Session IX_Applications of Flowing Stream Strategy.pptx

Prof. Sushil
Department of Management Studies
Indian Institute of Technology Delhi
Hauz Khas, New Delhi – 110 016
profsushil@gmail.com
Session IX
Applications of Flowing Stream
Strategy

Execute and Evolve the Flowing Stream
Strategy execution gives feedback to the strategic crystal
at two levels
 It strives for reassessment of continuity and change
forces
 It reflects on the adaptation of targets of strategic
factors, on the other
It result into adaptation and realignment of strategic
trajectories
Sushil/IIT Delhi/2021 2

How to Treat Enterprise as an Evolving Flowing Stream?
 To implement flowing stream strategy, a holistic framework is
developed that contains
 The basic entities in any strategic context
 Their associated functions and attributes
 Strategic context consists of
 A “situation” to be managed
 An “actor” or a group of actors to deal with the situation
 A “process” or a set of processes that respond to the situation.
 If the actors have more freedom, the processes will become
flexible and adaptive to cope with the changing situation and
recreate it.
Sushil/IIT Delhi/2021
3

SAP Framework

SAP–LAP Framework
 Depending upon the situation, one or more processes are to
be studied and improved for higher flexibility
 The interface of “actor” and “process” defines the strategy,
structure, and systems that need to be transformed for
organizational change
 The interface of “process” and “situation” defines the contingency to
be taken care of (e.g., contingency planning) and adaptation and
response of the process to the changing situation
 The interplay and synthesis of SAP leads to learning–action–
performance (LAP)

SAP–LAP Framework

 Understanding Situation
 Major Actors and Their Roles
 Evolving Process
 Key Learning Issues
 Suggested Actions
 Expected Performance
Based on SAP–LAP Framework, Steps Used for
Executing the Strategy

How to Execute Flow Trajectory
 Effectiveness of strategy depends both on the formulation
and execution
 Excellence in execution would depend on the integration
of strategy and operations in a cyclic manner
 The proposed model of execution excellence is built upon
four core processes of strategy execution, viz., align,
automate, act, and adapt

Align strategic trajectory with structure, people, processes,
technology, budget, and operational plans.
Automate various execution processes and performance
management systems for efficiency and accuracy.
Act at the levels of execution leadership, culture, rewards,
motivation, innovation, and learning.
Reflect and adapt strategic targets and trajectories, and realign
the whole execution cycle.
Steps for Executing Flowing Stream of an Organization

A Case Illustration
 The case of M&M is taken as a basis to illustrate the strategy execution
in the context of innovation management
 The recommendations according to four aces model are
 Align
 One of the important requirements for alignment of strategy is top
management commitment to innovation.
 The innovation road map should be specific and measurable, giving
due justification of alignment with business goals. This must be
revisited periodically and need to be effectively communicated across
the firm.

Cont..
 Adequate strategic tools and techniques should be used. Focus on and
awareness of the core competence of the firm is required to be sharpened
in alignment with business needs.
 Flexibility in strategy execution needs to be adopted, allowing for sufficient
freedom in work allocation and enough resources in meeting innovation
goals.
 Care is to be taken to ensure innovation leadership is acceptable, inspiring,
and sufficiently enabled, to ensure speedy decision-making and
implementation.

Automate
 Managerial systems should be continually tweaked for greater efficiency
through appropriate automation.
 Appropriate tools and systems need to be inducted to ensure employees
remain in tune with the fast pace learning needs of technologies and
processes.
 The use of advanced information technology techniques and other
sophisticated tools for enhancing innovation capabilities, without keeping
track of the real environment, may at times prove to be counterproductive.
 Targeted quantifiable innovation goals and changes in strategy to be
effectively communicated to all stakeholders, through different mechanisms,
and making effective use of IT tools and systems.

Act
 Effective procedures, systems, and routines should be put in place to promote
overall employee involvement, cultivate a supportive organizational culture,
and motivate innovation.
 New project selection techniques need to be perfected, and emphasis on
ensuring well-rounded participation in ideation exercises, ably complemented
by efficient research, screening, and analysis is required to be placed.
 Customer-oriented NPD and company-wide integrated implementation
mechanisms are to be ensured.
 Proactive use of external expertise is desirable, and partnerships with external
firms and agencies are required to be expanded to leverage the firm’s
innovation exercises.

Adapt
 It would be important to keep a close watch on frontier technology
related developments external to the company
 Customer/market perceptions and needs to be tracked regularly and
taken into consideration for revising strategy
 Linkages with academic and research institutions may be cultivated

Fig: SAP-LAP
Analysis of
IBM

Case Study of IBM
 Executing and Reflecting: SAP–LAP Analysis
 The execution and reflection of IBM’s strategies can be done in SAP–LAP
framework.
 It gives the insight about the situation, actors, and processes
 The learning from the strategy execution is to be reviewed for bringing
out critical tasks for action
 The periodic strategic review of customer and enterprise factors linked
with the situation, actors, processes, and performance
 Result in reflection and suitable strategic actions for the next time
period.

