2. PROMOTING GOOD STRATEGY
EXECUTION
Allocating resources to the drive for good strategy
execution.
Instituting policies and procedures that facilitate strategy
execution.
Using process management tools to drive continuous
improvement in how value chain activities are performed.
Installing information and operating systems that enable
personnel to carry out their strategic roles proficiently.
Using rewards and incentives to promote better strategy
execution and the achievement of strategic and financial
targets.
11–2
3. ALLOCATING RESOURCES TO THE
STRATEGY EXECUTION EFFORT
Possible Adverse Resource Allocation
Outcomes:
●
Too little funding that slows progress and impedes
the efforts of organizational units to execute their
pieces of the strategic plan proficiently.
●
Too much funding that wastes organizational
resources and reduces financial performance.
11–3
4. STRATEGY-DRIVEN BUDGETING:
ALLOCATING RESOURCES
Screen resource requests carefully.
Approve only those that contribute to
strategy execution.
Provide the level of resources necessary
for the success of strategic initiatives.
Shift resources to higher-priority activities
where new execution initiatives are
needed.
11–4
5. INSTITUTING POLICIES AND
PROCEDURES THAT FACILITATE
STRATEGY EXECUTION
Policies and operating procedures facilitate
strategy execution by:
●
Providing top-down guidance regarding how things
need to be done.
●
Helping ensure consistency in how execution-critical
activities are performed.
●
Promoting the creation of a work climate that
facilitates good strategy execution.
11–5
6. INSTITUTING BEST PRACTICES AND
EMPLOYING PROCESS MANAGEMENT
TOOLS
Benchmarking
Best
Practices
Total Quality
Management
(TQM)
Managing for
Continuous
Improvement
Process
Reengineering
Six Sigma
Quality
Programs
11–6
7. REENGINEERING THE ORGANIZATION
Business Process Reengineering
●
Involves radically redesigning and streamlining work
effort, flows and processes to achieve dramatic
improvements in performance.
●
Uses cross-functional teams, cutting-edge
technology and information systems to reset and
refocus the organization’s strategy.
11–7
8. ACHIEVING CONTINUOUS
IMPROVEMENT
Total Quality Management (TQM )
●
Creating a total quality culture bent on continuously
improving the performance of every task and value
chain activity.
●
Is a long-term race without a finish in which success
comes slowly in small steps forward (kaizen).
11–8
9. A STATISTICAL APPROACH TO
ACHIEVING CONTINUOUS
IMPROVEMENT
Six Sigma Programs
●
Utilize statistical methods to improve quality by
reducing defects and variability in business
processes.
Six Sigma Principles
●
All work is a process.
●
All processes have variability.
●
All processes create data that explain variability.
11–9
10. THE DIFFERENCE BETWEEN BUSINESS
PROCESS REENGINEERING AND
CONTINUOUS IMPROVEMENT
Business
Process
Reengineering
Aims at one-time
quantum
improvement
Top-notch
Strategy
Execution and
Operating
Excellence
Continuous
Improvement
(TQM, Six Sigma)
Aims at ongoing
incremental
improvements
11–10
11. CAPTURING THE BENEFITS OF
INITIATIVES TO IMPROVE
OPERATIONS
Action Steps to Realize the Value of
TQM and Six Sigma Initiatives
Committing to
total quality and
continuous
improvement
Empowering all employees
to improve quality
Fostering qualitysupportive behaviors
Emphasizing the
necessity for improved
performance
Using online systems
to speed the adoption
of best practices
11–11
12. INSTITUTING ADEQUATE INFORMATION
SYSTEMS, PERFORMANCE TRACKING,
AND CONTROLS
Key Strategic Performance Indicators
Tracked by Information Systems
Customer data
Operations data
Financial performance
data
Employee data
Supplier/partner/
collaborative ally data
11–12
13. USING REWARDS AND INCENTIVES
TO PROMOTE BETTER STRATEGY
EXECUTION
Providing incentives and an engaging
in motivational practices that facilitate
good strategy execution.
Techniques for
winning
sustained, energetic
commitment of
employees to the
strategy execution
process
Striking the right balance between
rewards and punishment for individual
performance.
Linking employee rewards to
strategically relevant organizational
performance outcomes.
11–13
14. STRIKING THE RIGHT BALANCE
BETWEEN REWARDS AND
PUNISHMENT
Performance
Rewards
Commitment-generating
incentives and rewards
The firm’s motivational
approaches and reward
structure
Punishment
Adverse employment
consequences
11–14
15. LINKING REWARDS TO STRATEGICALLY
RELEVANT PERFORMANCE OUTCOMES
Focus on and reward results, not effort.
Create a results-oriented work environment that
focuses on what to achieve, not what to do.
Set strategically-relevant, specific, and
measurable stretch performance goals that are
difficult but achievable.
Link the performance goals of each individual in
an organizational unit to the unit’s goals.
Reward and recognize as success superior
performance in accomplishing the goals.
11–15
