Formulating strategy is one thing. Executing it throughout the entire organization... well, that's the really hard part. Without effective execution, no business strategy can succeed. Unfortunately, most managers know far more about developing ...
strategy than about executing it-and overcoming the difficult political and organizational obstacles that stand in their way. In this book, Larry Hrebiniak offers a comprehensive, disciplined process model for making strategy work in the real world. Hrebiniak shows why execution is even more important than many senior executives realize, and sheds powerful new light on why businesses fail to deliver on even their most promising strategies. He offers a systematic roadmap for execution that encompasses every key success factor: organizational structure, coordination, information sharing, incentives, controls, change management, culture, and the role of power and influence in the execution process. Making Strategy Work concludes with a start-to-finish case study showing how to use Hrebiniak's ideas to address one of today's most difficult business execution challenges: ensuring the success of a merger or acquisition. The advice on making M&A strategies work justifies the addition of this book to any execution toolkit. * Building the capabilities and culture you'll need to execute * How to align your organization's skills, resources, and culture around the strategies you're pursuing * Integrating long-term strategy with short-term operations * Why managing the short-term is crucial to the success of long-term strategy * Ensuring robust coordination... up, down, and sideways * Effective information sharing and cooperation: bringing coherence and focusto execution * Managing change, including culture change * Avoiding ""speed traps,"" resistance, and other change-related problems that hurt execution
Chapter 8 review"Managing Culture and Culture Change"Changing culture is difficult , but it can be accomplished. Here are the "rules" or steps for managing culture change.Rule 1: The reasons for change must be clear, compelling, and agreed upon byChapter 8 review "Managing Culture and Culture Change"
Changing culture is difficult , but it can be accomplished. Here are the "rules" or steps for managing culture change.
Rule 1: The reasons for change must be clear, compelling, and agreed upon by key players.
Cause-effect analysis and learning are vital to successful change. Explaining poor prior performance is a sine qua non, an essential ingredient, before changes in execution methods or the logic of culture change is accepted as legitimate and necessary.
Rule 2: Focus on changing behavior-Not directly on changing culture.
Appeals to individuals to change rarely work. Requests to change beliefs, values, or ways of doing things rarely achieve the desired results. It is better instead to focus on changing behavior, which can lead to culture change. New people, incentives, controls, and organizational structures can motivate behavioral change and lead to changes in organizational culture.
Rule 3: Effective communication is vital to culture change.
A communication plan must be developed. People directly affected by changes must be communicated with directly, face-to-face or in groups. Information sharing is important to controlling or squelching rumors and other sources of misinformation that can inhibit change. There can never be too much communication when managing culture change.
Rule 4: Adequate effort must be expanded to reduce resistance to change.
Effective communication of the positive aspects of change helps to reduce resistance. Communications dealing with potential "negatives" of change can reduce their impact. Methods aimed at improving participation and involvement in defining or defusing change and its consequences can also help, such as "Work Out" sessions at GE and other companies that identify key issues and collectively and openly reduce the resistance to new execution methods or culture change. The instrumental and symbolic roles of leadership are also important to the reduction of resistance to change.
Rule 5: Beware of excessive speed.
Speed in managing culture change may be desirable or necessary. It is, however, fraught with problems. Changing too many things simultaneously and immediately can confuse the change process and make coordination and communication difficult. Excessive speed can breed uncertainty and increase resistance to change. Moving too fast can hurt the learning process and cloud the need for change, with dire consequences.
Chapter 6 Summary:"Incentives and Controls: Supporting and Reinforcing Execution"1. Incentives motivate behavior toward ends consistent with desired strategy execution outcomes. Controls provide feedback about performance, reinforce executionChapter 6 Summary: "Incentives and Controls: Supporting and Reinforcing Execution"
1. Incentives motivate behavior toward ends consistent with desired strategy execution outcomes. Controls provide feedback about performance, reinforce execution methods, provide corrective mechanisms, and facilitate organizational learning and change. Both incentives and controls are important to making strategy work.
2. There are some basic aspects of "good" incentives and basic rules for using incentives wisely in the strategy execution process.
2a. Incentives should not demotivate individuals. 2b. Incentives fuel and guide motivation. They do not create it. The role of incentives is to support motivation and guide behavior in the right direction. 2c. Good incentives are tied to strategic objectives or short-term objectives that are derived from strategy. 2d. Good incentives reward the right things.
3. Controls provide feedback about performance, reinforce execution methods, provide a corrective mechanism for an organization, and facilitate learning and change.
