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Chapter 11
Building resources strength and organizational capabilities
Building resource strength meaning
Principal strategy implementing task
Building a capable organization
Building resource strength and organizational capabilities
Implementing of the strategy---It entails converting the organizational strategic plan into action, then into
result.
Strategic plan
1. Identifying the mission
2. Setting the future direction
3. Setting near term and long term performance and setting the strategies.
Principal strategy implementing task
BDEIICE
B---Building a capable organization
D---Develop budget to steer ample resources to implement the strategy of various department.
E---Establish organization supportive policy and procedure.
IInstitute best practices and continuous improvement.
I---Install information and incentive !ith the performance.
"- "ying re!ard and incentive !ith the performance.
##reate strategic supportive organizational culture.
EE$ert internal leadership to implement%to carry for!ard the strategy
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Building a capable organization
&taffing the organization'()*+
Building core competencies and competitive capabilities
&tructuring the organization and !ork effort
Staffing the organization
! ma"or ob"ecti#es
Putting together strong management team
,ecruiting and retaining the talented employees.
Building core competencies and competiti#e capabilities
Develop competence and capabilities to match the current strategy.
-pdating and reshaping the portfolio as e$ternal conditions and strategy change.
Structuring the organization
.rganizing the value chain activities and decision making
Staffing the organization
Putting together strong management team$ Important role of manager is to assemble core e$ecutive
group. /anagers role !ill be to identify% discern !hat mi$ up, background, e$periences, kno!ho!,
values, beliefs, management style and personalities !ill be re0uired to implement the strategy.
%ecruiting and retaining the talented employees$
1ttractive compensation package
1dvancement or gro!th opportunity
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#hallenging and interesting assignment
.ffer some lucrative stock options
"he best companies use a variety of practices to develop their kno!ledge base and build intellectual
capital
&pend considerable effort in screening and evaluating the 2ob applicant.
Put employee through training programs that continue not 2ust through their early years but
usually throughout their careers.
3ive them challenging, interesting and skill-stretching assignments.
,otate employees throughout the 2ob, not 2ust on the content of the 2ob, but that span functional
and geographic boundaries% through function and geographic area.
Encourage employees to be creative and innovative, through asking them to challenge the
e$isting !ay of doing thing.
4ostering a stimulating and engaging !ork environment , as a result employees !ill think
organization is a great place to !ork.
,etain employees !ith attractive salary, bonuses, stock options and e0uity o!nership and other
long term incentives.
Building core competencies and competiti#e capabilities
Core competence& &omething company does relatively !ell than other internal activities. Intel's core
competence is high 0uality and comple$ microchip.
5onda6 3asoline engine technology and small engine design
Proctor 7 3amble6 &uperb marketing distribution skills.
4our traits of core competencies and competitive capabilities
It is a combination of broad scale. It rarely consists of narro! skills. It is a bundle of skill and
kno!-ho!.
Building up core competencies is a 2ob of senior management
8ou ensure more talent and effort than rivals re0uired to build core competencies.
#ore competence should be fle$ible enough to cope up !ith the unkno!n future.
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Capabilities
It takes time, re0uire conscious effort and considerable organization skill.
Building up capabilities takes time, re0uires conscious effort and organizational skill. "ime consuming
and hard to replicate e$ercise.
Building capabilities re0uire ( steps
8ou start doing something perfectly or imperfectly.
.rganization reaches a level at doing that thing consistently !ell and at lo!er cost.
1fter fine tuning, polishing this capabilities !ill turned into distinctive competence.