tailieunhanh - Lecture Crafting and executing strategy (15/e): Chapter 12 - Arthur A. Thompson, A. J. Strickland III, John E. Gamble

Chapter 12 - Managing internal operations. After studying this chapter you will be able to: Learn why resource allocation should always be based on strategic priorities; understand why policies and procedures should be designed to facilitate good strategy execution; understand why and how benchmarking, best-practices adoption, and tools for continuously improving the performance of value chain activities help an organization achieve operating excellence and superior strategy execution;. | Managing Internal Operations Screen graphics created by: Jana F. Kuzmicki, . Troy University-Florida Region Allocating Resources to Support Strategy Execution Allocating resources in ways to support effective strategy execution involves Funding strategic initiatives that can make a contribution to strategy implementation Funding efforts to strengthen competencies and capabilities or to create new ones Shifting resources — downsizing some areas, upsizing others, killing activities no longer justified, and funding new activities with a critical strategy role Fig. : How Prescribed Policies and Procedures Facilitate Strategy Execution Role of new policies Channel behaviors and decisions to promote strategy execution Counteract tendencies of people to resist chosen strategy Too much policy can be as stifling as Wrong policy or as Chaotic as no policy Often, the best policy is empowering employees, letting them operate between the “white lines” anyway they think best Creating Strategy-Supportive Policies and Procedures Instituting Best Practices and Continuous Improvement Searching out and adopting best practices is integral to effective implementation Benchmarking is the backbone of the process of identifying, studying, and implementing best practices Key tools to promote continuous improvement Six Sigma quality control Business process reengineering TQM What Is a Best Practice? An activity that at least one company has proved works particularly well A path to operating excellence Best Practices The best practice must have a proven record in Significantly lowering costs Improving quality or performance Shortening time requirements Enhancing safety or Delivering some other highly positive operating outcome To be valuable and transferable, a best practice must Demonstrate success over time Deliver quantifiable and highly positive results and Be repeatable Characteristics of Best Practices Involves determining how well a firm performs particular activities and . | Managing Internal Operations Screen graphics created by: Jana F. Kuzmicki, . Troy University-Florida Region Allocating Resources to Support Strategy Execution Allocating resources in ways to support effective strategy execution involves Funding strategic initiatives that can make a contribution to strategy implementation Funding efforts to strengthen competencies and capabilities or to create new ones Shifting resources — downsizing some areas, upsizing others, killing activities no longer justified, and funding new activities with a critical strategy role Fig. : How Prescribed Policies and Procedures Facilitate Strategy Execution Role of new policies Channel behaviors and decisions to promote strategy execution Counteract tendencies of people to resist chosen strategy Too much policy can be as stifling as Wrong policy or as Chaotic as no policy Often, the best policy is empowering employees, letting them operate between the “white lines” anyway they think best Creating .