Module 7 Implementing Strategies: Management & Operations Issues
Ch 7 -1
Ch 7 -2
Strategy Formulation vs. Implementation
Strategy Formulation Positioning forces before the action Focus on effectiveness Primarily intellectual Requires good intuitive and analytical skills Requires coordination among a few people
Strategy Implementation Managing forces during the action Focus on efficiency Primarily operational Requires special motivation and leadership skills Requires coordination among many people
Ch 7 -3
Nature of Strategy Implementation
Management Perspectives
Shift in responsibility
Divisional or Functional Managers
Strategists
Ch 7 -4
Management Issues Central to Strategy Implementation
Establish annual objectives Devise policies Allocate resources Alter existing organizational structure Restructure & reengineer Revise reward & incentive plans Minimize resistance to change
Match managers to strategy Develop a strategysupportive culture Adapt production/operations processes Develop an effective human resources function Downsize & furlough as needed Link performance & pay to strategies
Ch 7 -5
Purpose of Annual Objectives
Basis
for resource allocation
for management evaluation
Mechanism Major
instrument for monitoring progress toward achieving long-term objectives
Establish
priorities (organizational, divisional, and departmental)
Ch 7 -6
Annual Objectives
Horizontal consistency of objectives Vertical consistency of objectives
Ch 7 -7
Policies
Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior
Ch 7 -8
Resource Allocation
Four Types of Resources
1. Financial resources 2. Physical resources 3. Human resources 4. Technological resources
Ch 7 -9
Managing Conflict
Conflict not always bad Lack of conflict may signal apathy
Can energize opposing groups to action
May help managers identify problems
Ch 7 -10
Managing Conflict
Approaches for managing and resolving conflict Avoidance Defusion Confrontation
Ch 7 -11
Matching Structure with Strategy
Structure dictates how objectives and policies will be established Structure dictates how resources will be allocated Changes in strategy often lead to changes in organizational structure
Ch 7 -12
Ch 7 -13
Basic Forms of Structure
Functional Structure
Divisional Structure Strategic Business Unit Structure (SBU) Matrix Structure
Ch 7 -14
Functional Structure
Group tasks and activities by business function
Ch 7 -15
Functional Structure
Ch 7 -16
Divisional Structure
Can
be organized in one of four ways:
By geographic area By product or service By customer By process
Ch 7 -17
Divisional Structure
Ch 7 -18
Strategic Business Unit Structure (SBU)
Group
similar divisions into strategic business units and delegate authority and responsibility for each unit to a senior executive who reports directly to the chief executive officer
Ch 7 -19
Matrix Structure
The
most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication
Ch 7 -20
Matrix Structure
Ch 7 -21
Restructuring, Reengineering, and E-engineering
Restructuring
is called
Downsizing Rightsizing
Delayering
Ch 7 -22
Restructuring, Reengineering, and E-engineering
Cornerstones
of Reengineering
Decentralization Reciprocal interdependence
Information sharing
Ch 7 -23
Tests for Performance-Pay Plans Does the plan capture attention?
Do employees understand the plan? Is the plan improving communication?
Does the plan pay out when it should?
Is the company or unit performing better?
Ch 7 -24
Managing Resistance to Change
Force change strategy Educative change strategy Rational or self-interest change strategy
Ch 7 -25
Creating a Strategy-Supportive Culture
1.
2. 3.
4. 5.
Formal statements of organizational philosophy Design of physical spaces Deliberate role modeling, teaching, and coaching Explicit reward and status system Stories, legends, myths, and parables
Ch 7 -26
Creating a Strategy-Supportive Culture
6. 7.
8. 9. 10.
What leaders pay attention to Leader reactions to critical incidents and crises Organizational design and structure Organizational systems and procedures Criteria for recruitment, selection, promotion, leveling off, retirement, and excommunication of people
Ch 7 -27
Production/Operations Concerns
Production
processes typically constitute more than 70% of a firms total assets
Ch 7 -28
Production/Operations Decision Examples
Plant
size
/ Inventory control
Inventory Quality Cost
control
control
Technological
innovation
Ch 7 -29
Human Resource Concerns
Assessing Furloughs Developing
staffing needs/costs
performance incentives
ESOPs
Worklife Matching
balance issues managers with strategy
Ch 7 -30
Corporate Wellness Programs
Wellness of employees has become a strategic issue for many firms
Ch 7 -31
