This document discusses strategy evaluation and monitoring. It highlights the importance of strategy evaluation and monitoring, identifies who should be involved, and explains differences between cost-benefit analysis and return on investment. It also suggests proactive and reactive measures to cope with changing circumstances and shares tips on changing and implementing business strategy. The document contains several sections that discuss strategy execution at different organizational levels, evaluating company strategies, challenges of strategy execution, building an effective organization, and tips for successful strategy implementation.

1. Strategy
Evaluation & Monitoring
Day 4
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2. What were the most important
ideas/points discussed in Day 3?
Recap / Day 3

3. Day 4:
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Strategy Evaluation and Monitoring
 Highlighting the significance of strategy evaluation and monitoring.
 Identifying the parties that should be concerned in strategy evaluation and monitoring.
 Explaining the differences between cost‐benefits analysis and return on investment.
 Suggesting some proactive/reactive measures to cope with changing circumstances.
 Sharing some tips and advice on how to change and implement a business strategy.

4. “An organization’s capacity to execute its strategy
depends mainly on its ‘hard infrastructure’— its
organizational structure and systems—and on its
‘soft’ infrastructure—its culture and norms.”
Amar Bhide*
Quoting
*Quoted from the book “Strategy: Winning in the Market place”, 2nd Ed. Thompson, Gamble and Strickland.
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5. HOW will your company/organization
accomplish its long‐term plans and goals?
Some Commonly Asked Questions (1 of 2)
STRATEGY!
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6. HOW plans/goals/programs will be executed
in the companies/institutions/organizations?
STRATEGY!
Some Commonly Asked Questions (2 of 2)
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7. 1.What’s Your Business Strategy? (1 of 2)
Strategies are simply set of actions that enable a company to achieve its desired
objectives and goals within available resources:
‐ Time
‐ People
‐ Budget
‐ Systems
‐ Tools
Since we are living in a VUCA (volatility, uncertainty, complexity and ambiguity )world,
it's important to periodically review internal and external factors around and take
adequate measures to better implement your strategy.
There are several definitions for strategies….but at least everyone fundamentally agrees
that a STRATEGY is the answer to the following question:
"HOW plans/goals/programs will be implemented in the company?”
"Strategy is a way of comparing your organization's strengths with the changing
environment in order to get an idea of how best to compete or serve client needs."
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8. What most companies declare in their websites about their business strategy isn't
really true! What they publicly declare is simply a mix of their policy, objectives,
goals, or even mission. To give it a “BRAND” name, they just call it a strategy.
A TRUE strategy will always be “undeclared and kept confidential”!
The general aim of a business strategy is to provide superior value, differentiation, quality
service and profits to the company.
Strategy should be linked to the company’s mission, vision and goals. It also explores the
inter‐relationship between company product and service offered in the market place.
Business Strategy is a sound system that is necessary for the sustainability of a company or
organization in the long run.
Strategic analysis is about how changes in the wider environment affect the entire business.
SWOT analysis is the tool that we usually use in assessing the internal and external factors to
ensure that the company is working well and is aware of the various changes that might
affect its productivity and profitability in the medium and long‐term!
1.What’s Your Business Strategy? (2 of 2)
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9. Professors Gerry Johnson, Kevan Scholes and Richard Whittington* presented a Model about
Corporate Strategy and in which strategic options were evaluated against three main criteria:
 Suitability: does it work out?
Does it make sense? Would it be suitable in terms of environment and capabilities?
Tools that can be used to evaluate suitability include:
- ranking strategic options, decision tree, etc.
 Feasibility: can it be applied and implemented within company’s resources?
(e.g. funding, people, budget and time)?
Tools that can be used to evaluate feasibility include:
- cost‐benefit/ break‐even analysis, forecasting, workforce analysis, etc.
 Acceptability: can it meet stakeholders’ expectations? Does it involve major/minor risk
factors, does it increase company’s wealth, does it improve employee career and
performance, does it bring better money value for clients?
Tools that can be used to evaluate acceptability include:
- what if analysis, risk factors, customer satisfaction, return on investment, etc.
* A book about “Exploring Corporate Strategy”, 9th Ed. by Professors Gerry Johnson, Kevan Scholes and Richard Whittington.
2.The Strategy Making
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10. 3.Level of Strategy-Making
Corporate
Strategy
Two‐Way Influence
Business Strategies
Functional Strategies
Operating Strategies
Two‐Way Influence
Two‐Way Influence
Corporate‐Level Managers
Business‐Level Managers
Functional Managers
Operating Managers
Who performs the strategic management process?
