Organizational Behavior strategy and rules Tomáš Ondráček ondracek.t@mail.muni.cz Faculty of Economics and Administration, Masaryk University 2021 Rules, Norms, and Strategies Rules, Norms, and Strategies ·ORBE ·2021 2 / 18 Rules, Norms, and Strategies norms, principles, laws, rules, and strategies norms general typical principles general specific laws written based on norms or principles rules specific strategy individual ·ORBE ·2021 3 / 18 Approaches to Strategy Approaches to Strategy ·ORBE ·2021 4 / 18 Approaches to Strategy three approaches to strategy position resources simple rules strategic logic identify a market locate a position fortify and defend establish a vision build resources leverage across markets jump into confusion keep moving seize opportunities finish strong strategic question Where should we be? What should we be? How should we proceed? source of advantage unique, valuable position with tightly integrated activity system unique, valuable, inimitable resources key processes and unique simple rules works best in slowly changing, well-structured markets moderately changing, well-structured markets rapidly changing, ambiguous markets duration of advantage sustained sustained unpredictable risk difficulty in altering the position as conditions change difficulty in altering resources as conditions change executing on promising opportunities performance goal profitability long-term dominance growth (Eisenhardt & Sull, 2001) ·ORBE ·2021 5 / 18 Simple Rules Simple Rules ·ORBE ·2021 6 / 18 Simple Rules opportunity market confusion guidance through chaos capturing opportunities for all companies (?) (Eisenhardt & Sull, 2001) ·ORBE ·2021 7 / 18 Simple Rules Zeroing in on Key Processes Zeroing in on Key Processes ·ORBE ·2021 8 / 18 Simple Rules Zeroing in on Key Processes characterization lacking strategy (?) paralyzes by chaos a few, flexible and general (Eisenhardt & Sull, 2001) ·ORBE ·2021 9 / 18 Simple Rules Types of Rules Types of Rules ·ORBE ·2021 10 / 18 Simple Rules Types of Rules types of rules type purpose example how-to spelling out key features of how a process is executed Akamai: customer service boundary focusing on which opportunities can be pursued and which should be left aside Cisco: acquisitions priority ranking of accepted opportunities Intel: allocation of manufacturing capacities timing synchronizing opportunities and other parts of the company Nortel: product development exit helping decide to change Oticon: development (Eisenhardt & Sull, 2001) ·ORBE ·2021 11 / 18 Simple Rules Number of Rules Number of Rules ·ORBE ·2021 12 / 18 Simple Rules Number of Rules number of rules How much is too much? overwhelming paralyzes How much is enough? useless the rule of thumb 2–7 variations age state of market (Eisenhardt & Sull, 2001) ·ORBE ·2021 13 / 18 Simple Rules Creation Creation ·ORBE ·2021 14 / 18 Simple Rules Creation inspirations knowledge intuition deliberation experience and practice (Eisenhardt & Sull, 2001) ·ORBE ·2021 15 / 18 Simple Rules Change Change ·ORBE ·2021 16 / 18 Simple Rules Change number of rules consistency and stability frequency and necessity (Eisenhardt & Sull, 2001) ·ORBE ·2021 17 / 18 Sources Eisenhardt, K. M., & Sull, D. N. (2001). Strategy as simple rules. Harvard business review, 79(1).