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Strategic Management Dynamics - Online Course
As an executive in a business or not-for-profit organisation you will be aware of the
value of clear strategic thinking. What you may not be aware of is the Strategy Dynamics
approach developed by Kim Warren at London Business School - a new approach that looks at
how an organisations resources accumulate and deplete, are developed into a strategic architecture
and impact on organisational performance.
Previously only available to MBA students at a leading business school, an untutored version
of this course is now available online.
Registered academics qualify for special pricing.
If you hold a faculty position at a university and wish to apply for teacher registration
see registration links here
"The need for analysis of the dynamics of competitive strategy has long been recognized,
but few have dared to pick up the gauntlet. I’m delighted to see Kim Warren tackling this
challenging subject with precision, and insight. Those seeking to move beyond the conventional
wisdom and explore the state of the art in the theory and practice of strategic management will be
well-served by Warren’s efforts."
Dr. Michael E. Raynor
Distinguished Research Fellow, Deloitte Consulting LLP
The course is organised in 10 classes that follow the structure of the book:
1: Performance Through Time
Chapter 1 explains why the over-riding imperative for Strategy is to help management
improve performance over time, an issue just as vital to organizations in the voluntary
and public service sectors as to commercial businesses
In the class segments (total 37 minutes) Kim uses the example of Amazon.com to illustrate
3 key questions that management needs to address in strategy planning. He goes on to look
at the distinction between profitability and growth, issues about setting objectives and
finishes off with thoughts about how the approach can be used in public services,
voluntary and not for profit organisations.
2: Resources Drive Performance
This chapter establishes the importance of rigorous causal analysis and how this
exposes fundamental relationships between resources and demand, revenues, costs and profits.
Also shows equivalent principles in non-commercial settings.
In the class segments (40 minutes) Kim develops the concepts of strategic plans and strategic issues.
Examples are drawn from the budget airline industry and a law firm. He then considers standard types of
resource in a selection of industries before looking at a case in the charitable sector.
The class is supplemented by two exercises looking at the performance of the budget
airline "Ryanair". The mystrategy exercises are described in detail in accompanying PDF
files and also demonstrated in Flash videos (An additional 19 minutes)
I guess I told you this before, but this course has provided me with a VERY interesting and new
way to approach SD. Before taking it I was afraid about how I will take advantage of a Strategy
course having taken SD modeling and Strategy (at the MBA course). However, you opened a
new window that hopefully will help me in future consulting engagements. So thank you!
Diego Socolovsky, Uruguay
3: Resource Accumulation
Chapter 3 deals with the accumulation and depletion of resources (fill and drain, over time) and the
deeply fundamental role of this principle as core theory underlying organizations'
performance over time.
In the class segments (28 minutes) Kim illustrates in more detail the impact of resource
accumulation and depletion on performance and considers the drivers of reource flows. He then
goes on to look at issues of management control and external factors.
The class is supplemented by two exercises that explore customer flow issue and staff flows.
The mystrategy exercises are described in detail in accompanying PDF files and also demonstrated
in Flash videos (18 minutes)
4: The strategic architecture
This Chapter looks at complementary resources and goes on to develop the 'strategic architecture'
diagrams that form the basis for planning and analysis. It shows how combining three basic causal
principles enables the laying out of an integrated core business system for any kind of organisation.
Kim illustrates the strategic architecture by developing the airlines example introduced in earlier
classes. In segment 4.1 he introduces the Bass Diffusion model and demonstrates different types of
relationships that are key in developing a rigorous causal architecture.
5: Resource attributes
This chapter explains how the varying quality of resources – larger vs. smaller customers,
more vs less appealing products etc – affects how an organization performs over time.
In the class segments (35 mins) Kim illustrates the attributes of customers and looks at
3 ways to change the quality of a resource. He demonstrates 3 important issues about
customer size and a useful approach to customer profiling.
6: Resource Development
This chapter how resources often develop through stages, at each
of which they contribute differently to performance.
