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Simulated Making Strategy for Glasgow airport

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Page 1: Making Strategy

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Page 2: Making Strategy

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Table of Contents

1 Strategy as issue management ........................................................................................... 3

2 Reflective commentary ........................................................................................................ 4

3 SSI from issues management ............................................................................................. 5

4 Strategy as purpose ............................................................................................................. 6

4.1 Laddering up map ....................................................................................................... 6

4.2 Goal system map ........................................................................................................ 7

5 Reflective commentary ........................................................................................................ 8

6 SSI from purpose ................................................................................................................. 9

7 Strategy as competitive advantage ................................................................................... 10

7.1 Map of competencies ................................................................................................ 10

7.2 Basis for DC pattern .................................................................................................. 11

8 Reflective commentary ...................................................................................................... 12

9 SSI from competitive advantage ....................................................................................... 13

10 Aggregate SSI .................................................................................................................... 14

11 Commentary ...................................................................................................................... 15

12 Appendix ............................................................................................................................ 16

12.1 Table of abbreviations ............................................................................................... 16

Page 3: Making Strategy

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1 Strategy as issue management

Page 4: Making Strategy

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2 Reflective commentary

The initial task to be tackled was role identification. The team was aware that there was no

specific experience in the industry chosen (aero transportation); however the team has a rich

diversity of backgrounds. The team decided to pragmatically assign roles similar to the

individual experience of each member of the team as defined in MOSS, “agreeing where to

practically focus energy, cash, effort and emotion”1.

The following interaction was associated with raising key issues in which the team set as

purpose to promote two main things, participation and procedural justice. One example was

within the round-robin, in which the team set the goal to accept every point of view from the

members following the recommendations of MOSS. Interestingly, while it is a powerful value

generator, “it is not easy for groups to accept different perspectives”2.

It was further recognised that some issues were not worded specifically enough. This was

consequential of misunderstandings in the round-robin methodology, since by allowing any

issue there were some recommendations in MOSS not followed like “less than six words

might make the issue to cryptic to others”3.This led to confusion later in process due to the

ambiguity of the concepts.

The process resulted in 56 issues, double than the 25 required, and this was in line with the

description in MOSS, “typically 70-90 issues will surface in 30-45 minutes”4.

While defining the interrelations between the issues the group felt that most of the issues

were operational rather than strategic. However while consulting MOSS it was affirmed that

“Operations and strategy must be seen as integral to each other”5.

By displaying the issues on DE helped both clarify and rephrase some of the issues since

the team was benefited of a map projection that permitted the simultaneous analysis of all

members. This projection also facilitated the identification of central issues through

negotiations in ascertaining the priorities as indicated in MOSS "The map, publicly displayed,

acts as a system to facilitate negotiation"6

Some members were more hands on with the tool and this resulted in them being the

facilitators during the whole process, so the team decided to start the next stage of the

process with those as the ones facilitating the negotiations.

In retrospect the group concluded that the process can be successful only with trade-offs.

The two main one’s are between ‘time and procedural justice’ and ‘time and quality of

identified priority’. Understanding causality leads to different approaches or perspectives all

of which are valid because all discussions are founded in the unique way individuals

perceive the future. Therefore the quality of negotiations and a successful facilitation

process were crucial to get team agreement.

1 Chapter 3, Page 41

2 Chapter 3, Page 43

3 Chapter 4, Page 72

4 Chapter 3, Page 47

5 Chapter 5, Page 132

6 Introduction, Page 3

Page 5: Making Strategy

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3 SSI from issues management

The key objective of Glasgow Airport for the mid-term (five year) period is to increase the

revenue per passenger, increasing the locations which the airport is connected to,

which will, in turn, increase airlines utilising the airport.

One method of increasing revenue per passenger is to increase the amount of time

spent by the passengers in the airside, which can be achieved by increasing the

amount of commercial floor space. However due to the increased time spent in the

terminal, customer satisfaction may be negatively impacted. Finally reinstating the

amount of passenger throughput to 2009 levels will ensure delivery of the objective of

increasing revenue per passenger.

To reinforce the revenue generation it is also important to increase the amount of

destinations which the airport has connections to. This increase in destinations should

also increase the amount of airlines using the airport, which will consequently require

increasing the landing slots in the airport.

Finally and yet surprisingly, a requirement to improve the communications between

departments should be reviewed as there appears to be a need for connection between

them to deliver improved customer services.

Page 6: Making Strategy

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4 Strategy as purpose

4.1 Laddering up map

Page 7: Making Strategy

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4.2 Goal system map

Page 8: Making Strategy

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5 Reflective commentary

In the process of agreeing goals, the negotiation skills of the participants play a major role.

