building execution into strategy cole bengford weizhou lin jonathan hoelzer
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Building Execution into StrategyCOLE BENGFORD
WEIZHOU LIN
JONATHAN HOELZER
Process of Execution
A company involves everyone
The decision making process
People care more about the process Builds Trust
Voluntary cooperation
If not followed… Distrust
Noncooperation
Sabotage
Fair Process
The Three Principles of Fair Process Engagement - Involve everyone
Explanation - How? and Why?,
Expectation Clarity – What’s expected? how it’s judged?
3M
Military
Fair Process Cont.
3M Elco created a blue ocean strategy by
eliminating its batch-manufacturing system with a cellular approach
3M competes with efficiency as well as Elco
Elco and 3M are both manufacturing businesses
Both companies made a strategic shift
3M Continued
Elco expanded their market by venturing into an untapped market
3M can relate to this by the of post it note, which now introduces a new market for office supplies
But if managers practice fair process, the worst employees can turn into the best and can execute even difficult strategic shifts with their willing commitment while building their trust
Why Does Fair Process Matter?
All comes down to emotional and intellectual recognition Emotionally –
Individuals seek recognition of their value, not as “labor,” “personnel,” or “human resources” but as human beings who are treated with full respect and dignity and appreciated for their work regardless of hierarchical level
Intellectually –
Individuals seek recognition that their ideas are sought after and given thoughtful reflection, and that others think enough of their intelligence to explain their thinking to them
Mangers must see the nearly universal value of the intellectual and emotional recognition that fair process conveys
Intellectual and Emotional Recognition Theory
Using fair process in strategy making is strongly linked to both intellectual and emotional recognition
When individuals feel recognized for their worth, they feel inspired to impress and confirm the expectation of their intellectual and emotional value
With this fair process, managers will begin to see certain changes in their employees. To the right, you can see these changes
Intellectual•Knowledge sharing •Inspiration to impress•Engage in voluntary cooperation
Emotional•Tied to the strategy•Inspired to give their all•Go beyond the call of duty
Symptoms of Intellectual Indignation
• Jerry's Presentation - Parks and Recreation
If individuals are not treated as though their knowledge is valued, they will feel intellectual indignation.
• Decrease in idea sharing
• Prevents new insights
• Rejection of others’ intellectual worth
“You don’t value my ideas, I don’t value your ideas, nor do I trust in or care about strategic decisions you’ve reached”
Decreased Emotional Worth
Similarly, to the extent that people’s emotional worth is not recognized, they will feel angry and will not invest their energy in their actions. These negative actions include:
• Applying counter-efforts
• Sabotage
• Feet dragging
• Rolling back strategies
• Resentment
3M and Fair Process
“Commitment, trust, and voluntary cooperation are not merely attitudes or behaviors. They are intangible capital. When people have trust, they have heightened confidence in one another’s intentions and actions. This leads to a successful blue ocean strategy similar to the one 3M uses.”
Conclusion: Executing Blue Ocean Strategy
The exercise of fair process gets around the dilemma of creating trust, commitment and voluntary cooperation. By organizing the strategy formulation process around the principles of fair process, you can build execution intro strategy making from the start.
Fair Process
• Violation of Fair Process
Intellectual and Emotional Recognition
• Intellectual and Emotional Indignation
Trust and Commitment
• Distrust and Resentment
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