Chapter 9

Document Sample
Chapter 9 Powered By Docstoc
					     Chapter 9

Strategy Implementation:
 Staffing and Directing




                           1
    Strategy Implementation


Staffing:
   – Hiring new people with new skills,
     firing people with inappropriate skills,
     and/or training existing employees to
     learn new skills.


                                                2
   Strategy Implementation

Staffing follows strategy:
   – Training and development
     • Firms with training programs 19% higher
       productivity
     • Reduction in scrap
     • Overall cost savings
   – Matching the manager to the strategy
     • Executive type - executives with a
       particular mix of skills and experiences
                                                  3
   Strategy Implementation


Executive Types:
   – Dynamic industry expert
   – Analytical portfolio manager
   – Cautious profit planner
   – Turnaround specialist
   – Professional liquidator

                                    4
Matching Chief Executive “Types” with
              Strategy
                                   Business Strength/Competitive Position



                                  Strong               Average         Weak

                                Growth—Concentration             Retrenchment—
                                                                 Save Company
                                Dynamic Industry Expert
                                                                 Turnaround
                                                                 Specialist
      Industry Attractiveness




                                Stability

                                Cautious Profit Planner




                                Growth—Diversification           Retrenchment—
                                                                 Close Company
                                Analytical Portfolio
                                Manager                          Professional
                                                                 Liquidator


                                                                                 5
   Strategy Implementation



Executive Succession:
   – Process of replacing a key top
     manager.




                                      6
   Strategy Implementation

Executive Succession:
   – Boards help CEO develop succession
     plan
   – Identify succession candidates below
     top layer
   – Measuring internal candidates against
     external candidates
   – Appropriate financial incentives
                                             7
    Strategy Implementation

Identifying Abilities & Potential:
    – Establish a sound performance
      appraisal system
    – Assessment centers
      • Used to evaluate a person’s suitability for
        an advanced position.
    – Job rotation
      • Used to ensure that employees are gaining
        the appropriate mix of experiences to
        prepare them for future responsibilities.
                                                      8
   Strategy Implementation


Problems in Retrenchment:
   – Downsizing (“rightsizing”)
     • Planned elimination of positions or jobs
     • Used in retrenchment strategies




                                                  9
    Strategy Implementation

Guidelines for Downsizing:
    – Eliminate unnecessary work vs. making
      across-the-board cuts
    – Contract out work for efficiencies
    – Plan for long-run efficiencies
    – Communicate reasons for action
    – Invest in the remaining employees
    – Develop valued-added jobs to balance out
      job elimination
                                                 10
    Strategy Implementation

International issues in staffing:
   – Considerable planning
   – Can be very costly
   – Cultural differences must be
     considered
   – Experience through international
     assignments

                                        11
    Strategy Implementation

International issues in staffing:
   – Effective management of foreign
     assignments:
      • Focus on transferring knowledge and
        developing global leadership
      • Foreign assignments to people with
        technical skills matched or exceeded by
        cross-cultural abilities
      • Deliberate repatriation at end of
        assignment with career guidance and jobs
                                               12
    Strategy Implementation
Strategy-Culture Compatibility:
   – Consider the following:
     • Is the planned strategy compatible with
       the firm’s current culture?
     • Can the culture be easily modified to make
       it more compatible with new strategy?
     • Is management willing to make major
       organizational changes?
     • Is management committed to
       implementing the strategy?
                                                13
Assessing Strategy—Culture Compatibility
  Is the planned strategy compatible
  with the current culture?

                                                                                       No
             Yes



                                                                            Can the culture be modified to
    Tie changes into the culture.
                                                                            make it more compatible with the
                                                                            new strategy?
                                                  Yes



                                       Is management willing and able to
                                       make major organizational
                                                                                                No
                                       changes and accept probable
                                       delays
                                                                                       No
                                                 Yes


                                       Manage around the culture by         Is management still committed
                                       establishing a new structural unit   to implementing the strategy?
                                       to implement the new strategy.

                                                                                       No
                                                  Yes


                                       Find a joint-venture partner or      Formulate a different strategy
                                       contract with another company
                                       to carry out the strategy.



                                                                                                               14
Strategy Implementation


Managing different cultures:
   – Integration
   – Assimilation
   – Separation
   – Deculturation


                               15
Managing the Culture of an Acquired Firm




                                           16
   Strategy Implementation


Action Planning:
   – Action Plan
     • States what actions are going to be taken,
       by whom, during what time frame, and
       with what expected results.



                                                17
       Action Plan Elements
•   List specific actions.
•   List dates to begin and end each action.
•   Name person responsible for each
    action.
•   Name person responsible for monitoring
    timelines and effectiveness of each
    action.
•   Estimate expected financial and physical
    consequences of each action.
•   Develop contingency plans.
                                           18

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:2/20/2012
language:
pages:18