Manning School of Business
Session19:
Implementing
Strategies
Dr. Mark H. Mortensen
66.490.211 and 212
Tues &Thurs 2:00 to 3:15
3:30 to 4:45
Mortensen Consulting Group
Today
1.
2.
3.
4.
Apple case study due
Attendance
Discussion on how to implement a strategy
Group workshop
Assignment for next class
Implementation Evaluation and Control
Whatever is measured gets management attention.
Whatever is rewarded gets management action.
Whatever is not …. Is not.
Mortensen Consulting Group
Implementation Evaluation and Control
Output controls
Input controls
Resources –
skills, abilities,
values, motives
Activity
What is to be
accomplished; focus
on end result through
performance targets
Behavior controls
How something is done through
policies, procedures, rules, SOP’s
e.g. ISO 9000 Standards Series,
ISO 14000 Standards Series
11-4
Mortensen Consulting Group
Implementation Evaluation and Control
Primary Measures of
Performance (Output)
–Traditional Financial Measures
•Return on investment (ROI)
•Earnings per share (EPS)
•Return on equity (ROE)
•Operating cash flow
•Free cash flow
–Shareholder
•Shareholder value
•Economic value added (EVA)
•Market value added (MVA)
Balanced Scorecard
Approach
•Financial
•Customer
•Internal business
perspective
•Innovation and
learning
11-5
Mortensen Consulting Group
Implementation Evaluation and Control
Using Benchmarking –
Continual process of measuring products,
service, and practices against the toughest
competitors or those companies recognized
as industry leaders
11-6
Mortensen Consulting Group
Implementation Evaluation and Control
Problems in Measuring Performance –
–Short-term orientation
–Goal displacement
•Behavior substitution
•Suboptimization
11-7
Mortensen Consulting Group
Implementation Evaluation and Control
Guidelines for Proper Control –
–Minimum amount of information necessary
–Meaningful activities and results
–Timely
–Long and short-term
–Pinpointing exceptions
–Meeting/exceeding standards
11-8
Mortensen Consulting Group
Group Workshop
1.
How will you measure the effectiveness
of a product manager’s major strategic
moves to …


2.
3.
Enter a new market with an existing product?
Introduce a new product to an existing market?
What kind of a goal would you give the
product manager responsible?
How would you reward them?
Mortensen Consulting Group
Strategic Management – Spring 2013