Chapter 10 Building an organization capable of good strategy execution people capabilities and structure
BUILDING AN ORGANIZATION
CAPABLE OF GOOD STRATEGY
CAPABILITIES, AND STRUCTURE
1. Gain command of what managers must do to execute strategy successfully. 2. Learn why hiring, training, and retaining the right people constitute a key component of the strategy execution process.
3. Understand that good strategy execution requires continuously building and upgrading the organization’s resources and capabilities. 4. Recognize what issues to consider in establishing a strategysupportive organizational structure and organizing the work effort. 5. Become aware of the pros and cons of centralized and decentralized decision making in implementing the chosen strategy. 10–2
Is operations-driven, involving management of both people and business processes.
Is a job for the whole management team, not just a few senior managers.
Can take years longer to develop as a real proficiency than implementing strategy.
Requires a determined commitment to change, action, and performance.
A FRAMEWORK FOR EXECUTING
Committing to Executing a Strategy:
Entails figuring out the specific techniques, actions, and behaviors necessary for a smooth strategysupportive operation.
Following through to get things done and deliver results. ●
Making things happen (leadership) and making them happen right (management).
FIGURE 10.1 The 10 Basic Tasks of the Strategy Execution Process
The Action Agenda for Executing Strategy
THE PRINCIPAL COMPONENTS OF
THE STRATEGY EXECUTION
1. Staff the organization with
6. Adopt best practices and business managers and employees capable of executing the strategy well.
2. Build the organization’s capabilities required for successful strategy execution.
3. Create a strategy-supportive organizational structure.
4. Allocate sufficient budgetary
(and other) resources to the strategy execution effort.