SG 9 Strategic Process - Implementation Flashcards
Formulation vs Implementation - 5 factors
Planning and decision making in creating strategic goals and plans vs focus on resources needed to execute the plans
Effectiveness vs efficency
Theoretical vs operational
Few individuals vs many individuals
Focus on initiative, logic-based skills vs motivational and leadership traits
3 Primary components of strategy implementation
People capabiltiies and strcuture
Managing internal operations
Org culture and leadership
What does organizational alignment do?
Provide framework for implementation by establishing entity’s decision making process and accountability structures and ensuring adequate resource allocation
Most critical leadership trait
Clear understanding of what needs to be done, who can do it, and how to achieve it
Foundation of a successfully implemented strategy
Assembling a competent management team. Traits include: result-oriented capable big-picture thinking ask questions identify redundancies follow-up on o/s tasks
One main priority of strategy implementation
Build or strengthen the org’s core competencies and capabilities
Define capabilities
assets, competencies, processes, skills or knowledge controlled by org needed to implement its strategy
3 forms of building capabilities
Internal development
Acquiring via acquisition and mergers
Accessing via partnerships
What are internally developed capabilities
Something that is used to increase competitive advantage that comes from the org internally such as knowledge, skill sets etc.
Acquisition and mergers - capabilities features
More expensive than internal, but can quickly adopt the capabilities of acqquiree
3 types of options for partnerships
Joint venture
Outsourcing
Collab partnership
Can be tricky as orgs may not want to share success for no return
What does org structure need to do?
Support individual needs of org and its strategic objectives
What is an org structure
Formal and informal arrangement of tasks, responsibilities and lines of authority. It clarifies decision making and establishes formal lines of comms. Can create value for org by reducing redundancies and lag time, which can create value for the customer.
Simple structure - definiton and +
One person makes all decisions
+ good for small orgs
+ decisions made quickly
+ adapt to changes swiftly
Functional structure - definition and +/-
Seperated out by department (sales/accounting etc)
Still relatively centralized (not as much as simple)
+ promotes learning and economies of scale
- interdepartmental comms may be limited (silo-thinking)
Divisional structure - definition
Orgs are divided into divisions and managed as profit centres.
De-centralized decision making
Each division operates autonomously
Business-level activities are managed by divisional managers, but corp strategy managed by the exec
Matrix structure def
Business-unit and functional levels are combined (i.e. employees have two bosses to report to)
Combines stability of functional with flexibility of business line
Policy and procedures for achieving strategy vs control mechanisms
Designed to address risks that threaten achievement of the strategic goals, rather than safeguarding assets or ensuring FS are free from misstatements.
Should align with mission and values, laws and regulations.
Should clearly state reason for policy and how it aligns with the strategy.
How does IT affect strategy?
Used to ensure historical info is accurate, as well as future-planning.
Can be a comp adv.
Can highlight weakness in collecting data.
Must be well-funded.
What is org culture?
Informal set of values, behaviors and traditions that determine how managers and employees interact with each other and those outside the org. Culture must be aligned with strategy to succeed.
3 ways a corporate culture is developed and nurtured
Tone at the tope
HR policies
Mangement-untion relationship
3 facets of change management
Planning - including minimizing effects on morale of any terminations
Comunication - also including the need for change, the WHY
involvement and motivation - involve eneryone in the changes, including opp to provide feedback
