Business strategy 7 2549

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<ol><li> 1. Strategic Execution / Implementation.. </li><li> 2. Strategy StrategyImplementation Formulation and Operational Excellence Strategy Measurementand Evaluation 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 3. Strategic AlignmentStrategic Capability1. 1. 2. 2. 3. 3.4. 4.5. 5.6. 6.7. 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 4. Execution </li><li> 5. 3M 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 6. Recency and Primary Effects 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 7. 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 8. / / 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 9. Structure Is the existing structure established to deal with a different set of strategies? Does the current structure facilitate or hinder the implementation of strategy? Number of layers Span of control No clear responsibilities 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 10. Fitting Structure to Strategy Pinpoint primary value activities/capabilitiesthat are important in successfully executing thestrategy what functions have to be performed extra well orin a timely fashion to achieve sustainablecompetitive advantage? In what value activities would malperformanceseriously endanger strategic success? 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 11. Determine whether some activities (non-critical) can be out-sourced moreeffectively/efficiency than performed internallyoutsourcing can decrease internal bureaucracies,flatten org. structure, heighten the firms strategicfocus, increase competitive responsivenessallow firm to concentrate energies and resources toactivities that create unique value and achievecompetitive advantagemake sense when outsiders can perform thoseactivities at lower cost and/or with higher value-added than perform internally 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 12. Making strategic-critical activities/capabilities the main building blocks of the internal organizationto have the resources, decision-making influence, and org. impact needed 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 13. Strategy Map Six Sigma, TQM GAP As Is???? To Be 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 14. Strategic INNOVATION CUSTOMER MANAGEMENTOPERATIONS MANAGEMENT SOCIALProcesses REPONSIBILITYImprovePartner Conduct CreateImprove ImproveImprove Supply chainin Product Applied Value-added Orderraw materials Environmentaldesign and Developmentresearch partnershipsfulfillmentsourcing performance planning Strategic Job SCM JointCallFamilies Venture Senior Solutions CenterDesign RawEnvironmentalspecialists materials ProgramscientistsEngineersRepresen-engineers traders managers tativesExpediters Competency Knows theSubjectKnows the Knows the Acknow- Subject SubjectProfileindustrymatter expertcustomercustomer ledged SCM matter expert matter expertKnows theKnows the expertKnows the Knows the Knowledge customer product company companyContracting Business ConsultingCRM system Consulting Negotiation Project skillsacumen skillsmasteryskills skillsmanagementNegotiation ProjectRelationship ProjectChangeSkills skillsmanagement management management managementRelationshipChange managementmanagementResults-Team CustomerResults- Results- Results-Team playerValues orientedplayer partnership oriented oriented oriented Number Required5 25 302015 5Number Qualified 2 15 151501 2 Human Capital 40%60% 50%75% 0%20% 40%Readiness 2006 Assoc. Prof. Pasu RDecharin, Ph.D. All rights reserved R YY RRR </li><li> 15. : IBM Thomas J. Watson Sr. IBM (Excellence in everything we do) (Superior customer services) (Respects for individual) IBM 30 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 16. Lou Gerstner IBM IBM 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 17. What are the Manifestations of Our Culture?To trace the manifestations, in order to map outpeoples culture perception and allow the underlyingassumptionsRole Models of leaders and those recently promotedWhich traits are rewarded in the company?Which traits are strictly forbidden?Which traits are discouraged, but practiced anyway?Rituals and routinesDo current rituals and routines add value or are they justassumed to add value?Does the way that you do things around here add value for yourcustomers?What are the benefits and limitations of these routines? 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 18. What are the Manifestations of Our Culture?Stories and mythsSymbols and languageStructurePhysical shape of buildings offer powerful cluesControl mechanismsDecision processesCareer assumptions 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 19. Cultural Gap StrategiesTo Be Culture Culture DevelopmentCulture Diagnosis As Is Culture 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 20. Information SystemsThe way information is shared in theorganization will have a powerful effectamong cultureThe information systems must ensure thatthe right information gets on the rightpeople on a timely basis 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 21. Example of World-Class InformationSystemsFedExs computerized parcel-tracking systemOtis Elevators OtisLine to coordinate maintenancenationwideProcter &amp; Gambles toll-free number to obtain earlywarning signals of product problems and changing tastesArthur Andersons Knowledge Xchange system thatcaptured lessons learned in the companys work andresearch and makes it available to Anderson personnel 24hours a dayDominos Pizza computerized systemsMrs. Fields Cookies computer systems monitor hourlysales and suggest product mix changes, promotional tactics,or operaitng adjustments to improve customer response 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 22. Guidelines for Designing Incentive Compensation SystemsPerformance payoff must be a major piece of the totalcompensation package (&lt; 5% of total package is weak)Incentive plan should extend to all managers andworkersReward system must be administered with care andfairnessIncentives must be tightly linked to achieving onlythose performance targets spelled out in the strategicplanKeep the time between the performance review andpayment of the reward shortDont rely solely on monetary rewards 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 23. Execution </li><li> 24. Execution Is a systematic process of rigorously discussing hows and whats, questioning, tenaciously following through, and ensuring accountability Is a systematic way of exposing reality and acting on it 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 25. Everybody agrees about their responsibilities for getting things done, and everybody commits to those responsibilities 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 26. Execution is the job of the Business Leader The leader has to be engaged personally and deeply in the business Execution requires a comprehensive understanding of a business, its people, and its environment Only the leader can make execution happen, through personal involvement in the substance and even the details of execution 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 27. Execution has to be in the culture Execution has to be embeddedin the reward systems and inthe norms of behavior thateveryone practices 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 28. Leaders Seven EssentialBehaviors (building block 1) 1.Know your people and your business 2.Insist on realism 3.Set clear goals and priorities 4.Follow through 5.Reward the doers 6.Expand peoples capabilities 7.Know yourself 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 29. 