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Transforming Corner Office
Strategy into Frontline action
Why and how come some businesses
in volatile business environment
flourish and why others fail?
Why do businesses fail?
• They fail because they are not effectively
communicating with their employees.
• They are not following strategic principle.
• The strategy should guide a company’s
allocation of scarce resources, time, money
and labor and brand.
• Strategic principle is effective principle which
defines what you need to do.
• It should be same for everyone, employee,
Employers, managers and ground force.
Problems with the Strategy
• Well yes there can be problems with it.
• If everyone is a decision maker, then there will
be no uniformity in the company and this
needs to be taken care of.
Defining attributes of strategic
• Trade-offs between competing resource
• Testing strategic soundness
• Setting clear boundaries within which
employees should operate.
Strategic principles in Action
• Without action, the plans are useless.
• Company needs 80 to 100 ratio.
• 80% strategy and 100% implementation
• Forcing trade offs at south west airlines.
Forcing trade off at South West airlines
• It is one of the world’s greatest success story
in aviation industry.
• This airline hasn’t lost any money for past 25
• Stock price rose up to 21,000% between 1972
• Careful network design
• Service offering
• Route selection
• Cabin design
• Ticketing procedure
The trade-offs required by strategic planning were
Testing Action at AOL
• AOL, one of the most biggest media giant in
• Employees 5600 people
• Operating since 34 years
• Share worth 50
• Created platform for do it yourself investors.
• Empowering employees
• Simple plans
Experimenting within boundaries
• Vanguard group
• $65 Billion assets
• Empowered employees to decide what’s good
for the company.
• Communicating with customers
• Established online trading accounts
• No Strategy is eternal.
• You need to change by time.
• Improving technology
• Embracing Change