Chapter 10 Building an Organization Capable of Good Strategy Execution Flashcards
8 action agenda components
leadership organization budgets policies best practices information systems rewards culture
Leadership
Exercising strong leadership to drive execution forward & attain operating excellence
Organization
Building an organization with the competencies, capabilities, & resource strengths to execute strategy successfully
BUdgets
Marshaling resources behind the drive for good strategy execution
Policies
Instituting policies & procedures that facilitate strategy execution
best practices
Adopting best practice & striving for continuous improvement
information systems
Installing information & operating systems that enable company personnel to carry out their strategic roles proficiently
reward
trying rewards & incentives directly to the achievement of strategic & financial targets
culture
instilling a corporate culture that promotes good strategy execution
What are the major actions necessary to support the organization-building component of strategy execution?
- Assign managers of strategy-critical activities a visible, influential position.
- Avoid fragmenting responsibility for strategy-critical activities across many departments.
- Provide coordinating linkages between related work groups
What comes first…structure or strategy?
Strategy
Identify 5 organizational designs and describe a strength and weakness of each.
- Functional & process specialization - A company operating in One business
- Geographic Organization – A company with operations in various parts of the world
- Decentralized business units
- Strategic business units
- Matrix structures
Identify coordinating mechanisms that supplement basic organization structures
- Cross-functional task forces
- Dual reporting relationships
- Informal networking
- Voluntary cooperation
- Incentive compensation tied to group performance
- Teamwork & cross-departmental cooperation
functional Organization
Low cost leaders
Process oriented
low cost
