Saturday, June 19, 2010

Executing Strategy

Executing strategy as an operations-driven activity that revolves around the management of people and other business processes involves the following framework:

1. Building an organization that is capable of good strategy execution which involves staffing, core competencies, competitive capabilities, and structuring the value chain to effectively use its resources.

2. Staffing the organization with a strong management team and hiring as well as retaining skilled workers.

3. Developing and instituting policies and procedures that facilitate strategy execution.

4. Constantly improving value-chain operations.

5. Installing information and operation systems that enable company employees to effectively do their jobs

6. Rewarding employees when they achieve strategic and financial targets.

7. Creating a corporate culture that is conducive to good strategy execution.

8. Exercising strong leadership that propels the organization forward, keeps making improvements upon the execution strategy, and achieves optimum operation performance in an efficient manner.

Good strategy execution involves a holistic view of the company in its environment. It should be proactive rather than reactive. Inviting and inspiring every employee, supplier and customer to be part of this process increased the likelihood of success. Successful implementation and follow through are of paramount importance. Organizing the work effort involves: deciding which value chain activities to perform internally and which to outsource, making internally performed strategy-critical activities the core building blocks in the organizational structure, deciding how much authority to centralize and what to decentralize or delegate, providing for internal cross unit coordinationa dn collaboration to build and strengthen internal competencies and capabilities and providing for the necessary collaboration and coordination with suppliers and strategic allies.

No comments:

Post a Comment