Question 1

Building an organization capable of good strategy execution entails:
A) staffing the organization, acquiring, developing, and strengthening key resources 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.

Accepted Answer

Proficient strategy execution depends foremost on having in place an organization capable of the tasks demanded of it. Building an execution-capable organization is thus always a top priority. Three types of organization-building actions are paramount:1. Staffing the organization2. Acquiring, developing, and strengthening the resources and capabilities required for good strategy execution3. Structuring the organization and work effort

Question 2

The most important leadership trait in the strategy execution process is:
A) a strong, confident sense of what to do and how to do it.
B) strong communication skills (both written and verbal) covering motivating intent.
C) strong management skills to ensure a systematic approach to administration.
D) strong organizational skills so as to make actions structured toward results.
E) strong empathy skills when employees run into challenging moments.

Accepted Answer

In devising an action agenda for executing strategy, managers should start by conducting a probing assessment of what the organization must do differently to carry out the strategy successfully. Each manager needs to ask the question "What needs to be done in my area of responsibility to implement our part of the company's strategy, and what should I do to get these things accomplished?"

Question 3

Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT:
A) manage the people, talents, and business processes of an operations-driven activities company.
B) direct organizational change and achieve continuous improvement in operations and business processes.
C) create and nurture a strategy-supportive culture.
D) meet or beat performance targets consistently.
E) focus on market conditions and the company's resources and capabilities.

Accepted Answer

Executing strategy is an action-oriented, make-things-happen task that tests a manager's ability to direct organizational change, achieve continuous improvement in operations and business processes, create and nurture a strategy-supportive culture, and consistently meet or beat performance targets.

Question 4

The managerial approach to implementing and executing a strategy should always:
A) be customized to fit the particulars of a company's situation.
B) involve only minor changes to the existing strategy.
C) require radical strategy changes for successful execution.
D) rely on the active support of frontline employees.
E) focus on market conditions and the company's resources and capabilities.

Accepted Answer

The managerial approach to implementing and executing a strategy always has to be customized to fit the particulars of a company's situation.

Question 5

What makes the managerial task of executing strategy so challenging and demanding is:
A) the trial-and-error experimentation that is required to come up with a workable organizational structure.
B) the people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.
C) the time and effort it takes to build core competencies.
D) the time, training, and creative effort it takes to empower employees and teach them responsible decision making.
E) the supervisory requirements associated with getting company personnel to do things the right way.

Accepted Answer

It takes first-rate "managerial smarts" to zero in on what exactly needs to be done and how to get good results in a timely manner. Excellent people-management skills and perseverance are required to get a variety of initiatives launched and to integrate the efforts of many different work groups into a smoothly functioning whole.

Question 6

The principal managerial components of the strategy execution process include:
A) deciding how much to spend on employee training.
B) instituting policies and procedures that facilitate strategy execution and tying rewards and incentives to the achievement of strategic and financial targets.
C) doing an effective job of empowering employees.
D) revamping the value chain in a manner calculated to maximize operating efficiency.
E) selecting a capable top management team.

Accepted Answer

Despite the need to tailor a company's strategy-executing approaches to the particulars of the situation at hand, certain managerial bases must be covered no matter what the circumstances. These include 10 basic managerial tasks:1. Staffing the organization with managers and employees capable of executing the strategy well.2. Developing the resources and organizational capabilities required for successful strategy execution.3. Creating a strategy-supportive organizational structure.4. Allocating sufficient resources (budgetary and otherwise) to the strategy execution effort.5. Instituting policies and procedures that facilitate strategy execution.6. Adopting best practices and business processes to drive continuous improvement in strategy execution activities.7. Installing information and operating systems that enable company personnel to carry out their strategic roles proficiently.8. Tying rewards and incentives directly to the achievement of strategic and financial targets.9. Instilling a corporate culture that promotes good strategy execution.10. Exercising the internal leadership needed to propel strategy implementation forward.

