Experience Vlerick Day - Kurt Verweire
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Transcript of Experience Vlerick Day - Kurt Verweire
STRATEGY IMPLEMENTATION
PROF. DR. KURT VERWEIRE
© Vlerick Business School3
STRATEGY IMPLEMENTATION
“Execution is not only the biggest issue facing business today; it is something nobody has explained
satisfactorily.”
(Bossidy and Charan, 2002)
© Vlerick Business School55 Op Weg naar een Strategiegerichte Organisatie
© Vlerick Business School6
DEFINING STRATEGY
© Vlerick Business School
DEFINING STRATEGY
7
strategy occurs at different levels
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© Vlerick Business School8
DEFINING STRATEGY
© Vlerick Business School9
DEFINING STRATEGY: EASYJET CASE
Whom do we serve?
How do we realize this?
What do we provide?
What is our value proposition?
People paying a ticket out of their own pocket; not the ‘fat cats’
Short-haul flights, no longer than 4hEuropean destinations
Operational excellence: standardization, no-frills, the basics
Low priceConvenience: fast and easy
© Vlerick Business School10
REVENUES PASSENGERS
PROFIT MARGIN RETURN ON EQUITY
© Vlerick Business School11
DEFINING A COMPETITIVE THEME
What is our value proposition?
What is our operating model?
© Vlerick Business School1212 Op Weg naar een Strategiegerichte Organisatie
© Vlerick Business School13
A MODEL FOR STRATEGY IMPLEMENTATION
Source: Vlerick Business School/Electrabel (GDF Suez) (2004, 2013)
© Vlerick Business School14
ALIGNMENT
Operational Excellence Product Leadership Customer Intimacy
Orchestrating theme ‘Best price’ and/or ‘Best access’ (‘fast, easy,
painless’)
‘Best product’
‘Best service’ and/or ‘Best connectivity’
(‘relationship orientation’)
Direction and goal setting processes
Efficiency through process thinking
Zero-defect service
Best product through continuous product innovation
Clear innovation strategy: where to place the bets?
Understanding the broader problem
Having expertise about the customer’s business
Customers carefully selected
Operational processes The operations department drives the company
Attention is paid to process speed and quality
R&D is key: idea management
Marketing is also key: educate people with a missionary zeal
Get engineers, designers, and marketers systematically together
Demonstrate expertise and experience
Strengthen the relationship
Build loyalty: focus on customer retention
© Vlerick Business School15
ALIGNMENT
Operational Excellence Product Leadership Customer Intimacy
Support processes Highly automated processes
Information systems increase control and coordination and streamline tasks
World-class supply chain management
Clear innovation governance process
Systematic process for allocating resources to innovation programs
Knowledge sharing and networks
Systematic collection of customer and market information (through Customer Relationship Management)
Structured sales process
Evaluation and control processes
Rigid, centralized control Detailed measures on
various aspects of the process
Setting higher thresholds
Innovation performance measures
Control, learning, and experimentation
Detailed measures about account penetration and loyalty
Lifetime value of the customer
Organizational behavior processes
Centralized structure Organization structured
around core processes Culture of continuous
improvement
Fluid organization structure
Stimulate diversity, tolerate mavericks
Low levels of formalization
Entrepreneurial culture
Decentralized organization
Employee retention Focus on quality, defined
from the customer’s point of view
© Vlerick Business School16
ALIGNMENT
© Vlerick Business School17
ALIGNMENT
© Vlerick Business School1818 Op Weg naar een Strategiegerichte Organisatie
© Vlerick Business School19
A MODEL FOR STRATEGY IMPLEMENTATION
© Vlerick Business School20 Op Weg naar een Strategiegerichte Organisatie
BELANG VAN STRATEGIE
the entrepreneurial organization
© Vlerick Business School21 Op Weg naar een Strategiegerichte Organisatie
EEN STRATEGIEGERICHTE ORGANISATIE
the structured organization
© Vlerick Business School22 Op Weg naar een Strategiegerichte Organisatiethe connected organization
© Vlerick Business School23 Op Weg naar een Strategiegerichte Organisatie
the committed organization
© Vlerick Business School24
A MODEL FOR STRATEGY IMPLEMENTATION
© Vlerick Business School2525 Op Weg naar een Strategiegerichte Organisatie
© Vlerick Business School26
FEEL LIKE SOME MORE?
Essentials in Strategy – fall 2013
Successful strategy execution – Spring 2014
Senior executive programme: middle managers – fall 2013