2. Chapter Outline The Nature of Strategy Implementation Annual Objectives Policies

3. Chapter Outline ( cont’d ) Resource Allocation Managing Conflict Matching Structure with Strategy

4. Chapter Outline ( cont’d ) Restructuring, Reengineering & E-Engineering Linking Performance & Pay to Strategies Managing Resistance to Change

5. Chapter Outline ( cont’d ) Managing the Natural Environment Creating a Strategy-Supportive Culture Production/Operations Concerns When Implementing Strategies

6. Chapter Outline ( cont’d ) Human Resource Concerns When Implementing Strategies

17. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

18. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

19. Management Issues Annual Objectives -- -- Decentralized activity -- Directly involve all managers in the organization

24. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

25. Management Issues Policies -- -- Facilitate the solving or recurring problems & guide implementation of strategy

27. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

28. Management Issues Resource Allocation -- Central management activity that allows for the execution of strategy

30. Management Issues Managing Conflict -- Disagreement between two more parties on one or more issues

33. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

34. Management Issues Matching Structure w/ Strategy -- Changes in strategy = Changes in structure

36. New administrative problems emerge New strategy Is formulated Organizational performance declines Organizational performance improves New organizational structure is established Chandler’s Strategy-Structure Relationship

38. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

39. Management Issues Restructuring -- Reducing the size of the firm – # of employees, divisions, and/or units, # of hierarchical levels

41. Management Issues Reengineering -- Reconfiguring or redesigning work, jobs, & processes to improve cost, quality, service, & speed.

43. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

44. Management Issues Linking Pay/Performance to Strategies -- Pay for performance systems

46. Tests for Performance-Pay Plans Does the plan capture attention? Do employees understand the plan? Is the plan improving communication? Does the plan pay out when it should? Is the company or unit performing better?

47. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

48. Management Issues Resistance to Change -- Single greatest threat to successful strategy implementation

51. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

52. Management Issues Natural Environment -- Wide appreciation for firms that “mend” rather than “harm” the environment

54. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

55. Management Issues Strategy-Supportive Culture -- Preserve, emphasize, & build upon aspects of existing culture that support new strategies

58. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

59. Management Issues Production/Operations Concerns -- Production processes typically constitute more than 70% of firm’s total assets

61. Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

62. Management Issues Human Resource Concerns -- HR manager position has strategic responsibility & has changed dramatically as companies continue to reorganize, outsource, etc.

64. Diversity Issues Women CEO’s in U.S. 2004 (examples) 57 yrs old Rite Aid Mary Sammons 47 yrs old Kraft Foods Betsy Holden 54 yrs old Citigroup Marjorie Magner 50 yrs old Xerox Anne Mulcahy 45 yrs old Avon Products Andrea Jung 47 yrs old eBay Meg Whitman 49 yrs old Hewlett-Packard Carly Fiorina