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Synopsis:
Formulating strategy is one thing. Executing it throughout the entire organization... well, that's the really hard part. Without effective execution, no business strategy can succeed. Unfortunately, most managers know far more about developing strategy than about executing it—and overcoming the difficult political and organizational obstacles that stand in their way. In this book, Larry Hrebiniak offers a comprehensive, disciplined process model for making strategy work in the real world.
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Jacket Description:
Formulating strategy is one thing. Executing it throughout the entire organization... well, that's the really hard part. Without effective execution, no business strategy can succeed. Unfortunately, most managers know far more about developing strategy than about executing it—and overcoming the difficult political and organizational obstacles that stand in their way. In this book, Larry Hrebiniak offers a comprehensive, disciplined process model for making strategy work in the real world.
Hrebiniak shows why execution is even more important than many senior executives realize, and sheds powerful new light on why businesses fail to deliver on even their most promising strategies. He offers a systematic roadmap for execution that encompasses every key success factor: organizational structure, coordination, information sharing, incentives, controls, change management, culture, and the role of power and influence in the execution process.
Making Strategy Work concludes with a start-to-finish case study showing how to use Hrebiniak's ideas to address one of today's most difficult business execution challenges: ensuring the success of a merger or acquisition. The advice on making M&A strategies work justifies the addition of this book to any execution toolkit.
Building the capabilities and culture you'll need to execute
How to align your organization's skills, resources, and culture around the strategies you're pursuing
Integrating long-term strategy with short-term operations
Why managing the short-term is crucial to the success of long-term strategy
Ensuring robust coordination... up, down, and sideways
Effectiveinformation sharing and cooperation: bringing coherence and focus to execution
Managing change, including culture change
Avoiding "speed traps," resistance, and other change-related problems that hurt execution
About the Author
Lawrence G. Hrebiniak is a professor in the Department of Management of the Wharton School at the University of Pennsylvania. He has been a member of the Wharton faculty since 1976 and currently teaches courses in competitive strategy and strategy implementation in the Wharton M.B.A. and Executive Education programs. He held managerial positions in the automobile industry prior to entering academia, and is a past president of the Organization Theory Division of the Academy of Management. For over two years, he was one of five Wharton faculty members providing commentaries on the Wharton Management Report, a daily TV program on the Financial News Network.
His consulting activities and executive development programs focus on strategy execution, the formulation of strategy, and organizational design—both inside and outside the U.S. Dr. Hrebiniak's clients have included Johnson & Johnson, AT&T, Chemical Bank, Isuzu, Dun & Bradstreet, DuPont, the Social Security Administration, First American Bankshares, General Motors, Chase Manhattan, Studio Ambrosetti, Microsoft, Aventis, and GE.
Dr. Hrebiniak's current research is concerned primarily with strategy execution and organizational design. He is also interested in strategic adaptation as organizations manage change and execution efforts over time to remain competitive. He coauthored Implementing Strategy (PHPTR 1984) and authored The We-Force in Management (Jossey-Bass, Inc. 1994), two other books, and numerous articles in professional journals.
A Comprehensive Roadmap and Process Model for Executing Strategy
Beyond "war stories": detailed, integrated solutions for delivering on strategy
Empirically based—real data from managers facing and solving real execution problems
Effective structure, coordination, incentives, controls, and more
Leading change to build a "strategy-supportive" organizational culture
Includes a start-to-finish case study on M&A execution.
Strategy formulation is difficult. Execution: now, that's even harder. But without execution, strategy is worthless. Making Strategy Work is the definitive start-to-finish guide to successfully executing your business strategy.
Author Lawrence G. Hrebiniak has consulted on execution and strategy with companies ranging from GM to Chase Manhattan, Aventis to GE (where he facilitated many of Jack Welch's legendary Work-Outs). He presents integrated processes and powerful insights for overcoming even the toughest obstacles to success.
You'll learn how to put in place the competencies to execute your strategy short-term operations with long-term plans... define responsibilities, accountability, incentives, and controls more effectively... improve coordination at "ground level" and throughout the enterprise... manage change and culture effectively... above all, shape and lead your organization to support strategy instead of resisting it.
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Table of Contents:
Introduction.
1. Strategy Execution Is the Key.
Execution Is a Key to Success
Making Strategy Work Is More Difficult Than the Task of Strategy Making
Sound Execution Is Critical-A Focus on Making Strategy Work Pays Major Dividends
Managers Are Trained to Plan, Not Execute
Let the "Grunts" Handle Execution
Planning and Execution Are Interdependent
Execution Takes Longer Than Formulation
Execution Is a Process, Not an Action or Step
Execution Involves More People Than Strategy Formulation Does
Additional Challenges and Obstacles to Successful Execution
Wharton-Gartner Survey
Wharton Executive Education Survey
Panel Discussions
The Results: Opinions About Successful Strategy Execution
Poor Execution Outcomes
Making Sense of the Data and Going Forward
The Execution Challenge
Having a Model or Guidelines for Execution
Strategy is the Primary Driver
Managing Change
The Power Structure
Coordination and Information Sharing
Clear Responsibility and Accountability
The Right Culture
Leadership
Controls, Feedback, and Adaptation
The Next Step: Developing a Logical Approach to Execution Decisions and Actions
Summary
Endnotes
2. Overview and Model: Making Strategy Work.
Common vs. Unique Execution Solutions
A Need for Action
A Model of Strategy Execution
Corporate Strategy
Corporate Structure
Need for Integration
Executing Business Strategy
"Demands" of Business Strategy
Integrating Strategy and Short-term Operating Objectives
Incentives and Controls
Incentives
Controls
Context of Execution Decisions
The Execution Context
Managing Change
Culture
The Organizational Power Structure
The Leadership Climate
Need for a Disciplined Approach
Summary
Endnotes
3. The Path to Successful Execution: Good Strategy Comes First.
Is the Impact of Strategy Overrated?
