All managers have strategy executing responsibility in their areas of authority, and all employees are active participants in the strategy execution process. Six Sigma programs and techniques utliize advance statistical methods to enable an activity or process to be performed with Superior strategy execution capabilities allow companies to get the most from their organizational resources and competitive capabilities.
At the third level, the capability development concentrates of trying make it an above industry average capability in the industry so that it provides scope for above average profit earning. Send updates on the progress of strategic initiatives via company newsletters or email to show your staff your excitement about, and commitment to, strategy execution.
Shortfalls in performance signal weak strategy, weak execution, or both. The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and performing value chain activities in a manner that is conducive to companywide operating excellence.
Structuring the organization and organizing the work effort in a strategy supportive fashion has four aspects: There are four basic types of organizational structures: Providing for providing for the necessary collaboration with suppliers, Making internally performed strategy-critical value chain activities the main building blocks Outsourcing value chain activities has such strategy-executing advantages as heightened strategic focus, lower costs, less internal bureaucracy, a better arsenal of competencies and capabilities, and speedier decision-making.
A strategy-supportive system of rewards and incentives A company must emphasize rewarding people for accomplishing results not just dutifully performing assigned tasks.
Temporary incentive programs encourage employees to get on board with new strategic initiatives. But excellence in strategy execution can also be a more direct source of competitive advantage, since more efficient and effective strategy execution can lower costs and permit firms to deliver more value to customers.
They should then determine how to make the necessary internal changes as rapidly as possible so that the strategy implementation process starts with focus on the new strategy.
Once a company develops appealing competencies and competitive capabilities must be continually refreshed and recalibrated to remain aligned with changing customer expectations ever-evolving competitive conditions and outcompete rivals The most important consideration in putting together a strong top management team is to fill it with smart people who are clear thinkers, good at figuring out what needs to be done, and skilled in making it happen and delivering good results.
January 19, Executing strategy is an operations-driven activity revolving around the management of people and business processes involving man-machine systems. Communicate strategic needs effectively to garner buy-in at all levels of the organization, and let employees know how strategic changes will enhance their individual job roles.
Tie incentives and reward systems to strategic goals. Use contests and award programs to motivate employees about specific objectives. This can help to prevent factions from forming to informally resist and impede strategic initiatives.
To accomplish this, a company culture must be instilled with adaptability and innovation, and work processes structured to accommodate operational changes or shifts in focus.
Spend some time talking about organizational change and innovation in employee orientation programs to get employees on board with strategic change early.
Avoid creating a situation where all employees expect to see and do the exact same things every day.
Be the first to adapt to new strategic objectives, and actively motivate others to get on board by using personal encouragement. Total quality management TQM Entails creating a total quality culture bent on continuously improving the performance of every task and value chain activity.
As firms get better at executing their strategies, they develop capabilities in the domain of strategy execution. Revise your strategic plans regularly, not just in response to crises or external stimuli.
Encourage competition between departments and teams for rewards and other incentives. M asking it difficult to outstraegize rivals and beat them in the marketplace with a superior strategy. Employ strategic management tools such as SWOT Strengths, Weaknesses, Opportunities, Threats and Gap analysis to identify areas of potential improvement in your operations at least once per year.
A centralized organizational structure is predicated on a belief that Decisions on most matters should be pushed to managers up the line.
Answer Business ethics Deals with the application of general ethical principals and standards to the actions and decisions of businesses and the conduct of their personnel. Translate corporate-level strategies into business unit, departmental and personal strategies to make objectives relevant at all levels.
In building capabilities internally, the first step is to develop the ability to do something, through experimentation, active search for alternative solutions, and learning by trial and error.
The way for managers to start in implementing a new strategy is with a probing assessment of what the organization must do differently in the coming peridos to carry out the strategy successfully. To organize the work effort in ways that promote successful strategy execution, management needs to Deciding which value chain activities to perform in-house and which to outsource.
Benchmarking, the adoption of best practices, business process reengineering, TQM, and Six Sigma techniques all need to be seen and used as part of a bigger-picture effort to Execute strategy proficiently.
As such, they can be an important source of sustainable competitive advantage. As experience grows and company personnel learn how to perform the activities consistently well and at an acceptable cost, the ability evolves into a tried-and-true capability.
The process can be accelerated by making learning a more deliberate endeavor and providing the incentives that will motivate company personnel to achieve the desired ends. Involve managers and employees at all levels of your company in strategic discussion and decision-making.
Tip Make strategic planning an ongoing part of your operations.Chapter 10 Building an Organization Capable of Good Strategic Execution d. Matrix Structure – A matrix structure is a combination structure in which the organization.
Chapter 11 A second rate strategy perfectly executed will beat a first-rate strategy poorly executed every time1/5(1). Building an Organization Capable of Good Strategy Execution Learning Objectives 1.
Gain command of what managers must do to execute strategies successfully. building an organization capable of good strategy execution entails structuring the organization and work effort, staffing the organization, and acquiring, developing and strengthening the resources, competencies, and capabilities important to good.
Building an Organization Capable of Good Strategy Execution: Three Key Actions Staffing the Organization Developing and Strengthening Core Competencies and Competitive Capabilities ExecutionExecution-Related Aspects of Organizing the Related Aspects of Organizing the Work Effort.Download