PTMBA2022 Strategy Execution (fall)

Strategy execution matters. In a lot of cases, it is the critical bottleneck to successful strategic management. However, there is no magic formula, and “one size fits all” techniques are rarely adequate solutions. Tough, uncomfortable choices need to be made. Therefore, this class discusses the key challenges in strategy execution by asking the seven questions stated below. Additionally, management control systems associated with each of the questions will be presented.

Part One: Build a strong foundation for strategy execution:
1. Allocation resources to customer: Who is your primary customer?
2. How do your core values help to execute strategy?

Part Two: Focus everyone's attention on your strategic agenda:
3.Creating accountability: How do you manage performance?
4.Strategic boundaries: How do you control strategic risk?

Part Three: Facilitate the behaviors needed for success:
5.Spurring effort and innovation: How do you generate creative tension?
6.Building commitment: How do you foster collaborative behavior?

Part Four: Develop your company's ability to master future change:
7. Adapting to change: What strategic uncertainties keep you awake at night?

The class will cover aspects of capital budgeting, beliefs and boundary systems, diagnostic control systems such as the Balanced Scorecard and performance measurement, accountability issues, interactive control systems, stretch goals, performance rankings, cost allocation and compensation issues.

The course primarily draws on the following two books which are available in the library of WHU. Relevant chapters and a small number of additional articles will be distributed in class. Simons, R. (1995): Levers of control: How managers use innovative control systems to drive strategic renewal. Boston: Harvard Business School Press.Simons, R. (2006): Levers of organization design: How managers use accountability systems for greater performance and commitment. Boston: Harvard Business School Press.Collis, D. J. and Rukstad, M. G. (2008). Can you say what your strategy is? Harvard Business Review. April 2008Kotter, J. P. (2007). Leading Change. Harvard Business Review. January 2007Mikes, A. (2012). Managing Risks: A New Framework. Harvard Business Review. June 2012Additional readings are optional, but may be of interest as their content supplements the recommended readings. Those readins will be announced in class and copies will be distributed electronically or can be found in the library of WHU.

During the three days of this course, we will discuss a total of five cases (Sydney IVF, Citibank, Volkswagen, Henkel, Hydro One) and provide you with the opportunity to actively contribute to an interactive class. Classroom teaching will be limited to the introduction of theoretical concepts necessary for further debate.

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