Strategy Execution Model

Strategy execution is a dynamic and adaptive process, the model of execution emphasises both on action and reaction. The model shows a logical flow of execution decisions or actions.

Making strategy work

Corporate Strategy is concern with the entire organisation. focusing on portfolio management, diversification and resource allocations across businesses. Executing bad strategy is usually a losing proposition.

Corporate Structure and Integration refers to the organisational units created in response to the demands of the corporate strategy and thus the creation of organisational structure is important to the execution of the corporate strategy.

Business Strategy deals with how to compete and gain advantage in a given market. It helps to achieve competitive advantage and profitability for the business unit and ultimately to the entire organisation, in here relies the principle that corporate and business strategies must be integrated. However, business strategy create demands for organisational investments in technology, people and capabilities. This level of strategy must be translated into short-term operating objectives.

Business Structure and Integration its important for strategy execution, and demand a focus on knowledge transfer, information sharing and coordination.

Incentives and Controls, the incentives must reinforce strategic and short-term objectives. “behaviour that is reinforced tends to be repeated”. Controls represent a feedback loop as the execution of strategy is an adaptive process. Fine tuning of plans and implementation methods is more often the rule than the exception.

Consistent with the strategy execution model, there are four contextual factors that influences its execution, these are not independent, they relate to one another in many ways.

Managing Change, as execution may demand changes in job responsibilities, organisational structure, coordination methods, people, incentives or controls.

Organisational Culture defines how work gets done, what rewards are valued, how mistakes or errors are treated and what management styles are appropriate. Culture reflects and affects the drive and ownership that individuals feel for execution related goals and activities.

Power (Structure) is social influence, is the ability to influence others to do something.

People are essential to execution. Leadership is essential to the successfully execution of strategy.

Further reading: Lawrence G. Hrebiniak. Making Strategy Work: Leading Effective Execution and Change. Wharton School Publishing, 2005.

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