tailieunhanh - Lecture Essentials of strategic management: The quest for competitive advantage (4e) - Chapter 10

Chapter 10: Superior strategy execution – Another path to competitive advantage. The main goals of this chapter are to: Gain command of what managers must do to build an organization capable of good strategy execution, learn why resource allocation should always be based on strategic priorities, understand why policies and procedures should be designed to facilitate good strategy execution,. | Student Version 1 Crafting versus Implementing Strategy Crafting Strategy Market-and resource-driven activities Success depends on Attracting and pleasing customers Outcompeting rivals The firm’s collection of resources and capabilities Implementing Strategy Execution of operations-driven activities Successful depends on management’s ability to Direct change Allocate resources Build capabilities Build strategy-supportive policies and culture Deliver good results 2 2 Who Is Responsible for Implementation of the Chosen Strategy? The organization’s chief executive officer and other senior managers are ultimately responsible for ensuring that the strategy is executed successfully. It is middle and lower-level managers who must see to it that frontline employees and work groups competently perform strategy-critical activities that allow companywide performance targets to be met. Requires all managers thinking about: “What does my area have to do to implement its part of the strategic plan, and what should I do to get these things accomplished effectively and efficiently?” 3 Building an Organization with the Capabilities, People, and Structure Needed for Good Strategy Execution Staffing the organization’s workforce Structuring the organization and work effort Organization building actions Acquiring, developing, and strengthening strategy-supportive resources and capabilities Staffing the Organization— Building Managerial Talent Assembling a capable management team is a cornerstone organization-building task: Put people with strong strategy implementation skills and a results orientation in key managerial posts. Replace weak executives, strengthening the skills of those who remain, and bringing in fresh outsiders. Recruiting and Retaining a Capable Workforce The quality of a firm’s people is an essential ingredient of successful strategy execution. Staffing the right people at all levels is required to ensure competent performance of value chain activities. Find, . | Student Version 1 Crafting versus Implementing Strategy Crafting Strategy Market-and resource-driven activities Success depends on Attracting and pleasing customers Outcompeting rivals The firm’s collection of resources and capabilities Implementing Strategy Execution of operations-driven activities Successful depends on management’s ability to Direct change Allocate resources Build capabilities Build strategy-supportive policies and culture Deliver good results 2 2 Who Is Responsible for Implementation of the Chosen Strategy? The organization’s chief executive officer and other senior managers are ultimately responsible for ensuring that the strategy is executed successfully. It is middle and lower-level managers who must see to it that frontline employees and work groups competently perform strategy-critical activities that allow companywide performance targets to be met. Requires all managers thinking about: “What does my area have to do to implement its part of the strategic plan,