Chapter 10: Superior Strategy Execution - Another Path to Sustainable Competitive Advantage Flashcards
Team effort
All mgmt have responsibilities in their department and all employees are active participants
8 Principal Managerial Components of Strategy Executions
1) Capabilities, structure, and people
2) Allocating resources for critical activities
3) Policies prohibit, not impede
4) Process mgmt drives continuous improvement
5) Info and operating systems enable personnel
6) Rewards tied to performance objectives
7) Fostering corporate culture
8) Internal leadership propels implementation
Staffing the org
Strong mgmt team, recruiting and training employees with needed experience, tech skills, and intellectual capacity
Acquiring, developing, and strengthening resources and capabilities
Accumulating and updating required resources, developmental proficiencies in strat critical VC activities, and updating them with market conditions and customer expectations
Structuring org and work effort
Organizing VC activities and business processes, establishing lines of authority and reporting relationships, and deciding how much decision-making authority to push down to lower-level mgmt and frontline employees
Functional (departmental) org structure
Organizes strategy-critical activities into distinct functional, product, geographic, process, or customer groups
Multidivisional (divisional) org structure
Organizes into decentralized set of operating divisions along market, customer, product, or geographical lines. Corporate HQ monitors activities, allocates resources, and exercises overall control
Matrix org structure
Combo that overlays one type of structure onto another type, with multiple reporting relationships. Used to foster cross-unit collaboration and communication
Total Quality Mgmt (TQM)
Philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of all employee levels, team-based work design, benchmarking, and total customer satisfaction
Six-sigma quality control
Disciplined, statistics-based system aimed at producing no more than 3.4 defects per million iterations for any business-process - from manufacturing to customer satisfaction
Adaptive culture
Willingness on part of org members to accept change and take on the challenge of new strats
MBWA
Managing by walking around
Business process reengineering
Strategy critical activities are unified into a single division or workshop
