nTougher and more time-consuming than crafting strategy
What Top Executives Have to Do in Leading the Implementation Process
nCommunicate the case for change
nBuild consensus on how to proceed
nArouse enthusiasm for the strategy to turn implementation process into a companywide crusade
nEmpower subordinates to keep process
moving
nEstablish measures of progress and deadlines
nReward those who achieve implementation
milestones
nDirect resources to the right places
nPersonally lead strategic change process
and the drive for operating excellence
The Three Components of Building an
Organization Capable of Proficient Strategy Execution
Staffing the Organization
Building core competencies and competitive capabilities
Structuring the organization and work effort
nCrafting the strategy involves
vIdentifying the desired competencies
and capabilities to build into the strategy to
help achieve a competitive advantage
nGood strategy execution requires
vPutting desired competencies and
capabilities in place,
vUpgrading them as needed, and
vModifying them as market conditions evolve
Three-Stage Process of Developing Competencies and Capabilities
1. First develop ability to do something
2. Build experience and gradually transform the ability into a core competence and proven capability
3. Continue to refine and polish the competence/capability, striving to perform the activity better than rivals, thereby turning the core competence into a distinctive competence and providing a path to competitive
advantage
When it is difficult or impossible to out-strategize rivals (beat them with a superior strategy), the
other main avenue to competitive advantage is to
outexecute them (beat them by performing
certain value chain activities in superior fashion).
nA company operating in one business
vFunctionaldepartment structure
nA company with operations in various parts of
the world
vGeographicorganizational units
nA vertically integrated company
vDivisional organizational structure
nA diversified company
vIndividualbusiness units, with each business unit operating as independent profit center
nIn a centralized structure
vTopmanagers retain authorityfor most decisions
nIn a decentralized structure
vManagersand employees areempowered to make decisions
nTrend in most companies
vShiftfrom authoritarian to decentralizedstructures stressing empowerment