Strategic

Management Session 17-18

What Is Strategy Execution?
🞂 Strategy execution
🞂 Building the resources and capabilities that lead to
competitive advantage through critical value and cost
drivers
🞂 Not the same as strategic planning
🞂 A relatively
simple business with a valuable protected
resource may not need planning—but it must
execute.
The Implementation Task: Creating “Fits”
1. Fits between the strategy and functional policies,
and
2. Fits between the strategy and the organization
structure, processes, and systems.

Functional Fits
🞂 All of the functions—marketing, manufacturing,
engineering, and finance—should adopt policies
that reinforce the corporate strategy.

Administrative Fits
1. organization structure,
2. information systems,
3. incentive systems,
4. control systems,
5. strategic planning systems,
6. organization processes,
7. management selection and development,
8. corporate culture, and
9. leadership style.

7 S Model
🞂 Strategy: the direction and scope of the company over
 the long term.
🞂 Structure: the basic organization of the company, its
departments, reporting lines, areas of expertise and
responsibility (and how they inter-relate).
🞂 Systems: formal and informal procedures that govern
everyday activity, covering everything from management
information systems, through to the systems at the point
of contact with the customer (retail systems, call center
systems, online systems, etc).
🞂 Skills: the capabilities and competencies that exist
within the company. What it does best.
🞂 Shared values: the values and beliefs of the company.
Ultimately they guide employees towards 'valued'
behavior.
🞂 Staff:
the company's people resources and how they
are developed, trained and motivated.
🞂 Style:the leadership approach of top management and
the company's overall operating approach.
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https://www.cgma.org/resources/tools/cost-transformation-model/mckinsey-framework.html

Mckinsey 7s Model
 Share Strateg St Style Staff Skills
d y S
Value
s
Shared XXXXX
Values X
Strategy XXXXX
X
Structur XXXXX
e X
Systems XXXXX
X
Style XXXXX
X
Staff XXXXX
X
Skills XXXXX
X
 7

McKinsey & Co.

🞂 Strategy
🞂 Premier reputation globally
🞂 High impact issues; CEO/top level
🞂 Leading companies
🞂 Highest quality
🞂 Structure
🞂 Partnership form of governance & management
🞂 One firm globally
🞂 Multi dimensional: Geographic, functional, industry
🞂 Team based
🞂 Specialized resource institutes
🞂 Systems
🞂 One profit pool/One P&L
🞂 Extensive post hoc client impact reviews 🞂
Knowledge Sharing Systems and Protocols
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McKinsey & Co.
🞂 Staff
🞂 Highly selective, on the job learning
🞂 Up or out; Heavy coaching and development
🞂 Mentoring by partners
🞂 Rigorous semi annual performance appraisals

🞂 Skills
🞂 Experience – depth and breadth
🞂 Analytic, Technical, Knowledge sharing ‘Teaming’

🞂 Style
🞂 One firm
🞂 Team oriented, professional, McKinsey way

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McKinsey & Co.
🞂 Shared Values
🞂 Client focus
🞂 One firm
🞂 Highest quality
🞂 High ethical standards

🞂 KSFs
🞂 Stateof art knowledge 🞂
Rich experience base 🞂
Highest quality execution
🞂 Global reach

10
10 Basic Tasks of Strategy Execution
3 Actions
Thank You

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