1
2
3
4
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11. Example of Business Strategy
Develop the human resource capital.
Expand the business network.
Build employees’ core and technical competencies.
Brainstorm on how to increase staff commitment.
Aim high to achieve SMART Goals.
Nurture team spirit and promote MBO.
Encourage staff initiative and exploit new technology.
Harmonize human relations and ensure a healthy climate.
Globalize and standardize the business practice.
Recognize and reward the TALENTED people and super achievers.
Optimize use of resources to ensure efficiency and effectiveness.
Unify and consolidate staff effort to understand the ongoing change.
Position the Group to gain and maintain competitive advantage.
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12. Manage human resource capital.
Expand the business projects and networks.
Recognize the talented people.
Capitalize on the company’s main assets.
Unify and consolidate staff efforts to cope with change.
Retain and reward super‐achievers.
Yield and generate business profits.
Develop employee knowledge and professional expertise.
Encourage staff initiatives and exploit new technology.
Vitalize the Business and increase people commitment. Empower
employees and motivate them achieve the desired goals. Link
individual objectives with corporate strategy.
Optimize use of resources and implement the concept of MBO.
Position the company to gain competitive edge.
Maintain quality service and client satisfaction.
Ensure business efficiency and adequate operations.
Nurture team spirit and promote a healthy environment.
Target new businesses in Africa, Asia and Middle East.
Another Example of Business Strategy
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13. Discussion: Southwest Airlines
Questions: How many strategies are involved in these processes? Please specify!
Southwest Airlines Co.
is an American airline
established in 1967
and based in Dallas,
Texas.
Southwest is the
largest airline in USA
based on domestic
flights (as of June 30,
2010).
Southwest operates
more than 3,100 flights
a day (as of Jan. 2011)
and using a fleet of
aircraft type, Boeing
737.
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14. Evaluating an organization's capabilities include assessment of:
Financial status
Programs and plans
Staff skills and capabilities
Quality standards
Management information system
Facilities
Equipment
Image
Reputation
Others, etc.
Most companies capitalize on their strengths rather than just focus on their weaknesses.
Yet some others have different perceptions and look at the processes not only to fix the
things that go wrong but also to see what is right and how can we better serve people.
4.How Do You Evaluate Your Company Strategies?
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15.  A variety of work to be performed in various organizational levels.
 Different ways to implement programs and activities.
 Requirement of skilled people in management and leadership area.
 Launching and managing different initiatives simultaneously.
 Overcoming resistance to change and various challenges faced.
 Difficult to integrate efforts of many different work groups.
5.Why Strategy Execution is a Tough Job? (1 of 2)
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16. The main Components of the Strategy implementation Process* are:
*Fig. 8.1: The Eight Components of the Strategy Execution Process, Chapt.8, Strategy, McGraw‐Hill Publishers, 2008.
5.Why Strategy Execution is a Tough Job? (2 of 2)
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17. 6.How to Build an Effective/Capable Organization?
Staffing the Organization
 Putting together a strong management team.
 Recruiting and retaining talented employees.
Building Core Competencies and
Competitive Capabilities
 Developing a set of competencies and
capabilities suited to the current strategy.
 Updating and revising the set of
competencies when and where need be.
 Training and retraining employees to
maintain skills‐based competencies.
Matching the Organization Structure
to Strategy
 Updating policies and procedures.
 Upgrading systems in the workplace.
 Deciding how much power and authority
you give to people
*Fig. 8.2: “How to Build a Capable Organization”, Chapt.8, Strategy, McGraw‐Hill Publishers, 2008.
A Company
With
Organizational
Capabilities
Needed for
Effective/
Successful
Strategy
execution.
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18. 7.Strategy Executers
Implementing a strategy involves a company’s whole management team and all employees!
‐ Just as every part of a watch plays a role in making the watch function properly, it takes
all pieces of an organization working cohesively for a strategy to be well‐executed.
‐ While top‐level managers must lead the process and orchestrate major initiatives, good
execution requires Middle and Lower‐level management cooperation/responsibilities.
‐ Employees must perform their roles competently on a daily basis.
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19.  Does your staff have the required competencies that are adequate to their Job?
(Knowledge, skills, abilities & behavior).
 Is the Job adequate to staff personal characteristics?
(Aspirations, traits, values, self‐image, motive, etc).
 Do employees’ performance meet your expectations?
(Objectives to achieve, standards to measure, etc).
