Transforming Competitive Advantage: Diagnosing and Implementing Strategic Change

Abstract

MGMT 475 WB1 Fa22 MODULE 4 – Diagnosis, formulation, and implementation This module describes process steps for taking all the prior analysis that you have completed and using that (synthesizing those conclusions) to diagnose the underlying strategic factors most responsible for the firm’s performance weaknesses. By doing so you can formulate and recommend what strategic change – if well executed – can most effectively improve competitive advantage/ long-term sustained performance. Think about it…what we are doing goes back to the basics of ‘systems thinking’ and the process of ‘problem solving’. We’ve done research to identify all the key parts of the firm’s ‘strategic system’ (internal resources and capabilities; strategic choices; and external factors (competitive forces and drivers of change) that all must be considered and aligned for the desired performance outcomes. By identifying a specific performance problem area (i.e. creating or capturing value), we then use that systems understanding to see which factors are not in good alignment. This identifies the ROOT CAUSES of why the system is not working like we’d like. By prioritizing those based on which is most responsible for the performance issue, we identify the factors that most need to CHANGE to improve performance. With that prioritization, we can get to the TOP priority change recommendation…and that is the key result needed here! But, as you will see….we then also need to understand and exploit some key principles about HOW that change needs to be carried out. For this Module – Read the reading in the Module 4 folder: “Diagnosis reading” ** But you cannot just stop with your recommendation of WHAT to do….you also need to give some idea about HOW best to do it. If the best strategic change is not well implemented, a transformation effort can fail…the firm can end up worse off...