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Chapter 8. Build Execution into Strategy. Milos Kustudija , Dustin Pace, Matt Zaney. A company is everybody. From top executives to line employees. When all employees support and are aligned around a strategy, that is when a company can stand apart as great consistent executor.

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chapter 8

Chapter 8

Build Execution into Strategy

MilosKustudija, Dustin Pace, Matt Zaney

a company is everybody
A company is everybody
  • From top executives to line employees.
  • When all employees support and are aligned around a strategy, that is when a company can stand apart as greatconsistent executor.
  • Trust and commitment must create an environment that motivate people to execute the strategy.
  • Build execution into strategy from the start.
      • Especially in blue ocean because trepidations builds as people are less involved.

Fair process is key….

poor process can ruin strategy execution
Poor process can ruin strategy execution
  • Poor process can lead to sabotage
  • Increase risk
  • Employees will fight against change if not
  • properly introduced or instructed on the
  • strategy.
  • Example: Lubber sales reps
    • Were not included in the execution of strategy, and sabotaged sales with clients.
the power of fair process
The Power of Fair Process
  • Procedural justice: people care as much about the justice of the process through which an outcome is produced as they do about the outcome itself.
  • Managerial expression – people need to buy in up front.
    • Get employees involved early.
    • People trust that a level playing field exist.
  • Employees will cooperate voluntarily.
the three e principles of fair process
The Three E Principles of Fair Process
  • Engagement:
    • Involving individuals in the strategic decisions by asking them for their input.
    • Builds better collective wisdom.
    • Greater commitment from all involved.
  • Explanation:
    • Everyone involved and affected should understand why final strategic decisions are made as they are.
    • People know their opinions have been considered.
    • Enhances learning.
  • Expectation Clarity:
    • After a strategy is set, managers state clearly the new rules of the game.
    • Political jockeying and favoritism is minimized.
    • New goals and milestones are set.
a tale of two plants
A tale of Two Plants
  • Elco
    • Elevator systems manufacturer.
    • Domestic demand falling, elevator industry declining.
  • Blue ocean strategy – go from batch manufacturing to a cellular approach
    • Allow self-directing teams to achieve superior performance.
  • Two plants:
    • Chester plant
    • High Park plant
chester plant
Chester Plant
  • Exemplary employee relations
  • Decertified their own union
  • “They were the ideal workforce”
high park plant
High Park Plant
  • Strong union
  • Resist change
  • Needed Chester plant to build momentum for High Park Plant.
which plant took the new manufacturing process better
Which plant took the new manufacturing process better?
  • High Park plant accepted the new process
  • Chester plant let to disorder and rebellion.
  • Why did this occur.
no fair process at the chester plant
No fair process at the Chester Plant
  • Failed to engage employees in the strategic decisions.
    • Consultants were briefed to have no involvement with employees.
  • Chester employees were not introduced to consultants who would implement new system.
    • Consultant dressed differently, in black suits and ties.
  • Fear off layoffs
    • Employees brought newspaper clippings of plants that had been shut down around the country
  • Plant manager absent
    • Did not explain why new system was being implemented
    • Neglected to tell employees what would be expected of them
chester plant1
Chester plant
  • Employees felt undermined.
  • Fights erupted.
  • Refused to work in groups.
  • No trust.
fair process as high park plant
Fair process as High Park plant
  • Introduced consultants to employees right at the start.
  • Engaged employees in plant wide meetings.
    • Discussing declining business conditions and how new strategic change would help break from the competition.
    • Announced pro-action time policy so employees would not fear layoffs.
  • Worked with employees to develop new goals and establish new responsibilities.
  • Employees spoke of their plant manager with admiration.
why does fair process matter
Why does fair process matter?
  • Individuals seek recognition of their value.
  • Seek recognition that their ideas are sought after.
  • Intellectual and emotional recognition that fair process conveys.
intellectual and emotional recognition theory
Intellectual and Emotional Recognition Theory
  • When individuals feel recognized for their intellectual worth, they are willing to share their knowledge.
  • Violation of fair process – violation of individuals intellectual and emotional worth.
  • This can lead to sabotage – “You don’t value my ideas. So I don’t value your ideas, nor do I trust in or care about the strategic decisions you’ve reached.