Monday, 29 October 2012

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

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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

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