The funding requirements of a
new strategy must drive how
capital allocations are made
and the size of each unit's operating
budgets. Underfunding
organizational units and activities
pivotal to strategic success
impedes execution and the
drive for operating excellence.
Well-conceived policies and
procedures aid strategy execution;
out-of-sync ones are
barriers.
Managerial efforts to identify
and adopt best practices are a
powerful tool for promoting operating
excellence and better
strategy execution.
A best practice is any practice
that at least one company has
proved works particularly well.
TQM entails creating a total
quality culture bent on continuously
improving the performance
of every task and value
chain activity.
Using Six Sigma—a disciplined, statistics-based system aimed a producing not more than 3.4 defects per million iterations for any business process--to improve the
performance of strategy-critical
activities enhances strategy
execution.
Business process reengineering
aims at one-time quantum
improvement; TQM and Six
Sigma aim at incremental
progress.
State-of-the-art support systems
can be a basis for competitive
advantage if they give
a firm capabilities that rivals
can't match.
Good information systems and
operating data are essential
components of good strategy
execution and operating
excellence.
A properly designed reward
structure is management's
most powerful tool for mobilizing
organizational commitment
to successful strategy
execution.
One of management's biggest
strategy-executing challenges
is to employ motivational techniques
that build wholehearted
commitment to operating excellence
and winning attitudes
among employees.
A properly designed reward system
aligns the well-being of organization
members with their
contributions to competent strategy
execution and the achievement
of performance targets.
The role of the reward system
is to align the well-being of organization
members with realizing
the company's vision, so
that organization members benefit
by helping the company execute
its strategy competently
and fully satisfy customers.
It is folly to reward one outcome
in hopes of getting
another outcome.
