Strategic Management Essay

Submitted By Flarose
Words: 3139
Pages: 13

Where are we?
• Work Intensive week
 Three year strategic plan
 Chapter 10
 Year 9
 Year 10
 Exam 2
 Cases
 Year 11
 Break
 Year 12
 Cases
 Presentations of three Year Strategic Plan

10-1

FIGURE 4.1

A Representative Company Value Chain

10-3

LO1 Gain command of what managers must do to build an organization capable of good strategy execution.
LO2 Learn why resource allocation should always be based on strategic priorities.
LO3 Understand why policies and procedures should be designed to facilitate good strategy execution.
LO4 Understand how process management programs that drive continuous improvement help an organization achieve operating excellence.
LO5 Recognize the role of information and operating systems in enabling company personnel to carry out their strategic roles proficiently.
10-4

(cont’d)
LO6 Learn how and why the use of well-designed incentives and rewards can be management’s single most powerful tool for promoting operating excellence.
LO7 Gain an understanding of how and why a company’s culture can aid the drive for proficient strategy execution. LO8 Understand what constitutes effective managerial leadership in achieving superior strategy execution.

10-5

Crafting versus Implementing Strategy
• Crafting Strategy

• Implementing Strategy

 Market-and resource-

 Execution of operations-

driven activities
 Success depends on

driven activities
 Successful depends on management’s ability to





Attracting and pleasing customers Outcompeting rivals
The firm’s collection of resources and capabilities







Direct change
Allocate resources
Build capabilities
Build strategy-supportive policies and culture
Deliver good results

10-6

CORE CONCEPT
Good strategy execution execution requires a team team effort.
All managers have strategy executing responsibility in their areas of authority, authority, and all employees are active active participants in the strategy execution process.

10-7

Who Is Responsible for Implementation of the Chosen Strategy?
• The organization’s chief executive officer and other senior managers are ultimately responsible for ensuring that the strategy is executed successfully.
• It is middle and lower-level managers who must see to it that frontline employees and work groups competently perform strategy-critical activities that allow companywide performance targets to be met.
• Requires all managers thinking about:
 “What does my area have to do to implement its part of the

strategic plan, and what should I do to get these things accomplished effectively and efficiently?”

10-8

FIGURE 10.1

The Eight Components of Strategy Execution

10-11

Building an Organization with the
Capabilities, People, and Structure
Needed for Good Strategy Execution
Organization
building actions

Staffing the organization’s workforce

Acquiring, developing, and strengthening strategy-supportive resources and capabilities Structuring the organization and work effort

10-12

Staffing the Organization—
Building Managerial Talent
• Assembling a capable management team is a cornerstone organization-building task:
 Put people with strong strategy implementation skills

and a results orientation in key managerial posts.
 Replace weak executives, strengthening the skills

of those who remain, and bringing in fresh outsiders.
 The algorithm that tells the boss who might quit

http://on.wsj.com/1L9s1z3

10-13

Recruiting and Retaining a Capable Workforce
• The quality of a firm’s people is an essential ingredient of successful strategy execution.
 Staffing the right people at all levels is required to

ensure competent performance of value chain activities.  Find, develop, and then retain engaged employees

with excellent compensation packages, opportunities for rapid advancement and professional growth, and challenging and interesting assignments.

10-14

Tactics for Recruiting and Retaining a High-Performance Workforce
• Put extra effort into screening and evaluating job…