TAILIEUCHUNG - Lecture Crafting and executing strategy: Chapter 11 - Thompson, Peteraf, Gamble, Strickland

Chapter 11 - Managing internal operations: Actions that promote good strategy execution. The objectives of this chapter are: Learn why resource allocation should always be based on strategic priorities, understand how well-designed policies and procedures can facilitate good strategy execution, learn how best practices and process management tools drive continuous improvement in the performance of value chain activities and promote superior strategy execution,. | CHAPTER 11 MANAGING INTERNAL OPERATIONS: ACTIONS THAT PROMOTE GOOD STRATEGY EXECUTION STUDENT VERSION PROMOTING GOOD STRATEGY EXECUTION Allocating resources to the drive for good strategy execution. Instituting policies and procedures that facilitate strategy execution. Using process management tools to drive continuous improvement in how value chain activities are performed. Installing information and operating systems that enable personnel to carry out their strategic roles proficiently. Using rewards and incentives to promote better strategy execution and the achievement of strategic and financial targets. ALLOCATING RESOURCES TO THE STRATEGY EXECUTION EFFORT Possible Adverse Resource Allocation Outcomes: Too little funding that slows progress and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently. Too much funding that wastes organizational resources and reduces financial performance. STRATEGY-DRIVEN BUDGETING: ALLOCATING RESOURCES Screen resource requests carefully. Approve only those that contribute to strategy execution. Provide the level of resources necessary for the success of strategic initiatives. Shift resources to higher-priority activities where new execution initiatives are needed. INSTITUTING POLICIES AND PROCEDURES THAT FACILITATE STRATEGY EXECUTION Policies and operating procedures facilitate strategy execution by: Providing top-down guidance regarding how things need to be done. Helping ensure consistency in how execution-critical activities are performed. Promoting the creation of a work climate that facilitates good strategy execution. 11–5 INSTITUTING BEST PRACTICES AND EMPLOYING PROCESS MANAGEMENT TOOLS Managing for Continuous Improvement Best Practices Benchmarking Process Reengineering Total Quality Management (TQM) Six Sigma Quality Programs 11–6 REENGINEERING THE ORGANIZATION Business Process Reengineering Involves radically redesigning and streamlining work effort, flows and .