Chapter 9 Santiago Ibarreche Strategy Implementation Preparation for Implementation; Development of resources Chapter 9 Santiago Ibarreche © S. Ibarreche 2015

Before Implementation… Before implementing strategies, capacity for people that will carry them out is necessary and important. © S. Ibarreche 2015

Resource Based View Capacity of the firm for successful strategy implementation is based in its resources and its capacity to generate, allocate, sustain, and increase these resources by creating a sustainable competitive advantage. © S. Ibarreche 2015

Training and Resource Development © S. Ibarreche 2015

Training and Creation of Capacity Inventory of existing capabilities Definition of capacity needs Definition of gaps Implementation and update © S. Ibarreche 2015

Inventory of Human Resources © S. Ibarreche 2015

Definition of Training and Development Needs and Programs © S. Ibarreche 2015

Different Types of Resources © S. Ibarreche 2015

V R I O Sources of competitive advantage based on: Value, Rarity, Imitability (Difficulty to Imitate), Organization © S. Ibarreche 2015

Physical Resources Liquid Assets Current Assets Permanent Assets Fixed Assets © S. Ibarreche 2015

Inventory of Tangible Resources © S. Ibarreche 2015

Financial Resources Availability of Credit Characteristics; Actual Potential Characteristics; Timing Financial management Practices Rarity of Financial Sources Fit Allocation © S. Ibarreche 2015

Technical Resources Tangible: Tools and equipment Capacity Systems Inputs Processes Outputs Control elements Evaluation Ratios Productivity ROI © S. Ibarreche 2015

Intangible Resources Technical Resources Organizational Culture Organizational Structures Policies, Processes and Procedures Knowledge and Experience External Intangibles © S. Ibarreche 2015

Technical Resources Intangible: Overlapping: Access Understanding of the process Knowledge Management Brand Perception Research and Development (R+D+I) Overlapping: Efficiency Explicit Knowledge (Documentation) Procedures © S. Ibarreche 2015

Organizational Culture (1) Expected Behaviors in a Social Setting Tangible Elements: Symbols Emblems Heroes and Villains Documents Manuals Intangible Elements: Attitudes Values Conducts Communication © S. Ibarreche 2015

Organizational Culture (2) Dimensions: Geert Hofstede Power Distance Individualism – Collectivism Uncertainty Avoidance Masculinity – Femininity Attachment – Detachment © S. Ibarreche 2015

Organizational Culture (3) Trompenaars – Hampden Turner Dimensions: Relationships and Rules The Group and The Individual Feelings and Relationships How Far We Get Involved How We Accord Status How We Manage Time How We Relate To Nature © S. Ibarreche 2015

Organizational Structures Types Hierarchical Functional Hybrid Functionality Degree of fit Isolation Collaboration Dimensions Concepts of interrelation Scalability Flexibility Frames of Reference © S. Ibarreche 2015

Policies, Processes, and Procedures Are to organizations what laws are to societies Norms and expected behaviors Processes: General steps to follow Procedures: Specific actions © S. Ibarreche 2015

Knowledge and Experience Tacit Knowledge Who knows what How well other individuals know what this person knows Explicit Knowledge Documented Disseminated Knowledge Management Elements © S. Ibarreche 2015

External Intangibles External Image Corporate Social Responsibility Brands Corporate Social Responsibility Self-Interest Philanthropy Strategies © S. Ibarreche 2015

Preparing for Implementation Planning the Implementation Process Involvement Plan of action Monitoring and Systems to Provide Feedback © S. Ibarreche 2015