Strategic Management ConceptsA dynamic perspect.ppt

128 Interdependence strategy formulation and implementation Ch 11 Organizational structure, systems and processes Formulation and implementation are interdependent and iterative 362 Exhibit 11.2 Formulation and implementation If difficulties, questions: what is flawed? Formulation, Implementation or both? 363 HUI shows that all the variables of implementation were impacted: Levers support strategy of growth organization systems people management and culture “A strategy is only good as it execution” “The important decisions are strategic but more important and more difficult is to make effective the course of action decided upon” Intended strategy Realized strategy Strategic leadership Implementation levers 366 Exhibit 11.5 Key facets of Implementation 129 Interdependence strategy formulation and implementation Ch 11 Organizational structure, systems and processes Knowing-Doing gap = difference between Knowing and Doing Causes of Knowing-Doing Gap Sharing of strategy formulation with STo Managers Leadership Implementation levers Implementation obstacles 130 Interdependence strategy formulation and implementation Ch 11 Organizational structure, systems and processes Causes of Knowing-Doing gap Culture 364 Culture If strong culture, higher performance, less variability in performance This effect is reinforced in highly competitive markets Values must be consistent with strategy Mismatches Easy to see afterwards Permanent attention must be given to coherence between strategy, processes and systems and people management 364 HP tried to mimic Dell’s business model but encountered resistance from retailers such as Best Buy and CompUSA 364 At IBM, Lou Gerstner revived the firm’s culture 364 Exhibit 11.3 Lou Gerstner at IBM 365 HUI Levers support strategy of growth 365 Hardware and software providers that attempted to become IT solution providers through adding a consulting division, e.g. SAP 366 Exhibit 11.4 Picking up the pieces at SAP 131 Implementa