Site MapHelpFeedbackBuilding an Organization Capable of Good Strategy Execution
Building an Organization Capable of Good Strategy Execution


Once managers have decided on a strategy, the emphasis turns to converting it into actions and good results. Putting the strategy into place and getting the organization to execute it well call for different sets of managerial skills. Whereas crafting strategy is largely a market-driven activity, implementing and executing strategy is primarily an operations-driven activity revolving around the management of people and business processes. Whereas successful strategy making depends on business vision, solid industry and competitive analysis, and shrewd market positioning, successful strategy execution depends on doing a good job of working with and through others, building and strengthening competitive capabilities, motivating and rewarding people in a strategy-supportive manner, and instilling a discipline of getting things done. Executing strategy is an action-oriented, make-things-happen task that tests a manager's ability to direct organizational change, achieve continuous improvement in operations and business processes, create and nurture a strategy supportive culture, and consistently meet or beat performance targets.

Experienced managers are emphatic in declaring that it is a whole lot easier to develop a sound strategic plan than it is to execute the plan and achieve the desired outcomes. According to one executive, “It's been rather easy for us to decide where we wanted to go. The hard part is to get the organization to act on the new priorities.” Just because senior managers announce a new strategy doesn't mean that organizational members will agree with it or enthusiastically move forward in implementing it. Senior executives cannot simply direct immediate subordinates to abandon old ways and take up new ways, and they certainly cannot expect the needed actions and changes to occur in rapid-fire fashion and lead to the desired outcomes. Some managers and employees may be skeptical about the merits of the strategy, seeing it as contrary to the organization's best interests, unlikely to succeed, or threatening to their departments or careers. Moreover, different employees may interpret the new strategy differently or have different ideas about what internal changes are needed to execute it. Long-standing attitudes, vested interests, inertia, and ingrained organizational practices don't melt away when managers decide on a new strategy and begin efforts to implement it—especially when only comparatively few people have been involved in crafting the strategy and when the rationale for strategic change has to be sold to enough organizational members to root out the status quo.

 











Crafting and Executing StrategOnline Learning Center

Home > Chapters 11