1. Implementing Strategy Allocating resources Strategy-supportive policies & procedures Best practices & continuous improvement Support systems Motivation & Incentives

2. Linking Budgets to Strategy Screening requests for resources Allocate to most strategy-critical areas Under & over funding Involvement in setting & administering Shifting resources

3. Strategy-supportive Policies & Procedures Top-down guidance Alignment with strategy Consistency Up-to-date Strong change lever Clear direction and balance nb

4. Best Practices & Continuous Improvement Visible commitment organisation-wide Encourage TQ-supportive behaviour Communications - information & knowledge mgt TQM - teamwork, empowerment, benchmarking, customer service orientation, zero defects Reengineering & Continuous improvement ‘kaizen’

5. Support Systems Strengthens capabilities - faster responses - improved decisions - better co-ordination - more & better information Facilitates implementation

6. Strategy-supportive Reward Systems Understand what motivates people Build commitment Monetary and non-monetary Balance degree of competition Link rewards to strategically relevant performance outcomes

7. Guidelines for Reward Systems Performance payoff > 10% base salary Incentive plans for all Administered efficiently and fairly Linked to objectives of strategic plan Ability to reach targets Use of non-monetary rewards too Don’t reward non-performers Proper communication of incentives

8. Intel: Performance Related Reward 1996: Revenues $20.8b; Net income $5.2b $820m bonus to 50,000 employees –27 days extra pay (11% of salary).c. £8000 per employee in Leixlip –Stock options –Pension top up to 12.5% –1% for every % that divisional target was exceeded Source: Irish Independent 13th Feb 1997

9. Support Systems Resource Allocation Work Definition Performance Measurement Reward