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Summary managing strategy Execution
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Summary of the course, managing strategy execution. Everything you need to prepare for the exam!
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Session 1 – The strategy execution framework & ideationStrategy execution building blocks:
1)Decision Rights:
• Specify who “owns” each decision and who must provide input.
• Ensure that everyone in your company knows which decisions and actions they’re
responsible for.
• Encourage higher-level managers to delegate operational decisions.
2) Information:
• Make sure important information about the competitive environment flows quickly to
corporate headquarters.
• Facilitate information flow across organizational boundaries (external information flow).
• Help field and line employees understand how their day-to-day choices affect your
company’s bottom line.
Why does strategy execution fail?
- Disconnection between higher en lower levels of the organization, also in terms of
communication
- People don’t know who is responsible for what
- Not enough (good) feedback
- Allocation of resources is not done well enough
Strategy execution in a nutshell: do the right projects, do the projects right and continually
review and re-alignment.
Doing the right projects align ideation, nature and vision
Ideation:
Clarify and communicate purpose & identity & long-range intention, helps to differentiate
For example: Is the purpose (reason why firm exist) of the company consistent with the
values the brand communicates?
Strategic Identity What Kind of Company are You?
• Firms can actively manage identity
• Firms make choices that manifest their identity in externally recognizable ways
• Outsiders infer identity from external clues (such as dress code, code of ethics, etc.)
• External clues create de facto identity and shape the way the world relates to the firm
• Strong identity determines a firm’s ability to compete; identify captures the essence as to
what makes the firm different from others
4 types of identity:
Customer intimacy put customers first, focus on relationships and customer experience
when making decisions about product and service offering
Product leadership best product in product-class or industry
Disruptive innovation creating new categories, new customers, game changer.
,Operational excellence cost leaders, same/lower price than competitors, lower costs.
Types of identity linked to technology life cycle.
Purpose why do firms exist?
• Purpose describes the role of the firm beyond economic objectives (profit)
• At the individual level, purpose is reflected in peoples understanding regarding how their
role in the firm fit into larger scheme of things
• Purpose gives people a compelling reason to come to work every day and to invest their
personal resources in the collective endeavor
• Identity only becomes truly meaningful when linked and aligned to a purpose
TMT feels more identified with organization’s purpose, because they come up with it
How to communicate purpose?
Externally mission
Internally embed the purpose into entire firm (through development programs e.g.)
Important to manage purpose on a longer-term and make sure employees don’t lose their
feeling of purpose.
Organizations with strong sense of purpose are more confident in their growth prospects.
How to infuse the purpose into the organization?
The process of infusing the purpose into the organization hinges on (1) top management
commitment, (2) communication of key concepts, (3) involvement of multiple levels of
management, (4) involvement throughout the functional areas, and (5) setting specific
targets relating to the mission.
• 1) Top management commitment must encompass the entire process of developing
and/or using a mission statement
,• 2a) Key concepts: core values; a top‐down approach is seen as necessary to set the basic
direction, although input from within the organization eventually is encouraged - this
botom‐up input may influence what concepts are seen as key, or what key concepts are
given highest priority
• 2b) Proper communication of ideals is crucial to drive top management commitment to the
other levels; that is, communicating “measurables” (broad target) from the corporate level
to the business level to the plant level to the employee level. Each level then has input into
putting together its own mission and set of measurable. Often, retreats are used to
communicate and develop vision.
• 3) Involve all management levels - The goal is that all levels of the organization must buy
in to the mission ideals.
• Involvement of all levels is often achieved by communicating measurables and then
allowing each level to create their own targets for meeting the expectations of the level
above; for instance, the plant level develops measurables it uses to meet the measurables
set by the company, which are set to meet the corporation’s targets.
• Sometimes, it is important that the implementation goes deeper into the management
ranks; here, for instance additional retreats/events may be designed to reach a broader
element of the organization. This way, in time, all management levels will be involved in
developing specific targets from the overall vision and values statement.
• 4) Involve all functional areas - It is important get the mission accepted throughout
the functional areas; for instance, top management may push the concept of measurables all
the way to the functional departments; - this provides management with a focused goal‐
setting tool and it allows them a link to the mission statement when doing formal or informal
training and it makes the mission statement a multi‐functional tool that management can
use to ensure that the diverse pieces of the firm are pulling in the same direction
• 5) Alternative, all functions may be included in the mission development retreats and a
procedure specifically designed to ensure that each function’s targets are in line with the
targets of the other functional areas and the overall vision of the organization can be used
Clarifying long-range intention: where are you going?
• Long-term intention provides both direction and a destination for the firm
• First step in identifying strategic goals and the project investments that will be necessary to
attain them
• Offers support for making good short-term decisions that – in sum – contribute to
achievement of the long- term objectives
• Ensuring balance between short-term and long-term investments (balanced scorecard)
Key elements of vision: business scope, business scale, competitive focus,
image/relationships, product/market focus, organization/culture
, Developing strategic vision: First assess the constrains in environment and resources.
Framework for development of strategic vision:
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