Chapter XIII

KEYS TO GOOD STRATEGY EXECUTION

 

I. Building a Strategy Supportive Culture

bullet Corporate culture:  A company's values, beliefs, traditions, operating style, and internal work environment
bullet Strong cultures promote good strategy execution when there is a "fit" with the strategy
bullet Strong culture:
bullet Provides informal rules and peer pressure
bullet Nurtures and motivates people to do job in ways conducive to effective strategy implementation
bullet Factors that contribute to strong culture:
bullet Founders/strong leader
bullet Long standing commitment to operating company according to established tradition
bullet Genuine concern for well-being of customers/employees/shareholders
bullet Weak Culture
bullet Lack a sense of corporate identity and little to no strategy implementing assistance

 

II.  Unhealthy Cultures

bullet Are politically dominated
bullet Resist/hostile towards change
bullet Promote managers who do not understand culture/vision/strategies, etc.
bullet Are averse to looking outside company for superior practices/approaches

 

III.  Adaptive Cultures

bullet Are a strategy implementer's best ally
bullet Entrepreneurship is encouraged and rewarded
bullet Top management has a genuine concern for well being of customers/employees/shareholders/community/suppliers, etc.

 

IV.  Creating Fit Between Strategy and Culture

bullet  Actions need to be symbolic and substantive
bullet Awards/ceremonies/role models and symbols are important
bullet Senior executives must lead efforts
bullet Steps in changing a problem culture:
bullet ID facets of present culture that are not strategy supportive
bullet Define desired new behaviors and specify key features of new culture
bullet Talk openly about problems of present culture and how new behaviors will improve performance
bullet Follow with visible, aggressive actions to modify culture

 

V.  Grounding the Culture in Core Values and Ethics

bullet Morally upstanding values and high ethical standards nurture corporate culture in a positive way (See Fig. 13-3, page 387)

 

VI. Leading the Strategy Execution Process

bullet Must stay on top of how well things are going -- practice MBWA
bullet Must put constructive pressure on the organization to achieve good results
bullet Treat employees with respect
bullet Empower champions
bullet Set stretch objectives
bullet Celebrate successes
bullet Etc
bullet Keep the Internal Organization Focused on Operating Excellence by:
bullet Encouraging creativity
bullet Supporting champions of innovative ideas
bullet Ensuring rewards for champions are large and visible
bullet Using tools of Six Sigma, etc.
bullet Leading the development of better competencies and capabilities
bullet Displaying ethical integrity and leading social responsibility
bullet Leading the process of making corrective adjustments

 

Next Steps:  Please review the PowerPoint Overview slides (1-43) for this chapter.  Then proceed to the Discussion Area.

 
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