Professional Documents
Culture Documents
10
SUPERIOR STRATEGY
EXECUTIONANOTHER
PATH TO COMPETITIVE
ADVANTAGE
McGraw-Hill/Irwin
(contd)
LO5 Recognize the role of information and operating
systems in enabling company personnel to
carry out their strategic roles proficiently.
LO6 Learn how and why the use of well-designed
incentives and rewards can be managements
single most powerful tool for promoting
operating excellence.
LO7 Gain an understanding of how and why a
companys culture can aid the drive for
proficient strategy execution.
LO8 Understand what constitutes effective
managerial leadership in achieving superior
strategy execution.
10-3
Primarily a market-
Primarily an operations-
driven activity
Successful strategy
making depends on
driven activity
Successful strategy
execution depends on
managements ability to
Attracting
and pleasing
customers
Outcompeting rivals
A firms collection of
resources and capabilities
Direct
change
Improve operations
Build a strategy-supportive
culture
Get things done and deliver
good results
10-4
Core Concept
Good
Good strategy
strategy execution
execution requires
requires aa
team
team effort.
effort. All
All managers
managers have
have strategy
strategy
executing
executing responsibility
responsibility in
in their
their areas
areas of
of
authority,
authority, and
and all
all employees
employees are
are active
active
participants
participants in
in the
the strategy
strategy execution
execution
process.
process.
10-5
10-6
10-7
10-8
FIGURE 10.1
The Eight Components
of Strategy Execution
10-9
Staffing the
organizations
managerial talent
Building and
strengthening
capabilities and
core competencies
Structuring the
organization and
work effort
10-10
10-11
10-12
expectations
Organization
10-15
10-16
Attempting
10-17
Structure
10-18
a centralized structure:
a decentralized structure:
stressing empowerment
10-19
Characteristics of
Centralized Decision Making
Key advantage
Tight control by top managers fixes accountability
Disadvantages
Bureaucracy slows response to changing conditions
Widely scattered operations require that decision-making
Advantages of
Decentralized Decision Making
Makes
10-21
10-22
Allocating Resources to
Strategy-Critical Activities
initiatives
To bolster value-creating processes
To strengthen firms capabilities and competencies
initiatives
Reallocation of resources to support new strategies
10-23
Instituting Strategy-Supportive
Policies and Procedures
Strategy
execution.
10-24
much policy:
strategy implementation.
Is inappropriate when individual creativity and initiative
10-25
10-26
process reengineering
Sigma
10-28
10-30
reporting:
10-31
Monetary
Monetary
Base
Basepay
payincreases
increases
Bonuses
Bonuses
Profit
Profitsharing
sharingplans
plans
Stock
Stockoptions
options
Piecework
Pieceworkincentives
incentives
Nonmonetary
Nonmonetary
Praise
Praiseand
andrecognition
recognition
Stimulating
Stimulating
assignments
assignments
Autonomy
Autonomy
Rapid
Rapidpromotion
promotion
10-32
Compensation
Incentives
10-33
10-34
management
10-35
Core Concept
Corporate
Corporate culture
culture is
is aa firms
firms internal
internal work
work
climate
climate and
and is
is shaped
shaped by
by its
its core
core values,
values, beliefs,
beliefs,
and
and business
business principles.
principles. A
A firms
firms culture
culture is
is
important
important because
because itit influences
influences its
its traditions,
traditions,
work
work practices,
practices, and
and style
style of
of operating.
operating.
10-36
Characteristics of
Unhealthy Corporate Cultures
Hostility to change
Avoid risks; experimentation and efforts to alter
10-37
High-Performance Cultures
Standout
A can-do spirit
Pride in doing things right
No-excuses accountability
A results-oriented work climate in which people go
10-38
Characteristics of
High-Performance Cultures
A
10-39
Adaptive Cultures
Adaptive
10-40
business principles
Are legitimate in the sense of serving the best
10-41
10-42
10-43
10-44
10-45
10-46
Encourage employee
initiative and creativity
Fostering
a resultsoriented, highperformance
culture
Celebrate individual,
group, and company
successes
10-47