MANAGING INTERNAL OPERATIONS: ACTIONS THAT PROMOTE GOOD STRATEGY EXECUTION

Chapter 11

The Policies and Procedures to Facilitate Good Strategy Execution:

 

The tools that can manage improvement are:

·         Benchmarking

·         Process Reengineering

·         Six Sigma Quality Program

·         Total Quality Management (TQM)

·         Best Practice

Implementation from Benchmarking to Best Practice Process:

 

The more the company used the best practice, the closer a company moves towards performing to achieve the effective and efficient value chain activities as possible. This is called as excellent strategy execution.

Business Process Reengineeringà  when something drastic changes happen.

Total Quality Management (TQM ) à all the process done in a company, it should have a quality in every single process, which mean as overall.

Six Sigma Programsà Utilize statistical methods to improve quality by reducing defects and variability in business processes.

SIX SIGMA AND NEW PROJECTS:
(DMADV)

 

GUIDELINES FOR DESIGNING EFFECTIVE INCENTIVE COMPENSATION SYSTEMS:

1. Make financial incentives a major, not minor, piece of the total compensation package.
2. Have incentives that extend to all managers and all workers, not just top management.
3. Administer the reward system with scrupulous objectivity and fairness.
4. Keep the time between achieving targeted performance outcome and payment of the reward as short as possible.
5. Avoid rewarding effort rather than results.