Strategy Implementation: Staffing and Directing Chapter 9 Strategy Implementation: Staffing and Directing Dr.Vijaya Kumar Skyline College Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Staffing: Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Staffing follows strategy: Training and development Firms with training programs 19% higher productivity Reduction in scrap Overall cost savings Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Staffing follows strategy: Matching the manager to the strategy Executive type Executives with a particular mix of skills and experiences Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Executive Types: Dynamic industry expert Analytical portfolio manager Cautious profit planner Turnaround specialist Professional liquidator Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Executive Succession: Process of replacing a key top manager. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Identifying Abilities & Potential: Establish a sound performance appraisal system Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Identifying Abilities & Potential: Assessment centers Used to evaluate a person’s suitability for an advanced position. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Problems in Retrenchment: Downsizing (“rightsizing”) Planned elimination of positions or jobs Used in retrenchment strategies Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation International issues in staffing: Considerable planning Can be very costly Cultural differences must be considered Experience through international assignments Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Effective implementation requires: Leadership Leading people to use their abilities and skills most effectively and efficiently to achieve organizational objectives Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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? Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Managing corporate culture: Communication Key to effective management of change Rationale for strategic change should be communicated to all Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Managing different cultures: Integration Assimilation Separation Deculturation Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Managing the Culture of an Acquired Firm Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Management by Objectives (MBO): Establish and communicate objectives Set individual objectives Develop action plan Review performance periodically Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Total Quality Management (TQM): Philosophy committed to customer satisfaction and continuous improvement. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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. Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

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 Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Internet Impact on Staffing & Leading: Intranet: Internal Internet created for the use of a corporation’s employees Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Internet Impact on Staffing & Leading: Intranet: Static Updated periodically Dynamic Updated continuously Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Advantages of Intranets: Speed, effectiveness, low cost Elimination of time and space barriers Can use existing infrastructure Ease of use Enhances productivity Prentice Hall, 2002 Chapter 9 Wheelen/Hunger

Strategy Implementation Disadvantages of Intranets: Information needs to be continuously updated Technology is continually changing Technical support needed to maintain system Security Access Prentice Hall, 2002 Chapter 9 Wheelen/Hunger