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Transcript of Strategy Implementation. Managers’ Mental Models (Beliefs & Understanding Vision and Mission...
Strategy Implementation
Managers’MentalModels
(Beliefs &Understanding
Visionand
Mission
BusinessDefinition
CorporateStrategy
BusinessStrategy
Functional Strategy
MarketPosition
Performance
SetObjectives
Implementation
Decisions about
A Framework for the Strategy Making Process
Feedback
Strategic Management Model
Create a Vision orMission
SetObjectives
Craft a Strategy
Implementthe
Strategy
Measureand
Evaluate
Strategic Management Model
Create a Vision orMission
SetObjectives
Craft a Strategy
Implementthe
Strategy
Measureand
Evaluate(Long-term)
Short-termObjectives
Functional StrategyFunctional Tactics
Is there a difference between strategy and tactics?
if so
How do we distinguish betweenstrategy and tactics?
Each functional area will have differentfunctional tactics
What is functional strategy? What is theoverall purpose of functional strategy?
Business-LevelStrategy
Functional-LevelStrategy
FunctionalTactics
Implementation is about action!
Once the strategy has been formulated it is initiated throughfour interrelated steps:
1. Creation of short-term objectives
2. Development of specific functional tactics that createcompetitive advantage
3. Empowering operating personnel through policies thatguide decisions
4. Development of effective rewards
Functional Tactics and Short-termobjectives
FunctionalStrategy
ActionPlans
Policies and Rewards
Implementation Requires
Time frameResponsibilityPerformance
What are policies and why are theyimportant in implementation?
What is organizational culture and why is it important to implementation?
Why are reward systems so important tostrategy implementation?
Which are more effective intrinsic or extrinsic?
Which ones motivate you?
Strategic Management Model
Create a Vision orMission
SetObjectives
Craft a Strategy
Implementthe
Strategy
Measureand
Evaluate(Long-term)
Short-termObjectives
Functional StrategyFunctional Tactics
McKinsey 7-S
McKinsey 7-S is a framework for understanding effective organizational change.
Implementation Impacts and is Impacted by the components of McKinsey 7-S
McKinsey 7-S
Structure
Skills (organizational, management, employee)
Staff (management and employee)
Shared values (culture)
Style (leadership)
Systems
(current) Strategy
Strategic Management Model
Create a Vision orMission
SetObjectives
Craft a Strategy
Implementthe
Strategy
Measureand
Evaluate(Long-term)
Short-termObjectives
Functional StrategyFunctional Tactics
Control
Control (Strategic and Operational)
What does control mean in an organizational context?
Strategic Control
Strategic control is concerned with tracking strategy once it has been implemented, detecting changes or problems as theyoccur and guiding action whose result will manifest severalyears from the initial execution.
Premise control: systematically checks whether the premises (assumptions) on which the strategy is based are still valid.
Implementation control: is designed to assess whether the overallstrategy should be changed in light of results associated withincremental actions.
Strategic Control continued
Strategic surveillance: monitors a broad range of events inside andoutside of the firm that are likely to affect the course of its strategy
Special Alert Control: is a thorough and often rapt reconsiderationof the firm’s strategy because of a sudden unexpected event
Operational Control
Operational controls monitor performance, evaluate deviationsand initiate corrective action.
They are designed to monitor, guide and evaluate the firm’sprogress in meeting short-term objectives.
Operational controls (e.g., budgets, scheduling resources):
-set standards of performance-measure actual performance-identify deviations-initiate corrective action