Effective Strategy Execution. Firdaus Alamsjah, Ph.D. Executive Dean

Transcription

1 Effective Execution Firdaus Alamsjah, Ph.D. Executive Dean

2 Welcome to BBS Knowledge Sharing, Firdaus Alamsjah (Feri) Professional Experience Executive Dean, BINUS Business School Managing Partner, BINUS Consulting Director, BiNus International Faculty Members at IPMI, UI, Unud Teaching, facilitating, and consulting in Operations Management for more than 15 yrs to universities and corporations Industrial Analyst at the Presidential Office and BPPT Exxon Natuna Ltd Professional Memberships Indonesian Production and Operations Management Society (IPOMS) APICS Alpha Pi Mu (Industrial Engineering Honor Society, USA) Education Degree Ph.D. and MSIE in Industrial Engineering (Houston, USA) Insinyur in Mechanical Engineering (ITB, Indonesia) Non Degree Certified Execution Professional GML & QPR Implementing The Wharton School Indonesia Executive Program GE Management Development Program (Crotonville, USA) Project Management Sundridge Management Development Program (London, UK) Research Interests: Execution, Supply Chain Management, and Business Process Improvement 2 Hobby: Reading, Sports, Travel, and Music

3 The Importance of Integrating Vision, Mission & Values BUSINESS STRATEGY FUNCTIONAL STRATEGY Marketing & Sales PPIC Business Objectives Human Resources Finance Logistics Operation Distribution CUSTOMRES LINK & ALIGN Information Technology INDIVIDUAL SCORECARD People click 3

4 Major Obstacles in Implementing * 1. Poor or vague strategy 2. Not having guidelines or a model to guide strategy execution efforts 3. Insufficient financial resources to execute the strategy 4. Trying to execute a strategy that conflicts with the existing power structure 5. Inability to generate buy in on critical steps or actions 6. Lack of upper management support of strategy execution 7. Lack of feelings of ownership of a strategy or execution plans among key employees 8. Lack of incentives or inappropriate incentives to support execution objectives 9. Poor or inadequate information sharing between individual or business units responsible for strategy execution 10. Unclear communication of responsibility and/or accountability for execution decisions or actions 11. Lack of understanding of the role of organizational structure an design in the execution process 12. Inability to manage change effectively or to overcome internal resistance to change *Source: Hrebiniak (2005), Making Work, Wharton School Publishing

5 Top 5 Killers in Implementing * 11 Unclear communication of responsibility and/or accountability for execution decisions or actions Poor or inadequate information sharing between individual or business units responsible for strategy execution Poor or vague strategy Inability to manage change effectively or to overcome internal resistance to change Lack of feelings of ownership of a strategy or execution plans among key employees *Source: Alamsjah (2007), Survey on Execution 5

6 Indonesian vs. American Managers Major Obstacles in Implementing BBS WBS GR Unclear communication on accountability/ responsibility Poor information sharing Poor or vague strategy Inability to manage change Lack of ownership on execution plan Insufficient financial resources to execute the strategy Similar but in in a different order * Based on surveys by BBS, WBS, & GR) ** BBS = BINUS Business School, WBS = Wharton Business School, GR = Gartner Research 6

7 Covey Model Four Disciplines in Execution (4DX) 7

8 FRAMEWORK IN EXECUTING STRATEGY (STRATEX)* RESOURCES 8. People 9. Allocation of resources INPUT 2.Uncertain Environment 3.Clear SYSTEMATIC EXECUTION PROCESS 4. Managing Integration 5. Managing Culture 6. Managing Change 7. Managing Performance OUTPUT 1. Successful Execution 12. Knowledge Management on Execution *Source: Alamsjah (2010), to appear in Text and Cases in Business, Salemba Empat. ENABLER: 10. Organization Structure 11. CEO & Leadership 8

9 Understanding Your Business Using Balanced Scorecard (BSC)* BSC is a performance management tool to assist a company in translating its vision and mission into strategic actions It is done by incorporating and connecting financial and non financial indicators and using cause and effect relationships *) Source: Kaplan and Norton, The -Focused Organization, HBS Press,

10 Linking to Operations* 1 Develop Develop the the Mission, Mission, Vision, Vision, Values, Values, Strategic Strategic analysis analysis formulation formulation 6 5 Test Test & & Adapt Adapt Profitability Profitability analysis analysis correlations correlations Emerging Emerging strategies strategies Monitor Monitor and and Learn Learn reviews reviews Operations Operations reviews reviews *) Source: Kaplan & Norton s Execution Premium Framework 2 Plan Plan the the map/themes map/themes Measures/targets Measures/targets Initiative Initiative portfolio portfolio Funding Funding Strategic Strategic Plan Plan Map Map Balanced Balanced Scorecard Scorecard STRATEX STRATEX Operating Operating Plan Plan Dashboards Dashboards Resource Resource requirements requirements Budgets Budgets 10 3 Align Align the the Organization Organization Business Business units units Support Support units units Employees Employees 4 Plan Plan Operations Operations Key Key process process improvement improvement Sales Sales planning planning Resource Resource capacity capacity plan plan Budgeting Budgeting

11 Four Perspectives in BSC 11

12 Map It is a logical and comprehensive architecture for describing a strategy A map that describes how value creation is created from intangible assets (learning and growth and internal process) into tangible assets (financial, customer) outcomes using cause and effect relationships 12

13 Exercise: Map Develop a Map of a Restaurant based Customer Learn & Growth Internal Process Finance on these Strategic Objectives Increase Profit Improve Customer Loyalty Improve Staff Competency Do SOP consistently 13 Increase Revenue Create Conducive Environment Purchase Cooking Equipment Reduce Cost Provide Fast Service Provide Quality Food

14 Key Takeaways List three important lessons that you have learned from this session #1 #2 #3 14

15 Coffee Break 15

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