Files mounted on the Making Strategy Sage web site
Six sets of PowerPoint slides:
Introduction to Making Strategy
Strategy as the Prioritisation and Management of Key Issues
Strategy as Purpose: Agreeing Goals and Aspirations for the Organisation
Strategy as Competitive advantage
Closure
These slides are intended only as a supplement to the book and do not represent a complete
picture of the theory, concepts, or practice that lie behind the approach to strategy. They
provide some further examples and pick out some main themes.
They have been designed so that they can be modified and added to. However, the copyright
of the material lies with the authors.
Four sets of PowerPoint slides that list the tasks for each of the four forums. These are
directly from the book and save retyping them if required.
A 2-page quick guide to the use of Decision Explorer. This guide provides the majority of
the ‘hot-key’ instructions that used extensively during the Making Strategy process.
Videos introducing the use of Decision Explorer in the issue management forum. This
provides a quick way of ‘getting the hang’ of using the software at a basic level.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Group Explorer
There is also available a Group Support System that allows participants to enter
statements and links directly in to a publicly displayed Decision Explorer model. The
system also allows for the rating of statements, and the indication of preferences about,
for example, options to focus on, undesirable options, leverage on goals, etc.
The significant benefits of the system are higher productivity, anonymity when
appropriate, the ability to monitor development consensus, and facilitator monitoring of
levels of participation and type of participation. The system has been used extensively
over the past 10 years by a number of Business Schools, managers, and consultants. It
has been used with top management teams of MNC’s as well as with pressure groups.
The system requires the purchase of the Group Explorer software from
Ackermann&Eden at Strathclyde Business School, a full copy of Decision Explorer,
Windows Server, and 2 laptop computers (one running Windows Server and the other
Windows 7).
See:
Ackermann, F. and Eden, C. Negotiation in Strategy Making Teams Group Support Systems and the Process of
Cognitive Change. Group Decision and Negotiation. 2011; 20(3)293-314.
Andersen, D.; Richardson, G. P.; Ackermann, F., and Eden, C. Using a Group Support System to Add Value to
Group Model Building. System Dynamics Review. 2010; 26(4)335-346.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Making Strategy:
Mapping Out Strategic Success
Chapters 3 and 4
Strategy as the Prioritisation
and Management of Key Issues
Fran Ackermann and Colin Eden
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Please note, these slides are
designed to be used in addition
to the book:
Making Strategy: Mapping Out Strategic Success.
by Ackermann & Eden, Sage, 2011


They are not designed to be used in a ‘stand-alone’
manner, or to replicate theory and practice presented
in the book.
The assignment design represents one possibility for
a 20 credit MBA course (thus each of the 4 parts
represents approx 5 credits + Closure).
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategic Management
is about agreeing
which strategic issues to
practically focus
energy, cash, effort,
emotion
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Making Strategy
in 4x~3hr workshops (2 days)….
Or single half day workshops

Workshop 1 – morning
• Strategy as the Prioritisation and Management of Key Issues
• Statement of Strategic Intent

Workshop 2 – afternoon
• Strategy as Purpose: Agreeing Goals and Aspirations for the Organisation
• Statement of Strategic Intent

Workshop 3 – morning
• Strategy as Competitive advantage
• Statement of Strategic Intent

Workshop 4 – afternoon
• Strategy as Stakeholder Management
• Statement of Strategic Intent

