the management and control of strategic change

6.2 Business Strategy – Corporate Planning and Implementation

6.2.1 Meaning & Purpose of Business Strategy

• Definition: A long‑term plan that sets the direction for an organisation and explains how it will achieve its overall objectives in the face of competition and change.
• Purpose:
  • Provides a clear sense of direction and purpose.
  • Guides the allocation of resources (financial, human, physical).
  • Creates a basis for coordinated action across the whole organisation.
  • Enables proactive response to external and internal pressures.

6.2.2 Why Strategic Change Is Required

• External pressures: technological advances, market competition, regulatory change, economic fluctuations.
• Internal pressures: performance gaps, resource re‑allocation, organisational growth, leadership turnover.
• Strategic drift: when the existing strategy no longer fits the external environment, leading to loss of market share or profitability.

6.2.3 Strategic Management Process – Analysis, Choice, Implementation

6.2.3.1 Analysis

• Environmental scanning – external (PESTEL) and internal (resource audit).
• Identify strengths, weaknesses, opportunities and threats (SWOT).

6.2.3.2 Choice

• Set clear, measurable strategic objectives.
• Generate a range of strategic options.
• Evaluate options against criteria (feasibility, profitability, risk, fit with core competence).
• Select the most appropriate option.

6.2.3.3 Implementation

• Translate the chosen option into detailed corporate plans.
• Allocate resources, set timelines and assign responsibilities.
• Communicate the plan, execute, monitor and control progress.

6.2.4 Analytical Tools for the Analysis Phase

6.2.5 Corporate Planning – Definition & Importance

• Definition: The process of converting strategic objectives into concrete, time‑bound actions, specifying who will do what, with which resources, and by when.
• Why it matters:
  • Turns abstract strategy into actionable steps.
  • Provides a framework for budgeting, staffing and performance measurement.
  • Creates accountability through clear responsibilities and milestones.

6.2.6 From Strategy to Corporate Plans

• Specific, measurable targets (e.g., “increase market share by 5 % within two years”).
• Resource allocation – financial, human, physical.
• Timelines, milestones and Gantt‑type schedules.
• Responsibility matrix (RACI – Responsible, Accountable, Consulted, Informed).

6.2.7 Implementation of Strategic Plans

1. Communicate the vision and objectives to all levels of the organisation.
2. Align the organisational structure (functional, divisional, matrix) with the chosen strategy.
3. Develop detailed departmental action plans.
4. Allocate budgets and secure required resources.
5. Provide training and development to build the capabilities needed.
6. Establish performance‑measurement systems (KPIs, Balanced Scorecard).

6.2.8 Role of Corporate Culture in Strategic Decision‑Making

• Cultural driver: Shared values and assumptions shape how information is interpreted and which options are considered viable.
• Innovation‑oriented cultures encourage risk‑taking and new‑product development; cost‑focused cultures prioritise efficiency and price competition.
• Mis‑alignment between culture and strategy can cause resistance, slow implementation, or failure.

6.2.9 Transformational Leadership

• Leaders who inspire, motivate and empower employees to exceed expectations.
• Key behaviours: articulating a compelling vision, encouraging creativity, providing intellectual stimulation, acting as role models.
• Impact: accelerates acceptance of strategic change, reduces resistance, and fosters a culture of continuous improvement.

6.2.10 Managing Strategic Change

• Leadership commitment: Senior management must champion the change and allocate authority.
• Stakeholder engagement: Involve employees, suppliers, customers and shareholders early in the process.
• Change agents: Appoint influential individuals to model desired behaviours and champion the plan.
• Communication plan: Consistent messages covering the “why, what, how, and when”.
• Resistance management: Identify sources of resistance, address concerns, and provide support (training, counselling, incentives).

6.2.11 Control Mechanisms for Strategic Change

Example Financial Control Formula – Return on Investment (ROI)

$$\text{ROI} = \frac{\text{Net Profit}}{\text{Investment}} \times 100\%$$

6.2.12 Review & Continuous Improvement

1. Analyse performance data against the original targets.
2. Identify gaps, their root causes and any emerging external changes.
3. Revise objectives, tactics or resource allocations as required.
4. Update the strategic plan and communicate the changes to all stakeholders.
5. Capture learning and feed it into the next planning cycle – making strategic management a continuous loop.

6.2.13 Summary Checklist for Managing Strategic Change

• Conduct thorough external (PESTEL, Porter’s Five Forces) and internal (SWOT, core competencies) analysis.
• State a clear, measurable definition of business strategy and its purpose.
• Choose an appropriate strategic development approach (Blue‑Ocean, Scenario Planning, Decision Trees, etc.).
• Set specific strategic objectives and generate viable options.
• Develop a detailed corporate plan – targets, resources, timelines, responsibilities.
• Ensure corporate culture aligns with the chosen strategy; apply transformational leadership.
• Communicate the plan, adjust structure, and provide necessary training.
• Implement robust control systems (strategic, management, financial, operational).
• Monitor performance, manage resistance, and be ready to adapt.
• Carry out a formal review, capture learning and feed it into the next planning cycle.