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Chapter 10

This document discusses key aspects of building an organization capable of executing strategy effectively. It identifies three key actions: 1) staffing the organization with the right managers and employees, 2) acquiring and strengthening the necessary resources and capabilities, and 3) structuring the organization and work appropriately. It also outlines three approaches to building capabilities: developing them internally, acquiring them through mergers or acquisitions, or accessing them via partnerships. Finally, it discusses aligning organizational structure with strategy by making strategy-critical activities the main building blocks and choosing a structure like simple, functional, multidivisional, or matrix that matches strategic requirements.

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151 views3 pages

Chapter 10

This document discusses key aspects of building an organization capable of executing strategy effectively. It identifies three key actions: 1) staffing the organization with the right managers and employees, 2) acquiring and strengthening the necessary resources and capabilities, and 3) structuring the organization and work appropriately. It also outlines three approaches to building capabilities: developing them internally, acquiring them through mergers or acquisitions, or accessing them via partnerships. Finally, it discusses aligning organizational structure with strategy by making strategy-critical activities the main building blocks and choosing a structure like simple, functional, multidivisional, or matrix that matches strategic requirements.

Uploaded by

rakibulislammbstu01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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chapter 10

L-1 The Principal Components of the Strategy


Execution Process
1. Staffing the organization with managers and employees capable of executing the
strategy well.
2. Developing the resources and organizational capabilities required for successful
strategy execution.
3. Creating a strategy-supportive organizational structure.
4. Allocating sufficient resources (budgetary and otherwise) to the strategy execu-
tion effort.
5. Instituting policies and procedures that facilitate strategy execution.
6. Adopting best practices and business processes to drive continuous improvement
in strategy execution activities.
7. Installing information and operating systems that enable company personnel to
carry out their strategic roles proficiently.
8. Tying rewards and incentives directly to the achievement of strategic and
financial targets.
9. Instilling a corporate culture that promotes good strategy execution.
10. Exercising the internal leadership needed to propel strategy implementation
forward.

BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION:


THREE KEY ACTIONS

1. Staffing the organization —putting together a strong management team, and recruit-
ing and retaining employees with the needed experience, technical skills, and
intellectual capital.
2. Acquiring, developing, and strengthening the resources and capabilities required
for good strategy execution —accumulating the required resources, developing
proficiencies in performing strategy-critical value chain activities, and updating
the company’s capabilities to match changing market conditions and customer
expectations.
3. Structuring the organization and work effort —organizing value chain activities
and business processes, establishing lines of authority and reporting relationships,
and deciding how much decision-making authority to delegate to lower-level
managers and frontline employees.

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Three Approaches to Building and Strengthening Capabilities
(1) developing capabilities internally,
(2) acquiring capabilities through mergers and acquisitions,
(3) accessing capabilities via collaborative partnerships.

Aligning the Firm’s Organizational


Structure with Its Strategy

● Making Strategy-Critical Activities the Main Building Blocks


of the Organizational Structure
● Matching Type of Organizational Structure to Strategy
Execution Requirements
1. Simple Structure
2. Functional Structure
3. Multidivisional Structure
4. Matrix StrStructure

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