DELIVERABLE OVERALL:
• Statement of strategic intent (SSI) encompassing: issue management,
purpose, competitive advantage, stakeholder management
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategy as the Prioritization and
Management of Key Issues Refer to p68
(Chapt3-4)
Decide on a rough time horizon for your
strategy (this is typically 2-5yrs but could be
shorter).
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategy as the Prioritization and
Management of Key Issues Refer to p43, 68
a. Decide the relevant time horizon for your strategy (this is
typically 2-5yrs).
b. What are the (strategic) issues [issue selling/making
claims on the future] that need to be resolved in
order to assure the long term success of the
organization over next ? years (for which
the strategy is to be developed)? Refer to appendix
Collect these on a Decision Explorer view:
spiral, or developing thematic clusters
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The Significance of
“Procedural Justice”
Refer to Chapt2
Procedural justice is concerned with the
capacity of processes to enhance a
sense of fairness and in so doing
encourage cooperation, trust, and
organizational citizenship behaviours,
which in turn lead to better and
implementable decisions.
IT IS NOT ABOUT DEMOCRACY BUT
ABOUT GOOD MANAGEMENT!
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
So, employ procedural justice
Refer to p72
USE A “ROUND-ROBIN”
IN TURN, ONLY ONE STATEMENT EACH,
THEN AROUND THE GROUP AGAIN, AND AGAIN
NO EVALUATION
NO DISCUSSION, YET
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Surfacing issues (‘negatives’)
 Is
Refer to p58, 69
cathartic: ‘releases frustrations’
 But also, and importantly, it reflects the
need to get the attention of everyone:
• By developing a picture of crisis we fulfil
John Kotter’s requirement to create a
‘crisis’/’burning platform’ that will mobilise
attention
 But,
then can move on to issues that
derive from missing opportunities
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Tips


Refer to appendix
Spread around – NOT columns and rows
Make sure the evaluative phrase is included
• “staff” becomes “exploit our best staff”

Take out need, should, ought and make propositional
• “need to get rid of bad staff” becomes “get rid of bad staff”

Use lower case except for names
• “Develop better advertising material” becomes “develop
better advertising material” then editing from the front is
likely

In Decision Explorer:
• Change style to no border, so that can use select box to
show
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Try it…
 Target:
minimum of about 20-25 issues,
roughly clustered by theme
Refer to p70
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 00:55/01:35
• Issue surfacing (55-95mins)
[But might take you longer… this is your first
attempt!]
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Refer to p46
Beginnings of an issue ‘dump’
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Dementia Forum: After 22 mins of issue gathering
Refer to p54
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The ‘Product’

Cathartic
• Full participation (from ‘round-robin’)

Divergent
• Everything ‘out on the table’ that will affect our future
success – internal, external, ‘scenario’, stakeholders, SWOT


Insights, wisdom of all
Thematic clusters
Refer to p77
• The ‘strategic arenas’ that are demanding strategic action

= very crude strategy with involvement and
ownership!
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategy as the Prioritization and
Management of Key Issues
(Chapt 3-4)
a. Decide the relevant time horizon for your strategy (this is
typically 2-5yrs).
b. What are the strategic issues facing the organization over next ?
years, for which the strategy is to be developed.
Collect these on to a Decision Explorer view.
c. Map out the interrelationship between these
issues - what influences or drives what?
Refer to p73, 81
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Refer to p49
First steps in linking to understand causality
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Get means-ends relationship
link correct!!
Take out “need” and make the relationship: option to outcome. Thus, we
take the action of training staff in order to reduce poor quality control
Without correct coding any analysis will be meaningless!
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Developing “Cause Maps”
“a tear-drop”
“GOALS” or
DISASTEROUS
outcomes
END
Direction
of
Arrow
ISSUES or possible
STRATEGIES
Desired
OUTCOME
MEANS
more detailed
OPTIONS
ISSUE
impacts
If possible - convert the language to
proposition - put in a verb,
get rid of questions
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Refer to p82
ISSUE
OPTION
Refer to p114
Different meanings derive from what to do and why to
do it
From: Eden, C. and Ackermann, F. Decision Making in Groups theory and practice. Nutt, P. and
Wilson, D., Editors. Handbook of Decision Making. Oxford Blackwell; 2010; pp. 2301-272.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Dementia Forum: After 37 mins issues causally linked (loop in red)
[15 mins of linking]
Refer to p54
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Try it…
 Target:
link all issues and may be add
more issues
Remember Decision Explorer (DE) is the tool for
creating an object in continual transition (TO)
The Transitional Object (TO) is always in transition, so,
at all times:
Add new material, reword existing material, delete and add
links
All through continuing discussion
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 01:30/02:25
• Issue causal linking and exploration and
elaboration (35-50mins)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Reliability???
Refer to p58
“It won’t be the same if we did it
again”
“Is it right?”
It will gradually become increasingly robust
as the strategic conversation continues, and
the group focuses attention on what is
important
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategy as the Prioritization and
Management of Key Issues (Chapt 3-4)
Decide the relevant time horizon for your strategy (this
is typically 2-5yrs).
Each member of the group offers at least 4 strategic
issues facing the organization over next 2-5 years,
for which the strategy is to be developed.
Map out the interrelationship between these issues - as
you imagine your team might see it – what
influences or drives what?
Identify strategic priorities:
*** as top priority, ** medium, and * low.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Analysing for clues about priorities
SORTING OUT CANDIDATE PRIORITIES THAT MAY BE FIRST
DRAFT STRATEGIES (see appendix)

