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Leading  strategy  teams  
Pontus	
  Wadström	
  
Deptartment	
  of	
  Industrial	
  Economics	
  and	
  Management,	
  KTH	
  Royal	
  Ins?tute	
  of	
  Technology	
  
and	
  	
  
A	
  Real	
  Movement	
  
Purpose  of  this  lecture
To	
  talk	
  about	
  how	
  strategic	
  change	
  can	
  be	
  done	
  in	
  prac?ce;	
  offer	
  
insights;	
  feed	
  your	
  thoughts;	
  increase	
  your	
  interest	
  in	
  learning	
  more	
  
about	
  strategy	
  and	
  change	
  
Agenda
1.  Introduc?on	
  
2.  The	
  Company	
  
3.  Strategy,	
  Change	
  and	
  Strategic	
  Change	
  
4.  The	
  Strategy	
  Project	
  
5.  Concluding	
  remarks	
  
Introduc9on
•  	
  What	
  is	
  strategy?	
  
•  What	
  is	
  a	
  Balanced	
  Score	
  Card?	
  
•  	
  What	
  are	
  Key	
  Performance	
  Indicators?	
  
•  	
  Why	
  are	
  these	
  important?	
  
Agenda
1.  Introduc?on	
  
2.  The	
  Company	
  
3.  Strategy,	
  Change	
  and	
  Strategic	
  Change	
  
4.  Strategy	
  Projects	
  
5.  Concluding	
  remarks	
  
•  One	
  of	
  the	
  worlds	
  leading	
  Engineering,	
  Construc?on	
  and	
  Project	
  Development	
  group	
  
•  Skanska	
  formed	
  1887	
  
•  Selected	
  domes?c	
  markets	
  in	
  Europe,	
  USA	
  and	
  La?n	
  America	
  
•  55	
  000	
  employees	
  worldwide	
  
•  Revenue	
  2013,	
  130	
  bln	
  SEK	
  (16	
  bln	
  Euro)	
  
The  Skanska  Group  in  brief
Skanska  Sweden  in  brief
•  Revenue	
  2012:	
  32	
  billion	
  SEK	
  (3,7	
  billion	
  Euro)	
  
•  9000	
  employees	
  
•  3000	
  projects	
  
•  Business	
  Logics:	
  
•  Building	
  
•  Civil	
  
•  Asphalt	
  &	
  Concrete	
  
•  Project	
  Developement	
  
•  Machinery	
  
•  Technical	
  Consultants	
  
•  Installa?on	
  
•  Frameworks	
  
Agenda
1.  Introduc?on	
  
2.  The	
  Company	
  
3.  Strategy,	
  Change	
  and	
  Strategic	
  Change	
  
4.  Strategy	
  Projects	
  
5.  Concluding	
  remarks	
  
Big	
   Best	
  
Beau?ful	
  Fast	
  
Strategy  -­‐  focus  on  one  strategic  idea
Pupose	
  
Why?	
  
Process	
  
How?	
  
Content	
  
What?	
  
Context	
  
Where?	
  	
  
Strategy  -­‐  from  various  perspc9ves
Change  –  revolu9onairy  or  evolu9onairy
”A	
  reorganisa,on,	
  a	
  diversifica,on,	
  a	
  shi3	
  in	
  
technology,	
  a	
  process	
  reengineering	
  or	
  a	
  new	
  
composi,on	
  of	
  an	
  organiza,ons	
  offers.”	
  
	
  
De	
  Wit	
  &	
  Meyer,	
  2005	
  
”A	
  new/changed	
  set	
  of	
  a	
  persons	
  behavior	
  
repertoire”	
  
	
  
Skinner,	
  1976	
  
Change  –  organiza9onal  or  behavioral
Strategic  Change  –  in  this  case
Let’s  get  to  work.  So…
…we	
  want	
  to	
  the	
  organiza?on	
  to	
  achive	
  a	
  shic	
  in	
  strategic	
  focus,	
  from	
  Best	
  to	
  Big,	
  
…we	
  want	
  everybody	
  (nearly	
  10	
  000	
  employees)	
  in	
  a	
  decentralized	
  organiza?on	
  to	
  
accept	
  the	
  change	
  and	
  alter	
  their	
  behaviours,	
  
…we	
  have	
  a	
  limi?ed	
  budget,	
  
…we	
  have	
  a	
  ?meframe,	
  
…	
  and	
  we	
  all	
  know	
  change	
  is	
  difficult.	
  
	
  
What	
  would	
  you	
  do?	
  
