Summary Strategy Implementation
Tilburg University, 2020
All lectures and papers
Table of Contents
Lecture 1 – Change management .................................................................................................................... 2
Lecture 2 – Organization Design .....................................................................................................................10
Lecture 3 – Incentives and motivation ...........................................................................................................17
Lecture 4 – Control Systems ...........................................................................................................................20
Lecture 5 – Performance measurement .........................................................................................................23
Lecture 6 – Tools and systems for implementation ........................................................................................28
Paper 1: Leading Change - Why Transformation Efforts Fail (by John P. Kotter)...............................................33
Paper 2: Organizational Behaviour – Leading organizational change (by Ryan L. Rafaelli) + .............................34
Paper 3: Note on organization structure (by Nitin Nohria) ..............................................................................34
Paper 4: Designing Organizations for Performance – The Alignment of Design and Strategy (by Robert L.
Simons) ..........................................................................................................................................................37
Paper 5: On the folly of Rewarding A, While Hopping for B (by Steven Kerr) ...................................................40
Paper 6: Incentives within Organizations (by Brian Hall) + ...............................................................................42
Paper 11: Aligning Performance goals and Incentives (by Simons) ..................................................................42
Paper 7: Centralized Control or Decentralized Diversity: A Guide for Matching Compensations with Company
Strategy and Structure (by Duncan Brown) + ..................................................................................................43
Paper 8: Control in the Age of Empowerment (by Simons) ..............................................................................43
Paper 9: Fit Control Systems to Your Managerial Style (by Cammann and Nadler) +........................................44
Paper 10: From Strategy to Implementation: Seeking Alignment (by Cammann and Nadler) ...........................44
Paper 12: Measuring Performance (by Cammann and Nadler) + .....................................................................45
Paper 13: Using the Balanced Scorecard as Strategic Management System (by Kaplan and Norton) + .............45
Paper 14: Strategy Maps Chapter (by Kaplan and Norton) ..............................................................................45
Paper 15: Borealis Case Study (by Kaplan and Jorgenson) ...............................................................................47
Paper 16: Note on Flexible Budgeting and Variance Analysis (by David W. Young) ..........................................48
,Summary – Strategic Implementation Lectures
Lecture 1 – Change management
Course objectives:
- Without a good execution, any strategy is useless. This course aims at exposing and practicing the
different elements necessary for the successful implementation of organizational strategy.
- The concepts exposed in lectures will be operationalized using examples and cases. Participants will
acquire and practice a structured method to understand, analyze and steer performance in
organizations.
Learning outcomes
- Understand the link between strategy and management control.
- Define and asses dimensions of performance.
- Create and use tools and systems to ensure the alignment between strategy and actions.
- Use planning and control tools to drive organizational performance.
- Understand how to lead change in organizations.
The challenges of implementation
1. Different scope than analysis.
The strategic management process:
From creation to implementation:
Strategy creation Implementation
Analysis and planning Execution
Thinking Doing
Initiate Follow through
At the top Top-to-bottom
Entrepreneurial Operational
Goal setting Goal achieving
2. Need for coherence.
Alignment for implementation: Alignment checklist
,3. Complexity
- Interactions
- Number of elements
Framework for strategy implementation
Knowledge – Information
- Internal knowledge: Processes; Competences; People.
- External knowledge: Customers; Partners; Competitors.
- Information needs:
- Relationship between costs and the value of providing additional financial information:
Motivation – Control – Organization – Change management
- “The pace of business is accelerating, and companies must change in response. Yet 50-75% of change
programs fail. The time-tested fundamentals of change management—practices focusing on
leadership, employee engagement, governance, and executional rigor—remain as essential and
powerful as ever.”
- Reasons for so many failures:
o Lack of clearly defined and/or achievable milestones/objectives to measure progress.
o Lack of commitment by the senior management.
o Poor communication.
o Employee resistance.
o Insufficient funding.
, - Strategic drift
Nature What is changing? Examples
Merger / Acquisition Products, markets, Example of a failure is Daimler -
structure, power, culture Chrysler
Strategy Goals and resources “Intel Inside” – build a new brand
image Commercials for end-users
instead of own buyers.
