No lecture on eleventh week of lecture. Move on to the twelve week of semester..
BISMILLAHIRRAHMANIRRAHIM..
Dr Ummi started this lecture with quiz personality by Myers Briggs Type Indicator (MBTI).
1-1-1. http://en.wikipedia.org/wiki/Myers-Briggs_Type_Indicator
2. http://psychology.about.com/od/psychologicaltesting/a/myers-briggs-type-indicator.htm
3. http://www.personalitypathways.com/type_inventory.html
CHAPTER 10
BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION : PEOPLE, CAPABILITIES, AND STRUCTURE
Strategy Execution
- Is operations-driven, involving management of both people and business processes.
- Is a job for the whole management team, not just a few senior managers.
- Can take years longer to develop as a real proficiency than implementing strategy.
- Requires a determined commitment to change, action, and performance.
Building an organization capable of good strategy execution : Where to begin
- Assemble a strong management team and a cadre of capable employees.
- Renew, upgrade, and revise resources and capabilities to match chosen strategy.
- Create an organizational structure that is strategy-supportive.
Approaches to build building competencies and capabilities
- Develop capabilities internally
- Acquire capabilities through mergers and acquisitions
- Access capabilities via collaborative partnerships
Managerial actions to develop competencies and capabilities
- Strengthen the firm's base of skills, knowledge, and intellect
- Coordinate and integrate the efforts of work groups and department
Approaches to acquiring capabilities from an external source
- Outsources the function requiring the capabilities to a key supplier or another provider.
- Collaborate with a firm that has complementary resources and capabilities.
- Engage in a collaborative partnership for the purpose of learning how the partner does things.
Training is important in :
- Executing a strategy that requires different skills, competitive capabilities, and operating methods.
- Organizational efforts to build skills-based competencies.
- Supplying technical know-how to employees when rapidly changing technology puts a firm in danger of losing its ability to compete.
Ensuring that structure follows strategy by :
- Deciding which value chain activities to perform internally and which to outsource.
- Aligning the firm's organizational structure with the strategy.
- Determining how much authority to delegate
- Facilitating collaboration with external partners and strategic allies
Structuring the work effort to promote successful strategy execution
Organizational approach to decision-making
- Centralized decision making - Authority is retained by top management
- Decentralized decision making - Authority delegated to lower-level managers and employees
Capturing cross-business strategic fit
- Enforcing close cross-business collaboration to avoid duplication of effort
- Centralizing related functions requiring close coordination at the corporate level
Matching structure to strategy
- Pick a basic organizational design that matches structure to strategy
- Supplement design with appropriate coordinating mechanisms
- Institute collaborative networking and communication arrangements
CHAPTER 11
MANAGING INTERNAL OPERATIONS : ACTIONS THAT PROMOTE GOOD STRATEGY EXECUTION
Managing for continous improvement
- Benchmarking
- Process reengineering
- Six sigma quality programs - define, measure, analyze, improve, control
- Total quality management
- Best practices
Top-notch strategy execution and operating excellence
- Business process reenginering
- Aims at one-time quantum improvement
- Continuous improvement
- Aims at ongoing incremental improvements
Benefits of information technologies
* Enable better strategy execution through data-based decisions
* Strengthen organizational capabilities
* Allow for real-time tracking of implementation initiatives and daily operations
* Provide monitoring of empowered employee performance (electronic scorecard)
* Build closer relationships with customers
Key strategic performance indicators tracked by information system
- Customer data
- Operations data
- Employee data
- Supplier / collaborative ally data
- Financial performance data
Nonmonetary approaches to enhancing motivation
> Provide attractive perks and fringe benefits
> Give awards and other forms of public recognition
> Rely on promotion from within whenever possible
> Invite and act on ideas and suggestions
> Create a work atmosphere of caring and mutual respect
> State the strategic vision in inspirational terms
> Share the firm's critical information with employees
Provide a comfortable working environment
The firm's motivational approaches and rewards structure
- Rewards
- Commitment-generating incentives and rewards
- Punishment
- Adverse employment consequences
Guidelines for designing effective incentive compensations system
---> Make financial incentives a major, not minor, piece of total compensation package
---> Have incentives the extend to all mangers and all workers, not just top management
---> Administer the reward system with scrupulous objectivity and fairness
---> Keep the time between achieving targeted performance outcome and payment of the reward as short as possible
---> Avoid rewarding effort rather than results
tq...:)
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