Agenda
1.  Introduc?on	
  
2.  The	
  Company	
  
3.  Strategy,	
  Change	
  and	
  Strategic	
  Change	
  
4.  Strategy	
  Projects	
  
5.  Concluding	
  remarks	
  
The  Strategy  Process
The  Tools  that  we  used
Finance	
   Customer	
  
Process	
   Human	
  
Capital	
  
The  Result
Perspec've	
  	
  KPIs	
  (#	
  and	
  %)	
   Number	
  of	
  KPI:s	
  
before	
  	
  
Number	
  of	
  KPI:s	
  
a;er	
  
Percentage	
  of	
  total	
  amount	
  before	
   Percentage	
  of	
  total	
  amount	
  
a;er	
  
Finance	
   151	
   22	
   55,1	
  %	
   24,4	
  %	
  
Customer	
  and	
  Marke2ng	
   26	
   14	
   9,5	
  %	
   15,4	
  %	
  
Processes	
   72	
   38	
   26,3	
  %	
   26,4	
  %	
  
Human	
  Capital	
   25	
   16	
   9,1	
  %	
   17,8	
  %	
  
TOTAL	
   274	
   90	
   100	
  %	
   100	
  %	
  
Concluding  remarks
•  Strategy	
  is	
  the	
  choices	
  an	
  organiza?on	
  makes	
  in	
  hope	
  to	
  create	
  a	
  compe??ve	
  
advantage	
  
•  To	
  realize	
  a	
  strategy,	
  goals	
  (KPI:s)	
  are	
  ocen	
  set	
  –	
  not	
  seldom	
  in	
  the	
  	
  structure	
  of	
  a	
  
Balanced	
  Scorecard	
  
•  By	
  changing	
  goals	
  and	
  what	
  you	
  feed	
  back	
  to	
  an	
  organiza?on	
  you	
  can	
  start	
  a	
  change	
  
•  Involvement	
  when	
  developing	
  a	
  strategy	
  is	
  key	
  
•  Tools	
  are	
  ocen	
  used	
  to	
  iden?fy,	
  change	
  and	
  clarify	
  direc?ons,	
  goals	
  and	
  strategies	
  
•  Changes	
  in	
  how	
  an	
  organiza?on	
  is	
  managed	
  is	
  called	
  managment	
  innova?on	
  
•  If	
  you	
  want	
  to	
  work	
  within	
  strategy	
  and	
  change	
  what	
  tools	
  do	
  you	
  have?	
  
1.  Baer,	
  D.M.	
  Wolf,	
  M.M.	
  Risley,	
  T.R.	
  (1968)	
  Some	
  Current	
  
Dimensions	
  Of	
  Applied	
  Behavior	
  Analysis.	
  Journal	
  of	
  
Applied	
  Behavior	
  Analysis	
  1	
  (1):	
  91–97.	
  
2.  Beer,	
  M.,	
  Nouhria,	
  N.	
  (2000)	
  Breaking	
  the	
  Code	
  of	
  
Change.	
  Harvard	
  Business	
  School	
  Press.	
  
3.  Birkinshaw,	
  J.	
  et	
  al.	
  (2008)	
  Management	
  Innova?on.	
  
Academy	
  of	
  Management	
  Review.	
  Vol.	
  33,	
  No.	
  4,	
  825–
845.	
  
4.  Braksick	
  L.	
  (2007)	
  Unlock	
  Behavior	
  Unleash	
  Profit	
  
McGraw-­‐Hill.	
  
5.  Christensen,	
  C.,	
  Overdorf,	
  M	
  (2000)	
  Mee?ng	
  the	
  
Challenge	
  of	
  Disrup?ve	
  Change.	
  Harvard	
  Business	
  
Review,	
  March-­‐April,	
  Reprint	
  R00202.	
  
6.  Daniels,	
  A.	
  (1989)	
  Performance	
  Management	
  
Performance	
  Management	
  Publica?ons.	
  
7.  De	
  Wit,	
  B.	
  &	
  Meyer,	
  R.	
  (2004)	
  Strategy	
  –	
  Process,	
  
Content,	
  Context	
  3rd	
  Ed.	
  Thompson.	
  
8.  Galbraith,	
  J.	
  R.	
  (2001)	
  Designing	
  Organiza?ons:	
  An	
  
Execu?ve	
  Guide	
  to	
  Strategy,	
  Structure,	
  and	
  Process,	
  
Revised.	
  Jossey-­‐Bass.	
  
9.  Gladwell,	
  M.	
  (2000)	
  The	
  Tipping	
  Point.	
  Limle	
  Brown	
  
10. Hamel,	
  G.	
  (1996)	
  Strategy	
  as	
  Revolu?on.	
  Harvard	
  
Business	
  Review.	
  July-­‐August:	
  3-­‐16.	
  
