Strategy Implementation: Staffing and Directing PowerPoint Slides Anthony F. Chelte Western New England College

1. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 1 Chapter 9 Strategy Implementation: Staffing and Directing PowerPoint Slides Anthony F. Chelte Western New England College

2. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 2 Strategy Implementation Staffing: Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills.

3. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 3 Strategy Implementation Staffing follows strategy: Training and development Firms with training programs 19% higher productivity Reduction in scrap Overall cost savings

4. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 4 Strategy Implementation Staffing follows strategy: Matching the manager to the strategy Executive type Executives with a particular mix of skills and experiences

5. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 5 Strategy Implementation Executive Types: Dynamic industry expert Analytical portfolio manager Cautious profit planner Turnaround specialist Professional liquidator

6. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 6

7. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 7 Strategy Implementation Executive Succession: Process of replacing a key top manager.

8. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 8 Strategy Implementation Executive Succession: Boards help CEO develop succession plan Identify succession candidates below top layer Measuring internal candidates against external candidates Appropriate financial incentives

9. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 9 Strategy Implementation Identifying Abilities & Potential: Establish a sound performance appraisal system

10. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 10 Strategy Implementation Identifying Abilities & Potential: Assessment centers Used to evaluate a person’s suitability for an advanced position.

11. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 11 Strategy Implementation Identifying Abilities & Potential: Job rotation Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities.

12. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 12 Strategy Implementation Problems in Retrenchment: Downsizing (“rightsizing”) Planned elimination of positions or jobs Used in retrenchment strategies

13. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 13 Strategy Implementation Guidelines for Downsizing: Eliminate unnecessary work vs. making across-the-board cuts Contract out work for efficiencies Plan for long-run efficiencies Communicate reasons for action Invest in the remaining employees Develop valued-added jobs to balance out job elimination

14. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 14 Strategy Implementation International issues in staffing: Considerable planning Can be very costly Cultural differences must be considered Experience through international assignments

15. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 15 Strategy Implementation International issues in staffing: Effective management of foreign assignments: Focus on transferring knowledge and developing global leadership Foreign assignments to people with technical skills matched or exceeded by cross-cultural abilities Deliberate repatriation at end of assignment with career guidance and jobs

16. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 16 Strategy Implementation Effective implementation requires: Leadership Leading people to use their abilities and skills most effectively and efficiently to achieve organizational objectives

17. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 17 Strategy Implementation Managing corporate culture: Corporate culture Affects firm’s ability to shift its strategic direction Strong tendency to resist change Corporate culture should support the strategy

18. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 18 Strategy Implementation Strategy-Culture Compatibility: Consider the following: Is the planned strategy compatible with the firm’s current culture? Can the culture be easily modified to make it more compatible with new strategy? Is management willing to make major organizational changes? Is management committed to implementing the strategy?

19. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 19 Strategy Implementation Managing corporate culture: Communication Key to effective management of change Rationale for strategic change should be communicated to all

20. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 20

21. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 21 Strategy Implementation Managing different cultures: Integration Assimilation Separation Deculturation

22. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 22

23. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 23 Strategy Implementation Action Planning: Action Plan States what actions are going to be taken, by whom, during what time frame, and with what expected results.

24. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 24 Action Plan Elements List specific actions. List dates to begin and end each action. Name person responsible for each action. Name person responsible for monitoring timelines and effectiveness of each action. Estimate expected financial and physical consequences of each action. Develop contingency plans.

25. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 25 Strategy Implementation Management by Objectives (MBO): Establish and communicate objectives Set individual objectives Develop action plan Review performance periodically

26. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 26 Strategy Implementation Total Quality Management (TQM): Philosophy committed to customer satisfaction and continuous improvement.

27. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 27 Strategy Implementation Total Quality Management (TQM): Four Objectives Better, less variable quality in product Quicker, less variable response to customer needs Greater flexibility to customer requirements Lower cost through quality improvement; elimination of non-value adding work.

28. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 28 Strategy Implementation Total Quality Management (TQM): TQM Essentials: Intense focus on customer satisfaction Internal and external customers Accurate measurement of operations Continuous improvement Work relationships based on trust and teamwork

29. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 29 Strategy Implementation

30. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 30 Strategy Implementation Internet Impact on Staffing & Leading: Intranet: Internal Internet created for the use of a corporation’s employees

31. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 31 Strategy Implementation Internet Impact on Staffing & Leading: Intranet: Static Updated periodically Dynamic Updated continuously

32. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 32 Strategy Implementation Advantages of Intranets: Speed, effectiveness, low cost Elimination of time and space barriers Can use existing infrastructure Ease of use Enhances productivity

33. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger 33 Strategy Implementation Disadvantages of Intranets: Information needs to be continuously updated Technology is continually changing Technical support needed to maintain system Security Access