"Of all the things I've done,the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal". -Walt Disney-Founder of the Disney Company
The 10 basic tasks of the strategy execution process:
- Staff the organization with managers and employees capable of executing the strategy well.
- Build the organizational capabilities required for successful strategy execution.
- Create a strategy-supportive organizational structure.
- Allocate sufficient resources(budgetary and otherwise)to the strategy execution effort.
- Institute policies and procedures that facilitate strategy execution.
- Adopt best practices and business processes that drive continuous improvement in strategy execution activities.
- Install information and operating systems that enable company personnel to carry out their strategic roles proficiently.
- Tie rewards and incentives directly to the achievement of strategic and financial targets.
- Instill a corporate culture that promotes good strategy execution.
- Exercise the internal leadership needed to propel strategy implementation forward.
How well managers perform these 10 tasks has a decisive impact on whether the outcome of the strategy execution effort is a spectacular success,a colossal failure,or something in between.
When strategies fail,it is often because of poor execution.Strategy execution is therefore a critical managerial endeavor.The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and whether they are performing value chain activities in a manner that is conducive to company wide operating excellence.
Structuring the organization and organizing the work effort in a strategy-supportive fashion has four aspects:
- Deciding which value chain activities to perform internally and which ones to outsource
- Aligning the firm's organizational structure with its strategy
- Deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees
- Facilitating the necessary collaboration and coordination with external partners and strategic allies.