strategy execution
operations-driven, involving management of both people and business processes
take years to develop as a real proficiency than
... [Show More] implementing strategy
requires a determined commitment to change, action, and performance
- figure out specific techniques, actions, and behaviors necessary for a smooth strategy-supportive operation
- following through to get things done and deliver results
- making things happen (leadership) and making them happen right (management)
what is involved in committing to executing a strategy? (3)
Brainpower
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1. build the organizational capabilities required for successful strategy execution
2. establish a strategy-supportive structure
3. allocate sufficient resources to the strategy execution effort
4. institute policies and procedures that facilitate strategy execution
5. adopt best practices and business processes that drive continuous improvement
6. install information and operating systems that support strategy execution activities
7. tie rewards and incentives directly to the achievement of strategic and financial targets
8. instill a corporate culture that promotes good strategy execution
9. Exercise strong leadership to propel strategy execution forward
10. staff the organization with the right people for executing the strategy
what are the 10 basic tasks of the strategy execution process?
cultural
technical
what are the 2 types of fit?
1. assemble a strong management team and a cadre of capable employees
2. renew, upgrade, and revise resources and capabilities to match chosen strategy
3. create an organizational structure that is strategy-supportive
where do you begin to build an organization capable of good strategy execution? (3)
- screen and evaluate applicants
- training programs
- rotate employees through challenging and skill-stretching international assignments
- stimulating and engaging work environment
- financial incentives
- coaching potentials and weed out underperformers
what are some techniques that can be used when recruiting, training, and retaining capable employees? (7)
1. develop capabilities internally
2. acquire capabilities through mergers and acquisitions
3. access capabilities via collaborative partnerships
what are the 3 approaches to building competencies and capabilities?
- strengthen the firm's knowledge base of skills, knowledge, and intellect
- coordinate and integrate the efforts of work groups and departments
- train employees
- set stretch goals
what would companies have to do to develop capabilities internally? (4)
have their own lingo
sometimes create acronyms
what are some characteristics of a company developing capabilities internally?
- specific but not too rigid
- challenging but not too challenging (training if necessary)
- employee participation in setting goal
- time horizon is appropriate
- common standards yet tailored to individual
- if cooparation is necessary, set team based goal
how would a company set stretch goals?
rubber band analogy
what example is used to explain stretch goals?
merger
the combining of two or more firms into a single corporate entity that often takes on a new name
acquisition
combination in which one firm, the acquirer purchases and absorbs the operations of another firm, the acquired
85%
what is the percentage of failure for mergers and acquisitions?
1. creating a more cost-effective operation out of the combined companies
2. expanding a company's geographic coverage
3. extending the company's business into new product categories
4. gaining quick access to new technologies or other resources and competitive capabilities
5. leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities
what are the typical objectives of mergers and acquisitions? (5)
(When does it make sense to do a MorA?) [Show Less]