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Figure 10.1 Components of the Strategy Execution Process Devising an Action Agenda to
Implement and Execute a Strategy
The place to start is with a probing assessment of what
the organization must do differently and better to
execute the strategy with a high degree of proficiency
and meet or beat performance targets
Every manger must ask the question:
What needs to be done in my area of responsibility to implement
our part of the companys chosen strategy and what should I do
to get these things accomplished in a manner that enables good
strategy execution and produces the desired results?
results?
It is then incumbent on every manager to determine
changes..
precisely how to make the necessary internal changes
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The two best signs of good strategy Proficient strategy execution depends heavily on three
types of organization
organization--building actions:
execution are whether a company is:
organizationPutting together a strong
Staffing the organization
Meeting or beating its performance targets management team, and recruiting and retaining employees with
the needed experience, technical skills, and intellectual capital
Performing value chain activities in Developing and strengthening core competencies and
a manner conducive to companywide capabilitiesBuilding proficiencies in performing
competitive capabilities
operating excellence strategy--critical value chain activities and updating them to match
strategy
changing market conditions and customer expectations
When strategies fail, it is often
Structuring the organization and work effort effortOrganizing
because of poor execution: certain things value chain activities and business processes and deciding how
important to successful strategy execution much decision-
decision-making authority to push down to lower-
lower-level
slip through the cracks. managers and frontline employees
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It is very difficult for a firm to competently execute Spending considerable effort in screening and evaluating
job applicants, selecting only those with:
its strategy and achieve operating excellence
Suitable skill sets
without recruiting and retaining a large band of very Energy, initiative, and judgment
capable, actively engaged, high- high-achieving Aptitudes for learning and adaptability
employees. to the firms work environment and culture
Putting employees through training programs
The best firms strive hard to make their entire that continue throughout their careers
workforce (both managers and rank
rank--and-
and-file Providing promising employees with challenging,
interesting, and skill-
skill-stretching assignments
employees) a genuine resource strength.
strength.
Rotating people through jobs that not only
have great content but also span functional
and geographic boundaries
Practices the Best Companies Use to Attract Developing and Strengthening Core
and Retain Talented Employees (contd) Competencies and Competitive Capabilities
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Figure 10.3 Structuring the Work Effort to Promote Deciding Which Value Chain Activities to
Successful Strategy Execution
Perform Internally and Which to Outsource
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The primary organizational building blocks within a business are usually Firms must decide:
Traditional functional departments
How much authority to delegate
Process departments (where people in a single work unit have responsibility for to the managers of each organization unit
all the aspects of a certain process like supply chain management, new product
development, or customer service) How much decision-
decision-making latitude to give
In enterprises with operations in various countries around the world (or individual employees in performing their jobs
with geographically scattered organizational units within a country), the
basic building blocks may also include geographic organizational units
The two extremes are to:
firms, the major building blocks are divisional
In vertically integrated firms, Centralize decision making at the top
units performing one or more of the major processing steps along the (the CEO and a few close lieutenants)
value chain (raw materials production, components manufacture, Decentralize decision making by giving managers
assembly, wholesale distribution, retail store operations) and employees considerable decision-
decision-making latitude
The typical building blocks of a diversified firm are its individual in their areas of responsibility
businesses
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