Eight Levers

8/8/2019 Eight Levers

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Building a capable organization-The eight levers of strategy

implementation

Presented by:

Vineet Taneja (240)



Strategy implementation- A gap between formulation

and performance

Strategy

formulation

Strategy

implementationPerformance

Six silent killers of strategy implementation:

1. Top-down senior management style

2. Unclear strategy and conflicting principles

3. An ineffective senior management team

4. Poor vertical communication

5. Poor co-ordination across functions, businesses and borders

6. Inadequate down-the-line leadership skills and development



� Eight levers identify strong and weak points impacting

strategy implementation

� The research behind the origin of eight levers:

29 organizational stories developed into case studies

95 stories used as short vignettes

Companies from varied backgrounds:

Consumer companies

B2B companies

Service companies

Non-profit companies

Eight levers of strategy- The result of a research



Eight levers- Variables for strategy implementation

-A framework for companies

- Structural

Actions

Programs

Systems

Policies

-

-Behavioral activities

- Implementation levers

Interacting

Allocating

Monitoring

Organizing

Structures

Managerial

skills

Strategy Implementation



Structural Levers

Actions

Input and co-operation of all players at all levels

Strategic fit with companys cross-functional ability to implement

Programs

Treat creative capital as most important asset

Provide environment for innovation

Organizational learning and continuous improvement must incorporate innovation

Systems

Make strategic decision based on data analysis of strategic support systems

Mapping of cross-functional decisions should be supported by the systems

Policies

Policies developed to work consistently across all geographies

If changed over a time, then they must not defeat strategic decisions



Managerial skills Levers

Interacting

Leaders must direct their organizations, help in managing

conflicts and shaping norms

Strategic leadership is a critical implementation lever

Allocating Proper allocation of financial resources, physical capital, humancapital and organizational capital

Monitoring

Align monetary and non-monetary rewards as per the strategy

Good work should be rewarded and bad work should be

punished

Organizing

Culture should be seen as a system of shared values and norms

Shaping culture requires clearness in content, consistency in

nature and comprehensiveness in coverage



� Established firms able to overcompensate with another lever

to reduce the impact of a weak lever

� For startups it is imperative to understand how each of the

levers relate to the companys strengths and weaknesses

� Identify levers that might serve as barriers to the companys

long term success

� Equal use of all eight levers not necessarily required while

building a capable organization

BALANCING THE LEVERS



� Strategy implementation helps create the future

� Implementation and formulation go hand-in-hand

� Successful strategy leads to plans that are financially, socially

and ethically responsible strategies for a company

Strategy implementation- An ally



THANK YOU

Documents

Eight Levers