Strategy Implementation

IMPLEMENTING STRATEGY THROUGH: Identify Short Term Objectives Initiate Specific Functional Tactics Empowering Operating Personnel

Executive Bonus Compensation Plans

Short - Term Objectives

Qualities of Effective Short-Term Objectives
1. Measurable 2. Priorities 3. Linked to Long-Term Objectives The Value-Added Benefits of Short-Term Objectives and Action Plans

Functional Tactics that Implement Business Strategies

Differences between Business Strategies and Functional Tactics:
1. 2. 3. Time horizon Specificity Participants

Functional Tactics in Production / Operations 1. Facilities & Equipment 2. Sourcing 3. Operations planning & control

Functional Tactics that Implement Business Strategies: ( Continue )

Functional Tactics in Marketing
1. 2. 3. 4. Product or Service Price Place Promotion

Functional Tactics in Accounting and Finance

1. 2. 3.

Capital acquisition Capital allocation Dividend & Working capital management

Functional Tactics that Implement Business Strategies: ( Continue )

Functional Tactics in Research and Development 1. 2. 3. Basic research versus product & process development Time horizon Organizational fit

4.

Basic research & development posture

Functional Tactics that Implement Business Strategies: ( Continue )

Functional Tactics in Human Resources Management
1. 2. 3. 4. 5. Recruitment, selection, and orientation Career development & training Compensating Evaluation, discipline, and control Labor relations and equal opportunity requirement

Empowering Operating Personnel: The Role of

Policies
Creating Policies That Empower:
1. Policies establish indirect control over independent action

2.
3.

Policies promote uniform handling of similar activities

Policies ensure quicker decision

4.

Policies institutionalize basic aspects of organization behavior.

Empowering Operating Personnel: The Role of

Policies ( Continue )
Creating Policies That Empower:
5. Policies reduce uncertainty in repetitive and day-to -day decision making.

6.

Policies counteract resistance to or rejection of chosen strategies by organization members.

Policies offer predetermined answer to routine problems. Policies afford managers a mechanism for avoiding hasty and ill-conceived decisions in changing operations.

7.

8.

Executive Bonus Compensation Plans

Major Plan Types:

1. 2. 3. 4. 5. Stock options Restricted stock Golden handcuffs Golden parachutes Cash based on internal business performance using financial measures.

Executive Bonus Compensation Plans (Continue)

Matching Bonus Plans and Corporate Goals:

( See. Figure 10 - 10 page No. 390 )