The fact that a significant agreement is not necessary satisfying all members leaves always

a scar that will often come back in following debates. “If a group raises issues and they are

dismissed then members can fell more disillusioned than if the issues had not been raised at

all”7.While establishing purpose, the team was easily able to distinguish those prime generic

goals from the business goals. However, the team got stuck in finding group criteria to

decide whether the endpoints were goals or not. In this section the facilitator role was mainly

to bring the conducive environment for practical discussions, by which the team could

benefit from the rich diversity of opinion of the team members while following the

recommended timings for the task.“Facilitation is not a compromise but rather a creative

combination of multiple perspectives”8.

The main breakthrough in this workshop was a required ten minutes break. This recess was

crucial since the team reached to a point of "paralysis by analysis". Heated discussions

ensued due to differences of opinion in agreeing priorities/goals and difference in degrees of

pragmatism in team members.. The break released tension among the participants and

promoted a fresh perspective of those already defined goals recusing the teams’ energy, as

suggested in MOSS:“Taking time out mid-forum can also allow a mental and physical break

and supply the facilitator/manager-client with an opportunity for catching breath and

preparing for the next part of the forum”9.

That break also brought a holistic perspective of the goals map since, in the moment the

team entered in the room back again, the complete map was just in front of the team,

sometimes giving one step back is enough find a solution. This global perspective was

enhanced by the addition of the some key goals that the team missed in the catharsis of the

round-robin session. Once decompressed it was easier to link the most important objectives

from the business goals to the most generic ones, as indicated in MOSS: "It can be helpful

to put time aside periodically to 'check the pulse' of the group."10

7 Chapter 3, Page 45

8 Chapter 11, Page 279

9 Chapter 3, Page 58

10 Chapter 11, Page 283

Page 9: Making Strategy

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6 SSI from purpose

Increasing the number of airlines using the airport is a key goal for the Glasgow Airport.

By attaining this goal the airport will increase both passenger and revenues per airline. It

will also benefit the airport to minimise unit costs through economies of scale.

Investments into technology to reduce noise and air pollution are required to gain and

support economic growth in surrounding communities. This investment and community

buy-in will start to drive Glasgow Airport towards a mutually reinforcing engine which will

enhance its international reputation through positive publicity. Becoming Scotland’s

leading airport, as well the promotion of Scottish tourism will further generate increased

interest, thus driving the goals of increased airlines and passenger numbers to 2009

levels.

Increasing the level of traveller satisfaction will help to enhance the image of the

airport, whilst maximising repeat business thus increasing passenger numbers year on

year.

These aforementioned factors will generate greater revenues per passenger and airline.

Furthermore, these increasing numbers will assist in achieving decreasing operating cost

due to greater economies of scale. All these factors will contribute to the airport’s ultimate

goal of increasing total profits.

Page 10: Making Strategy

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7 Strategy as competitive advantage

7.1 Map of competencies

Page 11: Making Strategy

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7.2 Basis for DC pattern

Page 12: Making Strategy

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8 Reflective commentary

Team members found it initially difficult to distinguish between assets, competencies and

competencies outcomes. As suggested in MOSS, the struggle was not only in our case but

in general; “Lack of clarity between (…)the outcomes from competencies and the

competencies themselves”11. The team decided to differentiate assets from the

competences as those goods the organisation have rather than have an “ability to.”

Furthermore, frustration arose while attempting to identify the distinctive competencies for

Glasgow Airport, as stated in the MOSS, “Members of a management team find it difficult to

identify distinctive competences"12. In order to overcome this “paralysis by analysis”, the

group members redefined the benchmark scope of the simulation; it was concluded that

Glasgow Airport was compared against the other regional European airports.

After some discussion we decide that Glasgow Airport does not really have significant

competitive distinctiveness compared with other regional airports. However, one key

differentiator identified was the; “ability to host the new generation aircrafts” this is because it

is a distinctiveness that can be developed and controlled by the airport as MOSS indicates,

“DC are properties of an organisation which can be managed13”.

The whole competency surfacing process was exhausting for some participants. In addition,

a lack of motivation and disengagement of team members was identified. It was clear that

“encouraging members of a team to listen both caringly and analytically to each other is

inevitably consuming of both time and energy”14.The group decided to have a brief feedback

meeting to identify the reasons and define corrective actions.

One particular cause was that the team has not set the rule to produce tangible deliverables

at least twice per day. The implemented solution was to compile the first draft document with

all the previous steps. Clearly, there were still some issues not fully evaluated, but as

highlighted in MOSS; “there is never enough time to evaluate each issue”15.This decision,

allowed members to see the end results of the previous work and estimate the remaining

work to do. Moreover, it was decided to organise the workshops in a manner that results

were commonly agreed before any coffee break, As an example, MOSS states that "It is

important that the statement of strategic intent is produced either at the end of the forum or

soon after (preferably the same day)."16

11

Chapter 7, Page 179 12

Chapter 7, Page 180 13

Chapter 7, Page 179 14

Eden, Jones, Sims and Smithin (1981:43) 15

Chapter 3, Page 58 16

Chapter 8, Page 226

Page 13: Making Strategy

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9 SSI from competitive advantage

The key competency of Glasgow Airport is the ability to build Scotland’s primary

international hub. This competency is driven by utilisation of the landing strip which is

able to take large aircraft. Furthermore, being part of the wider BAA family will assist in

exploiting regulation and processes thus gaining an ability to build a robust regional

route hub.

