Chapter 11 Managing Internal Operations: Actions that Promote Good Strategy Execution

Question 1

What impact will a change in strategy have on an organization’s budgets

Answer 1

a. Funding strategic initiatives that can make a contribution to strategy implementation
b. Funding efforts to strengthen competencies and capabilities or to create new ones
c. Shifting resources — downsizing some areas, upsizing others, killing activities no longer justified, and funding new activities with a critical strategy role

Question 2

Identify four major continuous improvement initiatives and their specific contribution to strategy execution

Answer 2

Initiatives - benchmarking, best practice adoption, reengineering, total quality management 
Contribution - targets, world class value chain, Quantum leaps, Continuous Quality enhancement

Question 3

What are the chief contributors to performance produced by continuous improvement efforts

Answer 3

1. • Efficiency
2. – Operating costs
3. • Quality
4. • Customer satisfaction

Question 4

Describe “real-life” examples of support systems that enable implementation

Answer 4

Mrs. Fields’ Cookies - System to monitor sales, at 15-minute intervals, to suggest product mix changes and to improve customer response

Question 5

Describe the eight elements of a well-designed reward system

Answer 5

1. Payoff must be a major piece of compensation package
2. Incentive plan should extend to all
3. Administer system with fairness
4. Link incentives to achieving the performance targets in strategic plan
5. Targets each person is expected to achieve must involve outcomes that can be personally affected
6. Keep time between performance review and payment short
7. Make liberal use of non-monetary rewards
8. Avoid rewarding non-performers