 Do your employees have career growth & opportunities?
(Ability to grow the Group & maximize every opportunity).
 Are you able to retain your employees by being fair and objective in
remuneration & rewards? (Incentive & scheme).
 Do you always achieve your Mission and Objectives within the available
resources (tangible & intangible)?
(People, budget, time, technology, etc).
8.Reviewing Employees Work Progress
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20. 9.Some Thoughtful
Questions
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21. WHY do you exist?
(Mission)
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22. WHERE do you want
to go?
(Vision)
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23. HOW do you want
to get there?
(Business Strategies)
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24. WHAT will hold you
together?
(Shared Values & Beliefs)
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25. 25
Being open to new ideas
and different perspectives
Define the
Code of Ethics
Build on mutual
trust & respect
Benefit from people’s
knowledge and experience
Capitalize on all tangible
and intangible assets
Work diligently and
behave professionally
Listen actively and
communicate openly
Work as one team
with your customers
Understand employee needs
and clarify company’s goals
Recognize & reward
initiative and contribution
Offer new products
and reliable service
Promote a healthy
ambiance and align your goals
Continue to
share knowledge
Deliver high quality service
and retain your customers
Foster teamwork and
cooperation
Support a balanced
lifestyle
Strengthen the
Business
Promote Integrity
& Professionalism
Increase
Commitment/Learning
Bring High Value
to Customers

26. WHAT should be your
vision, goals & strategies?
(Business Plans & Expectations)
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27. HOW will you gain
competitive edge?
(Positioning Your Business)
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28. (Gaining a Competitive Edge)
 Align business strategies with SMART goals.
 Plan and recruit the talented & qualified human resources.
 Upgrade staff skills through T&D programs.
 Retain talents and motivate employees.
 Follow‐up on customers’ needs and expectations.
 Move fast among competitors by reviewing business strategies and adjusting them.
 Improve customer satisfaction and retention.
 Introduce new ideas, products improvement and services enhancement.
 Develop a remarkable image of YOUR company.
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29. HOW do you envision to implement
your plans/goals/programs?
(Action Plan)
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30. Implementation through Action Plan
Project Planning Tool: PERT
Numbers = Weeks
Legend:
Event
Activity
Critical Path
F
1
5
2
2
2
2
BA
C
D
E
Event
Activity
Critical Path Numbers = Weeks
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31. Implementation through Action Plan
Project Planning Tool: GANTT
August Sept. October Nov.PROJECT’S PHASES*
Numbers of weeks required for execution
1st phase: Reviewing company’s strategy 2nd
phase: Review internal/external factors 3rd
phase: Evaluation of strategy
4th phase: Identification of resources
5th phase: Development of plan
6th phase: Communication to employees
* Plots the sequential steps of successfully managing a certain project against timeline.
31 32 33 34 35 36 37 38 3940 41 42 43 44 45 46 47 48 49 50
Dec.
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32. 1. Short‐term (<1 year)
2. Medium‐term (1‐3 years)
3. Long‐term (>3 years)
(SMARTER Objectives)
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33. 10 .Expected Challenges
to Be Faced
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34. IT Tools: New systems to be implemented in place
Customer Service: satisfaction & retention
Factor
# 4
Factor
# 5
Factor
# 3
Factor
# 2
Factor
# 1
People: Resistance to change
(anxiety, fear, threat)
Budget Allocation: New products & services,
product / service modification & enhancement
Investment in Human Capital: Training & development,
staff motivation & recognition schemes
Quality Services, Productivity
(Outcomes), Performance Management
& Profit Increase
10a. Highlighting the Main Challenges Faced
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35. DedicatiDone,vhoatridonwo&rkc&ocmommmitmitmeenntt are
key elements to attain good results.
Goals & actions
Identify priorities & determine a course of
action that enable you reach the goals.
IfAosnseedsosems neonttk&noswettotiwnhgicdhirpeocrttiiosn
sailing, no wind is favorable…
SUCCESS
10b. Major Facts to Bear in Mind
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36. 11 .Sharing Tips for Success
 Develop your strategic thinking.
 Build competency model from core to technical, managerial and leadership.
 Establish behavioral norms and code of conduct.
 Develop a constructive peer feedback process.
 Set goals and establish scorecard.
 Recognize individual and team accomplishments.
 Conduct performance management and internal audit.
 Coach staff and set a career path for each employee.
 Conduct objectively staff performance appraisal.
 Monitor people’s work progress and career development.
 Others?
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