Performing the strategic analysis. The ISC process begins with a diagnosis of the
organization’s readiness for change and its current strategy and organization design
(S1/O1). The most important indicator of readiness is senior management’s willingness
and ability to carry out strategic change. Greiner and Schein suggest that the
two key dimensions in this analysis are the leader’s willingness and commitment
to change and the senior team’s willingness and ability to follow the leader’s initiative.
31 Organizations whose leaders are not willing to lead and whose senior managers
are not willing and able to support the new strategic direction when necessary
should consider team-building processes to ensure their commitment.
The second stage in strategic analysis is understanding the current strategy and
organization design. The process begins with an examination of the organization’s
industry as well as its current financial performance and effectiveness. This information
provides the necessary context to assess the current strategic orientation’s
viability. Porter’s model of industry attractiveness32 and the environmental
framework introduced in Chapter 5 are the two most relevant models for analyzing
the environment.