Transcript 9 piercy fourth ed

Strategic gaps:
The difference between what we
want and what we have got
Lecture 10
A route-map for marketled strategic change
Part I
Customer value
imperatives
Part II
Developing a value-based
marketing strategy
The strategic pathway
Market sensing
and learning
strategy
The Customer
is always
right-handed
New
marketing
meets
old marketing
Value-based
marketing
strategy
Strategic
thinking and
thinking
strategically
Strategic
market choices
and targets
Customer value
strategy and
positioning
Strategic
relationships
and networks
Part III
Processes for managing
strategic transformation
Change strategy
Strategic
gaps
Organization
and processes
for change
Implementation
process and
internal
marketing
Agenda
• Auditing the strategic pathway
• Market(ing) intentions versus market(ing) realities
– strategic gap analysis
Auditing the
strategic pathway
“It’s a dirty little secret: Most executives
cannot articulate the objective, scope and
advantage of their business in a simple
statement. If they can’t, neither can
anyone else.”
Collis and Rukstad, 2008
Auditing the strategic pathway
• Evaluating:
– Strategic thinking
– Market sensing and learning strategy
– Strategic market choices and targets
– Customer value strategy and positioning
– Strategic relationships and networks
– The strategy
Market(ing) intentions versus
market(ing) realities
• Systematically identifying the differences (gaps) between
what we want and what we have got (or expect to get)
• Explaining those gaps and taking remedial action
Strategic gap
analysis
Strategic
intent
Comparison
Strategic
gaps
Strategic
reality
Organization and processes
for change: Building the
infrastructure to make it
happen
A route-map for market-led
strategic change
Part I
Customer value
imperatives
Part II
Developing a value-based
marketing strategy
The strategic pathway
Market sensing
and learning
strategy
The Customer
is always
right-handed
New
marketing
meets
old marketing
Value-based
marketing
strategy
Strategic
thinking and
thinking
strategically
Strategic
market choices
and targets
Customer value
strategy and
positioning
Strategic
relationships
and networks
Part III
Processes for managing
strategic transformation
Change strategy
Strategic
gaps
Organization
and processes
for change
Implementation
process and
internal
marketing
Agenda
•
•
•
•
Organizing for marketing
Total integrated marketing
New types of organization
Process-based marketing
Total integrated marketing
• The overwhelming priority of integration
• Inter-functional partnership
• Routes to totally integrated marketing
– pan-company marketing for real
– leadership and vision
– communicating out of the silo
Total integrated marketing
– collaborative partnerships inside the company
– formal mechanisms for integration
–
–
–
–
–
process focus
cross-functional teams
organizational structure
internal marketing
a strategic approach to total integration
Total integrated marketing
Accounting Production
Supply
& finance
& operations chain
Partner
organizations
Alliances
Networks
Sales
Processes that define value
Processes that create value
Processes that deliver value
Human
PurchasingResearch & Customer
resource
& supply development service
management
New types of organization
• The new organization
– traditional structures create barriers
– organizational design shifts are common
– innovation is key force
– the knowledge-based worker
– managing culture
– collaborative working
– informal networks
– organizational diversity and external relationships
New types of organization
• Organizational agility and flexibility
– traditional organizations are too slow and
cumbersome
– new emphasis on speed and responsiveness
• Employee motivation
– e.g., the Millennials
Process-based marketing
• Managing organizational marketing processes
• Structures are moving towards horizontal business
processes
Changing organizational themes
Hybrid structures
Functional
overlay
Traditional
vertical
organizational
hierarchy
Functional
structure
Process
structure
Process
overlay
Hybrid structures
Horizontal
organizational
structure
Process-based marketing
• Hybrid organizational forms are replacing traditional
vertical organizations
Process-based organization
for marketing
Processes that define value
e.g. knowledge management, CRM
Process
leadership
Processes that create value
e.g. new product development,
innovation
Processes that deliver value
e.g. logistics, customer service,
value chain relationships
Coordination
mechanisms Specialist resource groups support process
managers e.g. functional departments,
to link
process and business units, external collaborators
resource
leadership
Resource group leadership
Process-based marketing
• Decision making processes – planning and budgeting
– conventional views of planning and budgeting
emphasise techniques and systems
Conventional marketing
planning
Corporate/strategic
planning
Strategic
marketing
Planning
Marketing
plan
Corporate goals
Corporate mission
Corporate constraints
Market analysis and choices
Market segmentation
Competitive comparisons
Internal analysis
SWOT: Strengths, Weaknesses,
Opportunties and Threats
Market strategy
Marketing programmes
Tactics and actions
Evaluation and control
Implementation strategy
Sales management
Alliance management
Internal marketing
Implementation
Process-based marketing
• How managers see planning and budgeting – managers
want:
– a good plan
– teams and ownership
– continuous process
– identify real information needs
– build understanding of strategy
– shake company dogma
Process-based marketing
• What managers get from planning:
– analysis instead of planning
– information search instead of decisions
– incrementalism
– vested interests
– organizational 'mind-set’
– resistance to change
– no resourcing or implementation
– Diminishing effort and interest
Process-based marketing
• Marketing budgeting becomes dominated by:
– power
– strategic contingencies
– control disputes
– political influence
– bargaining and advocacy
– corporate culture
Process-based marketing
• Managing planning and budgeting as process
• Multidimensional processes with analytical, behavioural
and organizational dimensions
A multi-dimensional model
of marketing planning
Analytical
dimension
Planning
process
Behavioural
dimension
Organizational
dimension
Techniques
Procedures
Systems
Planning models
Managerial perceptions
Participation
Strategic assumptions
Motivation
Commitment
Ownership of output
Structure
Information
Culture
Management signals
Process-based marketing
• Actively managing process to shape outcomes involves:
– training and development
– change agents
– participation design
– effective planning teams
– ownership the top priority