MGMT 449 - CH10 - FINAL

nPrimarily a market-driven activity

nPrimarily an operations-driven activity

nTougher and more time-consuming than crafting strategy

nCommunicate the case for change

nBuild consensus on how to proceed

nArouse enthusiasm for the strategy to turn implementation process into a companywide crusade

• nEmpower subordinates to keep process
• moving

nEstablish measures of progress and deadlines

• nReward those who achieve implementation
• milestones

nDirect resources to the right places

• nPersonally lead strategic change process
• and the drive for operating excellence

Staffing the Organization

Building core competencies and competitive capabilities

Structuring the organization and work effort

• vIdentifying the desired competencies
• and capabilities to build into the strategy to
• help achieve a competitive advantage

• vPutting desired competencies and
• capabilities in place, 

vUpgrading them as needed, and

vModifying them as market conditions evolve

1. First develop ability to do something

2. Build experience and gradually transform the ability into a core competence and proven capability

• 3. Continue to refine and polish the competence/capability, striving to perform the activity better than rivals, thereby turning the core competence into a distinctive competence and providing a path to competitive
• advantage

• outexecute them (beat them by performing
• certain value chain activities in superior fashion).

vFunctionaldepartment structure

vGeographicorganizational units

vDivisional organizational structure

vIndividualbusiness units, with each business unit operating as independent profit center

vTopmanagers retain authorityfor most decisions

vManagersand employees areempowered to make decisions

vShiftfrom authoritarian to decentralizedstructures stressing empowerment