Beruflich Dokumente
Kultur Dokumente
18e
Chapter 10
BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION: People, Capabilities, and Structure
2. Learn why hiring, training, and retaining the right people constitute a key component of the strategy execution process.
3. Understand that good strategy execution requires continuously building and upgrading the organizations resources and capabilities. 4. Gain command of what issues to consider in establishing a strategy-supportive organizational structure and organizing the work effort.
5. Become aware of the pros and cons of centralized and decentralized decision making in implementing the chosen strategy.
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Is operations-driven, involving management of both people and business processes. Is a job for the whole management team, not just a few senior managers. Can take years longer to develop as a real proficiency than implementing strategy. Requires a determined commitment to change, action, and performance.
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Entails figuring out the specific techniques, actions, and behaviors necessary for a smooth strategy-supportive operation.
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10.1
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10.2
Building an Organization Capable of Proficient Strategy Execution: Three Types of Paramount Actions
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Planners who ask tough questions and figure out what needs to be done. Implementers who can select, manage, and lead the right people. Executors who turn decisions into actions that drive the changes that produce sustainable competitive advantage.
Key Takeaway:
Would you want to work as a manager for General Electric? Why would you not want to work as a manager for General Electric? If you are a GE manager in charge of a solid group of winners, how would you justify grading one of them as a C player?
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What about the Toyota Production System (TPS) makes it so difficult for competitors to imitate successfully? What is the relationship between continuous improvement and efficiency in the TPS? Why would an Ishikawa (fish bone) diagram be helpful in solving problems in the TPS?
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Refreshing, updating, and upgrading competencies and capabilities as necessary to gain and maintain competitive advantage
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When industry conditions, technology, or competitors are moving at such a rapid clip that time is of the essence.
Tacit knowledge and complex routines may not transfer readily from one organizational unit to another.
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Outsource the function requiring the capabilities to a key supplier or another provider
Engage in a collaborative partnership for the purpose of learning how the partner does things
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Executing a strategy that requires different skills, competitive capabilities, and operating methods.
Organizational efforts to build skills-based competencies. Supplying technical know-how to employees when rapidly changing technology puts a firm in danger of losing its ability to compete.
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Are difficult to imitate and socially complex process that take a long time to develop. Maximize organizational resources and competitive capabilities in support of the business model. Lower costs and permit firms to deliver more value to customers. Enable a firm to react more quickly to market changes, beat competitors to market with new products and services, and gain uncontested market dominance.
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Deciding which value chain activities to perform internally and which to outsource.
Aligning the firms organizational structure with its strategy. Determining how much authority to delegate. Facilitating collaboration with external partners and strategic allies.
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Deciding Which Value Chain Activities to Perform Internally and Which to Outsource
Outsourcings Execution-Related Benefits:
Helps in outclassing rivals in strategy-critical activities and in turning a core competence into a distinctive competence. Decreases bureaucracies, flattens structure, speeds decision making, and shortens respond time to changing market conditions.
Adds to a firms capabilities and contributes to better strategy execution through partnerships with suppliers and channel partners.
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Comprises the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships for the firm.
Its design contributes to the creation of value for customers. Its parts are aligned with one another and also matched to the requirements of the strategy. It lowers operating costs through lower bureaucratic costs and operational efficiencies.
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10.1
Decisions on most matters of Decision-making authority should be importance should be in the hands put in the hands of the people closest of top-level managers who have the to, and most familiar with, the experience, expertise, and judgment situation. to decide what is the best course of Those with decision-making authority action. should be trained to exercise good Lower-level personnel have neither judgment. the knowledge, the time, nor the A firm that draws on the combined inclination to properly manage the intellectual capital of all its employees tasks they are performing. can outperform a command-and Strong control from the top is a more effective means for coordinating the firms actions. control firm.
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10.1 (contd)
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10.1 (contd)
Lengthens response times by Top management lacks full those closest to the market conditions controlhigher-level managers because they must seek approval for may be unaware of actions taken their actions. by empowered personnel under their supervision. Does not encourage responsibility among lower-level managers and rank-and-file employees. Discourages lower-level managers and rank-and-file employees from exercising any initiative. Puts the organization at risk if empowered employees happen to make bad decisions.
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Strategic alliances
Outsourcing arrangements
Joint ventures
Cooperative partnerships
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