Building relationships with local business, communities and the provision of efficient

cargo operations will lead to enhanced customer service and powerful customer

relationships being built.

These factors will mutually reinforce and strengthen one another to culminate in an efficient

customer service to airlines using the airport as well as ensuring higher customer

satisfaction.

These aforementioned factors will contribute to the airport’s critical competency of building

Scotland’s best international hub.

An additional strategy to maintain competitive advantage is to develop the airports rail link

to Glasgow and other major cities.

Page 14: Making Strategy

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10 Aggregate SSI

In its quest to be the leading airport of Scotland and achieve higher total profits,

Glasgow Airport aims to increase the level of traveller satisfaction and to increase the

number of airlines using the airport. To achieve these goals, Glasgow Airport will put all

efforts into enhancing its international reputation and attracting the major airlines of

the world. Furthermore, through its already strong commitment to the environment and

support of local communities, it will be able to promote its growing stature as a socially

responsible airport. These efforts will mutually reinforce one other and will help to achieve

the required increase in passenger numbers thus leading to greater profits.

Powerful customer relationships are achieved by a reinforcing set of competencies that

leverage the tacit abilities such as building Scotland’s best international hub, the ability

to build relationships with the local businesses as well as the ability to build regional

routes. Glasgow Airport aims to utilise favourable assets, such as being a part of BAA and

possessing a landing strip which is able to take large aircraft to develop these abilities

further in order to build powerful customer relationships.

Increasing the number of destinations that the airport has connectivity to is crucial for

Glasgow Airport to both enhance its international reputation, as well as to nurture its

ability to build Scotland’s best international hub. In order to improve on its ability to

host the new generation of aircraft, there is a need to increase amount of operating

personnel. Furthermore, a strategic measure that the airport needs to undertake is to

develop the airport rail link connecting the airport to Glasgow and other major cities.

The achievement of such a strategy not only helps the airport to fortify its ability to build

Scotland’s best international network but also helps the airport to promote Scottish

tourism through commercial alliances.

Page 15: Making Strategy

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11 Commentary

After the confusion and friction within the team during the issue and competency stages the

process of combining the SSI was smoother and more productive. The earlier stages had

been more animated, it is also important to observe that it was largely driven due to the

association of the person with the issues and their point of views. While the friction has to be

managed in any team routine, the absence of any friction can also mean lack of involvement

or buy-in of the process as stated in MOSS “Rather than the common presumption that

organisational politics are a bad thing, on the contrary, organisational politics will often be a

sign of real debate- a fight for what is believed to be best for the organisation”.17

The display of the issues, competencies and goals on a single screen allowed the team to

both see the obvious linkages as well as debate the ambiguous ones. The process was

more amicable for the fact that the goals and the competencies brought by the team

complemented each other and thus easier to merge into a single SSI.

While each of the SSI’s describes a snap shot of discussion of a particular process, they

were not as meaningful individually when the next step was finished. Combining the three

SSI’s issues, goals and the competencies gave a holistic and more complete picture of the

firm’s current strengths and the fittingness for the organisations goals.

Comparing the final SSI with the earlier one’s brought out a crucial learning of the process;

the need to ensure the description of the SSI at every stage on completion of that particular

stage as suggested in MOSS “Writing it (SSI) at the end of the forum acts as a take-away

that gives a sense of closure to the forum”.18 The inability of the group to chalk out the SSI at

the prescribed stage resulted in the SSI not giving a snap shot of the mentioned activity but

also mentioning elements of the next stage. However, analysis of all the SSI’s also pointed

out the flow of the process right from the first stage of issues till the final stage of linking

competencies to goals and the progression of a simple outburst of emotions through issues

to a convergence of competencies and priorities with goals.

The conflicts at this stage were less also due to the fact that the team was mentally drained

by the whole process. The lessons learnt at the competencies stage also ensured the team

was more receptive to others views and thus contained intergroup frictions.

17

Chapter 3, Page 41 18

Chapter 8, Page 227

Page 16: Making Strategy

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12 Appendix

12.1 Table of abbreviations

Abbreviation Expansion

DE Decision Explorer

SSI Statement of Strategic Intent

MOSS Mapping Out Strategic Success

BAA British Airport Authority

DC Distinctive Competency