11. Imai,	
  M.	
  (1997)	
  Gemba	
  Kaizen.McGraw-­‐Hill	
  Professional.	
  
12. Kahneman,	
  D.	
  (2011)	
  The	
  Big	
  Idea.	
  Harvard	
  Business	
  
Review.	
  June	
  2011,	
  50-­‐60.	
  
13. Lindvall,	
  J.	
  (2001)	
  Verksamhetsstyrning.	
  Studentlimeratur.	
  
14. Mason,	
  R.,	
  Mitroff,	
  I.	
  (1981)	
  Challenging	
  Strategic	
  
Planning	
  Assump?ons.	
  Wiley	
  and	
  Sons.	
  
15. Mintzberg,	
  H.	
  (1993)	
  The	
  Rise	
  and	
  Fall	
  of	
  Strategic	
  
Planning.	
  The	
  Free	
  press.	
  
16. Mintzberg,	
  H.	
  et	
  al.	
  (2005)	
  Strategy	
  Safari.	
  The	
  Free	
  Press.	
  
17. Mintzberg,	
  H.,	
  Waters,	
  J.	
  A.	
  (1985)	
  Of	
  Strategy:	
  Deliberate	
  
and	
  Emergent.	
  Strategic	
  Management	
  Journal,	
  Vol.	
  6,	
  No.	
  
3,	
  Jul.-­‐Sept.	
  257-­‐272.	
  
18. Ohmae,	
  K.	
  (1982)	
  The	
  Mind	
  of	
  the	
  Strategist.	
  The	
  Art	
  of	
  
Japanese	
  Business.	
  McGraw-­‐Hill.	
  
19. Pengrew,	
  A.,	
  Whipp,	
  R.	
  (1991)	
  Managing	
  Change	
  for	
  
Compe??ve	
  Success.	
  Blackwell	
  Business.	
  
20. Poole,	
  M.S.,	
  Van	
  de	
  Ven,	
  A.H.	
  (1989)	
  Using	
  Paradoxes	
  to	
  
Build	
  Management	
  and	
  Organiza?onal	
  Theories.	
  
Academy	
  of	
  Management	
  Review,	
  Vol.	
  14,	
  562-­‐578.	
  
21. Porter,	
  M.	
  (1980)	
  Compe??ve	
  Strategy.	
  The	
  Free	
  Press.	
  
22. Porter,	
  M.	
  (1996)	
  What	
  is	
  Strategy?.	
  Harvard	
  Business	
  
Review.	
  
23. Prahalad,	
  C.	
  K.,	
  Hamel,	
  G.	
  (1996)	
  Compe?ng	
  for	
  the	
  
Future.	
  Harvard	
  Business	
  School	
  Press.	
  
24. Senge,	
  P.	
  (1990)	
  The	
  Fich	
  Discipline:	
  The	
  Art	
  and	
  Prac?ce	
  
of	
  Organiza?onal	
  Learning.	
  Doubleday/Currency.	
  
25. Simon,	
  H.	
  A.	
  (1997)	
  Administra?ve	
  Behaviour.	
  A	
  Study	
  of	
  
Decision-­‐Making	
  Processes	
  in	
  Administra?ve	
  
Organiza?ons	
  4th	
  Ed.	
  New	
  York:	
  The	
  Free	
  Press.	
  
26. Skinner,	
  B.	
  F.	
  (1976)	
  About	
  Behaviorism.	
  Random	
  House	
  
USA.	
  
27. Tushman,	
  M.	
  L.,	
  O’Reilly,	
  C.	
  A.	
  (1996)	
  Ambidextrous	
  
Organiza?ons:	
  Managing	
  Evolu?onary	
  and	
  Revolu?onary	
  
Change.	
  California	
  Management	
  Review,	
  38,	
  8-­‐30.	
  
28. Wadström,	
  P.	
  (2014)	
  Strategi	
  är	
  em	
  verb	
  
Inspira9on  and  references
Pontus	
  Wadström	
  
	
  	
  	
  	
  pontus@1company.se	
  
	
  	
  	
  	
  	
  	
  	
  	
  +46760-­‐550010	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  1company.se	
  

hmps://se.linkedin.com/in/pontuswadstrm	
  
Thank	
  you	
  for	
  
your	
  ?me	
  and	
  
ac?vity!	
  