In the class segments (25 min) Kim explains the customer choice pipeline, a key framework
in resource development, and goes through some fundamental principles of how it works
"The choice pipeline is a particularly useful concept and helped me develop a more powerful customer
acqusition strategy"
D. Jones
Business owner
7: Rivalry
In the longest class, 54 minutes, Kim explains that just three rivalry mechanisms
cover all competitive interactions between firms.
In the case of customers these are
- winning new customers
- stealing customers from rivals
- obtaining a larger share of business from shared customers
Organizations may also compete for other resources, such as employees or providers
of funds, making the mechanisms equally relevant to public services and voluntary groups
The class segments cover the 3 types of rivalry and go on
to look at competition and market development
8: Goals and Controls
Strategic decision making covers a wide range of isssues, the first question
in the life of an organization being whether or not to take part in the business
activity at all. Over the life of the organisation the questions change and Kim explores
the different stages and looks at policy to steer strategy.
In the class segments (30 mins) Kim carries on to talk about issues that arise when
there are conflicting objectives and when policies may interfere with each other.
9: Intangible resources
It is widely accepted that intangible or soft factors have a substantial impact on
organizational performance — a damaged reputation can destroy a business, strong staff
motivation can drive powerful growth, proprietary knowledge can give rise to
market-leading products, and so on.
In this class (41 mins) Kim deals with three major categories of intangibles and discusses
their impact on organisational performance
10: Capabilities
For long term viability, organisations need the capability to build and sustain
resources. Making use of capabilities to design and deliver strong strategic
performance faces the same difficulties as those encountered with intangible
resources; namely a terminology that is wide-ranging, inconsistent and abstract.
In this class Kim defines capabilities, and clarifies how they differ from resources. He
then explores how they can be built and contribute to performance.
This online course is a unique and inexpensive option to gain
knowledge at the forefront of strategy.
"Strategic thinking helps us take positions in a world that is confusing and uncertain.
You can't get rid of ambiguity and uncertainty - they are the flipside of opportunity. If you want
certainty and clarity, wait for others to take a position and see how they do. Then you'll know what
works, but it will be too late to profit from the knowledge.
... the iPod came from knowledge and resources being adroitly combined. There were lots of people who
knew the music industry and lots who knew about hardware and lots who knew about the web. But to
quickly and skilfully access those three pools of resources and knowledge was an impressive feat.
The Quarterly: so how do we know which changes are important in which resources to combine?
Richard Rumelt: That's a very tough question. It is the key is you the next frontier and it is
underresearched, underwritten about, and underunderstood. I call it strategy dynamics.
Most of the strategy concepts in use today are static. They explain stability and sustainability
of competitive advantage .... but if the terrain never changed that would be the end of the story ....
strategy dynamics that is how these changes would shift each dimension of an industry.....
Richard Rumelt
Extract from interview in McKinsey Quarterly, August 2007.
Additional value
Software licences included in your subscription
For a limited time we are including licences for the following software as part of your subscription.
Licences will be issued for the same period for which you purchase a subscrption. For a lifetime subscription
this represents £250 worth of software included.
Fast track through the course - Access class segments, handouts and exercises in addition to worksheets
to apply to your own situation.
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Take more time to apply the ideas - Access class segments, handouts and exercises in addition to worksheets
to apply to your own situation
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Benefit from new materials through next year. Access class segments, handouts and
exercises in addition to worksheets to apply to your own situation.
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Lifetime access to the website. Benefit from new materials as they become
available - many more items are in development.
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Sign Up FAQs
- Do you have a free trial?
- Not of the SMD course but you can view some materials which will give a fair idea of the
standard. See the introductory section of the course. There is also a case study
using the aproach included in the Forrester Prize presentation materials.
- What does "Lifetime" mean?
- The lifetime of our site - we have been in business since 1996 and have just renewed
our domain name for 20 years - and we have an active program for developing new materials.
- What software is included?
- We currently include mystrategy, Professional Services Microworld and LoFare
Airlnes Microworld licences with licence terms for the same duration
as the course option chosen.
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