LESSON 10 - STRATEGY EXECUTION

Confrontation

approach for managing and resolving conflict by exchanging members of conflicting parties

Avoidance

approach for managing and resolving conflict by ignoring the problem

Defusion

approach for managing and resolving conflict by playing down differences between conflicting parties

Conflict

can be defined as a disagreement between two or more parties on one or more issues

Resource allocation

can be defined as distributing an organization's "assets" across products, regions, and segments according to priorities established by annual objectives

Annual objectives

serve as guidelines for action, directing and channeling efforts and activities of organization members. They provide a source of legitimacy in an enterprise by justifying activities to stakeholders. They serve as standards of performance.

(1) functional, (2) divisional by geographic area, (3) divisional by product, (4) divisional by customer, (5) divisional by process, (6) strategic business unit (SBU), and (7) matrix.

seven basic types of organizational structure

Developing A Diverse Work Force

An organization can perhaps be most effective when its workforce mirrors the diversity of its customers. For global companies, this goal can be optimistic, but it is a worthwhile goal.

Linking Performance and pay to strategy

An organization's compensation system needs to be aligned with strategic outcomes. Decisions on salary increases, promotions, merit pay, and bonuses need to support the longterm and annual objectives of the firm.

(1) restructuring/reengineering, (2) managing resistance to change, (3) deciding where/how to produce goods, and (4) managing an ESOP

Four production/operations issues

Creating A Strategy-Supportive Culture

Strategists should strive to preserve, emphasize, and build on aspects of an existing culture that support proposed new strategies. Aspects of an existing culture that are antagonistic to a proposed strategy should be identified and changed.

Using Caution in Hiring A Rival's Employees

The practice of hiring employees from rival firms has a long tradition, but increasingly in our lawsuit-happy environment, firms must consider whether that person(s) had access to the "secret sauce formula, customer list, programming algorithm, or any proprietary or confidential information" of the rival firm.

Balancing Work Life with Home Life

A corporate objective to become leaner and meaner must today include consideration for the fact that a good home life contributes immensely to a good work life

The Divisional Structure

(org structure) are sometimes referred to as segments, profit centers, or business units. (1) by geographic area, (2) by product or service, (3) by customer, or (4) by process

The Strategic Business Unit (SBU)

(org structure) can greatly facilitate strategy implementation efforts.

The Functional structure

(org structure) groups tasks and activities by business function, such as production and operations, marketing, finance and accounting, research and development, and management information systems.

The Matrix Structure

(org structure) most complex of all designs because it depends on both vertical and horizontal flows of authority and communication

Developing A Corporate Wellness Program

1. Eat nutritiously—Eat a variety of fruits and vegetables daily because they have ingredients that the body uses to repair and strengthen itself. 2. Stay hydrated—Drink plenty of water to aid the body in eliminating toxins and to enable body organs to function efficiently; the body is mostly water. 3. Get plenty of rest—The body repairs itself during rest, so get at least seven hours of sleep nightly, preferably eight hours. 4. Get plenty of exercise—Exercise vigorously at least 30 minutes daily so the body can release toxins and strengthen vital organs. 5. Reduce stress—The body's immune system is weakened when one is under stress, making the body vulnerable to many ailments, so keep stress to a minimum. 6. Do not smoke—Smoking kills, no doubt about it anymore. 7. Take vitamin supplements—Consult your physician, but because it is difficult for diet alone to supply all the nutrients and vitamins needed, supplements can be helpful in achieving good health and longevity.

Annual objectives are essential for strategy implementation for five primary reasons:

1. They represent the basis for allocating resources. 2. They are a primary mechanism for evaluating managers. 3. They enable effective monitoring of progress toward achieving long-term objectives. 4. They establish organizational, divisional, and departmental priorities. 5. They are essential for keeping a strategic plan on track

1. financial resources, 2. physical resources, 3. human resources, and 4. technological resources.

All organizations have at least four types of resources (or assets) that can be used to achieve desired objectives:

Using Caution in Monitoring Employees' Social Media

Companies generally should monitor employee and potential employee's social media activities whenever they have a reason to believe the person is engaged in illegal or unethical conduct

Annual Objectives

desired milestones an organization needs to achieve to ensure successful strategy implementation.

Strategy Execution

focuses on management, operations, and human resource (MOHR) issues most critical for successful strategy implementation

Policies

refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.

Changes in strategy

require changes in the way an organization is structured, for two major reasons. First, structure largely dictates how objectives and policies will be established. The second major reason why changes in strategy often require changes in structure is that structure dictates how resources will be allocated.