Governance / Autority Power structure Renault
Diversification Products, markets CGE / Vivendi
Methods, tools Work organization Ford (Total quality)
Market evolution/ Products, markets, work Kodak (Digitization)
Technology organization, structure …
Legislation Environment, etc Brexit
Restructuration Power structure, resources Teva France (Downscaling 50%
- Formulaic Approach to Strategic Change
- Context-Sensitive Approach to Change
- Two Basic Types of Change
o Reactive Change: Closing a performance gap → (what is and what should be)
o Proactive Change: Closing an opportunity gap → (what is and what could be)
Tilburg University, 2020
All lectures and papers
Table of Contents
Lecture 1 – Change management .................................................................................................................... 2
Lecture 2 – Organization Design .....................................................................................................................10
Lecture 3 – Incentives and motivation ...........................................................................................................17
Lecture 4 – Control Systems ...........................................................................................................................20
Lecture 5 – Performance measurement .........................................................................................................23
Lecture 6 – Tools and systems for implementation ........................................................................................28
Paper 1: Leading Change - Why Transformation Efforts Fail (by John P. Kotter)...............................................33
Paper 2: Organizational Behaviour – Leading organizational change (by Ryan L. Rafaelli) + .............................34
Paper 3: Note on organization structure (by Nitin Nohria) ..............................................................................34
Paper 4: Designing Organizations for Performance – The Alignment of Design and Strategy (by Robert L.
Simons) ..........................................................................................................................................................37
Paper 5: On the folly of Rewarding A, While Hopping for B (by Steven Kerr) ...................................................40
Paper 6: Incentives within Organizations (by Brian Hall) + ...............................................................................42
Paper 11: Aligning Performance goals and Incentives (by Simons) ..................................................................42
Paper 7: Centralized Control or Decentralized Diversity: A Guide for Matching Compensations with Company
Strategy and Structure (by Duncan Brown) + ..................................................................................................43
Paper 8: Control in the Age of Empowerment (by Simons) ..............................................................................43
Paper 9: Fit Control Systems to Your Managerial Style (by Cammann and Nadler) +........................................44
Paper 10: From Strategy to Implementation: Seeking Alignment (by Cammann and Nadler) ...........................44
Paper 12: Measuring Performance (by Cammann and Nadler) + .....................................................................45
Paper 13: Using the Balanced Scorecard as Strategic Management System (by Kaplan and Norton) + .............45
Paper 14: Strategy Maps Chapter (by Kaplan and Norton) ..............................................................................45
Paper 15: Borealis Case Study (by Kaplan and Jorgenson) ...............................................................................47
Paper 16: Note on Flexible Budgeting and Variance Analysis (by David W. Young) ..........................................48
,Summary – Strategic Implementation Lectures
Lecture 1 – Change management
Course objectives:
- Without a good execution, any strategy is useless. This course aims at exposing and practicing the
different elements necessary for the successful implementation of organizational strategy.
- The concepts exposed in lectures will be operationalized using examples and cases. Participants will
acquire and practice a structured method to understand, analyze and steer performance in
organizations.
Learning outcomes
- Understand the link between strategy and management control.
- Define and asses dimensions of performance.
- Create and use tools and systems to ensure the alignment between strategy and actions.
- Use planning and control tools to drive organizational performance.
- Understand how to lead change in organizations.
The challenges of implementation
1. Different scope than analysis.
The strategic management process:
From creation to implementation:
Strategy creation Implementation
Analysis and planning Execution
Thinking Doing
Initiate Follow through
At the top Top-to-bottom
Entrepreneurial Operational
Goal setting Goal achieving
2. Need for coherence.
Alignment for implementation: Alignment checklist
,3. Complexity
- Interactions
- Number of elements
Framework for strategy implementation
Knowledge – Information
- Internal knowledge: Processes; Competences; People.
- External knowledge: Customers; Partners; Competitors.
- Information needs:
- Relationship between costs and the value of providing additional financial information:
Motivation – Control – Organization – Change management
- “The pace of business is accelerating, and companies must change in response. Yet 50-75% of change
programs fail. The time-tested fundamentals of change management—practices focusing on
leadership, employee engagement, governance, and executional rigor—remain as essential and
powerful as ever.”
- Reasons for so many failures:
o Lack of clearly defined and/or achievable milestones/objectives to measure progress.
o Lack of commitment by the senior management.
o Poor communication.
o Employee resistance.
o Insufficient funding.
, - Strategic drift
Nature What is changing? Examples
Merger / Acquisition Products, markets, Example of a failure is Daimler -
structure, power, culture Chrysler
Strategy Goals and resources “Intel Inside” – build a new brand
image Commercials for end-users
instead of own buyers.
Governance / Autority Power structure Renault
Diversification Products, markets CGE / Vivendi
Methods, tools Work organization Ford (Total quality)
Market evolution/ Products, markets, work Kodak (Digitization)
Technology organization, structure …
Legislation Environment, etc Brexit
Restructuration Power structure, resources Teva France (Downscaling 50%
- Formulaic Approach to Strategic Change
- Context-Sensitive Approach to Change
- Two Basic Types of Change
o Reactive Change: Closing a performance gap → (what is and what should be)
o Proactive Change: Closing an opportunity gap → (what is and what could be)
