Thursday, August 16, 2007

Strategy Execution-8 steps

1. Building enabling organization with resources and capabilities:
With changing business landscapes and changing environment, organizations must have a strategy developed for innovation and flexibility by utilizing their resources (human,financial,technological) and developing capabilities which are ongoing incremental activities.

2. Resource Allocation Processes and Resource Commitments

Resource -------> Resource Commitments -----> Activities

Activities--->Resource Endowments
Activities --->Resource Commitments

•Activities u perform are activities u choose depending on ur resources
•Terms on which u perform ur activites depends on whatever choices the company has made in the past
•Integrate the activities and resource based view.Put the time dimension.

3. Business Policies and Procedures worldwide
Pushing down the decisions to lower level
Give the manager the basis of control
In similar situations same decisions are taken

4. Adopting Best Practices and striving for continuous improvement through the value chain

5. Management Information Systems

6. Tying rewards to achievement of strategic and financial objectives and to effective strategy execution.
The objectives determine which business mode the company should follow
Balanced Scorecard
KRAs(Key Responsibility Areas)

7. Creating strategy supportive work environment and corporate culture:
Work Environment:
It depends on the market needs and compliance with company rules and regulations.
Corporate Culture:
It tells about the openness of the people i.e. culture of the members of the organization

8. Leadership Development:
-->Strategic Inflection Point: A strategic inflection point is a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end. Understanding inflection point can help leaders, decision makers and voters to detect a change in outlook for better decision making process.
-->Red Queen Effect: As organizations struggle to adapt to competitive pressures, their fitness levels improve , raising the baseline against which competitive advantage can be measured.


Virinder Urf Funda-Mentor said...

hahahahah... the CP effect!


some additions/corrections dude in the article

2nd point - the important aspect & the link for strategy execution is that

Resource Allocation is done for Core Competence - i.e. nurturing or bringing your competencies to the forefront!

3rd point - these policies are guide to actions, we all know that so..

they actually link organisation's vision mission to these functional areas (this is the addition)

7th point... Here the role of strategic architecture comes in to play ..

what you r made of & how strong you r is all depends on dynamic efficiency i.e. breadth

all these arre enablers in providing this support

8th point.....
THis Is About Building Internal Leadership...

Remember whe it is a time your are facing a fundamental change, a strategic inflection point....

then through your journey through the valley of death these top managers with the help of lower-middle managers like us drive away the negatives - the friction or resistance - so building a sound internal leadership is of utmost importance..

AND FINALLY sll these 8 steps are an Ongoing Process .... they cant be taken in isolation.... Its an Ongoing Process though the strategy made is having a 3 to 5 year perspective as per the organisation classification.

But all these events are an ONGOING PROCESS

Nevertheless Applause from my side for this wonderful Effort!

Yours Truly

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