Presentation on theme: "BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION"— Presentation transcript:
You are watching: Good strategy execution requires which of the following
2 Gain an understanding of what managers have to execute to execute strategy properly.Learn why hiring, training, and also retaining the right people constitute a vital component of the strategy execution process. Understand that excellent strategy execution requires repetitively building and upgrading the organization’s sources and also capabilities. Gain command of what concerns to consider in developing a strategy-supportive business structure and organizing the work-related effort. Become mindful of the pros and also cons of central and also decentralized decision making in implementing the preferred strategy.
3 Executing Strategy Strategy ExecutionIs operations-moved, involving administration of both world and company procedures. Is a project for the totality management team, not simply a couple of senior managers. Can take years much longer to build as a genuine proficiency than implementing strategy. Requires a determined commitment to adjust, action, and also performance.
4 A FRAMEWORK FOR EXECUTING STRATEGYCommitting to Executing a Strategy: Entails figuring out the specific approaches, actions, and behaviors crucial for a smooth strategy-supportive operation. Following via to get points done and also provide outcomes. Making points occur (leadership) and also making them take place best (management).
5 The Action Agenda for Executing Strategy10.1 The 10 Basic Tasks of the Strategy Execution Process The Action Agenda for Executing Strategy Chapter 10 Chapter 11 Chapter 12
6 The Principal Components of the Strategy Execution ProcessStaff the organization with supervisors and employees qualified of executing the strategy well. Build the organization’s capabilities required for successful strategy execution. Create a strategy-supportive business structure. Allocate sufficient budgetary (and also other) resources to the strategy execution initiative. Institute policies and also procedures that facilitate strategy execution. Adopt finest techniques and also company processes that drive continuous improvement in strategy execution tasks. Install information and operating systems that permit personnel to carry out their strategic functions proficiently. Tie rewards and also incentives directly to the accomplishment of strategic and financial targets. Instill a corporate culture that promotes good strategy execution. Exercise the internal leadership required to propel strategy implementation forward.
7 BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION: WHERE TO BEGINAssemble a strong management team and also a cadre of capable employees. Renew, upgrade, and revise sources and capabilities to match preferred strategy. Create an business structure that is strategy-supportive.
8 10.2 Building an Organization Capable of Proficient Strategy Execution: Three Types of Paramount Actions
9 STAFFING THE ORGANIZATIONAssemble a Strong Management Team: Planners that ask difficult inquiries and number out what requirements to be done. Implementers that have the right to pick, control, and lead the right world. Executors who rotate decisions right into actions that drive the transforms that produce sustainable competitive benefit. Key Takeaway: A instrumental mass of talented activist supervisors
10 Recruiting, Training, and also Retaining Capable EmployeesIntensively display screen and also evaluate applicants to ensure choosing those that are best-suited and also best-fitted. Provide training programs throughout employee careers. Rotate promising civilization via difficult, and skill-extending worldwide assignments. Make the work-related environment stimulating and also engaging so that the firm is thought about a good area to work-related. Use an assortment of financial incentives and various other perks to retain employees. Coach average performers to boost their skills and capabilities, while weeding out underperformers.
11 BUILDING AND STRENGTHENING CORE COMPETENCIES AND COMPETITIVE CAPABILITIESApproaches to Build Building Competencies and Capabilities Develop capabilities internally Acquire capabilities via mergers and acquisitions Access capabilities via collaborative partnerships
12 Developing Capabilities InternallyManagerial Actions to Develop Competencies and Capabilities Strengthen the firm’s base of skills, expertise, and also intellect Coordinate and also combine the initiatives of occupational groups and departments
13 Acquiring Capabilities with Mergers and AcquisitionsA Question of Market Opportunity When a sector chance can slip by much faster than a essential capcapacity have the right to be developed internally. A Question of Competitive Necessity When industry problems, technology, or rivals are moving at such a fast clip that time is of the significance. A Inquiry of Successful Integration Tacit understanding and also facility routines may not move conveniently from one business unit to another.
14 Accessing Capabilities with Collaborative PartnershipsApproaches to getting capabilities from an outside resource Outresource the feature requiring the capabilities to a crucial supplier or one more provider Collaboprice via a firm that has actually complementary sources and capabilities Engage in a collaborative partnership for the purpose of discovering just how the partner does points
15 Upgrading Employee Skills and Knowledge ResourcesTraining Is Important In: Executing a strategy that requires various abilities, competitive capabilities, and also operating methods. Organizational initiatives to develop skills-based competencies. Supplying technological know-how to employees when quickly changing modern technology puts a firm in danger of shedding its capability to compete.
