Question 1

Which of the following statements about recruiting and retaining capable employees is FALSE?

Accepted Answer

Assembling a capable top management team is also important for good strategy execution and operating excellence. While recruiting and retaining capable employees are crucial, having a strong leadership team is also essential for effective execution of the company's strategy.

Question 2

The overriding aim in building a management team should be to

Accepted Answer

The best aim in building a management team is to assemble a critical mass of talented managers who can work together as a team and produce organizational results that are dramatically better than what one or two star managers acting individually can achieve. Competent managers who can function as agents of change are necessary for success in today's rapidly changing business environment. Oversight of every step of the value chain or choosing managers with similar management styles or experienced in gathering competitive intelligence may not necessarily lead to better organizational results. Similarly, focusing only on cost-cutting may not always lead to sustainable competitive advantage.

Question 3

Management's handling of the strategy implementation/execution process can be considered successful

Accepted Answer

The most important measure of the success of strategy implementation is whether the company meets or beats its performance targets and makes good progress in achieving its strategic vision. The other options may contribute to successful execution, but they do not guarantee it.

Question 4

General Electric has an up-or-out policy, where key personnel in underperforming units are pressured to boost performance to acceptable levels and keep it there or risk being replaced. What is this an example of?

Accepted Answer

Tying rewards and incentives directly to the achievement of strategic and financial targets is an example of an up-or-out policy.

Question 5

The three components of building a capable organization are

Accepted Answer

The three components of building a capable organization involve staffing the organization effectively, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort to support strategic execution.

Question 6

Which of the following is NOT true of implementing a strategy?

Accepted Answer

The level of personnel competence is actually very relevant to proficient strategy execution. A highly competent workforce can help in the successful implementation of a strategy.

Question 7

Building an organization capable of good strategy execution entails

Accepted Answer

Building an organization capable of good strategy execution requires staffing the organization with talented employees, acquiring and developing key resources and capabilities, and structuring the organization and work effort to align with the strategy. Option B focuses more on establishing competencies and hiring talented employees, but does not mention the need for structuring the organization to align with the strategy. Option C focuses on maximizing productivity and compensation systems, but does not mention acquiring and developing key resources and capabilities. Option D suggests centralizing authority which may not always be the best approach for strategy execution. Option E only focuses on maximizing internal efficiency and optimizing core competencies without addressing staffing and structuring needs.

Question 8

Implementing and executing a company's strategy

Accepted Answer

While every manager and the whole management team has some responsibility for executing a company's strategy, ultimate responsibility falls on the top senior executives, especially the chief executive officer. The board of directors sets the direction and policies, but the top senior executives are responsible for carrying them out effectively. All company personnel do play a role in strategy execution, but the top leadership has the primary responsibility for success or failure. Delegating strategy execution to a chief strategy implementer may not be effective if the top leadership is not fully involved and committed. Middle and lower-level managers can certainly help push needed changes, but they must have the full support and involvement of the top leadership to be successful.

Question 9

Putting together a capable top management team with the right mix of experiences, skills, and abilities

Accepted Answer

Option D accurately encapsulates the key factors involved in putting together an effective top management team. The phrase "making it happen" is especially significant because it suggests that successful strategy execution requires proactive leadership and decisive action, rather than simply coming up with good ideas. Options A, B, C, and E either misunderstand the role of top management or are not as directly connected to the task of putting together a capable team.

Question 10

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

Accepted Answer

The answer of If management is to match a company's...

Question 11

Which of the following is one of the first steps to take in launching the strategy execution process?

Accepted Answer

Putting together a talented management team is crucial as it ensures that the organization has the right leadership and expertise to effectively execute the strategy.

Question 12

The process of recruiting and retaining capable employees

Accepted Answer

Recruiting and retaining capable employees is always an essential ingredient of successful strategy execution. Regardless of the company's situation, the right people are critical to achieving the company's goals and objectives. A great strategy executed by a mediocre team is unlikely to succeed, but a mediocre strategy can be executed by excellent employees who can still deliver satisfactory results. 
Therefore, hiring and retaining the right people is a constant requirement, no matter the organizational context.

Question 13

Recruiting and retaining capable employees is

Accepted Answer

Recruiting and retaining capable employees is always important to successful strategy execution because the quality of an organization's people is an essential ingredient of success. While assembling a capable top-management team is also important, it is not necessarily more important than having capable employees at all levels of the organization. Additionally, recruiting and retaining capable employees is important during both periods of growth and periods of crisis or attempted turnarounds, as well as when transforming competencies into core or distinctive competencies. While it is critical in building competitively valuable core competencies and capabilities, it is not easily the most critical aspect.

Question 14

Which of the following is NOT part of a senior executive's agenda in big organizations with geographically scattered operating units?

Accepted Answer

The answer of Which of the following is NOT part...

Question 15

In which of the following steps does updating the company's capabilities to match changing market conditions and customer expectations take place?

Accepted Answer

The step where updating the company's capabilities to match changing market conditions and customer expectations takes place is acquiring, developing, and strengthening key resources and capabilities. This step involves identifying and building upon the company's strengths and addressing any weaknesses or gaps in its capabilities to meet the changing demands of the market and customers. Therefore, option C is the correct choice.

Question 16

The implementation process is likely to be hampered by missed deadlines, misdirected efforts, and managerial ineptness if

Accepted Answer

A capable results-oriented management team is essential for a successful implementation process. Without it, there is a risk of missed deadlines, misdirected efforts, and managerial ineptness. The other options may also have an impact, but the lack of a capable management team is the most critical factor.

Question 17

In companies where intellectual capital is crucial to good strategy execution, which of the following is generally NOT among the practices companies use to establish a talented knowledge base?

Accepted Answer

Coaching underperformers and benchwarmers is generally not a primary practice for establishing a talented knowledge base, as it focuses on improving existing low performers rather than attracting or developing top talent.

Question 18

Which of the following is part of strategy-supportive resources and capabilities?

Accepted Answer

The answer of Which of the following is part of...

Question 19

The most common building blocks for a company's organizational structure

Accepted Answer

The most common building blocks for a company's organizational structure involve a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps along the value chain. This allows for clear specialization and efficient coordination within the company. However, there may be variations or combinations of these building blocks depending on the specific needs and goals of the company.

Question 20

Which of the following is generally NOT among the common practices that companies use to staff jobs with talented people, particularly if intellectual capital greatly aids good strategy execution?

Accepted Answer

Eliminating the bottom 10 percent of the lowest-performing employees each year is generally not considered a common practice for companies to staff jobs with talented people. While high-performing employees are important for good strategy execution, simply cutting the lowest-performing employees may not be the most effective or ethical solution. Other practices, such as careful screening and evaluation of job applicants, continuous training and retraining programs, rotating people through different jobs, encouraging creativity and innovation, and fostering a stimulating work environment, are more commonly used.

Quiz 10: Building an Organization Capable of Good Strategy Execution