How ‘busy’ are some issues?
• Domain [ >DOMT and/or >CENTRAL]

What
issues (not goals) are the top outcomes?
• List heads [ >LH ]

Which issues resolve the most other issues?
Refer to appendix
• Create hierarchical sets
– Select heads [ >LH ] swipe across them so that boxes appear around them
– [ >hieset sc ] (sc = selected concepts)
– [ potent ] gives the most potent listed at the top

Check for feedback loops
– [>loop ]


Does this identify statements that can represent all different themes?
PRIORITIZE: add ***/**/*: double click on statement then press endend, then type in the number of *
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Identifying busy/central concepts
weightings
A
Domain
Central
1
A
6
7.5
0.5
0.33’
B
3
8
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
0.5
1
B
More equal for ‘centrality’
Refer to appendix
Using Potency as the basis
for Prioritizing
Refer to appendix
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
18 [stop] have too
little time to
concentrate on
development
8
9 better and more
successful launches
57 maximise the
potential of mktg
services (per money
spent)
2
8
4
6
1
4
0
5
1
3
1
4
13 better management
of the competition
8
5
0
2
5
9
7
5
86 create loyalty to
own product & area
... loyalty to the
'A' range of
products
5
1
7
4
6
2
7
4
9
9
1
6
4
Finding ‘heads’ [>LH]: these are the closest to the goals/ends
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
57 maximise the
potential of mktg
services (per money
spent)
18 [stop] have too
little time to
concentrate on
development
8
2
8
4
6
1
4
0
5
1
3
1
4
9 better and more
successful launches
13 better management
of the competition
8
5
0
2
5
7
9
86 create loyalty to
own product & area
... loyalty to the
'A' range of
products
5
5
-
9
1
27 reactive frame of
thinking ... more
proactive
46 better product
differentiation
2
1
7
1
54 provide more
fundamental support
to customer ...
sales support work
1
3 mktg and sales
provide full media
planning support
3
49 mktg find gaps in
mkt place
continuously
-
2
3
4
1
2
8
4
6
2
17 mktg dept find
out more of what
competition is doing
2
7 sales people bring
big customers to
meet mktg dept
For example, Laddering down (using CTRL-I) to include all causal chains that
impact ‘head’ 13 which one of the heads (closest to a goal)
Gives a ‘tear-drop’ in blue (representative only)
Some ‘means’ also have other ends – see ‘unseen’ (dashed) links – these are turned
on from the ‘view/show unseen links’ menu (or [>SUL]
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
57 maximise the
potential of mktg
services (per money
spent)
18 [stop] have too
little time to
concentrate on
development
2
8
4
6
1
4
0
5
1
3
1
4
9 better and more
successful launches
8
5
86 create loyalty to
own product & area
... loyalty to the
'A' range of
products
13 better management
of the competition
0
-
8
2
27 reactive frame of
thinking ... more
proactive
46 better product
differentiation
2
1
7
4
1
2
8
1
49 mktg find gaps in
mkt place
continuously
2
54 provide more
fundamental support
to customer ...
sales support work
3
2
4
8
0
6
2
2
6
6
6
7 sales people bring
big customers to
meet mktg dept
6
8
59 create slackin
mktg dept to cope
with launches
17 mktg dept find
out more of what
competition is doing
4
3 mktg and sales
provide full media
planning support
75 mktg help develop
newproducts ...
concentrate on
successful products
3
-
6
8
7
4
19 better planning
of careers
58 working on a
launch is extremely
demanding
8
67 each exec has
access to a mktg
assistant
25 recruit mktg
assistants with
interest in our
business
7
7
3
8
6
8
6
0
2
6
78 complete mktg
audit for each
product (mktg mgr +
product mgr)
8
81 mktg mgr/exec
monitors and
oversees appropriate
standards of work
29 mktg mgr/exec
gets more managerial
experience
7
0
94 establish a
career structure for
mktg ... leave mktg
career to fate
65 mktg mgr resolves
conflicts between
product mgrs **
7
-
0
6
5
73 potential for
conflicting demands
on exec
53 product mgrs are
capable of agreeing
priorities
2
