Strategy Implementation:

1
Chapter 9

• Strategy Implementation
• Staffing and Directing

2
Strategy Implementation

• Action Planning
• Action Plan
• States what actions are going to be taken, by
  whom, during what time frame, and with what
  expected results.

3
Action Plan Elements

• List specific actions.
• List dates to begin and end each action.
• Name person responsible for each action.
• Name person responsible for monitoring timelines
  and effectiveness of each action.
• Estimate expected financial and physical
  consequences of each action.
• Develop contingency plans.

4
Strategy Implementation

• Staffing
• Hiring new people with new skills, firing people
  with inappropriate skills, and/or training
  existing employees to learn new skills.

5
Strategy Implementation

• Staffing follows strategy
• Training and development - Firms with training
  programs have 19 higher productivity

6
Strategy Implementation

• Staffing follows strategy
• Matching the manager to the strategy
• Executive type
• Executives with a particular mix of skills and
  experiences

7
Strategy Implementation

• Executive Types
• Dynamic industry expert
• Analytical portfolio manager
• Cautious profit planner
• Turnaround specialist
• Professional liquidator

8
Strategy Implementation

• Identifying Abilities Potential
• Establish a sound performance appraisal system

9
Strategy Implementation

• Identifying Abilities Potential
• Job rotation
• Used to ensure that employees are gaining the
  appropriate mix of experiences to prepare them
  for future responsibilities.

10
Strategy Implementation

• Problems in Retrenchment
• Downsizing (rightsizing)
• Planned elimination of positions or jobs
• Used in retrenchment strategies

11
Strategy Implementation

• Guidelines for Downsizing
• Eliminate unnecessary work vs. making
  across-the-board cuts
• Contract out work for efficiencies
• Plan for long-run efficiencies
• Communicate reasons for action
• Invest in the remaining employees
• Develop valued-added jobs to balance out job
  elimination

12
The Ethics of Downsizing

• Does the decision reflect the espoused values of
  the firm?
• Is the decision congruent with the values of
  company stakeholders?
• Are the procedures employed consistent with the
  values of the firm and its stakeholders?

13
The Ethics of Downsizing

• Is it ethical to reduce staff solely to pursue
  profit maximization?

14
Stakeholders Affected by Downsizing

• Internal
• Employees (both affected and those remaining)
• Unions
• Managers
• Shareholders
• External
• Suppliers
• Clients
• Capital markets
• Communities

15
Strategic Implications

• The financial and human resource impacts of
  downsizing on a firm are profound and long term.

16
Strategy Implementation

• International issues in staffing
• Considerable planning
• Cost implications
• Cultural differences
• Experience gained through international
  assignments

17
Strategy Implementation

• International issues in staffing
• Effective management of foreign assignments
• Focus on transferring knowledge and developing
  global leadership
• Foreign assignments to people with technical
  skills matched or exceeded by cross-cultural
  abilities
• Deliberate repatriation at end of assignment with
  career guidance and jobs

18
Is Gender Equity a Universal Principle?

• 1) Company values gender equality and equity
  evident in women employed
• 2) Why is international policy different? Two
  possible scenarios
• a) company has policy/plan of education/social
  change or partnering with other institutions in
  other countries to influence change
• b) company accepts status quo, wants

19
Strategy Implementation

• Effective implementation requires
• Leadership
• Leading people to use their abilities and skills
  most effectively and efficiently to achieve
  organizational objectives

20
What Makes a Good Leader?

• (P)rinces who have achieved great things have
  been those who have given their word lightly, who
  have known how to trick men with their cunning,
  and who, in the end, have overcome those abiding
  by honest principles.
• Machiavelli, The Prince

21
What Makes a Good Leader?

• Leader and followers are both following the
  invisible leader the common purpose.
• Mary Parker Follett

22
What Makes a Good Leader?

• The wicked leader is he who the people despise.
  The good leader is he who the people revere. The
  great leader is he who the people say, we did it
  ourselves.
• Lao Tsu

23
Golf, Leadership, Character

• 82 CEOs admit they cheat at golf
• 57 CEOs say the way a person golfs is similar to
  the how they conduct business
• Starwood Hotels Resort Survey, CH April 27,
  2003

24
What Makes a Good Leader?

• Authentic leadership
• Transformational leadership
• Servant leadership

25
Strategy Implementation

• Managing corporate culture
• Corporate culture
• Affects firms ability to shift its strategic
  direction
• Strong tendency to resist change
• Corporate culture should support the strategy

26
Strategy Implementation

• Strategy-Culture Compatibility
• Consider the following
• Is the planned strategy compatible with the
  firms current culture?
• Can the culture be easily modified to make it
  more compatible with new strategy?
• Is management willing to make major
  organizational changes?
• Is management committed to implementing the
  strategy?

27
Strategy Implementation

• Managing corporate culture
• Communication
• Key to effective management of change
• Rationale for strategic change should be
  communicated to all