1. Know your people and your businessLeaders have to live their businessesAs a leader, you have to show up. Youvegot to conduct business review. You cantbe detached and removed and absentNeed to show up with open mind andpositive demeanorBe informal and have a sense of humorKeep working on personal connection 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 30. Personal connection is critical when a leader starts something new The leaders personal involvement, understanding, and commitment are necessary to overcome the resistance within an organization. Leaders has not only to announce the initiative, but to define it clearly and define its importance to the organization Leaders cant do this unless they understands how it will work and what it really means in terms of benefit 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 31. 2. Insist on Realism People are trying to avoid reality because it makes life uncomfortable People want to hide mistakes, buy time to figure out a solution rather than admit they dont have an answer at the moment People want to avoid confrontations Nobody wants to be the messenger who gets shot or the trouble maker who challenges the authority of her superiors what are we doing right in this business, and what are we doing wrong in this business? 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 32. 3. Set clear goals and prioritiesLeaders who execute focus on a very fewclear priorities that everyone can graspFocusing on three or four priorities willproduce the best results from the resourcesat handPeople need a small number of clearpriorities to execute wellIve got ten priorities = he doesnt knowhimself what the most important things are 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 33. Along with having clear goals, you should strive for simplicity in general Leaders who execute is that they speak simply and directly They know how to simplify things so that others can understand them, evaluate them, and act on them, so that what they say becomes common sense 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 34. 4. Follow Through Simple goals dont mean much if nobody takes them seriously How many meetings have you attended where people left without firm conclusions about who would do what and when? Since nobody was named accountable for results, it doesnt get done 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 35. Never finish a meeting without clarifying what the follow-through will be, who will do it, when and how they will do it, what resources they will use and how and when the next review will take place and with whom 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 36. 5. Reward the doersIf you want people to producespecific results, you reward themaccordinglyIn firms that dont execute, theydont measure, dont reward, anddont promote people who knowhow to get things done 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 37. 6. Expand peoples capabilitiesthrough coachingCoaching is the single most important part ofexpanding others capabilities.give a man a fish, and youll feed him for a day;teach a man how to fish, and youll feed him for alifetimeCoaching is the difference between giving ordersand teaching people how to get things doneGood leaders regard every encounter as anopportunity to coach 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 38. The most effective way to coach is toobserve a person in action and then providespecific useful feedbackThe skill of the coach is the art ofquestioning. Asking incisive questions forcespeople to think, to discover, to search.80% of learning take place outside theclassroom. Every leader and supervisorneeds to be a teacher; classroom learningshould be about giving them the tools theyneed 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 39. 7. Know Yourself authenticityself-awarenessself-masteryhumility 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 40. Creating a Framework for CulturalChange (Building block 2) Need to set a processes that will change the beliefs and behavior or people in ways that are directly linked to bottom-line results To get a performance culture Do all you can to reward people for doing their best 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 41. The culture of a company is the behavior of its leader You can change the culture of a company by changing the behavior of its leader 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 42. Everyone seemed to agree at the end about what action would be taken but nothing much actually happened as a result 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 43. To change peoples behavior thatthey produce resultTell people clearly what results youre looking forDiscuss how to get those results, a coachingprocessReward people for producing resultsIf come up short,Provide additional coachingWithdraw rewardsGive them other jobsLet them go 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 44. Leaders dont pay enough attention to people because theyre too busy thinking about how to make their companies bigger or more profit than their competitors 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 45. Why the right people arent in the right jobs (Building block 3) Leaders may not know enough about the people they are appointing Leaders may pick people with whom theyre comfortable, rather than others who have better skills for the job Leaders may not have the courage to discriminate between strong and weak performers and take the necessary actions Leaders arent personally committed to the people process and deeply engaged in it 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 46. People Process Evaluates individuals accurately and in depth Provides a framework for identifying and developing the leadership talent Fills the leadership pipeline thats the basis of a strong succession plan 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 47. Traditional people process is its backward-looking, focused on evaluating the jobs people are doing doing today What important is whether the individuals can handle the job of tomorrows 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 48. Who are the people who are going to execute that strategy, and can they do it? 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 49. McKinsey 7S ModelStrategyStructureSystemsStyleStaffSkillsShared Values 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 50. : (Office of Strategy Management) </li><li> 51. (Office of Strategy Management) 2006 Assoc. Prof. Pasu Decharin, Ph.D. All rights reserved </li><li> 52. (Office of StrategyManagement OSM) (Develop Strategy) - (Communicate Strategy) Balanced Scorecard (Create and Manage theScorecard) (Align the Orga...</li></ol>