why executing strategy is a tough management job

7/18/2019 Why Executing Strategy is a Tough Management Job

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Why Executing Strategy Isa Tough Management Job

Overcoming resistance to changeWide array of demanding managerial activities to

be performed

Numerous ways to tackle each activityNumber of bedeviling issues to be worked out

Demands good people management skills

Requires launching and managing a variety ofinitiatives simultaneously

ard to integrate efforts of many different work

groups into a smoothly-functioning whole


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Who Are the Strategy Implementers?

"mplementing and e#ecuting strategy involves acompany$s whole management teamand allemployees

Top-level managersmust leadthe process andorchestrate ma%or initiatives Butthey must rely on cooperation of

&iddle and lower-level managers to see things go well invarious parts of an organi'ation and

(mployees to perform their roles competently


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Goals of the StrategyImplementing-Executing rocess

Unitetotal organizationbehind strategy

*ee that activitiesare donein a manner that is

conducive to first-rate strategy execution

Generate commitmentso an enthusiastic

crusade emerges to carry out strategy

Fithow organi'ation conducts its operationsto

strategy requirements


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(very manager has an active role

No proven ,formula for implementing particular

types of strategies

.here are guidelines/ but no absolute rules and

,must do it this way rules

&any ways to proceed that are capable of working

0uts across many aspects of ,how to manage

!haracteristics of the StrategyImplementation rocess


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"ig# $$#$% The Eight !omponents of the Strategy Execution rocess


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"ig# $$#&% The Three !omponents of 'uil(ing an)rgani*ation !apable of roficient Strategy Execution


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4ssembling a capable management team is acornerstone of the organi'ation-building task

5ind the right people to fill each slot

(#isting management team may be suitable

0ore e#ecutive group may need strengthening

6romote from within

7ring in skilled outsiders

utting Together aStrong Management Team


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.he quality of a company$s people is an essentialingredient of successful strategy e#ecution

7iggest challenge facing companies

ow to recruit and retain the best and brightest talentwith strong skill sets and management potential

"ntellectual capital/ not tangible assets/ is

increasingly being viewed as the most important

investment

.alented people are a prime source of competitive

advantage

+ecruiting an( +etaining Talente(Employees% Implementation Issues


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,ey uman +esource ractices toAttract an( +etain Talente( Employees

*pend considerable effort in screening %obapplicants/ selecting only those with

*uitable skill sets

(nergy and initiative

:udgment and aptitudes for learning

4bility to adapt to firm$s work environment and culture

6ut employees through training programs

throughout their careers;ive promising employees challenging/ interesting/

and skills-stretching assignments


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any one supplier

Regularly evaluate suppliers

Work closely with key suppliers


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)ssignmanagers of strategy-critical activities avisible/ influential position

)voidfragmenting responsibility for strategy-critical

activities across many departments

"rovidecoordinating linkages between related

work groups

&eld into a valuable competitive capability

Step &% Ma3e Strategy-!riticalActi0ities the Main 'uil(ing 'loc3s


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"n a centralized structure

.op managers retain authority for most decisions

"n a decentralized structure

&anagers and employees are empowered to make

decisions

Trendin most companies *hift from authoritarian to decentrali'ed structures

stressing empowerment

Step 1% 2etermine o4 MuchAuthority to 2elegate to Whom


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0ompany and its suppliers/ distributors/ strategic allies/

and customersCapacityfor changeand rapid learning

Colla!orative effortsamong people in different

functions and geographic locations

why executing strategy is a tough management job

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