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Chapter Summary
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The first concern in the implementation of business strategy is to translate that strategy into action throughout the organization. This chapter discussed four important tools for accomplishing this.

Short-term objectives are derived from long-term objectives, which are then translated into current actions and targets. They differ from long-term objectives in time frame, specificity, and measurement. To be effective in strategy implementation, they must be integrated and coordinated. They also must be consistent, measurable, and prioritized.

Functional tactics are derived from the business strategy. They identify the specific, immediate actions that must be taken in key functional areas to implement the business strategy.

Employee empowerment through policies provides another means for guiding behavior, decisions, and actions at the firm's operating levels in a manner consistent with its business and functional strategies. Policies empower operating personnel to make decisions and take action quickly.

Compensation rewards action and results. Once the firm has identified strategic objectives that will best serve stockholder interests, there are five bonus compensation plans that can be structured to provide the executive with an incentive to work toward achieving those goals.

Objectives, functional tactics, policies, and compensation represent only the start of the strategy implementation. The strategy must be institutionalized—it must permeate the firm. The next chapter examines this phase of strategy implementation.








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