Bài giảng Crafting & Executing Strategy - Chapter 10 Building an organization capable of good strategy execution

CHAPTER 10BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTIONPeople, Capabilities, and StructureStudent VersionMcGraw-Hill/IrwinCopyright đ2012 The McGraw-Hill Companies, Inc.A FRAMEWORK FOR EXECUTING STRATEGYCommitting to Executing a Strategy:Entails figuring out the specific techniques, actions, and behaviors necessary for a smooth strategy-supportive operation.Following through to get things done and deliver results.Making things happen (leadership) and making them happen right (management).BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION: WHERE TO BEGINAssemble a strong management team and a cadre of capable employees.Renew, upgrade, and revise resources and capabilities to match chosen strategy.Create an organizational structure that is strategy-supportive.STAFFING THE ORGANIZATIONAssemble a Strong Management Team:Planners who ask tough questions and figure out what needs to be done.Implementers who can select, manage, and lead the right people.Executors who turn decisions into actions that drive the changes that produce sustainable competitive advantage.Key Takeaway:A critical mass of talented activist managersBUILDING AND STRENGTHENING CORE COMPETENCIES AND COMPETITIVE CAPABILITIESDevelopcapabilities internallyAcquire capabilities through mergers and acquisitionsAccess capabilities via collaborative partnershipsApproaches to Build Building Competencies and CapabilitiesDeveloping Capabilities InternallyCoordinate and integrate the efforts of work groups and departmentsStrengthen the firm’s base of skills, knowledge, and intellectManagerial Actions to Develop Competencies and CapabilitiesSetting Stretch Goals: From Capability to CompetenceThinkingstrategicallyabout a firm’sknowledge and skills baseThinking strategicallyabout a firm’sopportunitiesand challengesSetting a stretch goal of developing an organizational ability to do something wellEvolving the ability into a competence or capability by performing it welland at an acceptable costRefreshing, updating, and upgrading competencies and capabilities as necessary to gain and maintain competitive advantageAcquiring Capabilities through Mergers and AcquisitionsA Question of Market Opportunity When a market opportunity can slip by faster than a needed capability can be created internally.A Question of Competitive NecessityWhen industry conditions, technology, or competitors are moving at such a rapid clip that time is of the essence.A Question of Successful IntegrationTacit knowledge and complex routines may not transfer readily from one organizational unit to another.Accessing Capabilities through Collaborative PartnershipsOutsource the function requiring the capabilities to a key supplier or another providerCollaborate with a firm that has complementary resources and capabilitiesEngage in a collaborative partnership for the purpose of learning how the partner does things Approaches to acquiring capabilities from an external sourceORGANIZING THE WORK EFFORT WITH A SUPPORTIVE ORGANIZATIONAL STRUCTUREEnsuring that Structure Follows Strategy By:Deciding which value chain activities to perform internally and which to outsource.Aligning the firm’s organizational structure with its strategy.Determining how much authority to delegate.Facilitating collaboration with external partners and strategic allies.Aligning the Firm’s Organizational Structure with Its StrategyOrganizational StructureComprises the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships for the firm.Structure Is Aligned with Strategy When:Its design contributes to the creation of value for customers.Its parts are aligned with one another and also matched to the requirements of the strategy.It lowers operating costs through lower bureaucratic costs and operational efficiencies.Matching Type of Organizational Structure to Strategy Execution RequirementsSimple Structure(Line-and-Staff)Functional Structure(Departmental or Unitary)Multidivisional Structure(Divisional or M-form)Matrix Structure(Composite or Combination) Strategy Execution Requirements: Chosen StrategyCapabilities and CompetenciesCentralized or Decentralized ControlDetermining How Much Authority to DelegateOrganizational Approach to Decision-MakingDecentralized Decision MakingCentralized Decision MakingAuthority is retained by top managementAuthority delegated to lower-level managers and employees Capturing Cross-Business Strategic Fit in a Decentralized StructureCentralizing related functions requiring close coordination at the corporate levelEnforcing close cross-business collaboration to avoid duplication of effortCapturing Cross-BusinessStrategic FitFacilitating Collaboration with External Partners and Strategic AlliesStrategic alliancesOutsourcing arrangementsJoint ventures Cooperative partnershipsCreating aNetwork Structure:Using “relationship managers” to build and maintain cooperativearrangements of value both partiesFurther Perspectives on Structuring the Work EffortPick a basic organizational design that matches structure to strategySupplement design with appropriate coordinating mechanismsInstitute collaborative networking and communication arrangementsMatching Structure to Strategy