Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: Implementing Strategy: Building Resource Capability and Restructuring Organization Once managers have decided on a strategy, the emphasize turns to converting it into actions and good results. Putting strategy into place and getting the organization to execute it well call for a different set of managerial tasks and skills. While crafting strategy is largely a market-driven entrepreneurial activity, implementing strategy is primarily an operations-driven activity revolving around the managements of people and business processes. While successful strategy making depends on business vision, shrew industrial and competitive analysis, and good resource fit, successful strategy implementation depends on doing a good job of leading, working with and through others, allocation resources, building and strengthening competitive capabilities, installing strategy-supportive policies, and matching how the organization performs its core business activities to the requirements for good strategy execution. Implementation strategy is action oriented, make-thing-happen task that test the manager’s ability to direct organizational change, motivate people, building core competencies, build valuable organizational capabilities, achieve continuous improvement in business processes, create a strategy-supportive corporate culture, and meet or beat performance targets. Experienced managers are emphatic in declaring that it is a whole lot easier to develop a sound strategic plan than it is to make happen. According to one executive “it’s rather easy for us to decide where we wanted to go. The hard part is to get the organization to act on the new priorities.” What makes strategy implementation a tougher, more time consuming management challenge than crafting strategy is the wide array of managerial activities that have to be attended to, the many ways managers can proceed, the demanding people-management skills required, the perseverance it takes to get a variety of initiatives launched and moving, the number of bedeviling issues that must be worked out, the resistance to change that must be overcome, and the difficulties of integrating the efforts of many different work groups into a smoothly functional whole. Just because mangers announce a new strategy doesn’t mean that subordinates will agree with it or cooperate in implementing it. Some may skeptical about the merits of the strategy, seeing it as contrary to the organization’s best interests, unlikely to succeed, or threatening to their own careers. Moreover, company personnel may interpret the new strategy differently, be uncertain about how their departments will fare, and have different ideas about what internal changes are needed to execute the new strategy. Long standing attitudes, vested interests, inertia, and ingrained organization practices don’t melt away when managers decide on a new strategy and start to implementing it – especially when only a handful people have been involved in crafting the strategy and the rationale for strategic change has to be sold to enough organization members to root out the status quo. It takes adept managerial leadership to overcome pockets of doubt and disagreement, build consensus for how to proceed, secure commitment and cooperation, and get a all the implementation pieces into place and integrated. Depending on how much consensus building and organizational change is involved, the implementation process can take several months to several years. A Framework for Implementing Strategy Implementing strategy entails converting the organization’s strategic plan into action then into results. Like crafting strategy, it’s a job for the whole management team, not a few senior managers. While an organization’s chief executive officer and the heads of business divisions, departments, and key operating units are ultimately responsible for seeing that strategy is implemented successfully, the implementation process typically impact every part of the organizational structure, from the biggest organizational unit to the smallest frontline work group. Every manager has to think through the answer to “what has to be done in may area to implement our part of the strategic plan, and what should I do to get these thing accomplished?” in these sense, all managers become strategy implementers in their area of authority and responsibility, and all employees are participants.” One of the keys to successful implementation is for management to communicate the case for organizational change so clearly and persuasively that there is determined commitment throughout the ranks to carry out the strategy and meet performance targets. The ideal condition is for mangers to arouse enough enthusiasm for the strategy to turn the implementation process into a companywide crusade. Management’s handling of strategy implementation is successful when the company achieves the targeted strategic and financial performance and show good progress in realizing its long-range strategic vision. Unfortunately, there are no 10-step checklists, no proven paths, and few concrete guidelines for tackling the job – strategy implementation is least charted, most open-ended part of strategic management. The best evidence on dos and don’ts come from the reported experiences and “lessons learned” of managers and companies – and the wisdom they yield is inconsistent. What’s worked well for some managers has been tried by others and found lacking. The reasons are understandable. Not only are some managers more effective than others in employing this and that recommended approach to organizational change, but each instance of strategy implementation takes place in a different organizational context. Different business practices and competitive circumstances, work environment, and cultures, policies, compensation incentives, and mixes personalities and organizational histories require customize approach to strategy implementation – one based on individual company situations and circumstances and the strategy implementer’s best judgment and ability to us a particular change techniques adeptly. The Principal Strategy-Implementing Task While managers’ approach should be tailor-made for the situation, certain bases have to be covered no matter what the organization’s circumstances; these including: • Building an organization with the competencies, capabilities, and resource strengths to carry out the strategy successfully. • Developing budget to steer ample resources into those value chain activities critical to strategic success. • Establishing strategy-supportive policies and procedures. • Instituting best practices and pushing for continuous improvement in how value chain activities are performed • Installing information, communication, and operating system that enable company personnel to carry out their strategic roles successfully day in and day out. • Tying rewards and incentives to the achievement of performance objectives and good strategy execution. • Creating a strategy-supportive work environment and corporate culture • Exerting the internal leadership needed to drive implementation forward an do keep improving on how the strategy is being executed These managerial tasks, depicted in following figure, crop up repeatedly in the strategy implementing process, no mater what the specifics of the situation. One or two of these task usually end up being more crucial or time-consuming than others, depending on how radically different the strategy change are that have to be implemented, the organizational financial condition and competitive capabilities, whether there are resource weaknesses to correct or new competencies to develop, the extent top which the company is already able to meet the resource requirements for creating sustainable competitive advantage, the strength of ingrained behavioral pattern that have to be changed, the personal and organizational relationships in the firm’s history, any pressures for quick result and near-term financial term financial improvements, and perhaps other important factors. In devising an action agenda, strategy implementers should begin with a probing assessment of what the organization must do differently and better to carry out the strategy successfully, then consider how to make the necessary internal changes as rapidly as practical. The strategy implementer’s action should center on fitting how the organization performs its value chain activities and conducts its internal business to what it takes for first-rate strategy execution. A series of ‘fits’ are needed. Organizational capabilities and resources must be carefully matched to the requirements of strategy- especially if the chosen strategy is based on a competence-based or resource-based competitive advantage. Financial resources must be allocated to provide departments with the people and operating budgets needed to execute their strategic role effectively. The company’s reward structure, policies, information systems, and operating practices need to push for strategy execution, rather than playing a merely passive role or, even worse, acting as obstacles. Equally important is the need for managers to do things in a manner and style that create and nurture a strategy-supportive work environment and corporate culture. The stronger such fits, the better the chances for successful strategy implementation. Systematic management efforts to match how the organization goes about its business with the needs of good strategy execution help unite the organization and produce a team effort to meet or beat performance targets. Successful strategy implementation have a knack for diagnosing what their organizations need to do to execute the chosen strategy well, and they are creating in finding ways to perform key value chain activity affectively. 9966