Topic 10

3/11/2013

Week 12

CHAPTER 10: BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION

The action agenda for executing strategy

1.        Staff the organization with the right people for executing the strategy- it means the company should hire the right and the capability person to make sure the strategy will be success.

2.      Build the organizational capabilities required for successful strategy execution-

3.      Establish a strategy supportive organizational structure

4.      Allocate sufficient resources to the execution effort- means the company should prepared all the important resources for the staff to execute the strategy

5.      Institute policies and procedures that facilitate strategy execution-  company need to do an easy or light policies for staff execute the strategy in smooth and easy condition

6.      Adopt best practices and business processes that drive continuous improvement

7.       Install information and operating systems that enable company personnel to carry out their strategic roles- means the organization should prepare all the information and good operating system for staff to execute the strategy

8.      Tie rewards and incentives directly to the achievement of strategic and financial targets- the company should give some reward for give spirit to the workers to do their work in good performance

9.      Instill a corporate culture that promotes good strategy execution

10.    Exercise strong leadership to propel strategy execution forward

Building an organization capable of good strategy execution: 3 key actions

v  STAFFING THE ORGANIZATION

o   The company should put together a strong management team to make sure the strategy will be success.  Its means every employees have different backgrounds, experiences, management styles so they should be put together in a one group.

o   The company needs to recruit and retain the talented employees to make sure the goals of company will be achieve.

v  ACQUIRING, DEVELOPING, STRENGTHENING KEY RESOURCES AND CAPABILITIES

o   The company should ask the top management to develop a set of resources and capabilities suited to the current strategy

o   Then, the employees need updating resources and capabilities as external conditions and the firm’s strategy chance

o   The employees should be training and retraining company personnel to maintain knowledge-based and skills-based capabilities

v  STRUCTURING THE ORGANIZATION AND WORK EFFORT

o   Instituting organizational arrangements that facilitate good strategy execution

o   Establishing lines of authority and reporting relationships

o   Deciding how much decision-making authority to delegate