eight levers
TRANSCRIPT
8/8/2019 Eight Levers
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Building a capable organization-The eight levers of strategy
implementation
Presented by:
Vineet Taneja (240)
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Strategy implementation- A gap between formulation
and performance
Strategy
formulation
Strategy
implementationPerformance
Six silent killers of strategy implementation:
1. Top-down senior management style
2. Unclear strategy and conflicting principles
3. An ineffective senior management team
4. Poor vertical communication
5. Poor co-ordination across functions, businesses and borders
6. Inadequate down-the-line leadership skills and development
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� Eight levers identify strong and weak points impacting
strategy implementation
� The research behind the origin of eight levers:
29 organizational stories developed into case studies
95 stories used as short vignettes
Companies from varied backgrounds:
Consumer companies
B2B companies
Service companies
Non-profit companies
Eight levers of strategy- The result of a research
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Eight levers- Variables for strategy implementation
-A framework for companies
- Structural
Actions
Programs
Systems
Policies
-
-Behavioral activities
- Implementation levers
Interacting
Allocating
Monitoring
Organizing
Structures
Managerial
skills
Strategy Implementation
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Structural Levers
Actions
Input and co-operation of all players at all levels
Strategic fit with companys cross-functional ability to implement
Programs
Treat creative capital as most important asset
Provide environment for innovation
Organizational learning and continuous improvement must incorporate innovation
Systems
Make strategic decision based on data analysis of strategic support systems
Mapping of cross-functional decisions should be supported by the systems
Policies
Policies developed to work consistently across all geographies
If changed over a time, then they must not defeat strategic decisions
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Managerial skills Levers
Interacting
Leaders must direct their organizations, help in managing
conflicts and shaping norms
Strategic leadership is a critical implementation lever
Allocating Proper allocation of financial resources, physical capital, humancapital and organizational capital
Monitoring
Align monetary and non-monetary rewards as per the strategy
Good work should be rewarded and bad work should be
punished
Organizing
Culture should be seen as a system of shared values and norms
Shaping culture requires clearness in content, consistency in
nature and comprehensiveness in coverage
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� Established firms able to overcompensate with another lever
to reduce the impact of a weak lever
� For startups it is imperative to understand how each of the
levers relate to the companys strengths and weaknesses
� Identify levers that might serve as barriers to the companys
long term success
� Equal use of all eight levers not necessarily required while
building a capable organization
BALANCING THE LEVERS
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� Strategy implementation helps create the future
� Implementation and formulation go hand-in-hand
� Successful strategy leads to plans that are financially, socially
and ethically responsible strategies for a company
Strategy implementation- An ally