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Build execution into strategy - kimboal.ba.ttu.edu

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Build execution into strategy
Group3Mayra GarciaLindsey PacatteDavid HaywardGarrett MatthewsNick WatkinsCory Logan
Strategy is best carried out when everyone is onboard with itEveryone,from top management down to front lineemployees, needto understand why they are implementing changeImplementation can be hindered if people do not understand why things are being changed
Strategy to the whole company
Employees must understand why changes are being madeBuild execution into strategy from the startReach for fair process in policy implementation of new strategies
Management risk in strategy
Lubber liquid coolants examplechoosing right coolant is a delicate processstrategy to eliminate complexity & costssales process was dramatically simplified
Poor Process Can Ruin Strategy Execution
Strategic move was doomed from the startsales reps saw the shift as a direct threatfelt their contributions went unappreciatedworked against the expert systemdeal with management risk up front
Lubber continued
What is Fair Process?Means Procedural Justice or the fairness of the steps or processes taken to resolve a dispute or allocate resourcesHow does this Procedural Justice affect business?People who believe what they are doing is right will be more effective and efficient
Fairness in the Process
In essence Fair Process is management’s expression of procedural justiceWe see that when Fair Process is implemented in the strategy-making process, the employees can believe that upper management is trustworthy
Fair Process continued
A Visual of How Fair Process Affects the Workplace
1stPrincipleEngagementInvolving individuals in the strategic decisionsCommunicates respect for IndividualsSharpens everyone’s thinkingResults in better strategic decisions
Three E Principles of Fair Process
2ndPrincipleExplanationUnderstand why final strategic decisions are madeAllows employees to trust manager’s intentionsPowerful feedback loop
Three E Principles of Fair Process
3rdPrincipleExpectation ClarityState clearly the new rules of the gameTo achieve fair process matters most about clarityMust to taken together lead to judgment of fair process.
Three E Principles of Fair Process
Elevator Systems ManufacturerElco’s Chester and High Park plant1980s, sales in the elevator industry had declinedOffice space lead to a vacancy rate of 20%
How Do the 3 principles work
SolutionCreate and execute a blue ocean strategyOffer buyers a leap in value while lowering costReplace its batch-manufacturing system with a cellular approach
How Do the 3 Principles Work
The ProcessInstall system at the Elco’s Chester plan firstHad decertified their own unionsIdeal work force for the changeExpected a positive spillover effect on High Park
How Do the 3 Principles Work
The resultsElco’s Chester PlantChange led to disorder and rebellionCost and quality were in free fallWanted to unionizeHigh ParkAccepted the strategic shiftFelt they were treated fairlyWillingly participated in the execution
How Do the 3 Principles Work
A closer look-Elcomanagers violated all 3 principles of fair processFailed to engage employees in the decisionManager was always absentManagers didn’t explain why the decision was madeManagers also neglected to make clear what was expected under the new process
How Do the 3 Principles Work
Elco’sChesterProcess undermined employees’ trustOnly saw negative sideFights eruptedEmployee’s rejected the transformationHigh ParkIntroduced consultants to employeesHeld plant-wide meetingsCalmed employees from the thought of layoffs
How Do the 3 Principles Work
Why does fair process matter?Why is fair process important in shaping people’s attitudes and behavior?Why does the observance or violation of fair process in strategy making have the power to make or break a strategy’s execution?
Fair Process
The Execution Consequences of the Presence and Absence of Fair Process in Strategy Making
Intellectual and Emotional RecognitionTrust and CommitmentVoluntary Cooperation in Strategy Execution
Fair Process
Intellectual and Emotional IndignationDistrust and ResentmentRefusal to Execute Strategy
Violation of the Fair Process
Commitment, trust, and voluntary cooperation are not merely attitudes or behaviors; they are intangible capitalTrust brings heightened confidence in one another’s intentions and actionsCommitment enables people to override personal self-interest in the interest of the company
Fair process and blue ocean strategy
Commitment, trust, and voluntary cooperation allow companies to stand apart in the speed, quality, and consistency of their execution and to implement strategic shifts fast at low costThe question raised by management is how to create trust, voluntary cooperation, and commitment deep within the organization
Fair process and blue ocean strategy

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Build execution into strategy - kimboal.ba.ttu.edu