Effective Strategy Execution

Firdaus Alamsjah, Ph.D.
Executive Dean
 Welcome to BBS Knowledge Sharing…, 
Firdaus Alamsjah (Feri)
• Education
– Degree
• Professional Experience • Ph.D.  and MSIE in Industrial Engineering 
– Executive Dean, BINUS Business School (Houston, USA)
– Managing Partner, BINUS Consulting • Insinyur in Mechanical Engineering (ITB, 
Indonesia)
– Director, BiNus International
– Non Degree
– Faculty Members at IPMI, UI, Unud 
• Certified Strategy Execution Professional –
– Teaching, facilitating, and consulting in  GML & QPR
Operations Management for more than 
15 yrs to universities and corporations • Implementing Strategy ‐ The Wharton 
School
– Industrial Analyst at the Presidential 
Office and BPPT • Indonesia Executive Program ‐ GE 
Management Development Program 
– Exxon Natuna Ltd (Crotonville, USA)
• Project Management ‐ Sundridge 
• Professional Memberships Management Development Program 
– Indonesian Production and Operations  (London, UK)
Management Society (IPOMS) • Research Interests: Strategy Execution, Supply 
– APICS Chain Management, and Business Process 
– Alpha Pi Mu (Industrial Engineering  Improvement
Honor Society, USA) ‐ 2 ‐
• Hobby: Reading, Sports, Travel, and Music
The Importance of Integrating Strategy
Vision, Mission & Values

BUSINESS Business Objectives

LINK & ALIGN
STRATEGY

CUSTOMRES
Marketing Logis- Opera- Distri-
PPIC
& Sales tics tion bution

FUNCTIONAL
STRATEGY Human Resources
Finance
Information Technology

INDIVIDUAL  People
SCORECARD
click

‐ 3 ‐
 Major Obstacles in Implementing Strategy*
1. Poor or vague strategy 8. Lack of incentives or inappropriate  
2. Not having guidelines or a model to  incentives to support execution 
guide strategy execution efforts objectives
3. Insufficient financial resources to  9. Poor or inadequate information 
execute the strategy sharing between individual or 
4. Trying to execute a strategy that  business units responsible for 
conflicts with the existing power  strategy execution
structure 10. Unclear communication of 
5. Inability to generate “buy‐in” on  responsibility and/or accountability 
critical steps or actions for execution decisions or actions
6. Lack of upper management support  11. Lack of understanding of the role of 
of strategy execution organizational structure an design in 
the execution process
7. Lack of feelings of “ownership” of a 
strategy or execution plans among  12. Inability to manage change effectively 
key employees or to overcome internal resistance to 
change

*Source: Hrebiniak (2005), Making Strategy Work, Wharton

School Publishing
Top 5 Killers in Implementing Strategy*
11 Unclear communication of responsibility and/or
accountability for execution decisions or actions

22 Poor or inadequate information sharing between individual

or business units responsible for strategy execution

33 Poor or vague strategy

44 Inability to manage change effectively or to overcome

internal resistance to change

55 Lack of feelings of “ownership” of a strategy or execution

plans among key employees
*Source: Alamsjah (2007), Survey on Strategy Execution ‐ 5 ‐
 Indonesian vs. American Managers
Major Obstacles in Implementing Strategy BBS WBS GR
Unclear communication on accountability/ responsibility 1 4 5
Poor information sharing 2 2 4
Poor or vague strategy 3 5 2
Inability to manage change 4 1 1
Lack of ownership on execution plan 5 5 8
Insufficient financial resources to execute the strategy 12 11 12

Similar but in a different order…
Similar but in a different order…
* Based on surveys by BBS, WBS, & GR)
** BBS = BINUS Business School, WBS = Wharton Business School, GR =
Gartner Research ‐ 6 ‐
Covey Model
Four “Disciplines” in Execution (4DX)

