More Related Content Similar to Strategy Execution (20) More from Teaching Excellence (20) Strategy Execution2. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
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3. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
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3
5. Implementation is concerned with the efforts of…
…translating
strategies into
actions on a
daily basis.
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5
7. Walking those plans
has been 'unexpectedly'
difficult for some firms.
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9. GM woes in the
years leading up to its
2009 bankruptcy.
GM’s Former CEO Rick Wagoner
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10. After failing to make a
profit since it entered the
US grocery market in
2007, Tesco is exiting.
Picture source: gourmetretailer.com
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10
11. Amongst its
woes, is Yahoo!’s
inability to execute.
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12. It remains to be seen if
Merissa Mayer, former Google
exec, now Yahoo CEO can
turnaround the company.
Picture: fastcompany.com
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12
13. …the digital camera inventor filed
for bankruptcy in January 2012, after losing
its competitiveness to rivals.
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14. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
© 2014 Berlin Asong. All rights reserved.
14
21. Strategy
Strategy-Execution (SE)
A poorly thoughtA poorly executed out strategy affects
strategy affects the the performance of
performance of strategy.
SE.
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22. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
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22
24. The failure of a
strategy could be traced
to its execution.
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25. Did you notice “failed
strategy” & “poorly executed
strategy” share a common feature?
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27. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
© 2014 Berlin Asong. All rights reserved.
27
30. No matter how great your
idea is, if you can’t execute it,
you’re not different from
someone without an idea.
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34. 3
Resources are
wasted when firms
fail to execute or
execute poorly.
Mission
Vision
Goals | Objectives
Strategic Analysis
Strategic Choices
Strategy Implementation
Strategy Evaluation
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36. Take a look at all the
CEOs (FTSE 100 & S&P 500) who’ve lost the top
job, from 2008–2012. Reason:
strategy execution failure.
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37. Nam Yong (LG)
Chris DeWolfe (MySpace)
Rick Wagoner (GM)
Jerry Y (Y
ang ahoo!)
Carol Bartz (Y
ahoo!)
Olli-Pekka Kallasvuo (Nokia)
Leo Apotheker (HP)
Jim Balsillie and Mike Lazardis (RIM)
Fred Hassan (Schering Plough)
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Etc.
37
38. 5
People come to work
to get the job done.
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That is, to execute on the firm’s strategy. 38
40. 60%
In fact, it’s reported that…
of strategy-executions fail annually.
Kaplan, R. S. and Norton, D. P. (2006), "Creating the Office of Strategy Management”.
[Online] Available from http://hbswk.hbs.edu/item/5420.html [accessed 22 February 2009]
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41. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
© 2014 Berlin Asong. All rights reserved.
41
43. © 2014 Berlin Asong. All rights reserved.
HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business Review 88, no. 7/8: 74-75.
Business Source Corporate, EBSCOhost
43
45. Strategy is out of sync
with changing market’s needs
and expectations.
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46. …by the time Kodak
realised digital camera,
especially in the consumer electronics space,
was the future of digital
photography, it was too late.
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46
47. Tata Nano launched in 2009 has been dubbed a flop.
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48. India car boss Ratan Tata
admits Tata Nano “mistakes”.
Source: BBC (January 2012)
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49. © 2014 Berlin Asong. All rights reserved.
Fault the
strategymakers.
49
51. …a bid to challenge
Apple’s iPad, and fend-off
threat to HP’s PC sales.
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52. 18 August 2011—
HP’s Apotheker discontinued
TouchPad after 2 months in market.
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Former HP CEO Leo Apotheker
52
53. Strategy-makers spend more
time in designing the content of
strategies than thinking how to
implement them, successfully.
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54. Why managers are
good at formulating
strategies but poor at
executing them?
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56. 1
Top executives mistakenly
think strategy execution is meant
for those at the lower end of the
organisational chart.
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57. 2
Executives are less skilled
and lessknowledgeable in the
art& scienceof strategy execution.
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58. Countless strategies
are designed without taking
into account the organisation’s
ability to execute them.
David Hilliard, “Strategy Execution – Acting on what really matters”.
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59. Managers are
trained to plan,
not execute.
Hrebiniak, (2004) “Strategy Execution is the Key”
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59
60. …this thinking is promoted
by business educators.
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61. 3
Purpose & benefits of strategic
plans are not (or poorly) conveyed to
employees, teams and frontline staff.
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62. The chances are, 40% of your
workforce can’t articulate the
details of the firm’s strategy.
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63. Employee resistance may stem
from lack of understanding caused by
failure of top management to articulate
the merits of strategic plans.
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67. © 2014 Berlin Asong. All rights reserved.
Fault
Structural
Factors.
67
68. Not assigning clear
responsibilities and
accountabilities.
Who is responsible for What? Are they equipped enough to carry out the what?
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69. Individuals | T
eams | Departments | Suppliers
T | Goals
asks
Who is responsible for What? Are they equipped enough to carry out the what?
Skills | Knowledge | Information |
authority | equipment | support |
motivation
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69
70. Inter & intra-divisional tensions
a major contributor to its crippling
performance in the 70s & 80s.
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76. HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business
Review 88, no. 7/8: 74-75. Business Source Corporate, EBSCOhost
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77. The chances are, 40% of your
workforce can’t articulate the
details of the firm’s strategy.
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77
80. Implementation of a strategic plans introduces…
CHANGE
…which sometimes exposes the psychological
,
insecurity of employees. For example,…
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81. Would I lose
my job? Would my
duties change?
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82. Would I lose my
existing privileges?
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84. Would I have to
learn new skills?