Question 7

Implementing and executing a company's strategy:
A) is primarily the job of the company's board of directors since they direct the actions and policies of the top senior executives in executing the strategy.
B) is a task for every manager and the whole management team, but ultimate responsibility for success or failure falls upon the top senior executives, especially the chief executive officer of the company.
C) is primarily a responsibility of all company personnel because all personnel are active participants in the strategy execution process and their actions have a huge impact on the ultimate outcome.
D) should be delegated to a chief strategy implementer appointed by the chief executive officer.
E) is primarily a task for middle and lower-level managers because it is they who have responsibility for pushing the needed changes all the way down to the lowest levels of the organization.

Accepted Answer

Like crafting strategy, executing strategy is a job for a company's whole management team-not just a few senior managers. While the chief executive officer and the heads of major units (business divisions, functional departments, and key operating units) are ultimately responsible for seeing that strategy is executed successfully, the process typically affects every part of the firm-all value chain activities and all work groups. Top-level managers must rely on the active support of middle and lower managers to institute whatever new operating practices are needed in the various operating units to achieve proficient strategy execution. Middle and lower-level managers must ensure that frontline employees perform strategy-critical value chain activities well and produce operating results that allow companywide performance targets to be met. Consequently, all company personnel are actively involved in the strategy execution process in one way or another.

Question 8

Management's handling of the strategy implementation/execution process can be considered successful:
A) when the internal organization develops two or more core competencies in performing value chain activities.
B) if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company.
C) if the company's culture is strong and strategy-supportive.
D) if management is able to marshal adequate resources to put the strategy in place within 6 to 12 months.
E) if managers and employees express strong support for the company's strategy and long-term direction.

Accepted Answer

The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.

Question 9

When strategies fail,it is often because of:
A) poor execution of the strategy.
B) shortfalls exposed with the strategic management design process.
C) inadequate support for the management team responsible for the planning process.
D) secondary operating practices that hinder the required changes.
E) lack of sufficient information about operating systems.

Accepted Answer

When strategies fail, it is often because of poor execution. Strategy execution is therefore a critical managerial endeavor.

Question 10

What does a good strategy execution require?
A) A team effort with all managers having strategy executing responsibility in their areas of authority, and making all employees active participants in the strategy execution process
B) Incremental changes to current operating practices be implemented to ensure existing resource capabilities are not impacted too severely
C) Little consensus building, despite the magnitude of the proposed changes, because employees know the benefits gained from the planning process
D) The strategy-critical value chain activities to be simplified so that all company personnel can be cognizant of the benefits of the execution parameters
E) Additional investments in capital projects rather than adding to a company's talent base and building intellectual capital

Accepted Answer

Good strategy execution requires a team effort. All managers have strategy-executing responsibility in their areas of authority, and all employees are active participants in the strategy execution process.

Question 11

While ultimate responsibility for implementing and executing strategy falls upon the shoulders of senior executives:
A) top-level managers still have to rely on the active support and cooperation of middle and lower-level managers in pushing needed changes in functional areas and operating units.
B) the pivotal and most decisive strategy-implementing actions are carried out by frontline supervisors who have the day-to-day responsibility of seeing that key activities are done properly.
C) it is a company's employees who most determine whether the drive for good strategy execution will succeed or fail.
D) the success or failure of the implementation/execution effort hinges chiefly on doing an effective job of empowering employees to make day-to-day operating decisions that support good strategy execution.
E) the success or failure of the implementation/execution effort hinges chiefly on a company's reward system and whether its policies and procedures are strategy-supportive.

Accepted Answer

Top-level managers must rely on the active support of middle and lower managers to institute whatever new operating practices are needed in the various operating units to achieve proficient strategy execution. Middle and lower-level managers must ensure that frontline employees perform strategy-critical value chain activities well and produce operating results that allow companywide performance targets to be met.