‐ 7 ‐
 FRAMEWORK IN EXECUTING STRATEGY (STRATEX)*
RESOURCES
RESOURCES

8.
8. People
People
9.
9. Allocation of
Allocation of resources
resources

SYSTEMATIC
SYSTEMATIC EXECUTION
EXECUTION
INPUT
INPUT PROCESS
PROCESS OUTPUT
OUTPUT 12.
12. Knowledge
Knowledge
4. Management
Management
2.Uncertain
2.Uncertain Environment
Environment 4. Managing
Managing Integration
Integration 1.
1. Successful
Successful Strategy
Strategy
5. on
on Execution
Execution
3.Clear
3.Clear Strategy
Strategy 5. Managing
Managing Culture
Culture Execution
Execution
6.
6. Managing
Managing Change
Change
7.
7. Managing
Managing Performance
Performance

ENABLER:
ENABLER:
*Source: Alamsjah (2010), to
appear in Text and Cases in 10.
10. Organization
Organization Structure
Structure
Business, Salemba Empat. 11.
11. CEO
CEO && Leadership
Leadership
‐ 8 ‐
 Understanding Your Business Using 
Balanced Scorecard (BSC)*
• BSC is a performance management tool to 
assist a company in translating its vision and 
mission into strategic actions

• It is done by incorporating and connecting 
financial and non‐financial indicators and 
using cause‐and‐effect relationships
*) Source: Kaplan and Norton, “The Strategy-Focused
Organization, HBS Press, 2001 9
Linking Strategy to Operations*
1 2
Develop
Developthe
theStrategy
Strategy Plan
Planthe theStrategy
Strategy
• •Strategy
Strategymap/themes
map/themes
• •Mission,
Mission,Vision,
Vision,Values,
Values, • •Measures/targets
Measures/targets
• •Strategic analysis
Strategic analysis • •Initiative
Initiativeportfolio
portfolio
• •Strategy
Strategyformulation
formulation • •Funding
Funding

3
6 Strategic
Test StrategicPlan
Plan Align
Alignthe
theOrganization
Organization
Test&&Adapt
Adapt • •Strategy
StrategyMap
Map • •Business
• •Profitability • •Balanced Scorecard
Balanced Scorecard Businessunits
units
Profitabilityanalysis
analysis • •STRATEX • •Support units
Support units
• •Strategy correlations
Strategy correlations STRATEX • •Employees
Employees
• •Emerging
Emergingstrategies
strategies
Operating
OperatingPlanPlan
• •Dashboards
Dashboards
4
5
• •Resource
Resourcerequirements
requirements Plan
PlanOperations
Operations
Monitor
Monitorand
andLearn
Learn • •Budgets
Budgets • •Key
Keyprocess
process
improvement
• •Strategy improvement
Strategyreviews
reviews • •Sales
• •Operations Salesplanning
planning
Operationsreviews
reviews • Resource capacity plan
• Resource capacity plan
• •Budgeting
Budgeting
*) Source: Kaplan & Norton’s ‐ 10 ‐
Execution Premium Framework
Four Perspectives in BSC

11
Strategy Map

• It is a logical and comprehensive architecture 
for describing a strategy

• A map that describes how value creation is 
created from intangible assets (learning and 
growth and internal process) into tangible 
assets (financial, customer) outcomes using 
cause‐and‐effect relationships
12
 Exercise: Strategy Map
• Develop a Strategy Map of a Restaurant based 
on these “Strategic Objectives”
Reduce
Customer Cost
Increase
Improve Revenue
Learn &  Customer
Growth Loyalty Provide Fast
Internal  Create Service
Process Conducive
Improve Staff Environment
Finance Competency
Provide
Purchase Quality Food
Increase Cooking
Do SOP Equipment
Profit
consistently
13
Key Takeaways
• List three important lessons that you have learned 
from this session

• #1

• #2

• #3

‐14 ‐
Coffee Break

‐ 15 ‐