This second edition delivers a powerful framework every leader can use to overcome the obstacles to successfully deploying business strategy. In this book . find nine crucial factors for strategy implementation that are frequently management team, making that strategy work – implementing it throughout the. CHAPTER 1 STRATEGY EXECUTION IS THE KEY. 3. Execution Is a Key to Success. 5. Making Strategy Work Is More Difficult Than the Task of. Strategy Making.
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PDF | 3+ hours read | Although numerous studies acknowledge that strategies frequently fail not because of inadequate strategy formulation, but because of. 3. Sound Execution Is Critical—A Focus on Making. Strategy Work Pays Major Dividends 5. Managers Are Trained to Plan, Not Execute 5. “Strategy is the starting point, but without implementing actions, even the best laid plans remain just that. In Making Strategy Work, Hrebiniak provides a powerful.
This article aims to explain how finance, financial goals, and financial performance can play a more integral role in the strategic planning and decision-making process, particularly in the implementation and monitoring stage. Mission Statement An effective mission statement conveys eight key components about the firm: target customers and markets; main products and services; geographic domain; core technologies; commitment to survival, growth, and profitability; philosophy; self-concept; and desired public image. Strategy Implementation and Management In the last ten years, the balanced scorecard BSC  has become one of the most effective management instruments for implementing and monitoring strategy execution as it helps to align strategy with expected performance and it stresses the importance of establishing financial goals for employees, functional areas, and business units. The BSC ensures that the strategy is translated into objectives, operational actions, and financial goals and focuses on four key dimensions: financial factors, employee learning and growth, customer satisfaction, and internal business processes. The BSC supports the role of finance in establishing and monitoring specific and measurable financial strategic goals on a coordinated, integrated basis, thus enabling the firm to operate efficiently and effectively. Companies should utilize this metric when they anticipate substantial capital expenditures in the near future or follow-through for implemented projects. Asset Management This calls for the efficient management of current assets cash, receivables, inventory and current liabilities payables, accruals turnovers and the enhanced management of its working capital and cash conversion cycle.
Thousands of companies around the world use BSC to create and maintain a performance-oriented enterprise, yet just as many try and fail. Execution Excellence shows you what you need to know and do to become a BSC success story.
He is considered a Strategy and Balanced Scorecard thought leader, with more than thirty years of global management consulting experience and Balanced Scorecard designs executed across a wide range of industry sectors. Permissions Request permission to reuse content from this site. Undetected country. NO YES. Execution Excellence: Selected type: Added to Your Shopping Cart. Evaluation Copy Request an Evaluation Copy. A hands-on guidebook for making your strategy work with effective Balanced Scorecard design, deployment, and maintenance Execution Excellence is the practitioner's guide to real-world implementation.
Design a BSC that truly and simply reflects your strategy Customize the BSC to reflect your industry's uniqueness Define clear measurements and ownership that suit your strategy Develop a framework for efficient data collection and reporting Implement effective reviews to keep your business on track Use your Balanced Scorecard data to close performance gaps Developed in the early s, the Balanced Scorecard framework has been recognized as one of the most seminal business ideas in the last 75 years.
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Is Strategy Dead? Time to Put on a Helmet! Strategic Themes 54 9 Defining Objectives: Actionable or Aspirational? Are You Overrun with Projects?
Not the Audit Team, Please! The pricing scheme that resulted satisfied no one because the downloaders proved their effectiveness by the size of the discounts received. Thus, implementation problems at the functions level are caused primarily by faulty managerial assumptions or, as they say in the sports world, by not keeping your eye on the ball. A second cause of marketing function problems is structural contradiction.
The purpose was to control its distribution channels. For international distribution, though, management was torn between its need for control and its unfamiliarity with international markets. Management was stumped. Its policy dictated that it should own foreign channels, but implementation was beyond its capabilities.
Cash flow needs eventually seduced the company into deciding on indirect foreign distribution, with a different partner and arrangement in each country. The overall result was a complicated patchwork of direct and indirect distribution, which the thin ranks of executives could not handle.
Typically, the pricing, advertising, promotion, and distribution functions are satisfactory, but no one function is outstanding. The best companies have a facility for handling one or two marketing functions and are competent in the remainder.
No marketers are good at everything, but the most able concentrate on doing an outstanding job at a few marketing functions. A marketing program is a combination of marketing and nonmarketing functions, such as sales promotion and production, for a certain product or market.
At the program level, management seeks to blend marketing and nonmarketing functions in an attempt to sell a particular product line or penetrate a target segment. If functions are the blocking and tackling of execution, marketing programs are the playbook showing how customers will be courted and the competition confounded.
A computer vendor, for example, wished to install a national account program to better serve its small but growing number of key accounts.
The vendor recruited a highly regarded national account manager from another company, gave him a secretary, and issued a presidential mandate to put a key account program together.
Exactly how was this to be done? Perhaps the manager should try to create a headquarters-based, dedicated national account sales force despite the attendant risks that competition with the sales vice president, his supervisor, implied. The art of blending functions into programs is a poorly understood one at best, often left to on-the-job learning by trial and error. Indeed, with the exception of its national account manager, every implementation action and policy directive geared the company to small customers.
The program was an empty promise internally and to the marketplace. The company, which specialized in industrial lighting products, had no experience in consumer marketing or advertising and only a little in important retailing areas like trade promotion.
The marketing functions in this industrially and generically oriented company were unable to supply the retail blocking and tackling that headquarters simply assumed would be there to implement its well-conceived program.
One heavy manufacturing company was continually frustrated because it came out late with new products in an industry in which spare parts inventories and operator loyalties give the first-in vendor a significant advantage.
