1. Strategy Implementation: Staffing and Directing
Chapter 9
Strategy Implementation:
Staffing and Directing
Dr.Vijaya Kumar
Skyline College
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Wheelen/Hunger

2. Strategy Implementation
Staffing:
Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills.
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3. Strategy Implementation
Staffing follows strategy:
Training and development
Firms with training programs 19% higher productivity
Reduction in scrap
Overall cost savings
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4. Strategy Implementation
Staffing follows strategy:
Matching the manager to the strategy
Executive type
Executives with a particular mix of skills and experiences
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5. Strategy Implementation
Executive Types:
Dynamic industry expert
Analytical portfolio manager
Cautious profit planner
Turnaround specialist
Professional liquidator
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6. Matching Chief Executive “Types” with Strategy Industry Attractiveness
Business Strength/Competitive Position
Strong
Average
Weak
Growth—Concentration
Dynamic Industry Expert
Retrenchment— Save Company
Turnaround Specialist
High
Stability
Cautious Profit Planner
Industry Attractiveness
Medium
Low
Growth—Diversification
Analytical Portfolio Manager
Retrenchment— Close Company
Professional Liquidator
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7. Strategy Implementation
Executive Succession:
Process of replacing a key top manager.
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8. Strategy Implementation
Executive Succession:
Boards help CEO develop succession plan
Identify succession candidates below top layer
Measuring internal candidates against external candidates
Appropriate financial incentives
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9. Strategy Implementation
Identifying Abilities & Potential:
Establish a sound performance appraisal system
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10. Strategy Implementation
Identifying Abilities & Potential:
Assessment centers
Used to evaluate a person’s suitability for an advanced position.
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11. Strategy Implementation
Identifying Abilities & Potential:
Job rotation
Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities.
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12. Strategy Implementation
Problems in Retrenchment:
Downsizing (“rightsizing”)
Planned elimination of positions or jobs
Used in retrenchment strategies
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13. Strategy Implementation
Guidelines for Downsizing:
Eliminate unnecessary work vs. making across-the-board cuts
Contract out work for efficiencies
Plan for long-run efficiencies
Communicate reasons for action
Invest in the remaining employees
Develop valued-added jobs to balance out job elimination
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14. Strategy Implementation
International issues in staffing:
Considerable planning
Can be very costly
Cultural differences must be considered
Experience through international assignments
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15. Strategy Implementation
International issues in staffing:
Effective management of foreign assignments:
Focus on transferring knowledge and developing global leadership
Foreign assignments to people with technical skills matched or exceeded by cross-cultural abilities
Deliberate repatriation at end of assignment with career guidance and jobs
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16. Strategy Implementation
Effective implementation requires:
Leadership
Leading people to use their abilities and skills most effectively and efficiently to achieve organizational objectives
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17. Strategy Implementation
Managing corporate culture:
Corporate culture
Affects firm’s ability to shift its strategic direction
Strong tendency to resist change
Corporate culture should support the strategy
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18. Strategy Implementation
Strategy-Culture Compatibility:
Consider the following:
Is the planned strategy compatible with the firm’s current culture?
Can the culture be easily modified to make it more compatible with new strategy?
Is management willing to make major organizational changes?
Is management committed to implementing the strategy?
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19. Strategy Implementation
Managing corporate culture:
Communication
Key to effective management of change
Rationale for strategic change should be communicated to all
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20. Assessing Strategy—Culture Compatibility
Is the planned strategy compatible
with the current culture? No
Yes
Can the culture be modified to
Tie changes into the culture.
make it more compatible with the
new strategy?
Yes
Is management willing and able to
make major organizational No
changes and accept probable
delays No
Yes
Manage around the culture by
Is management still committed
establishing a new structural unit
to implementing the strategy?
to implement the new strategy. No
Yes
Find a joint-venture partner or
Formulate a different strategy
contract with another company
to carry out the strategy.
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21. Strategy Implementation
Managing different cultures:
Integration
Assimilation
Separation
Deculturation
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22. Managing the Culture of an Acquired Firm
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23. Strategy Implementation
Action Planning:
Action Plan
States what actions are going to be taken, by whom, during what time frame, and with what expected results.
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24. Action Plan Elements List specific actions.
List dates to begin and end each action.
Name person responsible for each action.
Name person responsible for monitoring timelines and effectiveness of each action.
Estimate expected financial and physical consequences of each action.
Develop contingency plans.
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25. Strategy Implementation
Management by Objectives (MBO):
Establish and communicate objectives
Set individual objectives
Develop action plan
Review performance periodically
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26. Strategy Implementation
Total Quality Management (TQM):
Philosophy committed to customer satisfaction and continuous improvement.
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27. Strategy Implementation
Total Quality Management (TQM):
Four Objectives
Better, less variable quality in product
Quicker, less variable response to customer needs
Greater flexibility to customer requirements
Lower cost through quality improvement; elimination of non-value adding work.
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28. Strategy Implementation
Total Quality Management (TQM):
TQM Essentials:
Intense focus on customer satisfaction
Internal and external customers
Accurate measurement of operations
Continuous improvement
Work relationships based on trust and teamwork
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29. Strategy Implementation
Power distance (PD)
Uncertainty avoidance (UA)
Individualism-collectivism (I-C)
Masculinity-femininity (M-F)
Long-term orientation (LT)
Hofstede’s
Dimensions of
National
Culture
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30. Strategy Implementation
Internet Impact on Staffing & Leading:
Intranet:
Internal Internet created for the use of a corporation’s employees
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31. Strategy Implementation
Internet Impact on Staffing & Leading:
Intranet:
Static
Updated periodically
Dynamic
Updated continuously
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32. Strategy Implementation
Advantages of Intranets:
Speed, effectiveness, low cost
Elimination of time and space barriers
Can use existing infrastructure
Ease of use
Enhances productivity
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33. Strategy Implementation
Disadvantages of Intranets:
Information needs to be continuously updated
Technology is continually changing
Technical support needed to maintain system
Security
Access
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