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Implementing Strategies:

Management & Operations IssuesWeek 07

W. Rofianto, ST, MSi

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Formulation focuses on effectiveness

Implementation focuses on efficiency

Nature of Strategy Implementation

Formulation vs. Implementation

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StrategistsDivisional orFunctionalManagers

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ManagementIssues

Resources

Organizational Structure

Restructuring

Annual Objectives

Policies

Management Issues

Rewards/Incentives

Supportive Culture

Production/Operations

Human Resources

Resistance to Change

Natural Environment

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Purpose of Annual Objectives

Basis for resource allocation

Mechanism for management evaluation

Metric for gauging progress on long-term objectives

Establish priorities (organizational, divisional, and

Management Issues

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Management Issues

Four Types of Resources

1. Financial resources

2. Physical resources3. Human resources

4. Technological resources

Managing Conflict

Conflict not always “bad”

No conflict may signal apathy

Can energize opposing groups to action

May help managers identify problems

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Strategy-Structure Relationship

Basic Forms of Structure

Functional Structure

Divisional Structure

Strategic Business Unit Structure (SBU)

Matrix Structure

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Typical Top Managers of a Large Firm

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Sonoco Product’s SBU Organizational Chart

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An Example Matrix Structure

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Restructuring and Reengineering

Restructuring

Downsizing

Rightsizing

Delayering

Reengineering

Process management

Process innovation

Process redesign

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Tests for Performance-Pay Plans

Linking Performance and Pay to Strategy

Seniority-based and performance-based approach

Does the plan capture attention?

Do em lo ees understand the lan? 

Do employees understand the plan? Does the plan pay out when it should?

Is the company or unit performing better?

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Managing Resistance to Change

Force Change Strategy

Educative Change Strategy

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Resistance to Change can be considered the single greatestthreat to successful strategy implementation

Rational/Self-interest Change Strategy

1. Invite employee participation

2. Motivation & incentive to change

3. Communication of change purpose

4. Giving & receiving feedback

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Creating a Strategy-Supportive Culture

Formal statements of organizational philosophy

Designing physical spaces

Role modeling, teaching and coaching by leaders Selection, promotion, retirement, reward and status system

Stories, legends & Myths

 

Measure and control Leader reaction to critical incidents

Organizational design and structure

System and procedures

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Production processes typically constitute more than 70% of firm’stotal assets

Production/Operations Concerns

Production/Operations Decisions

Plant size, equipment & Location

 

Shipping

Job specialization, employee training & cross-training

Inventory/Inventory control

Standard & Quality control

Cost control

Technological innovation

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Human Resource Strategic Responsibilities

Assessing staffing needs/costs

Developing performance incentives

ESOPs (Employee Stock Ownership Plans) Work–life balance issues

Diverse Workforce

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