EXECUTING

STRATEGY
SHEIKH MORSHED JAHAN
PROFESSOR. IBA, UNIVERSITY OF DHAKA
AGENDA

• Building an Organization Capable of Good Strategy Execution

• Staffing the Organization with Right People
• Developing and Building Critical Resources and Capabilities
• Aligning Organizational Structure with Strategy
• Managing Internal Operations that promote good strategy Execution
• Allocating Resources
• Instituting Policies and Procedures that promote good strategy execution
• Process
• Instituting information and operating system
• Using reward and incentives to promote better execution
• Corporate Culture and Leadership
• Instilling a corporate culture conducive to good strategy execution
• Leading the strategy execution process
A: BUILDING AN ORGANIZATION CAPABLE OF
GOOD STRATEGY EXECUTION

• Staffing the Organization with Right People

• Developing and Building Critical Resources and Capabilities
• Aligning Organizational Structure with Strategy
#1: STAFFING THE ORGANIZATION WITH RIGHT
PEOPLE

• Putting together a strong management team

• Recruiting, training and retraining the capable employees
# 2: DEVELOPING AND BUILDING CRITICAL
RESOURCES AND CAPABILITIES

• Approaches:
• Developing capabilities internally
• Acquiring capabilities through merger and acquisition
• Accessing capabilities through collaborative partnerships

• Strategic role of employee training

• Competitive advantage through strategic capability building
#3: ALIGNING ORGANIZATIONAL STRUCTURE
WITH STRATEGY
• Deciding on value chain activities – internal vs. outsource
• Organizational structure vis-à-vis strategy
• Making strategy-critical activities the main building blocks of the organizational structure
• Matching the type of organizational structure to strategy execution requirements
• Simple
• Functional
• Matrix
• Projectized
• Multi-divisional
• Determining how much authority to delegate
• Centralized decision making – pros and cons
• Decentralized decision making – pros and cons
• Capturing cross-business strategic fit in decentralized structure
• Providing internal cross-unit coordination
• Facilitating collaboration with external partners and strategic allies
• Structuring the work effort
B: MANAGING INTERNAL OPERATIONS THAT
PROMOTE GOOD STRATEGY EXECUTION

• Allocating Resources
• Institution Policies and Procedures that promote good strategy execution
• Employ process management tools
• Instituting information and operating system
• Using reward and incentives to promote better execution
#4: ALLOCATING RESOURCES

• Financial
• Human
• Technology
• Network/Social Capital
# 5: INSTITUTION POLICIES AND PROCEDURES
THAT PROMOTE GOOD STRATEGY EXECUTION

• Providing top-down guideline how things need to be done

• Ensuring consistency in execution-critical activities
• Promoting good working environment
# 6: EMPLOY PROCESS MANAGEMENT TOOLS

Promote operational excellence through powerful process

management tools
• Business process reengineering
• Total Quality Management
• Six Sigma Quality Control programs
# 7: INSTITUTING INFORMATION SYSTEM

Institute adequate
• Information management systems
• Performance tracking and controls
#8: USING REWARD AND INCENTIVES TO
PROMOTE BETTER EXECUTION

• Incentives and motivational practices

• Striking right balance between rewards and punishments
• Linking reward to achieving the right outcomes
C: CORPORATE CULTURE AND LEADERSHIP

• Instilling a corporate culture conducive to good strategy

execution
• Leading the strategy execution process
#9: INSTILLING A CORPORATE CULTURE
CONDUCIVE TO GOOD STRATEGY EXECUTION
• Identifying the key features of corporate • Unhealthy culture
culture of the company • Change Resistant culture
• Role of core values and ethics • Politicized culture
• Embedding behavioral norms in the
• Insulate, inwardly focused culture
organization
• Unethical Greed-driven culture
• Strong vs Weak culture
• Incompatible, Clashing culture
• Why corporate culture matters in strategy
execution
• Changing a Problem Culture
• Healthy cultures • Making a compelling case for change
• High performance culture • Sustainable actions for change
• Adaptive culture • Symbolic action for change
# 10: LEADING THE STRATEGY EXECUTION
PROCESS

• Staying on top of how well things are going

• Mobilizing the effort for excellence in strategy execution
• Leading the process of corrective adjustments
Good Strategy + Good Execution = Success
Leadership and culture matters a lot!
 Thank you

REFERENCE: CHAPTERS 10, 11, 12 (THOMPSON ET AL)