Chapter 15

Question 1

What is the definition of strategy implementation?

Answer 1

Translation of a chosen strategy into organisational action to achieve strategic goals

Implementation is crucial because strategies may fail not due to poor choices but due to poor execution.

Question 2

What are the two key themes in strategy implementation?

Answer 2

• Hard elements: organisational structure and systems
• Soft elements: culture, sensemaking, and procedural justice

These themes help integrate the implementation process effectively.

Question 3

What are the hard elements of implementation?

Answer 3

• Organisational structure
• Organisational systems

These elements provide a framework for roles, responsibilities, and accountability.

Question 4

True or false: Implementation should be rigid and follow the original plan precisely.

Answer 4

FALSE

Implementation should be adaptive to changing conditions rather than rigid.

Question 5

What are the three basic structural types in strategy implementation?

Answer 5

• Functional structure
• Divisional structure
• Matrix structure

Each structure has its own advantages and is suited for different strategic needs.

Question 6

What is the functional structure in organisational design?

Answer 6

Divides responsibilities according to primary specialist roles such as production, marketing, and finance

This structure is suitable for small or start-up organisations with a narrow strategic focus.

Question 7

What is the divisional structure based on?

Answer 7

• Products
• Services
• Geographical areas

This structure allows for decentralisation and autonomy in responding to specific market needs.

Question 8

What is a matrix structure?

Answer 8

Combines different structural dimensions, such as product divisions and geographical territories

Staff typically report to two managers, which can create complexity but enhances collaboration.

Question 9

What is the advantage of a matrix structure?

Answer 9

Combines advantages of different dimensions while promoting collaboration and knowledge-sharing

It is effective for implementing complex strategies.

Question 10

What is an agile team structure?

Answer 10

Small, entrepreneurial groups given autonomy to respond quickly to customer needs

Agile teams are effective for strategies focused on innovation and flexibility.

Question 11

What is the role of leadership in strategy implementation?

Answer 11

To guide change activities and ensure alignment with strategic goals

Leadership is crucial for navigating the complexities of implementation.

Question 12

What does procedural justice refer to in the context of implementation?

Answer 12

Gaining stakeholder commitment to successful implementation

It involves ensuring fair processes during the implementation phase.

Question 13

Fill in the blank: Implementation involves translating a chosen strategy into _______.

Answer 13

organisational action

This is essential for achieving strategic goals.

Question 14

What does sensemaking by managers and employees involve during implementation?

Answer 14

Understanding and interpreting the strategy and its implications

This process is crucial for effective execution and alignment.

Question 15

What is the importance of alignment in strategy implementation?

Answer 15

Ensures that hard and soft elements are integrated and coherent with the original strategy

Misalignment can lead to ineffective execution.

Question 16

What are agile teams typically composed of?

Answer 16

• Members from various functions
• Diverse skills
• Representation from different business or geographical divisions

Agile teams are designed to address a range of needs and improve internal business processes.

Question 17

True or false: Agile teams have a clear hierarchy.

Answer 17

FALSE

Agile teams are arranged with no clear hierarchy and have fluid boundaries.

Question 18

What are some pros and cons of agile teams?

Answer 18

• Pros: Innovation, speed
• Cons: Confusion, complexity

Agile teams need careful organizing, especially at scale.

Question 19

What are the three systems that support strategy implementation?

Answer 19

• Planning systems
• Performance targeting systems
• Internal markets

These systems help ensure control over strategy implementation.

Question 20

What do planning systems govern?

Answer 20

• Allocation of resources
• Monitoring resource utilization

Tight control can reduce waste but may also reduce flexibility.

Question 21

Name the three corporate strategy styles according to Goold and Campbell.

Answer 21

• Strategic planning style
• Financial control style
• Strategic control style

These styles differ in planning influence and performance accountability.

Question 22

The strategic planning style combines strong planning influence from the corporate center with what level of performance accountability?

Answer 22

Relatively relaxed

This style is appropriate when the corporate center sets the strategic direction.

Question 23

In the financial control style, who sets the strategic plans?

Answer 23

Business units

Business units are held strictly accountable for results.

Question 24

What is the purpose of performance targeting systems?

Answer 24

• Focus on outputs
• Measure product quality, revenues, or profits

Targets should measure key performance indicators (KPIs).

Question 25

What are the two techniques developed to encourage a balanced approach to target-setting?

Answer 25

* Balanced scorecard * Strategy mapping ## Footnote These techniques help link performance targets to strategic objectives.

Question 26

What do **market systems** involve within organizations?

Answer 26

* Contracting for inputs * Accepting contracts for outputs ## Footnote Market systems guide internal units to actions consistent with strategy.

Question 27

What are the **five steps** to implement cultural change in an organization?

Answer 27

* Determine the required culture * Analyze the gap between existing and required culture * Develop a plan to bridge the gap * Implement the plan * Review the culture change ## Footnote Cultural changes must align with strategic objectives.

Question 28

What is the **critical safety rule** regarding moving a victim who may have injured their spine?

Answer 28

Never move them unless their current location presents an immediate danger to their life ## Footnote Moving a victim with a potential spinal injury may cause further harm, such as permanent paralyzation.

Question 29

True or false: **Culture** is easy to define and control in an organization.

Answer 29

FALSE ## Footnote Culture is subjective and often hard to control, making it challenging to define precisely.

Question 30

What does **strategic sensemaking** involve?

Answer 30

* Understanding * Interpreting * Making coherent the changing environments ## Footnote Managers use their everyday experiences and interactions to make sense of new strategies.

Question 31

What are the **three key dimensions** of procedural justice in organizations?

Answer 31

* Engagement * Explanation * Clarity of expectations ## Footnote These dimensions ensure fairness in decision-making processes and help secure commitment from stakeholders.

Question 32

What is the implication of **strategic alignment**?

Answer 32

Strategies must be consistent with both organizational goals and characteristics ## Footnote Alignment ensures that all functional areas support the strategy effectively.

Question 33

Fill in the blank: **Strategic configuration** stresses consistency between elements but is less _______.

Answer 33

linear ## Footnote Configuration focuses on how various organizational design elements fit together to support the intended strategy.

Question 34

What are the **seven elements** of the McKinsey 7S framework?

Answer 34

* Strategy * Structure * Systems * Style * Staff * Skills * Superordinate goals ## Footnote All elements must be configured together to achieve effectiveness in strategy implementation.

Question 35

What does the **style** element in the McKinsey 7S framework refer to?

Answer 35

The leadership style of top managers ## Footnote Leadership styles can influence the culture of the organization and should fit with other aspects of the framework.

Question 36

What does the **skills** element in the McKinsey 7S framework encompass?

Answer 36

Capabilities in general, including staff skills and how they are embedded in the organization ## Footnote Skills relate to how training and reward systems transform individual talents into organizational capabilities.

Question 37

What is meant by **superordinate goals** in the McKinsey 7S framework?

Answer 37

The overarching purpose of the organization, including mission, vision, and objectives ## Footnote Superordinate goals should be at the center of the 7S framework, guiding all other elements.

Question 38

What is the **agenda** for ensuring successful strategy implementation?

Answer 38

* Consider both hard and soft aspects * Identify appropriate structures and systems * Support strategy with cultural change, sensemaking, and procedural justice * Integrate hard and soft aspects through alignment and configuration ## Footnote Effective implementation requires attention to both structural and cultural elements.