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CHAPTER 12
Strategy Implementation
• What is strategy implementation?• What is more important, strategy
formulation or strategy implementation?• What is the BIGGEST challenge for
strategy implementation?• One Word Answer??
• PEOPLE
I’d rather have a first-rate execution and second-rate strategy any time
than a brilliant idea and mediocre management.
--Jamie DimonCEO, JP Morgan
THREE IMPORTANT ELEMENTS
• Execution—getting things done
• Alignment—getting the right things done
• Change—Getting new things done
THE 7 S MODEL
The 7 S model helps describe organizational reality
• A set of buckets to sort information
The 7 S’s as a balloon• Push on one side, the other sides all move• The 7 S’s constitute a system
Two components:• The Hard Triangle: Strategy, Systems, Structure• The Soft Square: Staffing, Skills, Style, Shared
Values
Strategy
Structure Systems
SharedValues
Staffing Skills
Style
THE 7 S MODEL
Strategy
•Organizational Goals•Competitive Advantages
Structure Systems
•Division of Labor•Reporting
responsibilities
•Coordination•Control
•Evaluation•Rewards
Shared Values
•Common Belief•Priorities
Staffing Skills
•Hiring, Training, Promoting
•Technologies•What we do well
Style
•Interpersonal relationships
•Decisionmaking
Strategy
•Full Service•Regional Coverage•Focused on Core•Long Term View
Structure Systems•Decentralized
•Functional Expertise•Geographic Focus
•Tight Cost Control•Bonus Incentives•Merit Promotion
Shared Values
•Conservative•Profitability
•Loyalty•Decentralization
•Equity & Generosity
Staffing Skills•Hire good people
•MDP•Promote from within
•Customer Service•Cost Control
Style
•Informal •Friendly•Practical
The Positives The Positives
Strategy•No focus on niches
•No operating synergies•Few strategic assets
Structure Systems•Management by exception•Functional Silos with little
communication
•Excessive Internal Focus•Little incentive pay
•Promotion on Seniority
Shared Values•Comfortable•Complacency
•Excessive Frugality
Staffing Skills•Hire by W.O.M.•Little Training•Hard to Fire
Style•Non-confrontational
•Little Challenge & debate•Slow to decide
•“We know what customers want”
•Reliance on traditional ways
The NegativesThe Negatives
CHANGE: THREE KEY PHASES
Unfreezing Change Re-freezing
• Publicly admit that current state isn’t working
• Make a clear break with past actions or processes
• Develop new behaviors
• Use trial and error process
• Create new Alignment
• Embed new behaviors : training compensation, culture
Motivating Moving Maintaining
THE CHANGE PROCESS
Generate urgency
BuildCoalition
CreateVision
ShareVision
EmpowerAction
Short-Term Wins
ConsolidateGains
InstitutionalizeChanges
The Silent Phase(Unfreezing)½ -1 ½ years
The Active Phase(Change)1-2 years
Completion(Refreezing)
4-7 years