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Selasa, 22 Juni 2010

How Do You Weigh Strategy, Execution, and Culture in an Organization's Success?


Jim Heskett

During the course of research for a book I'm writing, I have had the opportunity to talk with a number of managers about the degree to which strategy, execution, and culture contribute to the success of their organizations. After several such conversations, I at first reluctantly—because I feared that respondents would regard the questions as too complex or even irrelevant—began asking each of them three questions intended to attach numbers to an otherwise abstract conversation. The questions are:

1.If your organization's performance (operating income) = 100%, roughly what percentage is accounted for by the quality of the organization's strategy (clients we target; products, services and results we offer; the way we organize and compensate people, etc.) vs. the quality of the organization's execution of its strategy (the quality of our people, work, processes, decisions, etc.)?
2.If your organization's strategy = 100%, roughly what proportion of its effectiveness is dependent upon and accounted for by the organization's culture (widely-shared values, beliefs, behaviors, rites and rituals, etc.)?
3.If the execution of your organization's strategy = 100%, roughly what proportion of its effectiveness is dependent upon and accounted for by the organization's culture?
To my surprise, my respondents neither found the questions too complex nor irrelevant. One even made it the subject of a management meeting at which he had forty of the most senior members of his organization tackle the questions.


Now I ask you, as a change of pace from our previous columns, to address the questions based on your experience. Can you respond, or are the complexities of each question—possibly requiring more complete or different definitions of strategy, execution, and culture—too great? Are the three dimensions of the questions the right ones? Do they cover all or nearly all aspects of competitive success? How would people in various regions of the world—or in for-profit vs. not-for-profit endeavors—approach this set of questions differently? How would you respond to the questions? Why did you respond that way? What do you think?

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