Takeaways
 Assessment of continuity and change forces provides the situation
under which flowing stream strategy needs to be executed.
 Situation–actor–process (SAP) analysis and learning–action–
performance (LAP) synthesis can provide relationships of execution
actions with performance involving various actors and processes.
 Flexible strategy game-card will provide reflections on the
achievement of various strategic factors and suggest adapted
direction and interventions.
 Align, automate, act, and adapt framework would enable execution
excellence and evolution of flowing stream.

The Practice of Flowing Stream Strategy
Case Studies of Flowing Streams
Case Study of General Motors
 Background
 Automakers in the early 2000s were facing a host of critical issues such as
globalization and economic uncertainty
 These considerations often stood in the way of profitability and
shareholder value
 Competition had been intensifying for the “Big Three” US automakers
 (GM, Ford, and Chrysler) since the entry of overseas competitors in the
early 1980s
 Japan and then South Korea succeeded in capturing significant market
share by appealing to shifting consumer tastes for smaller cars
19

Cont..
 General Motors (GM) took extensive actions to improve product quality,
streamline manufacturing, and assembly processes; increase the vehicle
content and features offered as standard; and develop new marketing
and branding strategies.
 These measures had helped GM stay in the game, but continuous
improvement in all areas was still needed to boost profitability and
shareholder value.
 As part of its growth strategy aimed at creating a global presence, GM
bought Saab and formed alliances
 GM analyzes its business results through five segments: GM North
America (GMNA), GM Europe (GME), GM International Operations
(GMIO), GM South America (GMSA), and GM Financial

Continuity and Change Forces in GM
GM was exposed to a host of challenges which demanded it to
maintain the continuity
At the same time mange the change resulting from its strategic
actions
Continuity forces in case of GM are
Huge customer base
Well-entrenched infrastructure
Core competence
Technology
Global supply chain and distribution network
Existing culture
Performance

Cont..
Dominant Change Forces in GM are
Globalization
New opportunities
Competition
Customer needs
New technology
E-business
Mergers and acquisitions
Government policy and legislation

Strategic Crystal Analysis

Channel Selection Matrix for GM

SAP–LAP Analysis
for Execution in
GM`s Case

Case Study of Hero MotoCorp Limited
Introduction of Case Company
Hero MotoCorp Limited (formerly Hero Honda Motors Limited) is the
world’s largest two-wheeler manufacturer from last more than one
decade.
 The company is manufacturing two-wheelers both for the Indian market
and exports.
 HML has three manufacturing units located at Gurgaon and Dharuhera,
both in Haryana, and Haridwar (Uttrakhand) with total installed capacity
of more than 6.15 million vehicles per year.
 The joint venture between Hero Group and Honda Motor Co. Ltd. has
been going very well, with both partners playing their roles successfully.

Cont..
 The major market share of Hero Honda is in the 100–125 CC segments.
 Today, HML has acquired around 48% of two-wheeler market share in
India.
 HML has introduced more than 23 variants of two-wheelers of varying
capacities. The “Splendor” is its largest selling brand.
 The company has been felicitated
 with various prestigious awards for its performance time to time.
 In August 2011, the Hero Honda Motors Limited (HHML) has been
renamed to Hero MotoCorp Limited (HML) due to the fact that the joint
venture has been over.

Continuity and Change Forces at HML
Based on the primary and secondary data collected, various
continuity and change forces at HML have been identified
Continuity Forces
Effect of customer base
Effect of infrastructure
Effect of technology
Effect of core competence
Effect of supply chain and logistics network
Effect of culture
Effect of performance parameters

Intensity of Continuity Forces at HML

Change Forces
Impact of globalization
Impact of new technology
Impact of customer needs
Impact of competition
Impact of e-business
Impact of environmental forces
Impact of mergers and acquisitions
Impact of government regulations

Intensity of Change Forces at HML

Mapping of HML on C–C Matrix

Year-wise Continuity and Change Forces for HML

VDB Analysis of Continuity Forces
 The continuity forces at HML have been analyzed and categorized into
the vital, desirable, and burden on the basis of their usefulness.
 A “comparative rating scale” has been used.

Cont..
 Total score for the individual continuity forces has been used for
its rankings into
 V (vital),
 D (desirable),
 B (burden) category

Impact Analysis of Change Forces
 Total score for the individual change forces has been calculated
and is used for their rankings as
 H (high impact)
 M (medium impact)
 L (low impact)

Flowing Stream Strategy Crystal
37

Strategy Landscape and Strategic Direction Diagram
For Customer Factors

 For enterprise factors at HML

Selecting Key Strategic Channels
Two strategic channel matrices
 Based on response of vital and desirable continuity
forces and impact of change forces
Based on their strategic flexibility and leverage

Formulating and Selecting Strategies

Cont..

Impact of Strategies on Strategic Direction

Cont..

SAP–LAP Analysis for Strategy Execution

Cont..

Session IX_Applications of Flowing Stream Strategy.pptx

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