Chapter 11: Managing Internal Operations
Allocating Resources to the Strategy Execution Effort
A company's ability to marshal the resources needed to support new strategic
initiatives has a major impact on the strategy execution process. Too little funding
and an insufficiency of other types of resources slow progress and impede the efforts
The funding requirements of good strategy execution must drive how capital
allocations are made and the size of each unit's operating budget. Underfunding
organizational units and activities pivotal to the strategy impedes successful
strategy implementation.
A company's operating budget must be strategy-driven (in order to amply fund the
performance of key value chain activities) and lean (in order to operate as cost-
effectively as possible)
Allocating Resources to match strategy important
oResources are always limited
oPeople always want more (Jim L experience)
Possible Adverse Resource Allocation Outcomes:
oToo little funding may slows progress & impedes the efforts to execute pieces
of the strategic plan proficiently.
oToo much funding that wastes organizational resources and reduces
financial performance
Screen resource requests carefully .
Approve only those that contribute to strategy execution.
Provide the level of resources necessary for the success of strategic initiatives.
Shift resources to higher-priority activities where new execution initiatives are
needed.
Instituting Polices and Procedures that facilitate strategy execution
Well-conceived polices and procedures
oProvides top down guidance about how certain things need to be done
Channel individual and group efforts along a strategy-supportive
path
Align the actions and behavior of company personnel with the
requirements for good strategy execution
Place limits on independent action and help overcome resistance to
change
oHelp enforce consistency in how strategy-critical activities are performed
Improve the quality and reliability of strategy execution
Help coordinate the strategy execution efforts of individuals and
groups throughout the organization
oPromote the creation of a work climate that facilitates a good strategy
execution