Chapter 8ORGANIZING FOR ACTION

Ahmad NizarDiajeng Ayu MustikaHarris SetyaZakky Zamrudi

Strategic Implementation

Activities

Choices

Strategic ImplementationStrategic Plan

What isstrategicImplementation?

Strategic Implementation

Put action through Development of :

combined

Strategies

Policies

Budget Product Procedure

Strategic Implementation

HowtoImplement?

Take the agent of change or something

Who implement Strategy

Achieve synergy among division and functional

areas

What must be Done

further explanatory

session…

How is strategy Implemented?

• Program• Budget• procedures

Strategic Implementation

How is strategy Implemented?

• Does structure follow strategy

• What are the stages of corporate development

• What are advanced type of organizational structure

• Why is reengineering important to strategic implementation

• What is sig sigma

• How are job’s designed to implement strategic implementation

Strategic Implementation

• Does structure follow strategy

How is strategy Implemented?

Structure follows strategy— that is, changes in corporate strategy lead to changes in organizational structure .

The following sequence of what occurs:1. New strategy is created.

2. New administrative problems emerge.

3. Economic performance declines.

4. New appropriate structure is invented.

5. Profit returns to its previous level.

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

Stage 4

BEYOND SBUs (Strategy Business Units)

Stage 3Divisional Structure

Stage 2Functional structure

Stage 1Simple structure

Strategic Implementation

What are the stages of corporate development (Cont’d)

How is strategy Implemented?

The blocksWhat are

to Changing Stages?ExternalInternal

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure

• Cross-fertilization of ideas across projects or products is needed.

• Resources are scarce.• The abilities to process information and to make decisions

need improvement

Matrix

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure

Matrix

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure

Network

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure

Cellular/modular

The evolution of organizational forms is leading from the matrix and the network to a new form

modular form

divisional structure

customer responsiveness

of the matrix

self-organizing knowledge

asset sharing of the network

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation

• the radical redesign of business processes to achieve major gains in cost, service, or time.

• It is not a type of structure in itself, but an effective program to implement a turnaround strategy

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation

• Organize around outcomes, not tasks.• Have those who use the output of the process perform

the process• Subsume information-processing work into the real

work that produces the information• Treat geographically dispersed resources as though

they were centralized.• Link parallel activities instead of integrating their

results.• Put the decision point where the work is performed and

build control into the process• Capture information once and at the source.

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation• What is sig sigma

An analytical method for achieving near-perfect results on a production line. Although the emphasis is on reducing product variance in order to boost quality and efficiency, it is increasingly being applied to accounts receivable, sales, and R&D.

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation• What is sig sigma (Cont’d)

Define

Measure

AnalyzeImprove

Control

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation• What is sig sigma (Cont’d)• How are job’s designed to implement strategic implementation

The rethinking of individual tasks in order to make them more relevant to the company and to the employee(s)

Techniques

Job enlargement Job rotation Job

enrichment

Strategic Implementation

What are the stages of corporate development

How is strategy Implemented?

• What are advanced type of organizational structure• Why is reengineering important to strategic implementation• What is sig sigma (Cont’d)• How are job’s designed to implement strategic implementation

The model proposes that managers follow five principles for redesigning work :

Combine task

Form natural works unit

Establish customer relationship

Open feedback channel

INTERNATIONAL ISSUES IN STRATEGY IMPLEMENTATION

• Strategic alliances, such as joint ventures and licensing agreements, between an MNC and a local partner in a host country are becoming an increasingly popular means for an MNC to gain entry into other countries, especially less-developed countries. The key to the successful implementation of these strategies is the selection of the local partner. Each party needs to assess not only the strategic fit of each company’s project strategy, but also the fit of each company’s respective resources. A successful joint venture may require as many as two years of prior contacts between both parties.

Thank You