Chapter 9

1. Chapter 9 Strategy Implementation: Staffing and Directing Conceptsﴀﴀﴀﴀ in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks

2. Strategy Implementation • Staffing • Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills. Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

3. Strategy Implementation • Staffing follows strategy: • Matching the manager to the strategy • Executive type • Executives with a particular mix of skills and experiences Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

4. Selection & Management Development • Executive Succession: • Process of replacing a key top manager. • Boards help CEO develop succession plan • Identify succession candidates below top layer • Measuring internal candidates against external candidates • Appropriate financial incentives Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

5. Selection & Management Development • Identifying Abilities & Potential: • Establish a sound performance appraisal system • Assessment centers • Used to evaluate a person’s suitability for an advanced position. • Job rotation • Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities. Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

6. Strategy Implementation • Problems in Retrenchment: • Downsizing (“rightsizing”) • Planned elimination of positions or jobs • Used in retrenchment strategies Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

7. Strategy Implementation • International issues in staffing: • Considerable planning • Can be very costly • Cultural differences must be considered • Experience through international assignments Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

8. Strategy Implementation • Managing Organizational culture: • Organizational culture • Affects firm’s ability to shift its strategic direction • Strong tendency to resist change • Organizational culture should support the strategy Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

9. Strategy Implementation • Four methods of managing different cultures: • Integration • Assimilation • Separation • Deculturation Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

10. Strategy Implementation • Management by Objectives (MBO): • Establish and communicate objectives • Set individual objectives • Develop action plan • Review performance periodically Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

11. Strategy Implementation • Total Quality Management (TQM): • Philosophy committed to customer satisfaction and continuous improvement. Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks

12. 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. Concepts in ﴀﴀﴀﴀStrategic Management, Canadian Edition Wheelen, Hunger, Wicks