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20140305 Leading Strategy Teams - Lecture KTH

  • 1. Leading  strategy  teams   Pontus  Wadström   Deptartment  of  Industrial  Economics  and  Management,  KTH  Royal  Ins?tute  of  Technology   and     A  Real  Movement  
  • 2. Purpose  of  this  lecture To  talk  about  how  strategic  change  can  be  done  in  prac?ce;  offer   insights;  feed  your  thoughts;  increase  your  interest  in  learning  more   about  strategy  and  change  
  • 3. Agenda 1.  Introduc?on   2.  The  Company   3.  Strategy,  Change  and  Strategic  Change   4.  The  Strategy  Project   5.  Concluding  remarks  
  • 4. Introduc9on •   What  is  strategy?   •  What  is  a  Balanced  Score  Card?   •   What  are  Key  Performance  Indicators?   •   Why  are  these  important?  
  • 5. Agenda 1.  Introduc?on   2.  The  Company   3.  Strategy,  Change  and  Strategic  Change   4.  Strategy  Projects   5.  Concluding  remarks  
  • 6. •  One  of  the  worlds  leading  Engineering,  Construc?on  and  Project  Development  group   •  Skanska  formed  1887   •  Selected  domes?c  markets  in  Europe,  USA  and  La?n  America   •  55  000  employees  worldwide   •  Revenue  2013,  130  bln  SEK  (16  bln  Euro)   The  Skanska  Group  in  brief
  • 7. Skanska  Sweden  in  brief •  Revenue  2012:  32  billion  SEK  (3,7  billion  Euro)   •  9000  employees   •  3000  projects   •  Business  Logics:   •  Building   •  Civil   •  Asphalt  &  Concrete   •  Project  Developement   •  Machinery   •  Technical  Consultants   •  Installa?on   •  Frameworks  
  • 8. Agenda 1.  Introduc?on   2.  The  Company   3.  Strategy,  Change  and  Strategic  Change   4.  Strategy  Projects   5.  Concluding  remarks  
  • 9. Big   Best   Beau?ful  Fast   Strategy  -­‐  focus  on  one  strategic  idea
  • 10. Pupose   Why?   Process   How?   Content   What?   Context   Where?     Strategy  -­‐  from  various  perspc9ves
  • 11. Change  –  revolu9onairy  or  evolu9onairy
  • 12. ”A  reorganisa,on,  a  diversifica,on,  a  shi3  in   technology,  a  process  reengineering  or  a  new   composi,on  of  an  organiza,ons  offers.”     De  Wit  &  Meyer,  2005   ”A  new/changed  set  of  a  persons  behavior   repertoire”     Skinner,  1976   Change  –  organiza9onal  or  behavioral
  • 13. Strategic  Change  –  in  this  case
  • 14. Let’s  get  to  work.  So… …we  want  to  the  organiza?on  to  achive  a  shic  in  strategic  focus,  from  Best  to  Big,   …we  want  everybody  (nearly  10  000  employees)  in  a  decentralized  organiza?on  to   accept  the  change  and  alter  their  behaviours,   …we  have  a  limi?ed  budget,   …we  have  a  ?meframe,   …  and  we  all  know  change  is  difficult.     What  would  you  do?  
  • 15. Agenda 1.  Introduc?on   2.  The  Company   3.  Strategy,  Change  and  Strategic  Change   4.  Strategy  Projects   5.  Concluding  remarks  
  • 17. The  Tools  that  we  used Finance   Customer   Process   Human   Capital  
  • 18. The  Result Perspec've    KPIs  (#  and  %)   Number  of  KPI:s   before     Number  of  KPI:s   a;er   Percentage  of  total  amount  before   Percentage  of  total  amount   a;er   Finance   151   22   55,1  %   24,4  %   Customer  and  Marke2ng   26   14   9,5  %   15,4  %   Processes   72   38   26,3  %   26,4  %   Human  Capital   25   16   9,1  %   17,8  %   TOTAL   274   90   100  %   100  %  
