2. STRATEGY IMPLEMENTATION
PROF. DR. KURT VERWEIRE

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STRATEGY IMPLEMENTATION
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“Execution is not only the biggest issue facing business
today; it is something nobody has explained
satisfactorily.”
(Bossidy and Charan, 2002)

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DEFINING STRATEGY
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DEFINING STRATEGY
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strategy occurs at different levels
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DEFINING STRATEGY
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DEFINING STRATEGY: EASYJET CASE
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Whom do we serve?
How do we realize this?
What do we provide?
What is our value
proposition?
People paying a ticket out of their own
pocket; not the ‘fat cats’
Short-haul flights, no longer than 4h
European destinations
Operational excellence:
standardization, no-frills, the basics
Low price
Convenience: fast and easy

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REVENUES PASSENGERS
PROFIT MARGIN RETURN ON EQUITY

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DEFINING A COMPETITIVE THEME
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What is our value
proposition?
What is our
operating model?

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A MODEL FOR STRATEGY IMPLEMENTATION
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Source: Vlerick Business School/Electrabel (GDF Suez) (2004, 2013)

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ALIGNMENT
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Operational Excellence Product Leadership Customer Intimacy
Orchestrating theme ‘Best price’ and/or
‘Best access’ (‘fast, easy,
painless’)
‘Best product’ ‘Best service’ and/or
‘Best connectivity’
(‘relationship
orientation’)
Direction and goal setting
processes
Efficiency through
process thinking
Zero-defect service
Best product through
continuous product
innovation
Clear innovation strategy:
where to place the bets?
Understanding the
broader problem
Having expertise about
the customer’s business
Customers carefully
selected
Operational processes The operations
department drives the
company
Attention is paid to
process speed and quality
R&D is key: idea
management
Marketing is also key:
educate people with a
missionary zeal
Get engineers, designers,
and marketers
systematically together
Demonstrate expertise
and experience
Strengthen the
relationship
Build loyalty: focus on
customer retention

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ALIGNMENT
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Operational Excellence Product Leadership Customer Intimacy
Support processes Highly automated
processes
Information systems
increase control and
coordination and
streamline tasks
World-class supply chain
management
Clear innovation
governance process
Systematic process for
allocating resources to
innovation programs
Knowledge sharing and
networks
Systematic collection of
customer and market
information (through
Customer Relationship
Management)
Structured sales process
Evaluation and control
processes
Rigid, centralized control
Detailed measures on
various aspects of the
process
Setting higher thresholds
Innovation performance
measures
Control, learning, and
experimentation
Detailed measures about
account penetration and
loyalty
Lifetime value of the
customer
Organizational behavior
processes
Centralized structure
Organization structured
around core processes
Culture of continuous
improvement
Fluid organization
structure
Stimulate diversity,
tolerate mavericks
Low levels of
formalization
Entrepreneurial culture
Decentralized
organization
Employee retention
Focus on quality, defined
from the customer’s point
of view

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ALIGNMENT
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ALIGNMENT
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A MODEL FOR STRATEGY IMPLEMENTATION
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BELANG VAN STRATEGIE
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the entrepreneurial organization

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EEN STRATEGIEGERICHTE ORGANISATIE
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the structured organization

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the connected organization

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the committed organization

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A MODEL FOR STRATEGY IMPLEMENTATION
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FEEL LIKE SOME MORE?
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Essentials in Strategy – fall 2013
Successful strategy execution – Spring 2014
Senior executive programme: middle managers
– fall 2013