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Manning School of Business. Session19: Implementing Strategies. Dr. Mark H. Mortensen 66.490.211 and 212 Tues &Thurs 2:00 to 3:15 3:30 to 4:45. Today. Apple case study due. Attendance Discussion on how to implement a strategy Group workshop Assignment for next class.
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Manning School of Business Session19: Implementing Strategies Dr. Mark H. Mortensen 66.490.211 and 212 Tues &Thurs 2:00 to 3:15 3:30 to 4:45
Today Apple case study due • Attendance • Discussion on how to implement a strategy • Group workshop • Assignment for next class
Implementation Evaluation and Control Whatever is measured gets management attention. Whatever is rewarded gets management action. Whatever is not …. Is not.
Implementation Evaluation and Control • Output controls • What is to be accomplished; focus on end result through performance targets • Input controls • Resources – skills, abilities, values, motives Activity Behavior controls How something is done through policies, procedures, rules, SOP’s e.g.ISO 9000 Standards Series, ISO 14000 Standards Series
Implementation Evaluation and Control Primary Measures of Performance (Output) • Traditional Financial Measures • Return on investment (ROI) • Earnings per share (EPS) • Return on equity (ROE) • Operating cash flow • Free cash flow • Shareholder • Shareholder value • Economic value added (EVA) • Market value added (MVA) • Balanced Scorecard Approach • Financial • Customer • Internal business perspective • Innovation and learning
Implementation Evaluation and Control • Using Benchmarking – • Continual process of measuring products, service, and practices against the toughest competitors or those companies recognized as industry leaders
Implementation Evaluation and Control • Problems in Measuring Performance – • Short-term orientation • Goal displacement • Behavior substitution • Suboptimization
Implementation Evaluation and Control • Guidelines for Proper Control – • Minimum amount of information necessary • Meaningful activities and results • Timely • Long and short-term • Pinpointing exceptions • Meeting/exceeding standards
Group Workshop • How will you measure the effectiveness of a product manager’s major strategic moves to … • Enter a new market with an existing product? • Introduce a new product to an existing market? • What kind of a goal would you give the product manager responsible? • How would you reward them?
