1. Copyright © 2005 Pearson Education Canada Inc. Concepts ﴀﴀﴀﴀ in Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-1 Chapter 9 Strategy Implementation: Staffing and Directing

2. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-2 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Staffing  Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills.

3. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-3 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Staffing follows strategy:  Matching the manager to the strategy Executive type  Executives with a particular mix of skills and experiences

4. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-4 Copyright © 2005 Pearson Education Canada Inc. Selection & Management Development Executive Succession:  Process of replacing a key top manager.  Boards help CEO develop succession plan  Identify succession candidates below top layer  Measuring internal candidates against external candidates  Appropriate financial incentives

5. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-5 Copyright © 2005 Pearson Education Canada Inc. Selection & Management Development Identifying Abilities & Potential:  Establish a sound performance appraisal system  Assessment centers Used to evaluate a person’s suitability for an advanced position.  Job rotation Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities.

6. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-6 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Problems in Retrenchment:  Downsizing (“rightsizing”) Planned elimination of positions or jobs Used in retrenchment strategies

7. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-7 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation International issues in staffing:  Considerable planning  Can be very costly  Cultural differences must be considered  Experience through international assignments

8. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-8 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Managing Organizational culture:  Organizational culture Affects firm’s ability to shift its strategic direction Strong tendency to resist change Organizational culture should support the strategy

9. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-9 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Four methods of managing different cultures: 1. Integration 2. Assimilation 3. Separation 4. Deculturation

10. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-10 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Management by Objectives (MBO):  Establish and communicate objectives  Set individual objectives  Develop action plan  Review performance periodically

11. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-11 Copyright © 2005 Pearson Education Canada Inc. Strategy Implementation Total Quality Management (TQM):  Philosophy committed to customer satisfaction and continuous improvement.

12. Concepts in ﴀﴀﴀﴀ Strategic Management, Canadian Edition Wheelen, Hunger, Wicks 9-12 Copyright © 2005 Pearson Education Canada Inc. Total Quality Management (TQM) Four Objectives: 1. Better, less variable quality in product 2. Quicker, less variable response to customer needs 3. Greater flexibility to customer requirements 4. Lower cost through quality improvement; elimination of non-value adding work.