1. Linking the Budget to Strategy Implementation of a strategy requires  Enough resources to support the strategy  Screening of requests for new capital projects and bigger operating budgets  Shifting resources to support new strategy priorities - Downsizing some areas and upsizing other areas - Eliminating activities that are no longer needed How well budget allocations are linked to the needs of a strategy can either promote or impede the implementation process.

2. Implementing Best Practices & Continuous Improvement Implementing a strategy involves adopting “best practices”  Best practices means: Benchmarking is an integral part of a successfully implemented strategy  Continuous improvement programs  Total quality management - TQM

3. Instituting Best Practices & Continuous Improvement Quality improvement programs are linked to  Defect-free manufacture  Superior product quality  Superior customer service  Total customer satisfaction Identifying & implementing best practices is a journey, not a destination; it’s an exercise in doing things in a world-class way.

4. Formal Reporting of Strategy-Critical Information Accurate & timely information is essential to guide action Prompt feedback on implementation initiatives are needed BEFORE actions are fully completed Monitoring early implementation actions serves two purposes  Quick detection of the need to adjust the strategy or its implementation  Making sure things are moving in the planned direction Critical success variables must be track as needed

5. Formal Reporting of Strategy-Critical Information Information systems should cover  Customer data  Operations data  Employee data  Financial data Accurate information allows a strategy to be monitored and corrective action to be taken promptly

6. Commitment to Chosen Strategy Implementing rewards & incentives inducing employees to make the strategy work  The reward structure must motivate people to do the very things it takes to mjake the strategy work successfully Requiring results, not intentions Keys to implementing pay-for-performance programs  Make performance targets the basis for structuring the incentive system  Ensure performance targets are clearly defined and every person/group is accountable for achieving them  Be fair and impartial in comparing actual performance against targets  Avoid rewarding non-performers  Explore reasons for deviations (“poor” individual performance or circumstances beyond the individual’s control)