Module -5 Strategic Implementation

Short Term Objectives

Measurable outcomes achievable or intended to

be achieved in one year or less .

 Short Term objectives help implement strategy in at

least three ways : STO operationalise long term objectives Discussion about and agreement on STO help raise issues , potential conflicts within an organization that usually require coordination. STO help by identifying measurable outcomes of action plans or functional activities which can be used to make feedback,correcton and evaluation more relevant .

Qualities Of Short Term Objectives

Measurable Measuring What ,when and how ?

Priorities Linked to Long Term Objectives

Functional Tactics
Detailed statements of the means or activities

that will be used by a company to achieve short term objectives and establish competitive advantage .

Difference Between Business Strategies and Functional Tactics

Time Horizon-Functional tactics identify activities

to be undertaken now or in the immediate future . Business strategies focus on the firms posture three to five years out. Specificity-Functional stratgies are more specific than business stratgeies . Business strategies provide general direction . Participants who develop them Business strategy is the responsibilty of the General manager wheras the subordinates manage the functional tactics .

Policies
Broad ,precedent setting decisions that guide or

substitute for repetitive or time sensitive managerial decision making .

Policies creating empowerment How ?

Policies establish indirect control over

independent action Policies promote uniform handling of similar activities . Policies ensure quick decisions by standardizing answers Policies reduce uncertainty in repetitive and day to day decision making Policies offer predetermined answers to routine problems

Types of executive bonus compensation plans

Stock Option Grants _ the right or option to

purchase stock at a fixed price at some future date . Restricted Stock Option- stock given to an employee who is prohibited or restricted from selling the stock for a certain time period and not at all if they leave the company before that time period . Golden handcuffs A form of executive compensation when compensation is deferred . Golden Parachute-A form of compensation designed to retain talented executives that calls for a substantial cash payment if the executive quits ,is fired or simply retires. Cash based on internal business performance using financial measures

MCKINSEYS 7S FRAMEWORK

THE HARD Ss
Strategy: the direction and scope of the company over the long term. Structure: the basic organization of the company, its departments, reporting lines, areas of expertise and responsibility (and how they inter-relate). Systems: formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call center systems, online systems, etc).

THE SOFT Ss
Skills: the capabilities and competencies that exist within the company. What it does best. Shared values: the values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior. Staff: the company's people resources and how the are developed, trained and motivated. Style: the leadership approach of top management and the company's overall operating approach.

Example
'The "famous" Johnson and Johnson Tylenol case is

an example where a credo helped provide guidelines for practical decision making. When tainted Tylenol was discovered, J&J's leaders could quickly make a decision to immediately, publicly, remove all Tylenol from the nation's shelves, because they were following the organisation's credo - which said that J and J's first responsibility was to provide quality products to doctors, nurses and patients. This dramatic action helped unsure a reinstatement of both public trust and employee pride in the integrity of the company, and led to higher long term sales.'[Senge, Ross, Smith, Roberts and Kleiner: 1994] Identifying corporate values is also the first essential step in defining the organisation's role in the larger community in which it functions.