BUILDING AN ORGANIZATION
CAPABLE OF GOOD STRATEGY
EXECUTION: THREE KEY ACTION
Figure 10.2
Building an Organisation Capable of Proficient Strategy Execution:
Three Key Action
STAFFING THE ORGANIZATION
Putting Together a Recruiting, Training,
Strong and Retaining Capable
Management Team Employee
Putting Together a Strong Recruiting, Training, and Retaining Capable
Management Team
Employee
• Planners : who ask though • Intensively screen and evaluate applicants to ensure
questions and figure out what we selecting those who are best-suited and best-fitted
needs to be done • Provide training programs throughout employee careers
• Implementers : who can select, • Offering promising employees challenging, interesting, and
manage, and lead the right people skill-stretching
• Executors : who turns decisions assignments
into actions that drives the change • Rotate people
that produce sustainable • Make the work environment stimulating and engaging so
competitive advantage that the firm is considered a great place to work
• Encouraging employees to challenge existing ways of doing
things, to be creative and innovative in proposing better
ways of operating, and to push their ideas for new products
or businesses
• Use an assortment of financial incentives and other perks
to retain employees
• Coach average performers to improve their skills and
capabilities, while weeding out underperformers
DEVELOPING AND BUILDING CRITICAL RESOURCES AND
CAPABILITIES
Approaches to Build Building
Strengthening Capabilities
Develop Acquire capabilities Access capabilities
capabilities through mergers via collaborative
internally and acquisitions partnerships
Developing Capabilities Internally
Managerial Actions to Develop
Competencies and Capabilities
Strengthen the Coordinate and integrate
firm’s base of skills, the efforts
knowledge, and intellect of work groups and
departments
Acquiring Capabilities through Mergers
and Acquisitions
When a market opportunity can slip by faster
A Question of
than a needed capability can be created
Market Opportunity internally.
When industry conditions, technology, or
A Question of
competitors are moving at such a rapid clip
Competitive Necessity that time is of the essence.
Tacit knowledge and complex routines may
A Question of
not transfer readily from one organizational
Successful Integration unit to another.
Accessing Capabilities through
Collaborative Partnerships
Approaches to acquiring
capabilities from an external source
Outsource the
Collaborate with Engage in a collaborative
function requiring
a firm that has partnership for the purpose
the capabilities to
complementary resources of learning how the partner
a key supplier or another
and capabilities does things
provider
The Strategic Role of Employee Training
Training Is Important In:
● Executing a strategy that requires different skills,
competitive capabilities, and operating methods.
● Organizational efforts to build skills-based
competencies.
● Supplying technical know-how to employees when
rapidly changing technology puts a firm
in danger of losing its ability to compete.
Strategy Execution Capabilities
and Competitive Advantage
Superior Strategy Execution Capabilities:
● Are difficult to imitate and socially complex process that
take a long time to develop.
● Maximize organizational resources and competitive
capabilities in support of the business model.
● Lower costs and permit firms to deliver more value to
customers.
● Enable a firm to react more quickly to market changes,
beat competitors to market with new products and
services, and gain uncontested
market dominance.
