Name: Sophian Fikri (1606851610)

Class: I161

Chapter 10 Summary Building an Organization Capable of Good Strategy Execution

Book: Crafting & Executing Strategy by Thompson et. Al. (2018)

Executing strategy is an action-oriented, operations-driven activity around the people management,

business processes, and organizational structures. Good strategy execution requires a team effort
where all managers have strategy-executing responsibility and all employees are active participants
in the execution process.

Ten managerial tasks are part of every company effort to execute strategy, including staffing the right
people, developing the resources and building the necessary organizational capabilities, creating a
supportive organizational structure, allocating sufficient resources, instituting supportive policies and
procedures, adopting processes for continuous improvement, installing systems that enable proficient
company operations, tying incentives to the achievement of desired targets, instilling the right
corporate cultures and exercising internal leadership to propel execution forward.

Building an organization capable of good strategy execution will entail to the staffing process in
selecting the needed talents; acquiring, developing, and strengthening the supportive resources and
capabilities; and structuring the organization and work effort.

Structuring the organization and organizing the work effort in a strategy supportive fashion has four
aspects, including the decision around which value chain activities to perform internally and which
ones to outsource; the aligning the firms organization structure with its strategy; deciding how much
authority to centralize at the top and how much to delegate to down the line managers and
employees; and facilitating the necessary collaboration and coordination with external partners and
strategic allies.

To align the firms organizational structure with the strategy, it is important to make strategy-critical
activities the main building blocks. There are four basic types of organizational structures, which are
simple structure, functional structure, multidivisional structure, and the matrix structure.
Article Summary A Framework to Implement Strategies in Organizations (2003)
Source: Management Decision

Source: Okumus, 2003

The strategy implementation relates with all aspects of management, directly or indirectly. However,
as the research is still limited in this area, new proposed framework was introduced by Okumus in
2003 which identified the key elements/factors of implementation and categorizing them into
different group depending on their role and importance.

According to Okumus (2003), the implementation factors can be grouped into four categories, which
are strategic content (includes the development of strategy), strategic context (includes external and
internal contact in order to define the environmental uncertainty, organization structure, culture and
leadership), operational process (includes operational planning, resource allocation, people,
communication, and control), and outcome (define the result of implementation process).
Furthermore, providing change management training programs for middle and top managers should
be seen as a necessary as the organization is now facing problem in implementing their strategies.
Even though, most top level management has this extend of knowledge level in their own functional
areas, but they still need to be trained to manage complex cases of strategies implementation in
complex and dynamic environments.