Explain the three major implementation levers
What will be an ideal response?
The major levers asstructure, systems and processes, and people and rewards.
Structure Structure is the implementation lever that usually gets the most attention in an organization. But what is
structure itself? Organizational structure is the relatively stable arrangement and division of responsibilities, tasks,
and people within an organization. Organizations are composed of people who are assigned to certain divisions
and who perform certain delegated and specialized tasks. The structure of an organization, therefore, is the
framework that management has devised to divide tasks, deploy resources, and coordinate departments. Structure
provides a way for information to flow efficiently from the people and departments who generate it to those who
need it. Structure also spells out decision rights?policies that tell individuals who's responsible for generating
particular information and who's authorized to act on it.
Systems and processes Systems and processes make it possible to manage budgeting, quality control, planning,
distribution, and resource allocation in complex contemporary organizations. Many firms are developing
performance measurement and management systems that enable them to balance the need to report short-term
financial returns with the need to pursue longer-term (and often intangible) objectives. Various approaches can be
used to gauge the success with which implementation levers are aligned with strategic objectives; the most
common term for these performance management systems is the balanced scorecard. The balanced scorecard has
evolved into what might just as well be called a strategy scorecard. It's a strategic management support system
devised to help managers measure vision and strategy against business- and operating-unit-level performance
along several critical dimensions.
People and rewards This subset of implementation levers draws attention to the importance of people and the
rewards that can be used to align their energies and actions with the organization's objectives. People and rewards
are addressed together because inappropriate incentives and controls can frustrate the efforts of even the best
people. In regards to people, recruitment, selection, and training with an eye to competencies and values are critical
to strategy implementation. Also, reward systems must be designed to promote effective strategy implementation.
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