implementation
24



Implementation approaches
Organizational structure and
design
Resource allocation
5. Evaluation and Control
25

Evaluation of strategy
implementation: Defining
parameters; measurement; finding
variations if any; and, reviewing
strategy and control
Environment Analysis
Environment Analysis
27
Analysis and diagnosis of an
organization, often referred to as an
Organization Audit or SWOT analysis
 Undertaken to assess an organization’s
ability to deal with its Internal and
External Environment by identifying its
Strengths, Weaknesses, Opportunities
and Threats

Internal Environment
Organisation / Supply side analysis
28
An analysis of internal organizational
factors which reviews and investigates
the prevailing resources, processes and
performance of organization. The
analysis identifies major strengths and
weaknesses - of all the key functional
elements (Structure, Functions, HR, Finance, IT,
Rules, Procedures, etc.).
External Environment
29
Demand side analysis
Covers the various stakeholders outside the
organization. The analysis indicates the
opportunities and threats faced by the
organisation from its relationship with external
stakeholders. Major categories of external
environment:
1. Forces and trends – PEST
2. Clients, customers, or payers
3. Actual or potential competitors or
collaborators
SWOT Profile- an example
30
Internal
1.
2.
3.
4.
5.
Mandate / Vision /
Mission
Structure
Systems / Processes
Resources
Performance / outputs
External
Political
2. Economic
3. Social
4. Technological
1.
Strengths

Staff have
exposure and
professional
experience of
peace keeping
missions
Weaknesses

Opportunities

National
Security as the
top most
priority of the
government
Technology based
information system is
not adequate
Threats

Increased involvement
of the international
community in internal
politics
Considerations
31
SWOT as very meaningful tool rather
than a causal ‘warm-up’ for strategy
formulation
 Use precise, verifiable statements ("Cost
advantage of Rs……/unit in sourcing
resources x", rather than "Good value for
money")- be specific

Considerations
32
Reduce long lists of factors, and prioritize
them, so that you spend your time thinking
about the most significant factors.
 Make sure that options generated are
carried through to later stages in the
strategy formation process.

Considerations
33
Apply it at the right level - for example,
we might need to apply SWOT Analysis
at service-line level, rather than at the
much vaguer whole organization level.
 Use it in conjunction with other strategy
tools (e.g. Core Competence Analysis) so
that you get a comprehensive picture of
the situation you're dealing with.

Strategy formulation
Who you are: Manager or
Strategist?
35

Self Assessment
Strategic Issue
36

Fundamental policy questions or critical
challenges that affect
o An organization’s mandates, mission and values
o Organization/management
o Costs, financing
o Services
o Consumers, users…. About which something can
be done.
John M. Bryson, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and
Sustaining Organizational Achievement, rev. ed. (San Francisco: Jossey-Bass, 1995), 30.
Strategic…how do we know?
37



When will this issue affect your
organization?
What kind of impact will it have on your
organization?
Will addressing this issue require a new
service, staff, and/or significant increase
in financial resources?
Strategic…how do we know?
38




How apparent is the best approach to
resolve the issue?
Is the issue politically or socially volatile?
Is there major financial risks?
Is the issue on the radar screens of
powerful stakeholders?
Strategic issue- example
39
1.
2.
3.
4.
How to make transfer mechanism more
effective?
How to improve sanitary condition of
hospitals?
How to enhance effective coordination
with various security agencies?
How to promote good relationship with
civil society?
Prioritization of Issues
40
How to prioritize issues?
Urgency
 Potential impact
 Actionable/feasible
 Resources
 Stakeholder readiness
 Integration
 Importance

41
Vision, Mission and Objectives
Vision
42



A vision is a dream or picture of future success.
A Vision statement outlines what the
organization wants to be in certain future point
of time. It is a source of inspiration, and gives
shape and direction to the organization’s
future.
“Vision binds people together around a
common identity and sense of destiny”
- Peter Senge
Mission
43



Encapsulates the values and articulates
the overall, long-term objective.
Brief statement that reflects the core
values of an organization.
Communicates an organization’s longterm objectives – why the organization
exists.
Setting Objectives
44

To reach the envisioned state and
accomplish mission, what we want to
achieve (objectives/goals) in the following
four dimensions
o Service recipients/consumers
o Internal Business/Service processes
o Learning and growth
o Financial (investments, return or value
addition)
Strategy Formulation
45
Strategic options
Strategy evaluation and
selection
Strategic plan preparation

Strategy Choice
46
Feasibility
 Cost
 Quality
 Acceptability
 Reversibility, etc.