  • 19. Concluding  remarks •  Strategy  is  the  choices  an  organiza?on  makes  in  hope  to  create  a  compe??ve   advantage   •  To  realize  a  strategy,  goals  (KPI:s)  are  ocen  set  –  not  seldom  in  the    structure  of  a   Balanced  Scorecard   •  By  changing  goals  and  what  you  feed  back  to  an  organiza?on  you  can  start  a  change   •  Involvement  when  developing  a  strategy  is  key   •  Tools  are  ocen  used  to  iden?fy,  change  and  clarify  direc?ons,  goals  and  strategies   •  Changes  in  how  an  organiza?on  is  managed  is  called  managment  innova?on   •  If  you  want  to  work  within  strategy  and  change  what  tools  do  you  have?  
  • 20. 1.  Baer,  D.M.  Wolf,  M.M.  Risley,  T.R.  (1968)  Some  Current   Dimensions  Of  Applied  Behavior  Analysis.  Journal  of   Applied  Behavior  Analysis  1  (1):  91–97.   2.  Beer,  M.,  Nouhria,  N.  (2000)  Breaking  the  Code  of   Change.  Harvard  Business  School  Press.   3.  Birkinshaw,  J.  et  al.  (2008)  Management  Innova?on.   Academy  of  Management  Review.  Vol.  33,  No.  4,  825– 845.   4.  Braksick  L.  (2007)  Unlock  Behavior  Unleash  Profit   McGraw-­‐Hill.   5.  Christensen,  C.,  Overdorf,  M  (2000)  Mee?ng  the   Challenge  of  Disrup?ve  Change.  Harvard  Business   Review,  March-­‐April,  Reprint  R00202.   6.  Daniels,  A.  (1989)  Performance  Management   Performance  Management  Publica?ons.   7.  De  Wit,  B.  &  Meyer,  R.  (2004)  Strategy  –  Process,   Content,  Context  3rd  Ed.  Thompson.   8.  Galbraith,  J.  R.  (2001)  Designing  Organiza?ons:  An   Execu?ve  Guide  to  Strategy,  Structure,  and  Process,   Revised.  Jossey-­‐Bass.   9.  Gladwell,  M.  (2000)  The  Tipping  Point.  Limle  Brown   10. Hamel,  G.  (1996)  Strategy  as  Revolu?on.  Harvard   Business  Review.  July-­‐August:  3-­‐16.   11. Imai,  M.  (1997)  Gemba  Kaizen.McGraw-­‐Hill  Professional.   12. Kahneman,  D.  (2011)  The  Big  Idea.  Harvard  Business   Review.  June  2011,  50-­‐60.   13. Lindvall,  J.  (2001)  Verksamhetsstyrning.  Studentlimeratur.   14. Mason,  R.,  Mitroff,  I.  (1981)  Challenging  Strategic   Planning  Assump?ons.  Wiley  and  Sons.   15. Mintzberg,  H.  (1993)  The  Rise  and  Fall  of  Strategic   Planning.  The  Free  press.   16. Mintzberg,  H.  et  al.  (2005)  Strategy  Safari.  The  Free  Press.   17. Mintzberg,  H.,  Waters,  J.  A.  (1985)  Of  Strategy:  Deliberate   and  Emergent.  Strategic  Management  Journal,  Vol.  6,  No.   3,  Jul.-­‐Sept.  257-­‐272.   18. Ohmae,  K.  (1982)  The  Mind  of  the  Strategist.  The  Art  of   Japanese  Business.  McGraw-­‐Hill.   19. Pengrew,  A.,  Whipp,  R.  (1991)  Managing  Change  for   Compe??ve  Success.  Blackwell  Business.   20. Poole,  M.S.,  Van  de  Ven,  A.H.  (1989)  Using  Paradoxes  to   Build  Management  and  Organiza?onal  Theories.   Academy  of  Management  Review,  Vol.  14,  562-­‐578.   21. Porter,  M.  (1980)  Compe??ve  Strategy.  The  Free  Press.   22. Porter,  M.  (1996)  What  is  Strategy?.  Harvard  Business   Review.   23. Prahalad,  C.  K.,  Hamel,  G.  (1996)  Compe?ng  for  the   Future.  Harvard  Business  School  Press.   24. Senge,  P.  (1990)  The  Fich  Discipline:  The  Art  and  Prac?ce   of  Organiza?onal  Learning.  Doubleday/Currency.   25. Simon,  H.  A.  (1997)  Administra?ve  Behaviour.  A  Study  of   Decision-­‐Making  Processes  in  Administra?ve   Organiza?ons  4th  Ed.  New  York:  The  Free  Press.   26. Skinner,  B.  F.  (1976)  About  Behaviorism.  Random  House   USA.   27. Tushman,  M.  L.,  O’Reilly,  C.  A.  (1996)  Ambidextrous   Organiza?ons:  Managing  Evolu?onary  and  Revolu?onary   Change.  California  Management  Review,  38,  8-­‐30.   28. Wadström,  P.  (2014)  Strategi  är  em  verb   Inspira9on  and  references
  • 21. Pontus  Wadström          pontus@1company.se                  +46760-­‐550010                          1company.se   hmps://se.linkedin.com/in/pontuswadstrm   Thank  you  for   your  ?me  and   ac?vity!