Build Execution into Strategy

Build Execution into Strategy Group 3

Build Execution into Strategy A company encompasses everyone from the top to the bottom There needs to be a culture of trust and commitment Front Lines need to be involved in the creation of strategy Inspire voluntary cooperation through trust and commitment

Poor Processes Can Ruin Strategy Execution • Strategy Execution involves having a well thought out plan executed on all levels of the organization • If you develop a poor process you will in turn make poor decisions. The development of the process is key. • Too much complexity can also become an issue as well. • For Example: Lubber devised a strategy to use less money and complexity and in return the sales representatives had more time to gain new sales • However it eventually failed because it posed a threat to the sales team who was not consulted in the planning

The Power of Fair Process What is fair process? Fair process origin? Voluntary cooperation > Mechanical execution

How Fair Process Affects People’s Attitudes and Behaviors Fair Process Engagement Explanation Expectation clarity Trust and Commitment “I feel my opinions count.” Voluntary Cooperation “I’ll go beyond the call of duty.” Exceed Expectations Self-initiated Figure 8-1 chap. 8 Strategy Formulation Process Attitudes Behavior Strategy Execution

The Three E Principles of Fair Process • Three elements that define fair process: • 1.) Engagement • 2.) Explanation • 3.) Clarity of expectation

Everyone is Important A company is everyone from the top to the front lines All members should work together You must create a culture of trust and commitment This will motivate

Fair Process Having a fair and equal process very important Most companies going through change

Great Culture Google http://www.youtube.com/watch?v=9bJBeCI0e3U

Elco Experience Company produces elevators Because of changing market place, the company brought in consultants to help implement a new way of working called “Cellular Manufacturing.”

Elco Experience Elco first incorporated this new system at its Chester plant, and would then incorporate it into its High Park plant. At the Chester plant, the consultants and manager of the plant did not tell the employees what was happening or why, just that changes were occurring. Employees began to fear for their jobs and fight with other employees. Overall lack of communication from management led to the Chester plant experiencing a sharp decrease in production.

Elco Experience At the High Park plant, management and the consultants met with the employees and shared the thought process behind the new manufacturing plan. Employees were given the same information that management had, leading to employees feeling like they had full insight into what was happening By practicing the three principles of fair process in tandem, the High Park plant had major success with the new manufacturing process.

Fair Process • It is important for shaping people’s attitudes • People seek recognition • Two types of recognition people seek • Emotional • Intellectual

Intellectual and Emotional Recognition Theory Theory shows the individual that they are trusted and cherished in the company Gives recognition to the individual’s knowledge, talents, and expertise Violation of fair process can be very detrimental This makes individuals less happy, and makes them not as valuable to the company

Fair Process and Blue Ocean Strategy Fair process is vital to implementing Blue Ocean Strategy The intangible assets of trust and confidence in a company are key to being successful This is a point where many companies fail at implementing Blue Ocean Strategy Fair process is a great way for companies to get around the question of how they create trust in the company When Fair Process is practiced people realize short term sacrifices are necessary for the good of the company

Build Execution into Strategy