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Effective

Strategy

Execution

Firdaus

Alamsjah,

Ph.D.

Executive

Dean

-^

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)

Welcome

to

BBS

Knowledge

Sharing…,

Firdaus

Alamsjah

(Feri) •^

Education^ –^

Degree^ •^

Ph.D.

and

MSIE

in^ Industrial

Engineering

(Houston,

USA)

-^ Insinyur

in^ Mechanical

Engineering

(ITB,

Indonesia)

-^

Non

Degree • Certified

Strategy

Execution

Professional

GML

&^ QPR

-^ Implementing

Strategy

‐^ The

Wharton

School • Indonesia

Executive

Program

‐^ GE

Management

Development

Program

(Crotonville,

USA)

-^ Project

Management

‐^ Sundridge

Management

Development

Program

(London,

UK)

-^

Research

Interests:

Strategy

Execution,

Supply

Chain

Management,

and

Business

Process

Improvement

-^

Hobby:

Reading,

Sports,

Travel,

and

Music

‐^2 ‐

Major

Obstacles

in

Implementing

Strategy*

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

Unclear

communication

of

responsibility

and/or

accountability

for^

execution

decisions

or^

actions

Lack

of^

understanding

of^

the

role

of

organizational

structure

an

design

in

the

execution

process

Inability

to^

manage

change

effectively

or^ to

overcome

internal

resistance

to

change

*Source: Hrebiniak (2005), Making Strategy Work, WhartonSchool Publishing

Top 5 Killers in Implementing Strategy*

1 1

Unclear communication of responsibility and/oraccountability for execution decisions or actionsPoor or inadequate information sharing between individualor business units responsible for strategy execution 22

Poor or vague strategy 33

Inability to manage change effectively or to overcomeinternal resistance to change 44

Lack of feelings of “ownership” of a strategy or executionplans among key employees (^55) *Source: Alamsjah (2007), Survey on Strategy Execution

‐^5

‐

Covey

Model

Four

“Disciplines” in

Execution

(4DX)

‐^7 ‐

FRAMEWORK

IN

EXECUTING

STRATEGY

(STRATEX)*

INPUT 2.Uncertain Environment3.Clear Strategy

INPUT 2.Uncertain Environment3.Clear Strategy

RESOURCES^ 8. People

9. Allocation of resources

RESOURCES^ 8. People

9. Allocation of resources

ENABLER:

10. Organization Structure11. CEO & Leadership

ENABLER: SYSTEMATIC EXECUTION^ 10. Organization Structure11. CEO & Leadership

PROCESS SYSTEMATIC EXECUTION^ 4. Managing Integration5. Managing Culture6. Managing Change7. Managing Performance

PROCESS

4. Managing Integration5. Managing Culture6. Managing Change7. Managing Performance

OUTPUT

1. Successful StrategyExecution

OUTPUT

1. Successful StrategyExecution
2. Knowledge12. KnowledgeManagementManagementon Executionon Execution

*Source: Alamsjah (2010), toappear in Text and Cases inBusiness, Salemba Empat.

‐^8 ‐

Linking

Strategy

to

Operations* Strategic Plan^ Strategic Plan^ • Strategy Map^ • Strategy Map• Balanced Scorecard• Balanced Scorecard• STRATEX• STRATEX Operating Plan^ Operating Plan^ • Dashboards• Resource requirements

• Dashboards• Budgets
  • Resource requirements
    • Budgets

Develop the Strategy^ Develop the Strategy • Mission, Vision, Values, • Mission, Vision, Values,• Strategic analysis• Strategic analysis• Strategy formulation• Strategy formulation 1

Plan the Strategy^ Plan the Strategy • Strategy map/themes• Measures/targets• Initiative portfolio

• Funding
• Strategy map/themes• Measures/targets• Initiative portfolio
• Funding 2

Align the Organization^ Align the Organization

• Business units^ • Business units• Support units• Support units• Employees• Employees 3 4 Plan Operations^ Plan Operations^ • Key process^ • Key processimprovementimprovement• Sales planning• Sales planning• Resource capacity plan• Resource capacity plan• Budgeting• Budgeting

*) Source: Kaplan & Norton’s Execution Premium Framework

‐^10

‐

Test & Adapt^ Test & Adapt

-^ Profitability analysis^ •^ Profitability analysis •^ Strategy correlations^ •^ Strategy correlations^ •^ Emerging strategies^ •^ Emerging strategies 6

Monitor and Learn^ Monitor and Learn^ •^ Strategy reviews^ •^ Strategy reviews •^ Operations reviews^ •^ Operations reviews 5

Four

Perspectives

in

BSC

11

Exercise:

Strategy

Map

-^

Develop

a

Strategy

Map

of

a

Restaurant

based

on

these

“Strategic

Objectives”

13

IncreaseProfit

IncreaseRevenue

ReduceCost

ImproveCustomerLoyalty

Do SOPconsistently

Provide

Provide Fast Quality Food

Service

Improve StaffCompetency

CreateConducive

EnvironmentPurchaseCookingEquipment

Learn Internal^ Process

Customer^ Growth Finance

Key

Takeaways

-^

List

three

important

lessons

that

you

have

learned

from

this

session

-^

-^

-^

‐^14 ‐