Allocating Resources to Stragety-Critical Activities

Top Management must determine what funding is needed to execute new

strategic initiatives, to bolster value-creating procesess , and to strengythen the
companys capabilities and competencies. Should internal cashflow prove
insufficient to fund the planned strategic initiatives, then management must
raise additional funds through borrowing or selling additional shares of stock to
willing investors. A companys ability to marshal the resources needed to support
new strategic initiatives has a major impact on the strategy execution process.
Too little funding slow progress and impedes the effort of organizational unit to
execute thier pieces of strategic plan proficiently. A change in strategy nearly
always calls for budget reallocations and resource shifting.
I.

Instituting strategy-supportive policies and procedures

A companys policies and procedures can either assist or barrier to good strategy
execution. Well-conceived policies and procedures aid strategy execution; out-ofsync ones are barriers to effective implementation.
1. Policies and procedures help enforce needed consistency in how particular
strategy-critical activities are performed.
2. Policies and procedures support change programs by providing top-down
guidance regarding how certain things now need tobe done.
3. Well-conceived policies and procedures promote a work climate that
facilitates good strategy execution.
Striving for continuous Improvement in Processes and Activities
Company managers can significantly advance the cause of superior strategy
execution by pushing organization units and company personnel to strive for
continuous improvement in how value chain activities are performed. In Aiming
for operating execellence, many companies have come to rely on three potent
management tools: business process reengenering, total quality management
(TQM) programs and Six sigma quality control techniques.
a. Business process reengenering involves pulling the pieces of strategycritical activities out of different departements and unifiying their
performance ina single departement or corss functional work-group
b. Total quality management (TQM) is a philosophy of managing a set of
business practices that empasize continuous improvement in all phases
operation, 100 percent accuracy in performing task, improvement and
emppwerement of employees at all levels, team-based work design,
benchmarking and total customer satisfaction.
c. Six sigma quality control consist of a disciplined, a static based system
aimed at producing not more than 3.4 defect per million iterations for any
business process-from manufacturing to customer transactions.
The Difference Between Business Process Reengineering and
Continuous Improvement Programs
Business process reengineering and continuous improvement effort such as
TQM and Six sigma both aimed at improved efficiency, better product quality
and greater customer statisfaction.The purpose of using benchmarking, best
practices, business process reengineering, TQM, Six Sigma, or other

operational improvement programs is to improve the performance of

strategy-critical activities and promote superior strategy execution.
I.

Installing Information and Operating Systems

Company strategies and value-creating internal process cant be execute well

without a number of internal operating systems. Having state-of-the-art
operating systems, information systems and real-time data is integral to
competent strategy execution and operating execellence.
Information systems need to cover five broad areas : customer data,
operations data, employee data, supplier/partner/collaboratively ally data,
and financial perfomance data.
II.

Using rewards and Incentives to promote Better Strategy Execution

To create a strategy-supportive system of rewards and incentives, a company

must empasize rewarding people for accomplishing result related to creating
value for customer, not for just dutifully performing assigned task.