and the next two will explore what is involved in performing the ten key managerial tasks that shape theprocess of implementing and executing strategy.1.This chapter explores the first three of these tasks (1) staffing the organization with people capableof executing the strategy well, (2) building the organizational capabilities needed for successfulstrategy execution, and (3) creating an organizational structure supportive of the strategy executionprocess.2.Chapter 11 concerns the tasks of allocating resources, instituting strategy-facilitating policies andprocedures, employing business process management tools and best practices, installing operatingand information systems, and tying rewards to the achievement of good results.3.Chapter 12 deals with the two remaining tasks: creating a strategy-supportive corporate culture andexercising the leadership needed to drive the execution process forward.IV. Building an Organization Capable of Good Strategy Execution: Where to Begin1. Building a capable organization is always a top priority in strategy execution. Three types oforganization-building actions that are paramount include:a.Staffing the organizationb.Building and strengthening core competencies and competitive capabilitiesc.Structuring the organization and work effort2.Figure 10.2, Building an Organization Capable of Proficient Strategy Execution: Three Typesof ParamountActions,looks at the three components necessary for building a capable organization.V. Staffing the Organization1.No company can hope to perform the activities required for successful strategy execution withoutattracting and retaining talented managers and employees with suitable skills and intellectualcapital.A. Putting Together a Strong Management Team1.Assembling a capable management team is a cornerstone of the organization-building task.2.Putting together a talented management team with the right mix of skills and experiences andabilities to get things done is one of the first strategy implementing steps.B.Recruiting and Retaining Capable Employees1.Staffing the organization with the right kinds of people must go much deeper than managerial jobsin order to build an organization capable of effective strategy execution.2.In high-tech companies, the challenge is to staff work groups with gifted, imaginative, and energeticpeople who can bring life to new ideas quickly.3.Illustration Capsule 10.1, How General Electric Develops a Talented and Deep ManagementTeam,describes General Electric’s widely acclaimed approach to developing a high-calibermanagement team.The following three (3) types of organization-building actions are paramount:(See the Figurebelow – The Components of Building a Capable Organization)1. Staffing the organization2. Building core competencies3. Matching the organization structure to strategySource:Thompson (Jr) Arthur A, Strickland 111 A.J, 2003. Strategic Management 13th (ed), New York:McGraw-Hill Irvin•Staffing the organization- includes putting together a strong management team andrecruiting and retaining employees with the needed experience, technical skills, andintellectual capital.129Staffing the OrganizationPutting together a strong management teamRecruitingandretainingtalentedemployeesBuildingCoreCompetencies and Competitive CapabilitiesBuilding Core Competencies andCompetitive CapabilitiesDeveloping a set of competencies and capabilities suited to the currentstrategyUpdating and revising this set as external conditions and strategychangeTraining and retraining employees as needed tomaintain skills-based competenciesBuilding Core Competencies andCompetitive CapabilitiesDeveloping a set of competencies and capabilities suited to the currentstrategyUpdating and revising this set as external conditions and strategychangeTraining and retraining employees as needed tomaintain skills-based competenciesMatching the Organization Structure toStrategyDesigning an organization structure that facilitates good strategyexecutionDeciding how much decision-making authority to push down to lower-level managers and front line employeesA Companywith theOrganizationalCapabilityNeeded forProficientStrategyExecution