Headquarters had kept its thin developmental engineering staff busy with a torrent of engineering projects, some to rework machines already in the field, one to come up with an automatic machine prototype under government grant, and another to design the new machine.
In short, the profusion of programs lacked focus because it stemmed from a poor sense of what the company was and what it did. The presence of many clever marketing programs—a great playbook—is often associated with implementation problems. This is so because when a strong sense of marketing identity and direction are absent, programs tend to go off in all directions. Such bunny marketing results in diffusion of effort and random results.
Systems can be as simple as voice telecommunications or as complex as profit accounting.
Of the systems at lower organizational levels, the most problematic is sales force reporting and control. Of the pervasive systems, those concerned with the allocation of marketing resources and those that help management monitor results are bugbears in all but a few companies. Especially in smaller companies, allocation systems cause many problems; in larger ones, control systems do more damage.
Other kinds of systems as well as personnel and the formal organizational structure can also be problematic, but managers usually can get around these obstacles by exercising their execution skills.
Three problems that commonly occur at the systems level are errors of ritual, politicization, and unavailability. At one concrete producer, the marketing control system relied on a plant backlog measure.
When backlogs were low, the sales force beat the bushes for jobs no matter how marginal, the estimators who control pricing in construction companies shaved the margins, and everyone from the CEO on down got nervous.
When backlogs were high, reactions were the opposite. As a consequence, the low-margin business taken in bad times hindered the company when it sought high-margin business in better times. When the president accepted suggestions for a new sales control system to remedy the problem, he instituted new forms and reports but refused either to modify backlog management or to approach profitability by job as a means toward more effective segmentation and selling. The problem of politicization is never more evident than when observing sales force reporting and control systems and, in particular, call reports.
Sales managers often weed out their call reports to fit their preconceptions. The politicization of systems is in no way limited to sales controls, however.
It neglected to note, unfortunately, that the rental equipment would be obsolete a year sooner than headquarters had planned! The final, and most pervasive, systems problem is unavailability.
Few executives, however, have any idea of profitability by segment, to name one element. Rarer still are good numbers on profitability by product, and only once have I seen a system that allowed profitability to be computed by individual account. At the broadest structural level of marketing practice are policy directives. While policies cover the spectrum of administrative activity, I focus here on two especially important marketing implementation policies: By policies I do not mean only verbal or written statements; indeed, some of the policies most central to good marketing practice are unspoken.
Identity problems are the most common policy difficulties and, paradoxically, occur more often in mature than in young business units. Marketing theme and marketing culture are two terms I use to capture the powerful but often unspoken feeling of common purpose that the best implementers have and others do not.
The managers consistently functioned according to their different understandings, and the result was a confused and ineffective marketing effort—a sales force that thought headquarters gave it contradictory signals, a divisive trade, and unhappy customers. Our products are great. But we have only two seconds to reach the supermarket shopper, so we live or die on service. Then have your key people do so as well. The results are usually as instructive as they are shocking.
Marketing culture is a broader notion than theme. Culture can be observed clearly from such things as lunchroom conversations and mottoes management puts on the walls. Direction policies refer to both marketing strategy and leadership. While marketing strategy is outside the realm of this article, leadership deserves attention as a key aspect of implementation. It has become fashionable in corporations to blame shortcomings in practice on culture.
It is undeniably true, however, that some top marketing managers are top-notch leaders and others are not. The former inspire us with their eagerness to get out into the field; they are clever at designing simple and effective monitoring methods, and their understanding of customers is powerful. Others are much less effective as leaders, being immersed in complex conceptualizing or unwilling to leave their leather chairs for the marketplace; they are inspirational only as models of what their juniors hope not to become.
The quality of marketing leadership has a far-reaching effect on the quality of marketing practice. Indeed, of the business units I observed that had low-caliber leaders, not one had high-quality marketing practices overall. Whether a strong theme and culture are brought about by the charisma of the person on top or orchestrated through memoranda is irrelevant. Up to this point I have analyzed the motorcycle without much attention to the mechanic.
Indeed, the primary reason good marketing practice occurs is that managers often use their personal skills to supplant, support, and sometimes quietly overthrow inadequate practice structures. Managers bring four execution skills to the marketing job: The marketing job by its nature is one of influencing others inside and outside the corporation. Inside, there is a regular parade of peers over which the marketer has no power to impose preferences; instead he has to strike horse trades.
I observed that those managers who show empathy, that is, the ability to understand how others feel, and have good bargaining skills are the best implementers. Able managers have no false sense of egalitarianism or charity but are tough and fair in putting people and dollars where they will be most effective.
The less able ones routinely allocate too many dollars and people to mature programs and too few to riskier and amorphous programs. It is by using monitoring skills that a manager can do the most to reconstruct degraded corporate information and control systems. The general manager of a company with 38 plants and , customers, for instance, ran everything he considered crucial according to notations on two three-by-five-inch index cards.
By contrast, the sales manager of a company about a hundredth that size generated hand-truckfuls of computer printouts monthly in his monitoring zeal, then let them age like cheese. Good implementers have an almost uncanny ability to create afresh an informal organization, or network, to match each problem with which they are confronted.
That is, these managers reconstruct the organization to suit the marketing job that needs to be done. They customize their informal organization to facilitate good execution. Often, their organization and the formal one have little in common. Yet, some of the businesses in my sample showed truly excellent marketing implementation, and it is from them that some simple but important characteristics that differentiate good marketing practice emerge:.
I did not find that the good implementers are less profit oriented than the poor ones; quite the opposite. Yet, managers best at execution take special care to see that the end-users also profit in terms of true value for the money they spend. The trade profits in more traditional ways, with dollar margins, but also benefits from having good implementers consider them as key accounts.