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					      Strategy 491
Strategy Implementation

  Session 1: Introduction to
       Implementation
 Agenda
 •   Intro
 •   Mark Hurd @ Hewlett Packard
 •   Strategy & Implementation
 •   Course Introduction
 •   Class Introduction


Course Website: http://faculty.fuqua.duke.edu/~charlesw/s491/
There are many more profitable ideas
     than profitable companies.
You’re trained in strategic and
financial analysis.
After the MBA you’ll need to do more
than analyze.
• Image not licensed for web distribution.
  – Link here.
You want to deliver strategic results for
companies.


      Photo from Sea Turtle’s photostream,
      creative commons license: http://www.flickr.com/photos/sea-
      turtle/3048817422/
We’ll study execution at a variety of
firms.




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                 Y1q1 Y1q3 Y2q1 Y2q3 Y3q1 Y3q3 Y4q1 Y4q3 Y5q1 Y5q3
What were Hurd’s biggest challenges
at HP?




          & what do you think of Fiorina’s tenure?
What do you think strategy
fundamentals tell us about HP?
What’s your
assessment of
Hurd’s approach
at HP?
Hewlett Packard: My Take
  Break



15 minutes
Durable performance comes from
more than good positioning.
Industry Position vs. Capabilities
Where do capabilities come from?
• People
• Processes
• Learning
=> Implementation & Execution
New strategies are doomed without
new organization.


                                          Chaos
   New Strategy   +   Old Organization

                                         Old Strategy
Execution is more important than ever.
The business climate is tough.
And missteps
can be brutal.
                 Photo from Denis
                 Gustavo’s photostream,
                 Creative commons license:
                 http://www.flickr.com/photo
                 s/denisgustavo/184941640/
In your next job you’ll need to deliver
results…

       Facing performance gaps…



                       … or opportunity gaps.
This class covers the basic elements of
strategy implementation.
                       Strategic
                                     International
                       Renewal                                  Applications

                       Session 10    Session 11



                               Formal                           Integration
                Informal     Organization
                                              Knowledge
              Organization
                              Session 8
               Session 7                       Session 9        Building
                                                                 Blocks


  Planning                                                 Partners
                 Projects                    People
                             Processes
  Session 2                                                Session 6
                 Session 3                  Session 5
                              Session 4
But it’s still analysis!
• Issue awareness
• Common missteps
• Deep dive
The art of implementation
The work of implementation.



    Lets talk about the syllabus.
                   Final Project examples
•   Changing Strategy with internal groups
     –   ATT, Alcoa Technology Management              • A few examples from
         Review Boards
•   Overcoming Inertia                                   the fall class:
     –   GE, Westinghouse, Siemens, Alcatel, Tyco
•   Knowledge Transfer                                   –   Walgreens
     –   Rank Xerox, Intel’s Semiconductor
         Fabrication (“Copy Exactly”)                    –   J&J
•   Internal Change
     –   Nokia, Ericsson, Lucent, 3M, Intel, xBox        –   Google
         (Microsoft)
•   Structuring for Change & Innovation                  –   Singapore Airlines
     –   P&G, ABB, Shell Oil
•   Structuring for New Markets                          –   Apple
     –   many e.g.’s of retailers and publishers
         struggling w/online sales – USA Today,
         Borders (online bookselling), Walmart,
                                                         –   Microsoft
         etc.; Xerox (& spinoffs Palm, Adobe, etc.),
•   Alliances
     –   Ford (Bridgestone), Astra (Merck), Corning
         (Samsung)
•   Managing Radical Change
     –   IBM, HP, Monsanto, Vivendi
Wrap Up
• Strategy doesn’t add much value to companies
  without implementation.
• New strategies without new organization are
  doomed.
• We’ll explore the basic issues of strategy
  implementation/execution.
  – Common missteps
  – Research/analysis vs. experience & art
  – I invite you to develop your own approach/philosophy.
 I research the relationship between strategy &
 structure, largely in the telecom industry.
             Alfred Chandler,
                   1962



Strategy                         Structure



           My Current Research
Next up: Strategic Planning, Mon 11/3
• Questions
    – Compare UPS’s 1997 scenario planning exercise and its Horizon 2017 planning
      exercise.
        • How would you evaluate them?
    – What are the key elements of UPS’s approach to strategic planning?
        •   What role was played by the scenarios?
        •   The Charter?
        •   The Centennial Plan?
        •   The Strategy Road Map?
    – Why was John McDevitt put in charge of “strategic integration”? Should he
      remain in that role?

• Teams
    – Please email me your teams by next class.
• Volunteers for UPS Case Update Presentation? New Millenium Financial?
    – Talk to me now, or email me tomorrow (Friday).

  Course Website: http://faculty.fuqua.duke.edu/~charlesw/s491/
Notecard
•   Name
•   Reason for taking implementation
•   Summer job
•   Goal after MBA
•   Something memorable about you
• Image not licensed for web distribution
  – Link s

				
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posted:9/25/2011
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