Strategy Implementation

Building resource capabilities & structuring the

organisation (chapter 9)
Budgets, policies, best practices, support
systems & rewards (chapter 10)
Culture, ethics & leadership (chapter 11)

Seven-S Framework
Developed by
McKinsey

All elements
interlink

Strategy
Structure

Systems
Superordinate
Goals/ Values

Skills

the best
companies have
superordinate goals

Style
Staff

Must have good fit

between all seven
elements

Strategy Implementation Process

8 components of strategy implementation process:
org. competencies, capabilities, strengths - ch9
allocate resources - ch10
strategy-supportive policies - ch10
best practice & continuous improvement - ch10
information & communication systems - ch10
rewards & incentives - ch10
environment/culture/strategy fit - ch11
leadership - ch11

Strategy Implementation Action Agenda

Action Agenda
What?
How?
When?
How long?
Who?

Leading the implementation process

Key determinant of success
Variety of styles and approaches
Depends on background, skills, authority & view
of role
Need support of middle mgt
Need strong sense of what to do to achieve
results

Building a capable organisation

1. Selecting the right people for key positions
2. Building core competencies & competitive
capabilities
3. Matching organisation structure to strategy

Building Organisation Capabilities

What skills need to become org. skills?
Integrating the skills & know-how of
different people and groups in competitively
valuable ways

What co-ordination/collaboration is
necessary to make this happen?

Building Core Competencies &

Competitive Capabilities
Can relate to any strategically relevant factor

Broad & flexible base of c.

Strengthening & deepening existing c.
Developing new c.
Nb of Selection, training, motivation, empowerment,
culture, networking, flexibility, use of info.

 Purpose
Division of work
Coordinate divided responsibility
Many approaches
Hierarchical
- Functional; geographic; SBU;
divisional
Matrix
No ideal
Use simplest one to do the job
(Drucker)
Trend is away from hierarchy
Towards flatter structures
Leaner staff/support functions
STRUCTURE ADAPTS TO STRATEGY (CHANDLER)

Organise Into
a Structure

see P. 289 - 299 T&S for advantages/disadvantages of each structure

Matching Structure to Strategy

Guidelines for helping structure to fit strategy:
Pinpoint primary activities, comps, caps nb to strategy
Decide on balance between internal & outsourced
Primary activities, caps & critical units as building blocks
of structure
Degree of authority needed to manage each unit
Co-ordination mechanisms
Relationship with external environment

Supplementing Basic Structure

Special project teams
Cross-functional taskforces
Venture teams
Self-contained work teams
Process teams
Contact managers
Relationship managers
Full-time integrators

Reengineering
Holistic approach
Project team

Culture

Business
Processes
Technology

Interdisciplinary/
multifunction

Redesigning,
regrouping,
eliminating,
automating
Aim for dramatic
improvement
Cycle time; cost;
quality

Technology

Beliefs and
Behaviors

Customers

Jobs
Org.
Structures
Technology

Technology

Management
Systems

Source: Dr. Michael Hammers Reengineering Diamond

Structures of the Future

The Horizontal Corporation,
The Networked Org, The Virtual Org
Flatter; decentralised; leaner; agile; responsive;
innovative orgs

Empowerment & self-direction

Fewer/more permeable boundaries
Better communication; access to info.;
sharing knowledge; investment in learning

Why?
Move from standardisation to customisation
Shortening product life cycles
Accelerating pace of change
Globalisation
Speed of response, agility and ability to
capitalise on change