Implementing strategy:

Building resource capabilities

and structuring the
organization
• Implementation and Execution
• A framework for implementing strategy
• The principal strategy-implementation task
• Building org with the competencies, capabilities, and resource strength
• Developing budget
• Establishing st supportive policy and procedure
• Instituting best practices and pushing for continuous improvement
• Installing information, communication, and operating system
• Reward and incentive
• Creating a st-supportive work environment
• leadership
Leading the implementation process

• How to lead?
• Experience and knowledge
• Whether they are new to the job or veterans
• Network of personal relation
• Own diagnostic, administrative---
• Authority have
• Leadership style
Building a capable organization
• Selecting people for key position
• Building core and competitive capabilities
• Developing and strengthening core competencies
• Developing and strengthening organizational capabilities (Ability,
competence/capability, and distinctive competence)
• Strategic role of employee training
• Matching organization structure to strategy
• Pinpoint primary value chain
• determine whether some value chain activities can be outsources
• Determine which one the strategy-critical activities/cap
• Make those primary value chain act and cap to better performed/develop
internally
• Det the degree of authority be needed to manage
• Reporting relationship and cross-unit coordination
• Det. Relationship with outsiders
Determine the degree of authority be needed to manage

• The new preference for learner management structures and

empowered employees is grounded in three tenets:
• Swift from industrial age to knowledge/information/system
• Decision making authority should be pushed down to the lowest
organizational level capable of making timely, informed, competent decision.
• Employees below the management rank should be empowered to exercise
judgment on matters pertaining to their jobs
The strategic advantages and disadvantages of different org.
structure
• Functional and process organizational structure
• Geographic forms of organization
• Decentralized unit
• Strategic business unit
• Matrix form of business organization
• Supplementing the basic organization structure
• Special project team
• Cross functional task forces
• Venture team
• Self-contained work team
• Process team
• Contact mangers
• Relationship managers
Organization structure in future

• ---simple
• ---functional expertise
• ---customers need sufficiently standardized
Implementing st: Budget, policies, best
practices, support system, and reward
• Linking budget to strategy –How?
• Creating strategy supportive policies and procedures
• Top-down guidance
• Help align actions and behaviors
• Help enforce needed consistency
• Dismasting old policies and instituting new ones
Instituting best practices and a commitment to continuous
improvement
• TQM: Quality improvement processes have now become a globally
pervasive part of the fabric of implementing strategies keyed to
defect-free manufacture, superior product quality, superior
customer service, and total customer satisfaction
• Committed leadership
• Adoption and communion of TQM
• Closer customer relationships
• Benchmarking
• Increased training
• Open organization
• Employee empowerment
• Zero-defects mentality
• Flexible manufacturing
• Process improvement
• measurement
Difference between TQM and process
reengineering
• Reengineering aims at quantum gains on the order of 30 to 50% or
more while TQM stress incremental process, striving for inch-by-inch
gains again and again
• Both are not mutually exclusive
• Reengineering can be used first to produce a quality programs then
perfect the process, and gradually improve both efficiency and
effectiveness.
Installing support system

• Installing adequate information system, performance tracing and

control
• Exercise adequate control and empowered employees
Designing strategy supportive reward system

• Strategy supportive motivation practices

• Balancing positive and negative motivational consideration
Linking the reward system to strategically
relevant performance outcomes
• The importance of basing incentives on achieving results, not on
performing assigned functions
• Guidelines for designing incentive compensation systems
• Payoff must be a major
• Incentive plan should extend to all managers and all workers
• Reward system should be administered with scrupulous care and fairness
• Must link to performance
• Should involves with outcomes
• Time to pay be should
• Make liberal use of nonmonetary rewards
• Find nonperformers