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86. 5
Internal and external stakeholders
challenge or are bent on thwarting
the execution of marketing plans.
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87. © 2014 Berlin Asong. All rights reserved.
Fault
process
factors.
87
90. 3
Source: http://jagoadvisor.com
Bold but unrealistic plans in terms of goals, resources
needed, timescale of achievement, and responsibilities
assigned to individuals, teams and managers.
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93. "People do not do
what you expect but
what you inspect".
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94. 20 minutes
Excellent delivery of customer services is a
cornerstone of BT’s current marketing strategy.
What mechanism or measures
would you put in place to ensure and
monitor excellent service delivery?
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98. Lack of sufficient funding
Source: www.romania-insider.com
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100. Relationship breakdown with business partners
(manufacturer, resource/service provider, distributor,
advertising agency, regulator, community, etc.).
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102. 1
External factors beyond the control of
marketing planners and implementers.
PESTEL forces.
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104. © 2014 Berlin Asong. All rights reserved.
Failure
to Learn.
104
105. Failure to learn from
past execution mistakes
and challenges.
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107. Learning Objectives
I.
What is strategy-execution?
i. Understanding the distinction between strategy-execution and strategy.
ii. Understanding the distinction between strategy-execution failure and strategy failure.
II. Why strategy execution is a critical activity of organisational success?
III. What are the causes of strategy-execution failures?
IV. How can the quality of strategy-executions be improved?
© 2014 Berlin Asong. All rights reserved.
107
109. How can we
improve the quality of
strategy execution?
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110. There are many tools for improving the
quality of strategy execution, but the
McKinsey 7s trumps other models.
…diagnostic value; wholly integrative parts;
mirrors the causes of strategy-execution failures.
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114. Diagnostic Questions
What’s the mission of the organisation?
What are the values of the organisation?
What values does the organisation uphold?
Is the organisation living up to its values?
Are those values constraining or enabling the effectiveness of the 6S?
What are the medium & long-term goals of the organisation?
What are the effects of its goals on staff morale & well-being?
Are the organisation’s values in sync with customers & the larger society?
Are employees, shareholders, divisional units, etc. aligned with its goals?
What do people (customers, shareholders, employees, management, suppliers, etc.) say about the
organisation?
Is the organisation meeting its goals?
Etc.
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116. Diagnostic Questions
How does the organisation compete?
What’s the organisation’s competitive priorities?
What is the rational behind the strategy?
Does the strategy fit the organisation’s operating environment?
How does the strategy fare with current and future competitive forces?
Are crucial processes and resources aligned with the strategy?
What are its medium-term & long-term goals?
What strategic trade-offs has the firm made?
What position does the organisation occupy in its industry?
Is the strategy working?
Etc.
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117. Structure
The way work is
divided; authority and
responsibility are defined.
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118. Breakdown strategy-execution into specific
tasks or jobs attached with SMART goals.
Chunks of goals
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Overall Strategy
118
119. Diagnostic Questions
How does the organisation organise itself (functional, geographic, divisional, product, hybrid)?
What’s the rational for such structures?
How’s the organisation structure evolved over the years? And why?
How is power distributed in the organisation?
Which person or group wields the stronger influence? And why?
Is power centralised or decentralised?
Is the management flexible or rigid?
Does the structure enable or hinder the performance of employees?
How quick or slow does the organisation respond to outside changes?
Are roles and responsibilities clearly defined?
Etc.
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120. Eliminate barriers to knowledge
sharing among employees,
managers and departments.
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122. Diagnostic Questions
Which processes are crucial to the organisation’s ability to compete?
Which processes are crucial to the organisation’s ability to deliver value for customers?
Does the organisation possess the processes vital for its survival?
How does the organisation track the performance of these processes?
How effective are these processes?
Etc.
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124. Diagnostic Questions
Has the organisation got the right quality & quantity of talents?
Has it got the right leadership?
Has it got the right quality and quantity of leaders?
Are staff well trained & motivated?
Is the organisation losing talents to rival firms?
Is the organisation extracting the right level of productivity from staff?
Is the HRM aligned with goals & strategy of the organisation?
Etc.
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124
129. Planners must articulate
purpose of strategic plans; listen
to divergent views; listen
to employees’ concerns.
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129
130. Top managers must
set an enabling culture that
encourages, reinforces and
rewards collaboration.
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130
131. Leverage the benefits of
information communication
technologies to speed
Knowledge sharing.
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132. Planners must equip, support and motivate
employees to produce desirable behaviours
necessary for successful implementation.
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133. Individuals | T
eams | Departments | Suppliers
T | Goals
asks
Who is responsible for What? Are they equipped enough to carry out the what?
Skills | Knowledge | Information |
authority | equipment | support |
motivation
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136. Diagnostic Questions
What’s the dominant culture inside?
What values does the organisation uphold?
How has the organisation inherited its current values?
What do people like and dislike about the organisation? And why?
Are the organisation’s values in sync with customers & the larger society?
What’s the prevailing management/leadership style in the organisation?
Is the management/leadership style enabling or constraining employee performance?
Do employees trust the integrity of the board & top management?
What do people inside & outside say about the management/leadership?
What do people inside & outside say about the organisation?
Etc.
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142. The 7 elements
combined to create
a network of capabilities
vital for successful
strategy execution.
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143. Diagnostic Questions
What’s the organisation good at?
What are the relative strengths of the organisation?
What are the relative weaknesses of the organisation?
Whatresources/competencesareresponsibletotheorganisation’scurrentperformance?
What assets have been (& will be) crucial to the organisation’s survival?
Has the organisation got the capabilities to survive today & tomorrow?
What do stakeholders like about the organisation?
Etc.
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