Implementing strategy

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Implementing strategy

  1. 1. ImplementingStrategyA Managerial Exercise
  2. 2. Anyone can craft strategy butit takes real managerial skill toimplement it
  3. 3. Eight Actions of ImplementingStrategy Build an Organization Marshal resources Institute policies Pursue best practices and continuous improvement Information and operating systems Tying rewards to strategy and goals Shape corporate culture Exert leadership
  4. 4. Building a Capableorganization Staffing Build core competencies Develop an appropriate organizational structure
  5. 5. Building a Capableorganization Staffing  Find the right people  Background, experience, values, personality and management style  Build core competencies  Findout what competencies ae needed  Develop the ability to do something  Hone skills with experience
  6. 6. Building a Capableorganization Build appropriate structure  Structure must support strategy  What value chain activities should be performed inside the company and which outside  Structure internal organization around core value chain activities.- what we do well  How much centralization and decentralization  Don’t build walls  Link to suppliers and strategic allies
  7. 7. Marshal Resources Marshal Resources  Move resources to areas where the strategy requires  Insure ther are enough resources to fund new initiatives  Reduce resources where not needed
  8. 8. Policies and procedures Provides top down guidance about how certain things need to be done  Helps align the action and behavior of company personel with the requirements for good strategy execution  Places limits on independent action and helps overcome resistance to change
  9. 9. Policies and procedures Helps enforce consistency in how strategy-critical activities are performed in geographically scattered organization units. Promotes the creation of a work climate that facilitates good strategy execution
  10. 10. Best Practices and ContinuousImprovement Bench Marking  Find the best approach a particular task  Collaborative effort to share information  Reverse engineering  Modify best practice tofit the company’s situation  Continue to modify as situation changes
  11. 11. Best Practices and ContinuousImprovement Reengineering  Large scale changes in process, organization or structure when current structure is not acceptable  A large, one time move towards a new plan. Total Quality Management  Continuous examination of processes, organization and structure to get imcrementally better.  Bottom up structure
  12. 12. Information and ControlSystems Operations – Control of equipment Information – On line data systems Communications – email, internet, company intranet Sales and Marketing – e- commerce
  13. 13. Reward Systems Reward the right things Monetary rewards Non monetary rewards Reward employee for results not activities
  14. 14. Guideline for a good executivecompensation Performance payoff must be a big part of compensation Everyone should participate Be fair and ethical in administering rewards Link reward to strategy implementation Executive must be able to influence his performance Keep time between accomplishment and reward short Mix non monetary and monetary rewards Forget about rewarding activities instead of results

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