Business Strategy Chapter 11 Building an Organization Capable of Good Strategy Execution

Download Full PowerPoint Slide Click Here
S 1:Building  an  Organization  Capable  of  Good  Strategy  Execution
S 2:Executing  the  Strategy:

—An action-oriented, make-things happen task involving management’s ability to

—Direct organizational change

—Achieve continuous improvement in
operations and business processes

—Move toward operating excellence

—Create and nurture a
strategy-supportive culture

—Consistently meet or beat performance targets

—Tougher and more time-consuming than crafting strategy

S 3:Goals  of  the  Strategy Implementing-Executing  Process

—Unite total organization behind strategy

—See that activities are done in a manner that is conducive to first-rate strategy execution

—Generate commitment so an enthusiastic
crusade emerges to carry out strategy

—Fit how organization conducts its
operations to strategy requirements

S 4:Fig. 11.1:  The Eight Components of the Strategy Execution Process

S 5:What Top Executives Have to Do in Leading the Implementation Process

—Communicate the case for change

—Build consensus on how to proceed

—Arouse enthusiasm for the strategy to turn implementation process into a company wide crusade

—Empower subordinates to keep process moving

—Establish measures of progress and deadlines

—Reward those who achieve
implementation milestones

—Direct resources to the right places

—Personally lead strategic change process
and the drive for operating excellence

S 6:Fig. 11.2:  The Three Components of Building an Organization Capable of Proficient Strategy Execution

S 7:Three-Stage  Process  of  Developing  Competencies  and  Capabilities:

1.  Develop ability to do something

2.  As experience builds,
ability can translate into a
competence or capability

3.  If ability continues to be polished and refined, it can become a distinctive competence, providing a path to
competitive advantage!

S 8:Fig. 11.3:  Structuring the Work Effort to Promote Successful Strategy Execution

S 9: Step 1:Decide Which Value Chain Activities to Perform Internally and Which to Outsource:

—Involves deciding which activities are
essential to strategic success

—Most strategies entail certain crucial business processes or activities that must be performed exceedingly well or in closely coordinated fashion if the strategy is
to be executed with real proficiency

—These processes/activities usually
 need to be performed internally

—Other activities, such as routine
administrative housekeeping and
some support functions, may be
candidates for outsourcing

S 10: Step 2:Make Strategy-Critical Activities the Main Building Blocks

—Assign managers of strategy-critical activities a visible, influential position

—Avoid fragmenting responsibility for strategy-critical activities across many departments

—Provide coordinating linkages
between related work groups

—Meld into a valuable
competitive capability

Assign managers key roles

Primary  activities | Support functions

Strategic relation-ships | Coordi-nation | Valuable capability

S 11:Step 3:Determine How Much Authority to Delegate to Whom

—In a centralized structure

—Top managers retain authority
for most decisions

—In a decentralized structure

—Managers and employees are
empowered to make decisions

—Trend in most companies

—Shift from authoritarian to decentralized
structures stressing empowerment

S 12:Advantages and Disadvantages of Centralized versus Decentralized Decision Making

S 13:Step 4:Provide for Internal Cross-Unit Coordination

—Classic method of coordinating activities – Have related units report to single manager

—Upper-level managers have clout to
coordinate efforts of their units

—Support activities should be
woven into structure to

—Maximize performance of primary activities

—Contain costs of support activities

—Formal reporting relationships often need to be supplemented to facilitate coordination

S 14:Step 5:Provide for Collaboration With Outsiders  

—Need multiple ties at multiple levels to ensure

—Communication

—Coordination and control

—Find ways to produce collaborative
efforts to enhance firm’s capabilities
and resource strengths

—While collaborative relationships present opportunities, nothing valuable is realized until the relationship develops into an engine for better organizational performance

S 15:Current  Organizational  Trends

—Numerous companies have completed the task of remodeling traditional, hierarchical structures built on

—Functional specialization and

—Centralized authority

—Corporate downsizing movement in the
late 1980s and early 1990s was aimed at

—Recasting authoritarian, pyramidal
organizational structures

—Into flatter, decentralized structures 

S 16:Organizational Structures of the Future: Overall Themes

—Revolutionary changes in how work is organized have been triggered by

—New strategic priorities

—Rapidly shifting competitive conditions

—Tools of organizational design include

—Empowered managers and workers

—Reengineered work processes

—Self-directed work teams

—Rapid incorporation of Internet
technology

—Networking with outsiders

Business Strategy Chapter 10 Strategy, Ethics, and Social Responsibility

Download Full PowerPoint Slide Click Here

S 1: Strategy,  Ethics,  and  Social  Responsibility

S 2:Linking  Strategy  to  Ethics and  Social  Responsibility

Key Issues:

—Should there be a link between a company’s efforts to craft and execute a winning strategy and its duties to:

—Conduct activities in an ethical manner?