Issue #1: The Need for Sound Planning and a Clear, Focused Strategy
Corporate-Level Planning
AT&T: Bad Corporate Strategy?
Business Strategy
Issue #2: The Importance of Integrating Corporate and Business Strategies
The Role of the Business Is Unclear
Inappropriate Performance Metrics
Battles Over Resource Allocations
Assessments of Business Performance Create Additional Problems
The Strategy Review
Issue #3: The Need to Define and Communicate the Operational Components of Strategy
Integrating Strategic and Short-Term Objectives
Need for Measurable Objectives
Issue #4: Understanding the "Demands" of Strategy and Successful Execution
Low-Cost Producer
Differentiation Strategies
Developing the Right Capabilities
The Demands of Global Strategy
A Final Point
Summary
Endnotes
4. Organizational Structure and Execution.
The Challenge of Structural Choice
General Motors
Johnson & Johnson
Citibank and ABB
The Critical Structural Issues
Structural Issue #1: Measuring Costs and Benefits of Structure
Structural Issue #2: Centralization vs. Decentralization
Structural Issue #3: The Strategy-Structure-Performance Relationship
Summary
Endnotes
5. Managing Integration: Effective Coordination and Information Sharing.
The Importance of Integration
Boeing
Royal Dutch/Shell Group
Dell Computers
Interdependence and Coordination Methods
Types of Interdependence
Coordination Processes and Methods
The GE "Work Out"
Facilitating Information Sharing, Knowledge Transfer, and Communication
Creating, Using, and Sharing Knowledge
Methods, Tools, or Processes for Information Sharing
Informal Forces and Information Sharing
Additional Informal Factors Affecting Information Flow and Knowledge Transfer
Clarifying Responsibility and Accountability
Responsibility Plotting and Role Negotiation
Summary
Endnotes
6. Incentives and Controls: Supporting and Reinforcing Execution.
Role of Incentives and Controls
Incentives and Execution
A Basic Rule: Don't Demotivate People
Good Incentives
Reward the Right Things
Controls: Feedback, Learning, and Adaptation
The Control Process
Develop and Use Good Objectives
Reward the Doers, the Performers
Face the Brutal Facts Honestly
Reward Cooperation
Clarify Responsibility and Accountability
Controls Require Timely and Valid Information
Leadership, Controls, and Execution
The Strategy Review: Integrating Planning, Execution, and Control
Step 1: Strategy Formulation
Step 2: The Execution Plan
Step 3: Initiating the Control Process
Step 4: Cause-Effect Analysis and Organizational Learning
Step 5: Feedback and Change
Step 6: Follow Up and Continue the Process
Summary
Endnotes
7. Managing Change.
Managing Change: A Continuing Challenge
Steps in Managing Change
A Model of Change and Execution
Components of the Model
Relating Change to Execution Problems
Sequential Change
Complex Change
Other Factors Affecting Change
Summary
Endnotes
8. Managing Culture and Culture Change.
What Is Culture?
Culture is Important for Execution
Culture is Not Homogeneous
Culture Affects Performance
Organizational Performance Affects Culture
A Model of Culture and Cultural Change
The Top Line: The Effects of Culture
The Bottom Line: Changing Culture
Summary
Rule 1: The Reasons for Change Must Be Clear, Compelling, and Agreed Upon By Key Players
Rule 2: Focus on Changing Behavior-Not Directly on Changing Culture
Rule 3: Effective Communication is Vital to Culture Change
Rule 4: Adequate Effort Must Be Expanded to Reduce Resistance to Change
Rule 5: Beware of Excessive Speed
Endnotes
9. Power, Influence, and Execution.
A View of Power and Influence
Strategy and Environment
Problems or Dependencies
Organizational Structure
Uneven Resource Allocations
Internal Dependencies and Power
Using Power and Influence
Coming Full Circle: Conclusions About Power
Power and Execution
Define Power Bases and Relationships
Form Coalitions or Develop Joint Ventures with Those in Power
Focus on Value-Added, Measurable Results
A Final Note on Power: The Downside
Summary
Endnotes
10. Summary and Application: Making Mergers and Acquisitions Work.
Making Merger and Acquisition Strategies Work
Why Focus on Mergers and Acquisitions?
Why Do So Many Mergers and Acquisitions Fail or Founder?
Using the Present Model and Approach to Execution
Corporate Strategy
Corporate Structure
Cultural Integration in M&A
Business Strategy and Short-Term Objectives
Business Structure/Integration
Incentives and Controls
Managing Change
Managing Culture and Culture Change
The Critical Role of Leadership
Summary
Endnotes
Appendix.
Index.
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