Supporting Strategy

Supporting Strategy develops the concept of the strategic development process. The book begins by describing a balanced process for strategy development, spanning direction setting, strategy creation, rehearsal, evaluation and choice, leading to a continuous process of adopting strategic initiatives. It then goes on to present a practical collection of frameworks, methods and models which both individually and in combination can be used to support strategy. The collection includes: drama theory, visioning methods, problem structuring methods, resource based view of strategy, SWOT / TOWS analysis, system dynamics, agent based modelling, scenario planning, decision and risk analysis, financial evaluation, real options, robustness analysis and performance measurement.

This is a contributed work with original content written fro the book from leading academics in the field, including Maureen Meadows, Robert Berry, Jim Bryant, Adrian Caldart, Alberto Franco, Giles Hindle, Nigel Howard, Martin Kunc, Abhijit Mandal, Gilberto Montibeller, John Morecroft, Martin Murtland, Fernando Oliveira, and Efstathios Tapinos.

Preface ix

About the Contributors xi

Part I Introduction 1

Chapter 1 The Strategic Development Process 3
Robert G. Dyson, Jim Bryant, John Morecroft and Frances O’Brien

Part II Setting Direction 25

Chapter 2 Visioning: A Process for Strategic Development 27
Maureen Meadows and Frances O’Brien

Chapter 3 Achieving Strategy Coherence 55
Jim Bryant and Nigel Howard

Chapter 4 Problem Structuring and the Building and Negotiation of Strategic Agendas 87
Alberto Franco, Jim Bryant and Giles Hindle

Part III Creating Strategic Initiatives 115

Chapter 5 Strategy Creation – The Resource-Based View 117
Abhijit Mandal

Chapter 6 Methods for Creating Strategic Initiatives 137
Robert G. Dyson

Part IV Rehearsing Strategy 155

Chapter 7 System Dynamics Modelling for Strategic Development 157
Martin Kunc and John Morecroft

Chapter 8 The Impact of Organisational Complexity in the Strategy Development Process 191
Adrián A. Caldart and Fernando S. Oliveira

Chapter 9 Creating and Using Scenarios – Exploring Alternative Possible Futures and their Impact on Strategic Decisions 211
Frances O’Brien, Maureen Meadows and Martin Murtland

Part V Evaluating Performance 249

Chapter 10 Decision and Risk Analysis for the Evaluation of Strategic Options 251
Gilberto Montibeller and Alberto Franco

Chapter 11 Performance Measurement 285
Efstathios Tapinos and Robert G. Dyson

Chapter 12 A Financial Perspective on Strategic Investments 313
Robert H. Berry

Chapter 13 Flexibility, Robustness and Real Options 343
Robert G. Dyson and Fernando S. Oliveira

Part VI Combining Approaches to Support Strategic Development 367

Chapter 14 Gone Fishing: A Case Study 369
Jim Bryant, Maureen Meadows, John Morecroft and Frances O’Brien

Author Index 395

Subject Index 401

Frances O'Brien is an Associate Professor at Warwick Business School. her research interests include the development and use of approaches to support strategy development, in particular scenario planning and visioning methodologies, and the practice of combining OR & strategy tools by management teams. She holds a BSc (Joint Honours) in Mathematics and Classical Studies from Surrey University and an MSc in Operational research from Southampton University. She previously worked for the Operational research Group of Ford of Europe as a consultant providing modeling support on simulation, manpower planning and allocation studies. She is an active member of the UK Operational research Society for which she chairs the OR and Strategy Special Interest Group.

Robert Dyson is Professor of Operational research at Warwick business School. He has served as Dean of the Business School and Pro-Vice- Chancellor of the University of Warwick. He has also been Chair of the Committee of Professors of Operational research and President of the Operational Research Society. He researches and publishes in data envelopment analysis, performance measurement and OR and strategy, and is an Editor of the European Journal of Operational research. Prior to joining Warwick he worked for Pilkington plc.

"In this unique book, management science lifts its view to take in the broader horizons of strategy. the result is a frame work for strategy development, and a range of methods and models to make it operational." - Professor Jonathan Rosenhead, London School of Economics

"This book will be invaluable for both strategists who need practical tools and for management scientists who are interested in strategic decisions."- John Mingers, Professor of Operational research and Systems, Kent Business School, University of Kent, UK

"The authors see strategy formulation and implementations as inseparable activities in which every organisation engages on a continuous basis. This means that this book has the wide scope needed by a manger, from visioning through to performance measurement and financial evaluation. By brining the range of contributors need to cover this space, the authors have managed to provide both a conceptual frame work and the detail needed by real managers who can benefit from the tools and methods described." - Gill Ringland, CEO and Fellow, SAMI Consulting, St Andrews Management Institute

In Changing world, there is no option to stand still; organisations need to review their direction, to create new initiatives, and crucially they need to rehearse their ideas rather than hope for the best.

Supporting Strategy: Frameworks, Methods and Models provides the reader with a balanced process for strategic development, spanning direction setting, strategy creation, rehearsal, evaluation and choice, leading to a continuous process of adopting strategic initiatives. It brings together tools from the fields of Strategy and Operational research/ Management Science, Creating a unique collection of practical frameworks, methods and models that individually and in combination provide a valuable resource for the practice of supporting strategy. Topics covered by the book include: drama theory, visioning, problem structuring methods, resource based view of strategy, SWOT/TOWS analysis, system dynamics, agent based modelling, scenario planning, decision and risk analysis, financial evaluation, real options, robustness analysis and performance measurement.

This book is a valuable resource for managers how are looking for ways to support strategic development in their organisations. It is also essential reading for students studying management science/operational research and strategy courses.