LEADERSHIP
Integrating Resources To Underpin The Success Of Strategy
By Dr . Kellen Kiambati
Integrating resources entails the relationship between overall business strategies and strategies in different resource areas such as people , information , technology and finance . As managers undertake their day to day work in their respective functional areas , they control resources and business processes that are crucial to the organization strategic success . The key question to ask is if the organization strategies are being shaped to capitalize on the resource available !
Resources are important , but what matters most is how an organization deploys them . For example , there is no point in having state-of-the-art technology , equipment , valuable brand and knowledge if there are no plans to use them optimally . The commonality is that all the resources should have the ability to perform at the level required to prosper , they should meet the customers ’ minimum requirements , and must be unique so that they underpin competitive advantage and are difficult to imitate .
People
People and indeed their issues should be a central responsibility of most managers in organizations . In today ’ s rapidly changing environment , the people management agenda has become tougher because performance standards are constantly shifting in an upward direction . Some of the activities to support a people component include : Undertaking periodical audits to determine human resource requirement of individuals and teams ; Setting goals and performance management so as to link performance appraisals to the strategies ; Planning and management of rewards with a view to encourage teamwork ; Coaching and mentoring to encourage self-development .
Information
Knowledge creation and management should be at the fore front of all managers ’ minds . Information processing capability has provided the opportunity to transform the way in which organizations build their relationships with others in their value network .
Organizations should consider the following enhanced capabilities to provide valued services to their customers : reduce costs so as to lower prices especially where the service is informational ; improve pre-purchase information e . g . websites ; shorten development times for new features ; ensure product reliability ; offer personalized products or services ; and make the purchasing process easier and faster .
Finance
What matters to shareholders is cash generation and the organization ’ s capability to pay dividends and re-invest for the future . In the public sector , it is the delivery of best value services . Long term success of strategies is determined by the extent to which they deliver best value in the eyes of major stakeholders . Value creation in all organizations is determined by three main financial issues : Funds from operations and the concern is the extent to which the organization is operating profitably ; Investment in assets and the concern is the extent to which assets and working capital are being stretched ; and Financing costs which is the mix of capital in the business between the percentage of debt and equity to determine the cost of capital in relation to financial risks .
Technology
Business and technology strategies and how it underpins success is a three-point agenda namely how technology changes the competitive situation , technology and strategic capability , and organization of technology to achieve advantage .
The modern day technology strategy typology entails the interplay across the following four quadrants : Differentiated Strategies where products and services improvements are achieved by using existing technology to address a known customer requirement . The danger is that this space attracts imitators who might exploit technology to improve product features further or reduce costs ; Architectural Strategies work where existing technologies can be combined to create novel products or services or new applications ; Technological Strategies are about applying new strategies to already predetermined customer needs ; and Complex Strategies are applied where both technologies and markets are new and therefore the call is to co-evolve .
In conclusion , different resources in an organization should support strategies under implementation and as complex as it is , it offers an opportunity to create a competitive advantage .
Kellen Kiambati holds an MBA in Strategic Management from the Kenya Methodist University and a PhD in Business Administration with a focus in Strategic Management from JKUAT . She is a member of the Institute of Human Resource Management of Kenya . She can be reached via : Kellenkiambati @ gmail . com .
60 MAL43 / 21 ISSUE