Chapter XI

BUILDING RESOURCE STRENGTHS AND ORGANIZATIONAL CAPABILITIES

 

I. A Framework for Implementing Strategy

bullet "Companies do not implement strategies, people do."
bullet The strategy implementing tasks -- (See Fig. 11.1, page 320).  Begin with an assessment of what the organization must do differently to carry out strategy.

 

II. Leading the Implementation Process

bullet Leading is a function of manager's:
bullet Experience and knowledge about business
bullet Whether or not they are new to business
bullet Authority they have been given
bullet Networking skills and personal relationships
bullet Problem solving skills
bullet Leadership style
bullet Most important leadership trait is sense of what to do to achieve results

 

III.  Building a Capable Organization (Fig. 11.2, page 321)

A)  Staffing the Organization

bullet Must decide kind of core management needed to execute strategy and then find right people to fill each slot
bullet Recruit and retain talented employees

B)  Building Core Competencies and Competitive Capabilities

bullet Core competencies are skills and activities in the firm's value chain that when linked, create unique organizational capabilities
bullet Building and strengthening core competencies is an exercise in managing human skills, knowledge bases, and intellect, and coordinating/networking efforts of different work groups
bullet Must broaden, deepen them, or modify them in response to on-going customer market changes.
bullet Capability building requirements
bullet The ability to "do something"
bullet The ability to translate ability into competence
bullet The ability to translate competence into distinctive competence that produces a competitive advantage
bullet Training plays an important role

C)  Structuring the Organization and Work Effort -- (Fig. 11.3 -- page 329)

bullet Deciding which value chain activities to perform internally, and which to outsource
bullet What functions have to be performed extra well for a competitive advantage?
bullet What value chain activities if no performed well, would endanger success?
bullet Reasons to consider outsourcing certain value chain activities
bullet Can decrease internal bureaucracies
bullet Can increase competitive responsiveness
bullet Can lower costs and improve efficiencies
bullet Provides higher value
bullet Reasons to consider partnering with others
bullet Can bring new technology online quicker
bullet Quicker delivery of parts, etc.
bullet Making strategy critical activities/capabilities main building blocks
bullet Management must devote attention to these activities, or strategy implementation will fail
bullet Determining the degree of authority and independence to give each unit and employee
bullet Successful strategy implementation involves empowering others to act on doing all the things needed to put the strategy into place and execute it
bullet Providing cross unit coordination
bullet  Needed to build core competencies
bullet Providing for the necessary collaboration with suppliers and strategic allies
bullet Opens doors for future possibilities

 

Next Steps:  Please review the PowerPoint Overview slides (31-78) for this chapter.  Then proceed to the Discussion Area.
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