Summary
Summary OBS 330: Block 10
- Course
- Obs 330 (OBS330)
- Institution
- University Of Pretoria (UP)
Block 10 summary for OBS 330 at The University of Pretoria. The summaries include class notes, lecture slides and summaries
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OBS 330:Block 10
, CHAPTER LEARNING OBJECTIVES
1. Explain why resource allocation should always be based on strategic priorities.
2. Comprehend how well-designed policies and procedures can facilitate good strategy execution.
3. Understand process management tools drive continuous improvement in the performance of
value chain activities.
4. Recognise the role of information systems and operating systems in enabling company
personnel to carry out their strategic roles proficiently.
5. Explain how and why the use of well-designed incentives can be management’s single most
powerful tool for promoting adept strategy execution.
6. Understand the key features of a company’s corporate culture and the role of a company’s
core values and ethical standards in building corporate culture.
7. Explain how and why a company’s culture can aid the drive for proficient strategy execution.
8. Identify the kinds of actions management can take to change a problem corporate culture.
9. Recognise what constitutes effective managerial leadership in achieving superior strategy
execution.
Additional managerial actions that advance the cause of good strategy
execution:
Allocating ample resources to execution-critical value chain activities
Instituting policies and procedures that facilitate good strategy execution
Employing process management tools to drive continuous improvement in how
value chain activities are performed
Installing information and operating systems that enable company personnel to
carry out their strategic roles proficiently
Using rewards and incentives to promote better strategy execution and the
achievement of strategic and financial targets
The 10 Basic Tasks of the Strategy Execution Process
, LO 1 WHY RESOURCE ALLOCATION SHOULD BE BASED ON STRATEGIC PRIORITIES.
Mangers must determine what resources will be required in the strategy implementation
process and how they should be distributed across the company’s various organisational
units. This includes carefully screening requests for more people and new facilities and
equipment, approving those that will contribute to the strategy execution effort, and turning
down those that do not. A change in strategy calls for budget reallocations and resource
shifting.
Should internal cash flows prove insufficient to fund the planned strategic initiatives, then
management must raise additional funds through borrowing or selling additional shares of
stock to investors. Too little funding and an insufficiency of other types of resources slow
progress and impede the efforts of organisational units to execute their pieces of the strategic
plan competently. Too much funding of particular organisational units and value chain
activities wastes organisational resources and reduces financial performance.
Strategy-Driven Budgeting: Allocating Resources
Screen resources requests carefully
Approve only those that contribute to strategy execution
Provide the level of resources necessary for the success of strategic initiatives
Shift resources to high-priority activities where new execution initiatives are
needed
LO 2 Instituting Policies and Procedures that Facilitate Strategy Execution
Company policies and procedures can either support or hinder good strategy
execution.
How policies and procedures facilitate good strategy execution:
- Channel individual / group efforts along strategy-supportive
path
Provide top-down
guidance about - Align the actions and behaviour of company personnel with the
how certain things requirements for good strategy execution
need to be done:
- Place limits on independent action and help overcome
resistance to change
- Improve the quality and reliability of strategy
Helping enforce consistency execution
in how execution-critical
activities are performed: - Help coordinate the strategy execution efforts of
individuals and groups throughout the organisation
Promoting the creation of a A company’s policies and procedures help set the tone
work climate that facilitates of a company’s work climate and contribute to a
good strategy execution common understanding of how they do things.
However, too much policy can be obstructive and limiting. A MIDDLE APPROACH is
advised where a company prescribes enough policies to give organisational members
clear direction and to place reasonable boundaries on their actions; then empower
them to act within these boundaries in pursuit of company goals. Allowing company
personnel to act with some degree of freedom is appropriate when individual
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