16 Strategy Execution Capabilities and Competitive AdvantageSuperior Strategy Execution Capabilities: Are challenging to imitate and also socially complex process that take a long time to construct. Maximize business sources and also competitive capabilities in assistance of the organization model. Lower prices and also permit firms to supply more worth to customers. Enable a firm to react more quickly to sector alters, beat competitors to sector through new products and also solutions, and obtain undisputed industry prominence.
17 ORGANIZING THE WORK EFFORT WITH A SUPPORTIVE ORGANIZATIONAL STRUCTUREEnsuring that Structure Follows Strategy By: Deciding which value chain tasks to percreate internally and which to outsource. Aligning the firm’s organizational structure with its strategy. Determining how a lot authority to delegate. Facilitating teamwork via external partners and strategic allies.
18 10.3 Structuring the Work Effort to Promote Successful Strategy Execution
19 Deciding Which Value Chain Activities to Perform Internally and also Which to OutsourceOutsourcing’s Execution-Related Benefits: Helps in outclassing rivals in strategy-instrumental tasks and also in turning a core competence right into a distinctive competence. Decreases bureaucracies, flat10s structure, speeds decision making, and shor10s respond time to changing market problems. Adds to a firm’s capabilities and also contributes to better strategy execution via partnerships via carriers and channel partners.
20 Aligning the Firm’s Organizational Structure with Its StrategyComprises the formal and informal setup of jobs, responsibilities, lines of authority, and reporting relationships for the firm. Structure Is Aligned with Strategy When: Its style contributes to the development of worth for customers. Its parts are aligned with one one more and additionally matched to the demands of the strategy. It lowers operating prices through lower administrative prices and operational efficiencies.
21 Matching Type of Organizational Structure to Strategy Execution RequirementsSimple Structure (Line-and-Staff) Functional Structure (Departmental or Unitary) Multidivisional Structure (Divisional or M-form) Matrix Structure (Composite or Combination) Strategy Execution Requirements: Chosen Strategy Capabilities and Competencies Centralized or Decentral Control
22 Determining How Much Authority to DelegateCentralized Decision Making Organizational Approach to Decision-Making Decentralized Decision Making Authority is preserved by height management Authority delegated to lower-level supervisors and employees
23 Centralized Organizational Structures 10.1 Centralized versus Decentralized Decision Making Centralized Organizational Structures Decentralized Organizational Structures Basic Tenets Decisions on most matters of prominence need to be in the hands of top-level supervisors who have the suffer, field of expertise, and also judgment to decide what is the finest course of activity. Lower-level personnel have actually neither the understanding, the time, nor the inclination to properly control the tasks they are perdeveloping. Strong regulate from the height is a much more efficient indicates for coordinating the firm’s actions. Decision-making authority must be put in the hands of the civilization closest to, and also most familiar via, the situation. Those via decision-making authority need to be trained to exercise excellent judgment. A firm that draws on the combined intellectual capital of all its employees can outpercreate a command-and-manage firm.
24 Centralized Organizational Structures 10.1 (cont’d) Advanteras and also Disadvantages of Centralized versus Decentralized Decision Making Centralized Organizational Structures Decentral Organizational Structures Chief Advanteras Fixes accountability with tight control from the peak. Eliminates goal dispute among those with differing perspectives or interests. Allows for quick decision making and solid leadership under crisis cases. Encourperiods employees to exercise initiative and also act responsibly. Promotes greater catalyst and also involvement in the organization on the part of more agency personnel. Spurs new principles and also imaginative thinking. Allows rapid response to sector change. May entail fewer layers of management.
25 Centralized Organizational Structures 10.1 (cont’d) Advantperiods and Disadvantages of Centralized versus Decentralized Decision Making Centralized Organizational Structures Decentralized Organizational Structures Main Disbenefits Lengthens response times by those closest to the sector conditions because they should seek approval for their actions. Does not encourage duty among lower-level supervisors and also rank-and-file employees. Discoureras lower-level supervisors and rank-and-file employees from exercising any kind of initiative. Top management lacks “complete control”—higher-level supervisors may be unconscious of actions taken by empowered personnel under their supervision. Puts the organization at hazard if empowered employees occur to make “bad” decisions.
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Can impair cross-unit participation.
26 Capturing Cross-Business Strategic Fit in a Decentralized StructureEnforcing cshed cross- business collaboration to prevent duplication of effort Capturing Cross-Business Strategic Fit Centralizing associated functions requiring close coordicountry at the corporate level
27 Facilitating Collaboration with External Partners and Strategic AlliesStrategic alliances Outsourcing arrangements Joint ventures Cooperative partnerships Creating a Network-related Structure: Using “partnership managers” to construct and keep participating arrangements of worth both parties
28 Additional Perspectives on Structuring the Work EffortMatching Structure to Strategy Pick a straightforward organizational design that matches framework to strategy Supplement style with appropriate coordinating mechanisms Institute collaborative networking and communication arrangements