20 mktg mgr allocate
time on each product
for each exec
4
63 confusion within
dept regards to
Richard Marley
5
2
0
1
-
0
4
2
1
2
5
6
1
9
16 huge amount of
time spent byexecs
on big dinners etc
0
30 time sheet method
of resolving
conflict ... mktg
mgr monitors method
of resolving
conflict
Laddering down from 9 produces another purple ‘teardrop’: hierarchical set (hieset)
Note that statements 25&67 (in red) hits 2 ‘heads’ (57 and 9): they are more ‘potent’
than other actions. (NOTE: the colours/styles used here are only for the purpose of
illustration to show the different hiesets)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
57 maximise the
potential of mktg
services (per money
spent)
18 [stop] hav e too
little time to
concentrate on
development
8
2
8
4
6
1
4
0
5
1
3
1
9 better and more
successful launches
13 better management
of the competition
4
8
5
0
2
1
7
54 provide more
fundamental support
to customer ...
sales support work
3
1
49 mktg find gaps in
mkt place
continuously
2
4
0
67 each exec has
access to a mktg
assistant
7
8
0
6
2
2
1
7
3
5 evaluate most
important objectives
of product
6
6
8
6
8
6
8
5
37 mktg exec stays
with product for
18-24 mths
7
4
9
58 working on a
launch is extremely
demanding
19 better planning
of careers
0
8
81 mktg mgr/exec
monitors and
oversees appropriate
standards of work
29 mktg mgr/exec
gets more managerial
experience
65 mktg mgr resolves
conflicts between
product mgrs **
8
8
7
5
53 product mgrs are
capable of agreeing
priorities
0
2
20 mktg mgr allocate
time on each product
for each exec
0
0
7
6
6
0
94 establish a
career structure for
mktg ... leave mktg
career to fate
4
2
8 more moving from
one product to
another
55 long term
commitment to
staffing of mktg by
product mgr (1-2
years)
63 confusion within
dept regards to
Richard Marley
-
5
73 potential for
conflicting demands
on exec
85 product mgr is
responsible for long
term thinking ...
mktg is responsible
for long term
thinking
-
7 sales people bring
big customers to
meet mktg dept
6
78 complete mktg
audit for each
product (mktg mgr +
product mgr)
64 mktg exec can
gain knowledge of
mkt and product
1
6
1
5
59 create slack in
mktg dept to cope
with launches
2
2
2
26 establish and
agree a mktg
strategy for each
product (mktg &
product mgr) **
6
-
25 recruit mktg
assistants with
interest in our
business
7
6
17 mktg dept find
out more of what
competition is doing
4
3 mktg and sales
provide full media
planning support
75 mktg help develop
new products ...
concentrate on
successful products
3
-
2
8
4
1
1
2
2
1
27 reactive frame of
thinking ... more
proactive
2
2
1 building a team
partnership b/n
product mgr and mktg
exec
-
46 better product
differentiation
5
1
9
2
5
2
86 create loyalty to
own product & area
... loyalty to the
'A' range of
products
16 huge amount of
time spent by execs
on big dinners etc
30 time sheet method
of resolving
conflict ... mktg
mgr monitors method
of resolving
conflict
Laddering down from statement 86 creates another green ‘hieset’
with nothing common to the hiesets created from laddering down
from 9 or 13 – suggesting independence.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Detecting potency in DE
 Establish
‘heads’ of interest (and
possibly sub-heads
 Select them (boxed)
 DE>hieset sc [create a hierarchical set
based on selected concepts: sc]
 DE>potent [determine which concepts
hit the most selected concepts]
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Detecting potency
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Try it…
 Link
and establish priorities
 BUT:
watch out for some ‘top end’
statements being goals not issues –
good or bad high level outcomes
• These will not be issue priorities, but ‘ends’
where issues are the strategic ‘means’
 And
check for at least one priority in
each cluster (but use judgment)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
The timing…
 Time
elapsed 02:10/03:25
• Analysis and prioritising (40-60mins)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Summary


