Strategy Deployment in Business Units: Patterns of Operations Strategy Cascading Across Global Sites in a Manufacturing Firm

202 Pages·2013·1.82 MB·English

by  Maik Schlickel (auth.)

Contributions to Management Science
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Maik Schlickel
Strategy Deployment
in Business Units
Patterns of Operations Strategy Cascading
Across Global Sites in a Manufacturing Firm
MaikSchlickel
Paderborn
Germany
ISSN1431-1941
ISBN978-3-642-33620-1 ISBN978-3-642-33621-8(eBook)
DOI10.1007/978-3-642-33621-8
SpringerHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2012956158
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To mywifeClaudiaandmyfamily.

Foreword
This book empirically examines drivers of productivity improvements in manu-
facturing sites, going beyondoperationaldriversof total quality managementand
including strategy cascading, leadership styles, and organizational context (i.e.,
the strategic positioning itself). This endeavor falls within a broader literature of
operationsstrategycascading.
Inmakingthisattempt,thebookhasseveraladvantages:First,thisbookoffersa
systematiccomparisonofninemanufacturingsitesofaglobalautomotivesupplier,
so that the fundamental company systems and culture are kept constant, while
national culture, leadership style, and the strategic context of each site vary. This
allows sharp comparisons.Second, using the differencesacross the nine sites, the
rangeof driversconsideredis broaderthan whathasbeen previouslyexaminedin
existing book. The conventional wisdom in operations strategy cascading is that
top-downapproachesneedtobecombinedwith bottom-upapproaches(especially
includingmiddle-levelmanagers)andthatdistributedactivitiesneedtobehorizon-
tallycoordinatedacrossvariousorganizationalunitsinordertomaintainalignment.
Inthecurrentbook,interestingeffectsofthestrategiccontextandoftheleadership
styleofthelocalmanagementteamareintegratedintheeffectsofstrategycascading
onperformance.
Thus, the book combines a wide set of independent variables, some of them
emerging from the data collection rather than pre defined, as existing theories on
strategic performance drivers are too incomplete to allow an ex ante definition
of variables. The three composite variables are coordination (this corresponds to
previousliterature), enabling structuresfor the frontline employees(this has also
beenidentifiedin previousstudies),andconsistencyof theverticalcascadingpro-
cess(i.e.,whetherthevariousaspectsofcascadingareconsistentwithoneanother
and with official statements—this variable has not been identified previously).
The leadership style is measured via structured interviews using the Leadership
AssessmentQuestionnaireby Ketsde Vries. Finally,improvementperformanceis
measuredbasedonarchivaldatafromthecompany’squalitymanagementsystems;
three aspects are considered: overall improvement target fulfillment, production
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viii Foreword
improvementtargetfulfillment(moreunderthecontrolofthesite),andreductionof
non-qualityexpenses.
A methodological advantage of the book is its use of multiple methods,
combiningqualitativeanalysiswithquantitativeregressionsinordertoincorporate
the various variables considered. It is one thing to consider a wide range of
variables, both quantitative and qualitative, but it is then a challenge to actually
obtain interesting and insightfulresults from such a diverse input. This is another
advantageofthisbook—itmanagestoproducesignificantinsights.First,thequality
ofthecascadingprocess(asexpressedbythethreecompositeemergentvariables)
is indeedassociated with improvementperformance.This is true aggregately,and
it is true for the individual variables, but with interesting nuances. Second, the
three cascading quality variables are not randomly distributed across the sample
of nine sites; rather, they are correlated, producing three clusters: one (advanced,
successful)clusterwith“coherent”cascading;onewith“turbulent”cascading;and
onein between.This clusteringcomesstrictly outof the data analysis, butis then
successfully linked to the strategic positioning, portfolio, and management team
history of each site, lending the analysis face value and depth. Thus, the third
result suggests that the sites with coherent strategy cascading also tend to have
significantly different management styles than the sites with turbulent cascading:
the most prominent leadership trait in coherent sites is the “coach,” while the
dominanttraitintheturbulentsitesisthe“changecatalyst.”Fourth,causalsystems
diagramsrelated to process mastery and profitability distilled from the interviews
suggestanotherdeepdifferencebetweencoherentandturbulentsites:theturbulent
sites are still fighting for stability in their context, specifically in their assigned
productportfoliosandthecomplexityofthese,whilethecoherentsitescanfocuson
workforceskills,processknow-howleadingtoprocessmastery,andprofitability.
In sum, the results of this book paint a more complex, and thus realistic and
relevant, picture of the required breadth of strategy cascading and of its power if
it is done effectively. The results are certainly discussed in the companythat was
studiedandtheywillalsohaveanimpactontheacademiccommunity.
Vallendar,Germany ArndHuchzermeier
Cambridge,UK ChristophH.Loch
Acknowledgements
This book on strategy deploymentin business units constitutes my doctoral book
undertakenattheWHU–OttoBeisheimSchoolofManagementintheDepartment
ofProductionManagement,whichischairedbyProfessorDr.ArndHuchzermeier.
I would like to thank the many people who made this book possible. First
of all, I am grateful to my book advisor Professor Dr. Arnd Huchzermeier and
to my co-advisor Professor Dr. Christoph H. Loch. I am greatly indebted to
ArndHuchzermeierforhisprofessionalsupport,competentadvice,andthoughtful
guidancethroughouttheresearchbook.
IamespeciallythankfulalsotoChristophLochforhisfruitfulideasconcerning
this research book, which he was willing to support at any time with helpful
commentsand discussions overnew perspectives.My thanksgo also to Professor
Dr.FabianJ.Sting,whospenthoursgivingmeadvicethroughoutthisbook’smany
phases.Furthermore,IwishtothankWolf-PeterKolb,whoneverfailedtobeagood
listenerandwhomotivatedmeonseveraloccasionsduringthisresearch.Mydeep
thanksgo also to Franz-JosefKlegraf,who supportedthis bookfrom the industry
pointofviewandtherebymadeitpossible.Itisonlythroughhiseffortsthatitwas
possible for the case interviews and leadership questionnaire to be administered
acrossthevariouscountriesinwhichthecompanieswerelocated.
I givemanythanksto mysister andmyparents.Myparents,HorstandAnette,
mademyeducationpossibleandguidedmethrougheveryhighandlow.Mysister
Sandrawasalwaysagoodfriendtome.Finally,IthankmybelovedwifeClaudia,
who sacrificed countless hourswaiting for me to finish this book.I wish to thank
herfromthebottomofmyheart.
Paderborn,Germany MaikSchlickel
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