EXECUTING THE STRATEGY

The Principal Managerial Components of the Strategy Execution Process

Building an organization with the competencies, capabilities, and resource strengths to execute strategy successfully Shaping the work environment and corporate culture to fit the strategy Allocating ample resources to strategy-critical activities Ensuring that policies and procedures facilitate rather than impede strategy execution

The Principal Managerial Components of the Strategy Execution Process

Instituting best practices and pushing for continuous improvement in how value chain activities are performed Installing information and operating systems that enable company personnel to carry out their strategic roles proficiently Trying rewards directly to the achievement of strategic and financial targets and to good strategy execution Exercising strong leadership to drive implementation forward, keep improving on how the strategy is being executed, and attain operating excellence

Component #1 Building an organization with the competencies, capabilities, and resource strengths to execute strategy successfully

The 3 Components of Building an Organization Capable Of Proficient Strategy Execution Staffing the Organization
Building Core Competencies and Competitive Capabilities

Matching the Organization Structure to Strategy

A Company With the Organizational Capability Needed for Proficient Strategy Execution

Staffing the Organization

Putting Together a Strong Management Team Recruiting and Retaining Capable Employees

Building Core Competencies and Competitive Capabilities

The 3-Stage Process of Developing and Strengthening Competencies and Capabilities

Stage 1: The Organization must develop the ability to do something, however imperfectly or inefficiently

The 3-Stage Process of Developing and Strengthening Competencies and Capabilities

Stage 2: As Experience grows and company personnel learn how to perform the activity consistently well and at an acceptable cost, the ability evolves into a tried-and-true competence or capability

The 3-Stage Process of Developing and Strengthening Competencies and Capabilities

Stage 3: If the organization continue to polish and refine its know-how and otherwise sharpen its performance such that it becomes better than rivals at performing the activity, the core competence rises to the rank of a distinctive competence, thus providing a path to competitive advantage

The Strategic Role of Employee Training

When a company shifts to a strategy requiring different skills

In organizational efforts to build skill-based competencies

A key activity in business where technical know-how is changing rapidly

Component #2 Shaping the work environment and corporate culture to fit the strategy

What is COMPANY CULTURE?

The role of STORIES

Forces that cause the company to evolve

CULTURE: an ALLY or an OBSTACLE To Strategy Execution?

How Culture can promote better Strategy Execution

1. not only provides company personnel with clear guidance regarding what behaviors and results constitute a good job performance but also produces significant peer pressure from coworkers to conform o culturally acceptable norms.

How Culture can promote better Strategy Execution

2. A culture embedded with values and behaviors that facilitate strategy execution promotes strong employee identification with and commitment to the companys vision performance targets and strategy.

STRONG Versus WEAK Cultures

Changing a Problematic Culture

STEP 1 Identify the facets of present culture that are strategy-supportive and those that are not

STEP 2

Clearly define desired new behavior and specify Key features of new culture

STEP 2

Talk openly about the problems of the present Culture and how new behaviors will improve performance

STEP 2

Follow with visible, aggressive actions to modify Culture- includes substantive symbolic actions