Refer to p84
All strategic issues “out on the table”
Understand how issues and problems are interconnected
• That some issues drive and reinforce others
• That resolving one issue can help resolve others
– Resolving some issues can be potent in resolving a lot of other issues
• Issues at the ‘top’ tend to be ‘headline’ issues (or draft goals)
• Issues with a lot of arrows in and out of them tend to be important
– Domain and central analyses

These properties help establish strategic priorities

DELIVERABLE after a morning (or less):
initial strategy – a negotiated agreement about strategic
priorities

• Reevaluation of issues as a result of seeing them (listening to
them)
• Seeing them in the context of others: what I think is important
relates to what others think is important
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Dementia Forum: After 83 mins (up to coffee break) – issues prioritized
and summary map produced (using the collapse command in DE>col issues)
Refer to p54
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Strategy Deliverable…
Refer to p56
Initial Statement of Strategic Intent for Strategy to Manage Dementia [EXAMPLE see page xxx]
Our primary strategic focus will be to not be inhibited by what we have now as a basis for planning – and rather
aspire to what we need. We expect this attitude to be a key driver for developing our ability to:
acknowledge future demographics and increased dependency of patients in the community
broaden the range of accommodation options for people with dementia and [resolve] inadequate choice
of a variety of good quality long term care homes in all areas,
increase availability of specialist dementia care,
provide a more holistic and person centred approach to meeting integrated care needs
Alongside aspiring to what we need there will be a parallel focus on creating an increased feeling of shared
responsibility for range of services between Social Work Department and NHS. Together these priorities will
help us reduce difficulties around early diagnosis & support where diagnosis is uncertain. Taking a shared
responsibility will increase the probability of gaining more funding, which is central to helping resolve most of
our strategic priorities. In addition it will help us attack our key goals of: increasing availability of specialist
dementia care, reducing delays in accessing home care services, providing a more holistic and person centred
approach to meeting integrated care needs, and resolving the inadequate choice of a variety of good quality
long term care homes in all areas.
Significant strategic priorities will be to increase the quality of care in private sector and broaden the range of
accommodation options for people with dementia. Delivery of these priorities will be supported by our daring to
review building based services and dispose of what isn't needed and build YES BUILD what is needed, which
will help us respond and manage the needs and impact of patients with dementia in general & community
hospitals. However, more importantly success will help us to resolve inadequate choice of a variety of good quality
long term care homes in all areas.
Our last key strategic focus is to promote knowledge, skills and understanding amongst service providers, family
carers and the public, in order to help us provide a more holistic and person centred approach to meeting
integrated care needs and also respond and manage the needs and impact of patients with dementia in general
& community hospitals.
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011
Assignment: Part 1
Refer to assignment details slides
 Save
DE model
• File name= ‘group name’_IM
 Write
and Save SSI Refer to p56
 Write Reflections piece on making
strategy as Issue Management
(process/negotiation and content
considerations)
© Colin Eden and Fran Ackermann: Lecture Notes
For Making Strategy: Mapping Out Strategic Success, Sage, 2011