Implementing Strategy

1. Implementing Strategy A Managerial Exercise

2. Anyone can craft strategy but it takes real managerial skill to implement it

3. Eight Actions of Implementing Strategy Build an Organization Marshal resources Institute policies Pursue best practices and continuous improvement Information and operating systems Tying rewards to strategy and goals Shape corporate culture Exert leadership

4. Building a Capable organization Staffing Build core competencies Develop an appropriate organizational structure

5. Building a Capable organization Staffing Find the right people Background, experience, values, personality and management style Build core competencies Find out what competencies ae needed Develop the ability to do something Hone skills with experience

6. Building a Capable organization Build appropriate structure Structure must support strategy What value chain activities should be performed inside the company and which outside Structure internal organization around core value chain activities.- what we do well How much centralization and decentralization Don�t build walls Link to suppliers and strategic allies

7. Marshal Resources Marshal Resources Move resources to areas where the strategy requires Insure ther are enough resources to fund new initiatives Reduce resources where not needed

8. Policies and procedures Provides top down guidance about how certain things need to be done Helps align the action and behavior of company personel with the requirements for good strategy execution Places limits on independent action and helps overcome resistance to change

9. Policies and procedures Helps enforce consistency in how strategy-critical activities are performed in geographically scattered organization units. Promotes the creation of a work climate that facilitates good strategy execution

10. Best Practices and Continuous Improvement Bench Marking Find the best approach a particular task Collaborative effort to share information Reverse engineering Modify best practice tofit the company�s situation Continue to modify as situation changes

11. Best Practices and Continuous Improvement Reengineering Large scale changes in process, organization or structure when current structure is not acceptable A large, one time move towards a new plan. Total Quality Management Continuous examination of processes, organization and structure to get imcrementally better. Bottom up structure

12. Information and Control Systems Operations � Control of equipment Information � On line data systems Communications � email, internet, company intranet Sales and Marketing � e- commerce

13. Reward Systems Reward the right things Monetary rewards Non monetary rewards Reward employee for results not activities

14. Guideline for a good executive compensation Performance payoff must be a big part of compensation Everyone should participate Be fair and ethical in administering rewards Link reward to strategy implementation Executive must be able to influence his performance Keep time between accomplishment and reward short Mix non monetary and monetary rewards Forget about rewarding activities instead of results