Professional Documents
Culture Documents
Course Objectives
into action To improve our ability to develop strategydriven operational plans To be able to recognize typical strategy implementation mistakes and pitfalls
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Six Challenges
1. Knowing the strategic plan 2. Understanding how to link strategic concepts 3. 4. 5. 6.
to action Being good at defining goals, targets and measures Using operational planning to drive strategy Handling the people side well Avoiding the typical pitfalls of strategy execution
Strategy Review
Strategy is the pattern or plan that integrates
a firms major goals, policies and action sequences into a cohesive whole. Competitive moves and business approaches that management employs in running a company Managements game plan to
Please customers Position a company in its chosen market Compete successfully Achieve good business performance
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Levels of Strategy
Societal Level What role should the organization perform for society? Corporate Level What business or businesses should the company be in? Business Level How should a firm compete in a given industry? Functional Level How to integrate various sub-function activities of the firm?
A Portfolio Of Businesses
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Elements of Strategy
Where will we be active? Products, markets, geographic areas, technologies, value stage?
ARENAS
What will be our speed and sequence of moves? Speed of expansion Sequence of moves
STAGING ECONOMIC LOGIC VEHICLES
How will we get there? Internal development, Acquisitions, Licensing, Franchising JVs
DIFFERENTIATORS
How will we obtain our returns? Lowest price scale Lowest price scope Premium prices- features services How will we win? Price, Image, Reliability, Style Customized
implementation occur simultaneously .. in other words, the process is not linear. Strategies are emergent Each context is different
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Implementation
Execution Action (doing) Follow through Operational
perspective
perspective
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Challenges and implications intended and realized strategy the learning organization uncertain and complex conditions
Implementation
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Elements of Alignment
CULTURE
McKinsey 7 S
STAFF SKILLS
STYLE STRATEGY
STRUCTURE
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among implementation instruments Structural fit - alignment with the demands of the strategy
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structures
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within functional units Enables in-depth knowledge and skill development Enables pursuit of functional goals Works best with limited product range
environmental change Potential for hierarchical overload Poor horizontal coordination Reduced innovation Managers restricted view of organization purpose
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environmental change Client satisfaction and product responsibility contact points are clear Better coordination among functions decentralized decisionmaking profit and loss accountability Best in organizations with multiple products
and functional departments Loss of in-depth functional competence and technical specialization Poor coordination across product lines, weak knowledge transfer Competition for central resources, reduces cooperation Integration and standardization across product lines difficult
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meet dual customer demands Flexible sharing of human resources across products Enables both functional product skilled development Suited to complex decisions and frequent changes in and stable environment Best in medium organization sized with multiple products, projects
authority
Demands high
interpersonal skills extensive training Time-consuming, frequent meetings, conflict resolution Participants must adopt collegial not vertical type relationships Prone to tipping over, effort required to maintain balance of the matrix
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organizational silos
Self-directed, cross functional teams facilitate
communication
Employees crosstrained combined skills to
perform a task, customers drive horizontal cooperation, value assessed on customer centric measures Process owners have responsibility for process in its entirety Open culture, trust, empowerment, continuous improvement, self-control and well-being
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response and consumer needs Focuses attention toward the production and valued customer Employees have broad view of organization purpose Focus on teamwork and collaboration Empowerment and control offers better quality of work life
Job design management philosophy information reward systems Traditional hierarchical managers have difficulty Costly employee training to work effectively in team environment Multi-skilling limits development of portable functional skills
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