3a. It is absolutely necessary that the control process face the brutal facts openly and honestly when execution-related performance is poor. It is imperative to conduct autopsies for organizational learning to occur. Without the analysis of facts and the learning it leads to, organizational change or adaptation is jeopardized. 3b. The control process cannot work if responsibility and accountability for execution-related tasks are unclear. It is necessary, then, to clarify responsibility and accountability for controls to work and strategy execution to be successful. 3c. Controls need timely and valid information in order to work effectively.
4. Good leaders must avoid the use of all-or-nothing objectives.
5. The necessity of conduction a strategy review is extremely important. Such as review process is critical to supporting the planning and control process and making strategy work. The strategy review is not a luxury or an option; every organization must fashion its own strategy review to execute strategy effectively. A good review fosters discussion, clarifies corporate and business strategy, helps set execution-related objectives, allows leaders to test and understand their people, and facilitates learning and organizational change. It is important to the success of strategy execution efforts....Continua Nascondi
Chapter 7 review"Managing Change"1) Managing change is important for strategy execution. Execution often implies change in key factors such as strategy, structure, coordination mechanisms, short-term measures of performance, incentives, andChapter 7 review "Managing Change"
1) Managing change is important for strategy execution. Execution often implies change in key factors such as strategy, structure, coordination mechanisms, short-term measures of performance, incentives, and controls. How change is implemented often means success or failure of strategy-execution efforts.
2) Managing change is still a major execution problem. The inability to manage change is the single biggest obstacle to effective strategy execution. The problem is due in large part to the complexity of the steps required to manage change effectively. These include:
a) Assessing accurately the size and content of a strategic change.
b) Determining the time available for the execution of change.
c) Determining the steps or tactics to be employed in managing change.
d)Clarifying responsibility and accountability in the change process.
e) The need to overcome resistance to change.
f) Setting up controls to monitor the results of change management.
3) This chapter has focused on the first three issues, as these have not been systematically considered in the literature on change management. Specifically, the impact of the relationship between (a) the size of a change problem and (b) the time available for execution on (c) how a change is executed is explored. Four approaches to change-evolutionary, managerial, sequential, and complex-are analyzed in depth, along with their costs and benefits for an organization.
4) A major conclusion of this analysis is that complex change is difficult and dangerous, often resulting in poor change management and failed execution. Complex change occurs when the strategic problem facing an organization is large and the time frame for execution is short, resulting in many change related tasks or activities being attended to simultaneously. This simultaneous treatment of many difficult change issues is characterized by four major problems.
a) Coordination and control are difficult to achieve when many tasks, activities, and change-related programs are being attended to simultaneously.
b) Cause-effect analysis explaining significant deviations in performance is virtually impossible.
c) Organizational learning is jeopardized because of the lack of cause and effect clarity.
d) Organization are not willing to reduce the performance requirements for which managers are accountable, which virtually guarantees poor outcomes under complex change.
5) When the strategic problems facing an organization loom large, sequential change is preferred. It is logical to break the large change into smaller, more manageable pieces or elements and manage change sequentially, focusing on each element only when the previous one is completed satisfactorily. There is a downside to sequential change-it takes time, unanticipated factors can impinge on the process over time, and it is unexciting-but it is an effective way to handle large changes rationally and methodically.
Chapter 3 Summary:"The path to successful execution: Good strategy comes first"1) Strategy is the essential ingredient, the driving force behind execution efforts. Sound planning is essential, then, at both corporate and business-unit levels.2) ItChapter 3 Summary: "The path to successful execution: Good strategy comes first"
1) Strategy is the essential ingredient, the driving force behind execution efforts. Sound planning is essential, then, at both corporate and business-unit levels.
2) It is vitally important to integrate corporate and business strategies. This means that effective communication is needed between levels, along with processes that enable decision-makers to reach agreement on strategies, goals, and performance metrics. The strategy review is one method of achieving this integration of corporate and business strategies.
3) Long-term strategic needs of the organization must be translated into short-term operating objectives in order to successfully execute strategy. The short term is a key to successful execution; managers routinely spend a lot of time there. It is necessary to have short-term operating objectives that provide measures or metrics that can be used to evaluate execution plans and efforts.
4) Finally, strategy makes demands on organizational resources and capabilities. Development of the appropriate skills and competencies is vital to the successful execution of strategy. Care must be exercised when changing strategy or pursuing different strategies simultaneously, as the skills and competencies needed will vary as a function of strategy pursued....Continua Nascondi