Implementing Strategy Outline

Implementing Strategy Outline 1. Strategy: Customer – Business Target – Core Value – People 2. Measurement tools 3. Direction: leading people to the same direction 4. Role clarity: role of each person in an organization 5. Influences: Influence decision – Decision Maker – Inside & outside an org. 6. Process thinking 7. Soft & hard tools 8. Improvement model: Where is the problem – Key things 9. Information and learning 10. Training Week 1 Notes Colgate Palmolive Environment Opportunity Organization Population Competitiveness Market share GDP Switching Cost Model Gap Analysis People leadership:  Motivate  Develop talent  Future trends  Economy 1/12  Disposable  Consumer taste  Managing event (risk, PR, rumour etc.) McKinsey 7S Framework Structure Strategy Systems Shared Values Style Skills Staff Align your company Identify things that work/don’t work Week 2 Notes Functional organization Do you want to duplicate function CEO Finance HR … Divisional organization Cannot impose the same model on each business group 2/12 Headquarter Airlines business Trade business Construction business … Matrix organization e.g. Nokia Corporation Nokia U.S. market Product Development Centralized China market Europe Market Asia Pacific etc. 3/12 e.g. Banking sector Banking Group CEO Branch 1 Dep. 1 Branch 2 … Loans Deposits Payment Consumer Banking Loans Treasury Deposits Payment Distribution channels Branches Dep. 2 Corporate Banking How to implement strategy in banking?  using “Matrix” Branch managers are under Many bosses  coordinate mechanism Strategy Market Environment Structure Management Process Achieve financial performance  Shareholder value  Return on equity  Stakeholders 4/12 e.g. IBM Dynamic network Service consultant Leadership  lead people Style Process The eighth S – Strategic Performance Skills  Resource: Capital resource, Information resource, Technology resource (Google, Sony etc.) Staff: Expertise Critical thinking Willing cooperation Challenges How to get all people work together Key elements to make them work together  Authority level (power) o Structure implies authority (centralize, decentralize etc.)  for decisiveness  quick decision making  Systems o A planning process (Strategy, Planning, Budgeting, Manufacturing, Performance, Quality etc.) o Leaders create systems Week 3 Notes Unit 2 - Measurement Criteria: Colgate Palmolive for instance  Sales o Quotas (units, amount of money etc.)  daily target  monthly target  Behaviour o Times to visit customers (40 times/month) o Appearance o Well prepared o Knowledge about product 5/12      Manufacturing o How innovative o Problem solving Financial performance Delivery time Percentage of sales of new products Preferred suppliers Balanced scorecard Customer perspective  Quality, Price, Service, Value, Functionality, Image, Relationship Internal process  Customer management  Selected customers  different perspectives  Acquire new customers  Infrastructure: procedure, policy  Distribution, delivery e.g. service-based company  human resource  Operation management  Innovation management  Regulation  Functionality  different cost  different financial performance  optimal cost structure  Infrastructure: People, KM, IT  culture (organizational capital)  shared value Top down strategic goals and measures SBU  Unit  Team  Individual 9 things to do 1. 2. 3. 4. 5. 6. 7. Cascading strategy and scorecard Measure performance (tied to #9) Organizational alignment Building commitment (tools & techniques) Executive alignment Gaining executive alignment Effective communications (check list, guiding principles) 6/12 8. 9. Driving commitment down and cross Rewards and recognition Building commitment  Stock option with specific conditions  Recognition  Lunch with employees  Motivation (email, …)  Empowerment, training  International assignments  Challenge people by assignments, projects Organizational alignment  Gaining executive commitment tactics 7/12 Unit 3 - Direction Managing the strategy process (pp.127, De Wit and Meyer) Top management’s Use of the strategy process Strategic planning system  Communicate corporate vision  Negotiate strategic intent  Delineate the responsibilities for developing and implementing strategies Monitoring, control, and learning  Monitor and control output  Monitor and control effort  Monitor changes in underlying assumptions  Facilitate organizational learning Incentives system  Build congruence between the strategic intents of business unit managers and their superiors  Encourage the exchange of fill and valid business information Staffing system  Matching managerial experience and personality with business mission  Make the strategic challenge intrinsically satisfying Reduced goal incongruence and information asymmetry 8/12 Unit 4 - Role Clarity Individual Job description  Performance target, standard, measure  Set of objectives  Accountability  Feedback Performance Standard – Targets – Measure  Work performance  Administer bonus  Work expectation  Purpose of PMS (Reading 6, pp.85) Leadership: Vision, Trust, Credibility, Supportive Structure How to communicate strategy to particular division The process  how to design the process 9/12 Unit 5 – Influences Issues with systems  Complexity  Experts – role of advisors Creating and changing culture      Discipline Do good things for the organization Consistency Personality Symbols Communication channels (Reading 4 – Improving the design and implementation of systems within the business units) 10/12 Unit 6 – Involvement Strategies planning process: Strategies  Business plan  Budget  Monitor financial performance  … Challenge: from top-down, middle  brainstorm  find solution  … Listening to employee – Ask – Talk Top performing team success depend on       Cohesive team Structure of team Specific assignment Attaining goals Participation, creativity, ownership Clarity – understanding of the battle plan Key factors Structured networks          Autonomy Collaboration Self managing Benefits of interdependence Clarity of role Mutual learning Culture Value and hierarchy Enough (not too much structure) 11/12 Written report and CLN presentation Organizational chart  Business plan  Strategy  Financial report  Conclusion:  What things they’re doing right / wrong?  How to implement strategy in Vietnam context?  Compare to other coffee chain?  Implement issues  Analysis  Define issues  Competence of the organization: why, how?  Insight of how to apply what you’ve learned from the organization.  Facts and figures Issue 1  solution 1 with conditions x1, y1, z1 … Application – Synthesis – Ideas 12/12