BUILDING A CAPABLE

ORGANISATION

Chandrajeet Singh FT202029

GROUP 2
Avinash Gaherwal FT202020
Joydip Sarkar FT202036
Avishek Basu FT202022
Akash kumar bhagat FT202011
Abhishek Arora FT202102
Yashna Sharma FT202100
Basu Sharma FT202026
Rahul Banerjee FT201061
ISHAAN AGRAWAL FT201039
 IMPLEMENTATION: THE GAP BETWEEN
FORMULATION AND PERFORMANCE
 Mankins and Steele(2005) reports companies realize only 63% of the financial performance
promised by their strategies

 Kaplan and Norton (2005) attribute this gap to employees’ unawareness or lack of understanding of
company’s strategy

 6 silent killers, according to Beer and Eisenstat(2000), that managers should confront rather than
avoid to become a capable organisation:

1. Top down senior management style

2. Unclear strategy and conflicting priorities
3. An ineffective senior management team
4. Poor vertical communication
5. Poor coordination across functions, businesses
6. Inadequate down-the-line leadership skills and development

 There are 8 levers for successful managerial competencies- implementation of all are not necessary.

 Identification of the appropriate lever(s) could impact the implementation of strategic process.
 IMPLEMENTATION: STRUCTURES
AND MANAGERIAL SKILLS
 Structure provides the framework in which companies operate effectively.
 Managerial skills are the behavioural activities that managers engage in within the structures
developed by the organisation.
 8 levers divided into structures and skills
 Structural
 Actions- who what and when of cross functional integration
 Programs- instilling organisational learning
 Systems- installing strategic support systems
 Policies- establishing strategy supportive policies
 Skills
 Interacting- the exercising of strategic leadership
 Allocating- understanding when and whereto allocate resources
 Monitoring- tying rewards to achievement
 Organising- the strategic shaping of corporate culture
 STRUCTURAL LEVERS
 Actions
 Crittenden(1991) states that successful strategy implementation requires the input and cooperation of all players in a company
 3 levels of hierarchy within strategy implementation: corporate strategy, business strategy and functional strategy

 Programs
 Florida and Goodnight(2005) suggest that the company’s most important asset is its creative capital
 Schrage(2005) reports that hiring right people is not sufficient- there is a need of an environment which encourages them to be
innovative

 Systems
 Ross and Weill (2002) suggest that successful implementation of IT systems in a company leads to 40% higher returns than their
competitors
 Strategically, decisions should be how much to spend, which business process to support.
 Tactically, quality of IT needed and security/privacy concerns are the issues that needs to be taken care of.

 Policies
 Strategy-supportive policies envelop a collective pattern of day-to-day decisions and actions.
 Thompson et al.(2006) reinforce the notion of top-down guidance regarding such behaviours and actions.
 There should be consistency across geographically dispersed units.
 MANAGERIAL SKILLS LEVERS
 Interacting
 Key responsibilities of a leader- direction, protection, orientation, managing conflicts and shaping norms.
 5 levels of leadership hierarchy according to Collins(2005)- Level 1- Highly capable individuals, Level 2- Contributing team
members, Level 3- Competent Manager, Level 4- Effective leader, Level 5- Executive

 Allocating
 Encompasses the use of major resources as money , people and capabilities.
 It is divided into 3 parts- Physical Capital(plant, equipment and raw material), Human Capital( training, insight and
intelligence) and Organisational Capital( formal reporting systems, informal relationships)

 Monitoring
 Reward systems- Monetary Incentives ( salary increase, performance bonuses, stock options) and Non- Monetary Incentives (
Praise, Constructive Criticism, Visible recognition)
 Brynes (2006) suggests that good work should be rewarded, bad work should be penalised

 Organising
 Culture relates strongly to strategy implementation. Shaping corporate culture requires clearness in content and consistency
in nature.
 3 types of cultures in an organisation: Internal culture, Engineering culture and Executive culture
 BALANCING THE IMPLEMENTATION
LEVERS
 Eight levers that assist in building a capable organisation might also serve as a barrier.

 Established firms overcompensate weak lever with another lever

 Using levers as a managerial tool allowed for identification of efforts that would facilitate
formulation and implementation efforts

 Identification of forces of resistances that could inhibit the implementation process can also be
done using levers as a managerial tool.

 Organisation has to have a clear understanding of each lever’s role and its impact on organisation’s
ability to succeed
THANK YOU