BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION - Coggle…
BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION
Committing to executing a strategy:
-Entails figuring out the specific techniques, actions and behaviors necessary for a smooth strategy supportive operation.
-Following through to get things done and deliver results.
-Making things happen (leadership) and making them happen right (management)
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 departments
From capability to competence
1) Thinking strategically about a firm's knowledge and skills base
2) Setting a stretch goal of developing an organizational ability to do something well
3) Evolving the ability into a competence or capability by performing it well and at an acceptable cost
4) Thinking strategically about a firm's opportunities and challenges
5) Refreshing, updating and upgrading competencies and capabilities as necessary to gain and maintain competitive advantages
Approaches to acquiring capabilities from an external source
Outsourcing 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
Organizational approach to decision making
Authority is retained by top management
Authority delegated to lower-level managers and employees
Comprises the formal and informal arrangement of tasks, responsibilities, lines of authority and reporting relationship for the firm
Aligned with strategy when:
-Its design contributes to the creation of value for customers.
-Its parts are aligned with one another and also matched to the requirements for the strategy.
-It lowers operating costs through lower bureaucratic costs and operational efficiencies.
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
Structuring the work effort
Pick a basic organizational design that matches structure to strategy
Supplement design with appropriate coordinating mechanisms
Institute collaborative networking and communication arrangements