STRATEGYEXEC-190

8/22/2019 STRATEGYEXEC-190

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EXECUTING

THESTRATEGY


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The Principal Managerial Components

of the Strategy Execution Process

Building an organization with the competencies,

capabilities, and resource strengths to execute

strategy successfully

Shaping the work environment and corporateculture to fit the strategy

Allocating ample resources to strategy-critical

activities

Ensuring that policies and procedures facilitate

rather than impede strategy execution


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The Principal Managerial Components

of the Strategy Execution Process

Instituting best practices and pushing for continuous

improvement in how value chain activities are

performed

Installing information and operating systems thatenable company personnel to carry out their strategic

roles proficiently

Trying rewards directly to the achievement of strategic

and financial targets and to good strategy execution Exercising strong leadership to drive implementation

forward, keep improving on how the strategy is being

executed, and attain operating excellence


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Component #1

Building an organization with the

competencies, capabilities, andresource strengths to execute

strategy successfully


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Staffing the Organization

Building Core Competencies

and

Competitive Capabilities

Matching the Organization

Structure to Strategy

A Company

With the

Organizational

CapabilityNeeded for

Proficient

Strategy

Execution

The 3 Components of Building an Organization

Capable Of Proficient Strategy Execution


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Staffing the Organization

Putting Together a Strong

Management Team

Recruiting and Retaining

Capable Employees


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Building Core Competencies

andCompetitive Capabilities


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The 3-Stage Process of Developing and

Strengthening Competencies and Capabilities

Stage 1:

The Organization must develop the ability to do

something, however imperfectly or inefficiently


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Stage 2:

As Experience grows and company personnellearn how to perform the activity consistently

well and at an acceptable cost, the abilityevolves into a tried-and-true competence orcapability


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Stage 3:

If the organization continue to polish and refine its

know-how and otherwise sharpen its

performance such that it becomes better thanrivals at performing the activity, the core

competence rises to the rank of a distinctive

competence, thus providing a path to

competitive advantage


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The Strategic Role of

Employee Training

When a company shifts to a strategy requiring different skills

In organizational efforts to build skill-based competencies

A key activity in business where technical know-how is

changing rapidly


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Component #2

Shaping the work environment

and corporate culture to fit the

strategy


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What is COMPANY CULTURE?


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The role of STORIES


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Forces that cause thecompany to evolve


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CULTURE:

an ALLY or an OBSTACLETo Strategy Execution?


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How Culture can promote better

Strategy Execution

1. not only provides company personnel with

clear guidance regarding what behaviors

and results constitute a good job

performance but also produces significantpeer pressure from coworkers to conform

o culturally acceptable norms.


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How Culture can promote better

Strategy Execution

2. A culture embedded with values and

behaviors that facilitate strategy execution

promotes strong employee identification

with and commitment to the companysvision performance targets and strategy.


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STRONG Versus WEAK

Cultures


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STEP 1

STEP 2

STEP 2

STEP 2

Identify the facets of present culture that are

strategy-supportive and those that are not

Clearly define desired new behavior and specify

Key features of new culture

Talk openly about the problems of the present

Culture and how new behaviors will improve

performance

Follow with visible, aggressive actions to modify

Culture- includes substantive symbol i c actions

Changing a Problematic Culture


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STRATEGYEXEC-190

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