Build Execution into Strategy Group 3

 A company encompasses everyone from the top to the bottom  There needs to be a culture of trust and commitment  Front Lines need to be involved in the creation of strategy  Inspire voluntary cooperation through trust and commitment Build Execution into Strategy

Poor Processes Can Ruin Strategy Execution  Strategy Execution involves having a well thought out plan executed on all levels of the organization  If you develop a poor process you will in turn make poor decisions. The development of the process is key.  Too much complexity can also become an issue as well.  For Example: Lubber devised a strategy to use less money and complexity and in return the sales representatives had more time to gain new sales  However it eventually failed because it posed a threat to the sales team who was not consulted in the planning

The Power of Fair Process  What is fair process?  Fair process origin?  Voluntary cooperation > Mechanical execution

How Fair Process Affects People’s Attitudes and Behaviors Figure 8-1 chap. 8 Strategy Formulation Process Attitudes Behavior Strategy Execution Exceed Expectations Self-initiated Fair Process Engagement Explanation Expectation clarity Trust and Commitment “I feel my opinions count.” Voluntary Cooperation “I’ll go beyond the call of duty.”

The Three E Principles of Fair Process  Three elements that define fair process:  1.) Engagement  2.) Explanation  3.) Clarity of expectation

Everyone is Important  A company is everyone from the top to the front lines  All members should work together  You must create a culture of trust and commitment  This will motivate

Fair Process  Having a fair and equal process very important  Most companies going through change

Great Culture  Google 

Elco Experience  Company produces elevators  Because of changing market place, the company brought in consultants to help implement a new way of working called “Cellular Manufacturing.”

Elco Experience  Elco first incorporated this new system at its Chester plant, and would then incorporate it into its High Park plant.  At the Chester plant, the consultants and manager of the plant did not tell the employees what was happening or why, just that changes were occurring.  Employees began to fear for their jobs and fight with other employees.  Overall lack of communication from management led to the Chester plant experiencing a sharp decrease in production.

Elco Experience  At the High Park plant, management and the consultants met with the employees and shared the thought process behind the new manufacturing plan.  Employees were given the same information that management had, leading to employees feeling like they had full insight into what was happening  By practicing the three principles of fair process in tandem, the High Park plant had major success with the new manufacturing process.

Fair Process  It is important for shaping people’s attitudes  People seek recognition  Two types of recognition people seek  Emotional  Intellectual

Intellectual and Emotional Recognition Theory  Theory shows the individual that they are trusted and cherished in the company  Gives recognition to the individual’s knowledge, talents, and expertise  Violation of fair process can be very detrimental  This makes individuals less happy, and makes them not as valuable to the company

Fair Process and Blue Ocean Strategy  Fair process is vital to implementing Blue Ocean Strategy  The intangible assets of trust and confidence in a company are key to being successful  This is a point where many companies fail at implementing Blue Ocean Strategy  Fair process is a great way for companies to get around the question of how they create trust in the company  When Fair Process is practiced people realize short term sacrifices are necessary for the good of the company