Strategy Implementation and Assessment

Question 1

What are the 2 dimensions in a stakeholder analysis?

Answer 1

1. Power of the stakeholder over strategic decisions

2. Effect of strategy on the stakeholder

Question 2

What are Kotter’s 8 steps to managing change?

Answer 2

1. Create a sense of urgency
2. Build coalitions (collaborative leadership)
3. Determine direction
4. Communicate direction
5. Empower employees
6. Generate small wins
7. Consolidate gains (aka small wins into one LT win)
8. Institutionalize the new design (make it permanent)

Question 3

What are the 3 ways of managing performance?

Answer 3

1. Management by objectives
2. Value-based management
3. Balanced scorecard

Question 4

What is managing by objectives?

Answer 4

• aligning individual goals with business goals
• structure goes through organizational hierarchy
• everyone is given goals that contribute to organizational success

Question 5

What is value-based management?

Answer 5

• creation of value

- measuring value financially… through DCF, returns to shareholders, economic profit, market-to-book ratio

Question 6

What is the balanced scorecard approach to performance management?

Answer 6

• combination of metrics that reflect strategy
• each element has a similar number of objectives
  1. Finance (eg. ROE, operating income)
  2. Customer (eg. on-time delivery, % of sales from new products)
  3. Internal processes (eg. yield, efficiency)
  4. Innovation and learning (eg. time to generate new products, new product introductions compared to competitors)