—Demonstrate socially responsible behavior by

—Being a committed corporate citizen?

—Attending to needs of non-owner stakeholders? 

S 3:What  Is  Business  Ethics?

—Business ethics involves applying general ethical principles and standards to business behavior

—Ethical principles in business are not different from ethical principles in general

—Business actions are judged

—By general ethical standards of society

—Not by a set of rules business people
apply to their own conduct 

S 4:Are  Ethical  Standards  Universal  or  Dependent  on  Local  Norms?

Three schools of thought regarding extent

to which ethical standards can be applied . . .

• Ethical Universalism
• Ethical Relativism
• Integrative Social Contracts Theory

S 5:Concept  of  Ethical  Universalism

—According to the school of ethical universalism . . . 

—Same standards of what is ethical and what is unethical resonate with peoples of most societies regardless of

—Local traditions and

—Cultural norms

—Thus, common ethical standards can be used to judge conduct of personnel at companies operating
in a variety of

—Country markets and

—Cultural circumstances

S 6:Concept  of  Ethical  Relativism

—According to the school of ethical relativism . . .

—Different societies/cultures/countries

—Put more/less emphasis on some values than others

—Have different standards of right and wrong

—Have different social mores and behavioral norms

—What is ethical or unethical

—Must be judged in light of local
customs and social mores and

—Can vary from one country to another 

S 7:Characteristics  of  a  Moral  Manager

—Dedicated to high standards of ethical behavior in

—Own actions

—How the company’s business is to be conducted

—Considers it important to

—Be a steward of ethical behavior

—Demonstrate ethical leadership

—Pursues business success

—Within confines of both letter and spirit of laws

—With a habit of operating well above what laws require

S 8:Characteristics  of  an  Immoral  Manager

—Actively opposes ethical behavior in business

—Willfully ignores ethical principles in making decisions

—Views legal standards as barriers to overcome

—Pursues own self-interests

—Is an example of capitalistic greed

—Ignores interests of others

—Focuses only on bottom line –
making one’s numbers

—Will trample on others to avoid being trampled upon

S 9:What  Are  the  Drivers  of  Unethical Strategies  and  Business  Behavior?

• Large numbers of immoral and amoral business people.

• Overzealous pursuit of  personal gain, wealth, and other selfish interests.
• Heavy pressures on company managers to meet or beat earnings targets.
• Company cultures that place profits and good performance ahead of ethical behavior.

S 10:Approaches  to  Managing  a Company’s  Ethical  Conduct:

Unconcerned or non-issue approach

Damage control approach

Compliance approach

Ethical culture approach

S 11: Four Approaches to Managing Business Ethics:

S 12:Why  Should  Company  Strategies  Be  Ethical?

—An unethical strategy

—Is morally wrong

—Reflects badly on the character of company personnel

—An ethical strategy is

—Good business

—In the best interest of shareholders
S 13:The Business Costs of Ethical Failures:

S 14: Linking  Strategy  to  Ethics  and  Values

—If ethical standards are to have more than a cosmetic role, boards of directors and top executives must work diligently to see they are scrupulously observed in

—Crafting a company’s strategy and

—Conducting every facet of a company’s business

—Two sets of questions must be considered by senior executives when reviewing a new strategic initiative

—Is what we are proposing to do fully compliant with our code of ethical conduct?  Is there anything here that could be considered ethically objectionable?

—Is it apparent this proposed action is in harmony with our core values?  Are any conflicts or concerns evident?

S 15:What  Is  Corporate  Social  Responsibility?

—The notion that corporate executives should balance interests of all stakeholders began to blossom in the 1960s

—Social responsibility as it applies to businesses concerns a company’s duty to

—Operate in an honorable manner

—Provide good working conditions for employees

—Be a good steward of the environment

—Actively work to better quality of life in

—Local communities where it operates and

—Society at large

S 16:What  Is  Socially  Responsible Business  Behavior?

—A company should strive to balance strategic actions

—To benefit shareholders against any possible adverse impacts on other stakeholders

—To be a good corporate citizen

—Socially responsible behaviors include

—Corporate philanthropy

—Actions to earn trust and respect of stakeholders for
a firm’s efforts to improve the general well-being of

—Customers

—Employees

—Local communities

—Society

—Environment

S 17:Fig. 10.2: Categories of Socially Responsible Business  Behavior