Chapter 9
Strategy Implementation:
Staffing and Directing
Dr.Vijaya Kumar
Skyline College
Prentice Hall, 2002
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Strategy Implementation
Staffing:
– Hiring new people with new skills,
firing people with inappropriate skills,
and/or training existing employees to
learn new skills.
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Strategy Implementation
Staffing follows strategy:
– Training and development
• Firms with training programs 19% higher
productivity
• Reduction in scrap
• Overall cost savings
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Strategy Implementation
Staffing follows strategy:
– Matching the manager to the strategy
• Executive type
– Executives with a particular mix of skills and
experiences
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Executive Types:
– Dynamic industry expert
– Analytical portfolio manager
– Cautious profit planner
– Turnaround specialist
– Professional liquidator
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Matching Chief Executive “Types” with
Strategy
Business Strength/Competitive Position
Strong
Average
Growth—Concentration
Industry Attractiveness
Dynamic Industry Expert
Retrenchment—
Save Company
Turnaround
Specialist
Stability
Cautious Profit Planner
Growth—Diversification
Analytical Portfolio
Manager
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Weak
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Retrenchment—
Close Company
Professional
Liquidator
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Strategy Implementation
Executive Succession:
– Process of replacing a key top
manager.
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Executive Succession:
– Boards help CEO develop succession
plan
– Identify succession candidates below
top layer
– Measuring internal candidates against
external candidates
– Appropriate financial incentives
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Identifying Abilities & Potential:
– Establish a sound performance
appraisal system
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Strategy Implementation
Identifying Abilities & Potential:
– Assessment centers
• Used to evaluate a person’s suitability for
an advanced position.
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Strategy Implementation
Identifying Abilities & Potential:
– Job rotation
• Used to ensure that employees are gaining
the appropriate mix of experiences to
prepare them for future responsibilities.
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Strategy Implementation
Problems in Retrenchment:
– Downsizing (“rightsizing”)
• Planned elimination of positions or jobs
• Used in retrenchment strategies
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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
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Strategy Implementation
International issues in staffing:
– Considerable planning
– Can be very costly
– Cultural differences must be
considered
– Experience through international
assignments
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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
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Effective implementation requires:
– Leadership
• Leading people to use their abilities and
skills most effectively and efficiently to
achieve organizational objectives
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Strategy Implementation
Managing corporate culture:
– Corporate culture
• Affects firm’s ability to shift its strategic
direction
• Strong tendency to resist change
• Corporate culture should support the
strategy
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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?
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Strategy Implementation
Managing corporate culture:
– Communication
• Key to effective management of change
• Rationale for strategic change should be
communicated to all
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Assessing Strategy—Culture Compatibility
Is the planned strategy compatible
with the current culture?
No
Yes
Tie changes into the culture.
Yes
Can the culture be modified to
make it more compatible with the
new strategy?
Is management willing and able to
make major organizational
changes and accept probable
delays
No
No
Yes
Manage around the culture by
establishing a new structural unit
to implement the new strategy.
Is management still committed
to implementing the strategy?
No
Yes
Find a joint-venture partner or
contract with another company
to carry out the strategy.
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Formulate a different strategy
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Managing different cultures:
– Integration
– Assimilation
– Separation
– Deculturation
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Managing the Culture of an Acquired Firm
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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.
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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.
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Strategy Implementation
Management by Objectives (MBO):
•
•
•
•
Establish and communicate
objectives
Set individual objectives
Develop action plan
Review performance periodically
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Total Quality Management (TQM):
•
Philosophy committed to customer
satisfaction and continuous
improvement.
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Total Quality Management (TQM):
•
Four Objectives
– Better, less variable quality in product
– Quicker, less variable response to customer
needs
– Greater flexibility to customer requirements
– Lower cost through quality improvement;
elimination of non-value adding work.
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Total Quality Management (TQM):
•
TQM Essentials:
–
–
–
–
–
Intense focus on customer satisfaction
Internal and external customers
Accurate measurement of operations
Continuous improvement
Work relationships based on trust and
teamwork
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Strategy Implementation
Power distance (PD)
Hofstede’s
Dimensions of
National
Culture
Uncertainty avoidance (UA)
Individualism-collectivism (I-C)
Masculinity-femininity (M-F)
Long-term orientation (LT)
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Internet Impact on Staffing & Leading:
•
Intranet:
– Internal Internet created for the use of
a corporation’s employees
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Internet Impact on Staffing & Leading:
•
Intranet:
– Static
• Updated periodically
– Dynamic
• Updated continuously
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Advantages of Intranets:
• Speed, effectiveness, low cost
• Elimination of time and space
barriers
• Can use existing infrastructure
• Ease of use
• Enhances productivity
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Strategy Implementation
Disadvantages of Intranets:
•
•
•
•
•
Information needs to be continuously
updated
Technology is continually changing
Technical support needed to maintain
system
Security
Access
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