Strategy Implementation and Assessment Flashcards
1
Q
What are the 2 dimensions in a stakeholder analysis?
A
- Power of the stakeholder over strategic decisions
2. Effect of strategy on the stakeholder
2
Q
What are Kotter’s 8 steps to managing change?
A
- Create a sense of urgency
- Build coalitions (collaborative leadership)
- Determine direction
- Communicate direction
- Empower employees
- Generate small wins
- Consolidate gains (aka small wins into one LT win)
- Institutionalize the new design (make it permanent)
3
Q
What are the 3 ways of managing performance?
A
- Management by objectives
- Value-based management
- Balanced scorecard
4
Q
What is managing by objectives?
A
- aligning individual goals with business goals
- structure goes through organizational hierarchy
- everyone is given goals that contribute to organizational success
5
Q
What is value-based management?
A
- creation of value
- measuring value financially… through DCF, returns to shareholders, economic profit, market-to-book ratio
6
Q
What is the balanced scorecard approach to performance management?
A
- combination of metrics that reflect strategy
- each element has a similar number of objectives
1. Finance (eg. ROE, operating income)
2. Customer (eg. on-time delivery, % of sales from new products)
3. Internal processes (eg. yield, efficiency)
4. Innovation and learning (eg. time to generate new products, new product introductions compared to competitors)