Chapter 10 : Building an organization capable of good strategy execution

Good strategy execution requires a team effort.All managers have strategy executing responsibility in their areas of authority and all employees are active participants in the strategy execution process.

There have 10 managerial tasks are part of every company effort to execute strategy:

1. staffing the organization with the right people
2. building the necessary organizational capabilities
3. creating a supportive organizational structure
4. allocating sufficient resources
5. instituting supportive policies and procedure
6. adopting processes for continuous improvement
7. installing system that enable proficient company operations
8. typing incentives to the achievement of desired target 
9. instilling the right corporate culture
10. exercising internal leadership to propel strategy execution forward

3 types of actions to building an organization capable of good strategy execution:

• staffing the organization
• acquiring,developing,and strengthening strategy supportive resources and capabilities
• structuring the organization and work effort 

managerially challenging exercise that can be approached in three ways:developing capabilities internally,acquiring capabilities through mergers and acquisition and accessing capabilities by collaborative partnership.

organizational structures can be classified into a limited number of standard types.The type that is most suitable for a given firm will depend on the firm size and complexity as well as its strategy.As firms grow and their needs for structure evolve,their structural form is likely to evolve from one type to another.This is the four basic types are the simple structure,functional structure,multidivisional structure and  matric structure.

simple structure

functional structure

multidivisional structure

matrix structure