Building an organization capable of good strategy execution entails
A) staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort.
B) decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees.
C) investing heavily in employee training, using an empowered organization design and organization structure in order to maximize labor productivity, and employing effective incentive compensation systems.
D) centralizing authority in the hands of a chief strategy implementer so as to create the leadership authority for driving implementation forward at a rapid pace.
E) empowering employees, maximizing internal operating efficiency, and optimizing core competencies.

Question

Quizplus · Accepted Answer

Building an organization capable of good strategy execution involves staffing the organization with the right people, developing the core competencies and competitive capabilities that are necessary to execute the strategy, and structuring the organization and work effort in a way that facilitates effective execution. Therefore, option A is the most appropriate choice. Decentralizing authority (B) and centralizing authority (D) are strategies that may be appropriate in certain circumstances, but they are unlikely to be sufficient in building an organization capable of good strategy execution. Option C mentions employee training and effective incentive compensation systems, which are important components of building an organization capable of good strategy execution, but it does not capture the full scope of what is required. Option E mentions empowering employees, optimizing core competencies, and maximizing internal operating efficiency, which are necessary but not sufficient for building an organization capable of good strategy execution.

Building an Organization Capable of Good Strategy Execution Entails