Implementing strategy


Published on

  • Be the first to comment

  • Be the first to like this

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