implementing strategies
Post on 02-Jun-2017
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Ch 7 -3
Strategy Formulation vs. Implementation
Strategy Formulation Positioning forces
before the action Focus on effectiveness Primarily intellectual Requires good intuitive
and analytical skills
Requires coordination among a few people
Strategy Implementation Managing forces during
the action Focus on efficiency Primarily operational Requires special
motivation and leadership skills
Requires coordination among many people
Ch 7 -4
Shift in responsibility
Nature of Strategy Implementation
Management Perspectives
Divisional or FunctionalManagers
Strategists
Ch 7 -5
Management Issues Central to Strategy Implementation
Establish annual objectives Devise policies Allocate resources Alter existing
organizational structure Restructure & reengineer Revise reward & incentive
plans Minimize resistance to
change
Match managers to strategy Develop a strategy-
supportive culture Adapt production/operations
processes Develop an effective human
resources function Downsize & furlough as
needed Link performance & pay to
strategies
Ch 7 -6
Purpose of Annual Objectives
Basis for resource allocationMechanism for management evaluationMajor instrument for monitoring progress toward achieving long-term objectivesEstablish priorities (organizational, divisional, and departmental)
Ch 7 -8
Policies
Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior
Ch 7 -9
Resource Allocation
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Four Types of Resources
Ch 7 -10
Managing Conflict
Conflict not always “bad” Lack of conflict may signal apathy Can energize opposing groups to action May help managers identify problems
Ch 7 -11
Managing Conflict
Approaches for managing and resolving conflict Avoidance Defusion Confrontation
Ch 7 -12
Matching Structure with Strategy
Structure dictates how objectives and policies will be established
Structure dictates how resources will be allocated
Changes in strategy often lead to changes in organizational structure
Ch 7 -14
Basic Forms of Structure
Functional Structure Divisional Structure Strategic Business Unit Structure
(SBU) Matrix Structure
Ch 7 -17
Divisional Structure
Can be organized in one of four ways: By geographic area By product or service By customer By process
Ch 7 -19
Strategic Business Unit Structure (SBU) Group similar divisions into
strategic business units and delegate authority and responsibility for each unit to a senior executive who reports directly to the chief executive officer
Ch 7 -20
Matrix Structure
The most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication
Ch 7 -22
Restructuring, Reengineering, and E-engineering
Restructuring is calledDownsizingRightsizingDelayering
Ch 7 -23
Restructuring, Reengineering, and E-engineering
Cornerstones of ReengineeringDecentralizationReciprocal interdependenceInformation sharing
Ch 7 -24
Tests for Performance-Pay Plans
Does the plan capture attention?
Do employees understand the plan?
Is the plan improving communication?
Does the plan pay out when it should?
Is the company or unit performing better?
Ch 7 -25
Managing Resistance to Change
Force change strategy Educative change strategy Rational or self-interest change
strategy
Ch 7 -26
Creating a Strategy-Supportive Culture
1. Formal statements of organizational philosophy
2. Design of physical spaces3. Deliberate role modeling, teaching,
and coaching4. Explicit reward and status system5. Stories, legends, myths, and parables
Ch 7 -27
Creating a Strategy-Supportive Culture
6. What leaders pay attention to7. Leader reactions to critical incidents and
crises8. Organizational design and structure9. Organizational systems and procedures10. Criteria for recruitment, selection,
promotion, leveling off, retirement, and “excommunication” of people
Ch 7 -28
Production/Operations Concerns
Production processes typically constitute more than 70% of a firm’s total assets
Ch 7 -29
Production/Operations Decision ExamplesPlant sizeInventory / Inventory controlQuality controlCost controlTechnological innovation
Ch 7 -30
Human Resource ConcernsAssessing staffing needs/costsFurloughsDeveloping performance incentivesESOPsWork–life balance issuesMatching managers with strategy
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