Strategy Survival Guide

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Strategy Survival Guide Version 2.1 Prime Minister’s Strategy Unit home | strategy development | strategy skills | site index Strategy Skills > Building an Evidence Base Analysing data - Organisational analysis > template > in practice Organisational analysis aims to generate an understanding of the organisational structure and culture of the system the project is looking at. This can help in understanding the ease or difficulty with which new strategies can be adopted. Resource Analysis A resource audit should be carried out to identify the quantity and quality of resources available to the organisations that will be involved with the implementation of the new strategy. The key areas to assess include: • Availability of and sources of finance • Skills: organisational, leadership, technical expertise • Availability of physical resources e.g. buildings offices etc • IT capacity • HR capacity. There are also some intangible organisational assets which should be assessed such as: • goodwill • branding • contacts • image etc. The audit should be comprehensive, but should concentrate on identifying resources that are critical to the organisation's capabilities. It can also be helpful to conduct historical analysis, looking at the deployment of resources of the organisation by comparison with previous years. This can help identify any significant changes and reveal trends which might not otherwise be apparent. Benchmarking to other similar organisations both in the UK and other countries can also help put the organisation into perspective. Finally, it may be beneficial to undertake analysis as to the extent to which the organisation's resources are balanced as a whole. The three key aspects of resource balance analysis are: • the extent to which various activities and resources of the organisation complement each other • the degree of balance of the people within the organisation in terms of individual skills and personality types • whether the degree of flexibility in the organisation's resources is appropriate for the level of uncertainty in the environment and the degree of risk the organisation is likely to take. Cultural Mapping The aim of cultural mapping is to understand how an organisation’s culture will affect its ability to change and adapt to new policies or environments. Faced with similar environments organisations respond differently. The collective behaviour of managers and employees is determined by frames of reference (the paradigm) which are created by the culture of the organisation (deeper level of basic assumptions and beliefs). The purpose of a cultural audit is to: Strategy Survival Guide – Strategy Skills Page 142
• understand that culture; • understand how the culture contributes to the problem; and • work out how it needs to change in order for the organisation to deliver the strategy effectively. The cultural audit analyses different aspects of the organisation’s cultural web: Stories Symbols Rituals and Routines Paradigm Power and structures Control Systems Organisational Structures See this culture web template A cultural audit can be conducted through: • Listening to people talk about their organisation • Observing the organisation day to day operation • Asking managers to undertake the audit themselves using a checklist In addition, to identify the dominant culture of the organisation as a whole it is helpful to analyse the way its strategies have developed historically. Checklist Stories • What core beliefs do stories reflect? • How pervasive are these beliefs? • Do stories relate to strengths or weaknesses, success or failures, conformity or mavericks • Who are the heroes and villains? • What norms do the mavericks deviate from? Routines and rituals • Which routines are emphasised? • Which would look odd if changed? • What behaviour do routines encourage? • What are the key rituals? • What core beliefs do they reflect? • What do training programmes emphasise? • How easy are rituals/routines to change? Strategy Survival Guide – Strategy Skills Page 143
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Strategy Survival Guide Version 2.1
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Building an Evidence Base 113 Data
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A Framework for Strategic Direction
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