Middle managers in strategy process

1. Middle managers in strategy process Dr. Kimmo Suominen COO, Merilampi Attorneys Ltd. November 14, 2013 Aalto University School of Economics Strategy work

2. Agenda: 1. Strategy is everywhere 2. Why middle managers matter? 3. So what? Practical implications.

3. 1. Strategy is everywhere

4. Lost in strategizing…? Corporate Strategy Communications Strategy Business strategies HR Strategy Support Process Strategies Regional strategies IT Strategy Unit strategies Environmental Strategy Team strategies ??

5. Why Organizations Need Strategies? • Setting Direction • Focusing Effort • Defining the Organization • Providing Consistency Reference: Mintzberg, H. The Strategy Concept II: Another look at why organizations need strategies, California Management Review 30 (1), Fall 1987, pp.25-32.

6. A well thought strategy won’t do. Almost 90% of the planned strategies fail. Reference: Kaplan, R. S. & Norton, D. P. 2003. Strategy Maps. Converting Intangible Assets Into Tangible Outcomes. Boston, MA: Harvard Business School Publishing Corporation.

7. And this is the problem… • Strategy communication is problematic and lacking. • The link between strategy and objectives is weak • Strategy seems to have no connection to everyday work. • Strategy processes are unknown. • Individuals cannot find their role in the strategy process. • - Middle managers don’t implement strategy. Reference: Aaltonen, P., Ikävalko, H., Mantere, S., Teikari, V., Ventä, M. & Währn, H. (2001) Tiellä strategiasta toimintaan – Tutkimus strategian toimeenpanosta 12 suomalaisessa organisaatiossa. Espoo: Teknillinen korkeakoulu. Suominen, K., Karkulehto, K., Sipponen, J. & Hämäläinen, V. 2009. Esimies strategiavaikuttajaksi. Helsinki: WSOYpro..

8. 2. Middle managers in strategy research

9. Middlemanagersare… in the core TOPMANAGEMENT SUBORDINATES (Suominen et al. 2009)

10. Coordinationand management Sensemaking Peers / self Team Reference: Balogun, J. (2003). From Blaming the Middle to Harnessing its Potential. British Journal Management, 14, 69-83.

11. Middle managers as strategy consumers 1. INSTRUMENT • Analyzing and understanding business environment • Planning future actions • Setting targets and objectives • Motivating people and building commitment • Justifying and legitimizing one’s own efforts 2. PLAYTHING • Questioning top management’s role and ability as strategist • Parodying and ridiculing strategy and the methods and symbols related to it • Grasping the contradictions and peculiarities of strategy easily and makes fun of them • Seeking novel ideas and ways of looking into the strategy 3. INTIMATE MATTER • Glorifying oneself as strategic leader • Devoting and submitting oneself to the strategy • Dis-identifying oneself from the strategy • Showing one’s personal feelings towards the strategy, such as fear, insecurity, or intimidation Reference: Suominen, K. (2009) Consuming strategy: The art and practice of managers´ everyday strategy usage. Helsinki University of Technology Department of Industrial Engineering and Management Doctoral Dissertation Series 2009/14. Espoo 2009 Reference: Suominen, K. (2009) Consuming strategy: The art and practice of managers´ everyday strategy usage. Helsinki University of Technology Department of Industrial Engineering and Management Doctoral Dissertation Series 2009/14. Espoo 2009

12. 3. So what? Practical implications.

13. This is easy… • To define what company wants to accomplish? • Strategy sprint. To take a intensive strategy • To include every good words and deeds in strategy. • Sharing information. • To craft long and wordy strategy documents. … but this is difficult. • To define how the goals and objectives are reached. • Strategy marathon, fortitude in strategy execution. • To make choices. To say No even to some respectable ideas and things. • To make an emotional impact. • To crystallize strategy. Picture? Symbol? Story?

14. What moves us?

15. Thank You!