Emergent Strategy
47
Considerations
48
Organizational competence and resources to
capture opportunities
 Environmental threats to its long term well
being
 Personal values and aspirations of managers
 Societal obligations and ethical
considerations
 Organizational culture

Strategy Formulation
49
Refer objectives
 Formulate strategy to achieve those
objectives
 Define measures/indicators of achievement
 Set targets in relation to certain time frame
 Outline major initiatives to be taken
(What, Who, and by When)

Strategy- example
50
Strengthen research and
development activities
 Fostering institutional networking
and coordination

Dimension…
52
Resources
Objective Strategy Measures/ Target
Initiatives
Indicators
What Who When
Improve
health
service
Increase
number
of
health
professi
onals
Decreased 10 %
Doctorby
Patient
2017
ration
Increa
se the
numb
er of
stude
nts /
seats
MoH 2015
P,
Pvt.
Sect
or
Budget -1
billion,
Infrastruct
ure- 100
bed
hospital,
RP- 5 MD,
4 Surgeon
Critical
Success
Factors
MoF,
Availabilit
y of RP,
Involvemen
t of Pvt.
Sector,
Govt.
policy
Strategic Plan- sample format
54
1.
1.
2.
2.
1.
2.
3.
4.
5.
6.
Background/Introduction
Purpose
Present Situation
SWOT Analysis
Supply side analysis
Demand side analysis
Strategic Issues
Vision, Mission, Objectives, Roles
Strategies and Activities
Action Plan
Strategy Implementation and Control
Strategy Implementation
56


…the process of allocating resources
to support the chosen strategies.
This process includes the various
management activities that are necessary
to put strategy in motion, institute strategic
controls that monitor progress, and
ultimately achieve organizational goals.
A General Framework for Strategy
Implementation
57
1.
2.
3.
4.
5.
6.
Building an organization capable of executing
the strategy
Establishing a strategy-supportive budget
Installing internal administrative support
systems
Devising rewards and incentives that are
tightly linked to objectives and strategy
Shaping the corporate culture to fit the
strategy
Exercising strategic leadership
Basic Approaches to Strategy
Implementation
58
1.
2.
3.
4.
5.
Commander Approach
Organisational Change Approach
Collaborative Approach
Cultural Approach
Crescive Approach
1. Commander Approach
59
Manager determines “best” strategy
 Manager uses power to see strategy
implemented
 Three conditions must be met:

1.
2.
3.
Manager must have power
Accurate and timely information is
available
No personal biases should be present
2. Organisational Change
Approach
60




Focuses on the organisation
Includes focusing on the
organisation’s staffing and structure
Often more effective than
commander
Used to implement difficult
strategies
3. Collaborative Approach
61




Enlarges the organisational change
approach
Manager is a coordinator
Management team members provide
input
Group wisdom is the goal
4. Cultural Approach
62



Includes lower levels of the
organisation
Breaks down barriers between
management and other employees
Everyone has input into the
formulation and implementation of
strategies
5. Crescive Approach
63



Moves upward from the "doers“
and lower middle-level managers
The top management team shapes
the employees' premises
“Strategy" becomes the sum of all
successful approaches
Strategy Implementation Paths
64
The big question: WHY CHANGE
INITIATIVES FAIL?
65
Change management will fail when one is
STUPID:
Sponsorship not forthcoming
Team member do not function as agents of
change
Unclear vision and commitment
Poorly planned change programme
Inappropriate / insufficient communication
Don’t take account of culture
Barriers to Implementation
66
The Vision Barrier
Only 5% of the workforce
understands the strategy
The People Barrier
Only 25% of the
managers have incentives
linked to strategy
9 of 10
companies
fail to
execute
strategy
The Resource Barrier
60% of the organizations don’t
link budgets to strategy
The Management
Barrier
85% Executive team spend
less than one hour per
month discussing strategy
The SUCCESS Principle
68
Shared vision
Understand the organization
Cultural alignment
Communication
Experience help where necessary / Executive
support
Strong leadership
Stakeholder buy-in / Systematic planning /
Short-term wins
Concluding thought
69
Effective strategic management calls
for a learning organization.
 In learning organizations, people are
encouraged to reflect as they act,
share lessons learned and other key
information, so that they (and their
service recipients) can easily access the
best thinking of the entire organization.

Good Luck !
70
71
Leadership and Management Training
for
Senior Officers of Nepal Army
Closing Session
2074/2/19