Question 12

The three components of building a capable organization are:
A) making periodic changes in the firm's internal organization to keep people from getting into a comfortable rut, instituting a decentralized approach to decision making, and developing the appropriate competencies and capabilities.
B) hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture.
C) putting a centralized decision-making structure in place, determining who should have responsibility for each value chain activity, and aligning the corporate culture with key policies, procedures, and operating practices.
D) staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort.
E) optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.

Accepted Answer

Proficient strategy execution depends foremost on having in place an organization capable of the tasks demanded of it. Building an execution-capable organization is thus always a top priority. Three types of organization-building actions are paramount:1. Staffing the organization2. Acquiring, developing, and strengthening the resources and capabilities required for good strategy execution3. Structuring the organization and work effort

Question 13

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?
A) A nonprofit agency that addresses only specific societal problems through public services
B) A toy manufacturing company that plans on reaching three different segments of the market
C) A fast food joint that has an onsite kindergarten and provides afterschool programs for its employees' children
D) A sporting goods seller that monitors consumers' preferences for gear and accessories on its blog
E) A bedding linen manufacturing company that recycles its water to cool the machines in the factory

Accepted Answer

Having onsite kindergartens and providing afterschool programs are perks and/or incentives for employees that help a company retain its employees. Such practices do not necessarily form a part of the company's policies and procedures that facilitate strategy execution.

Question 14

Which of the following is NOT among the principal managerial components of the strategy execution process?
A) Building an organization with the competencies, capabilities, and resource strengths needed to execute strategy successfully
B) Instituting policies and procedures that facilitate rather than impede strategy execution
C) Deciding which core competencies and value chain activities to leave as is and which ones to overhaul and improve
D) Adopting best practices and pushing for continuous improvement in how value chain activities are performed
E) Tying rewards directly to the achievement of strategic and financial targets and to good strategy execution

Accepted Answer

Despite the need to tailor a company's strategy-executing approaches to the particulars of the situation at hand, certain managerial bases must be covered no matter what the circumstances. These include 10 basic managerial tasks:1. Staffing the organization with managers and employees capable of executing the strategy well.2. Developing the resources and organizational capabilities required for successful strategy execution.3. Creating a strategy-supportive organizational structure.4. Allocating sufficient resources (budgetary and otherwise) to the strategy execution effort.5. Instituting policies and procedures that facilitate strategy execution.6. Adopting best practices and business processes to drive continuous improvement in strategy execution activities.7. Installing information and operating systems that enable company personnel to carry out their strategic roles proficiently.8. Tying rewards and incentives directly to the achievement of strategic and financial targets.9. Instilling a corporate culture that promotes good strategy execution.10. Exercising the internal leadership needed to propel strategy implementation forward.

Question 15

Which of the following statements about implementing and executing a new strategy is true?
A) Executing strategy calls for essentially the same kinds of creative management talent and innovative thinking as does crafting strategy.
B) Executing strategy is chiefly a financially driven process aimed at squeezing the most profit out of conducting daily operations.
C) Executing strategy is a job for a company's whole management team, not just a few senior managers.
D) Executing strategy depends heavily on the caliber of a CEO's business vision, industry and competitive analysis skills, and entrepreneurial creativity.
E) Executing strategy tends to be a simpler, quicker management task to perform as compared to crafting a winning strategy.

Accepted Answer

Like crafting strategy, executing strategy is a job for a company's whole management team-not just a few senior managers.

Question 16

Ultimate responsibility for seeing that a strategy is executed successfully primarily falls upon the shoulders of:
A) a company's chief executive officer, its chief operating officer, and the heads of major units (business divisions, functional departments, and key operating units).
B) first-line supervisors who have the day-to-day responsibility of seeing that key value chain activities are done properly.
C) the company's board of directors because board members are the final authority in overseeing and conducting daily operations.
D) a company's whole management team-each manager is responsible for attending to what needs to be done in his/her respective area of authority and thus should be held accountable for the strategy's success or failure.
E) all company personnel because all employees are active participants in the strategy execution process and the caliber of their actions have a huge impact on the ultimate outcome.

Accepted Answer

While the chief executive officer and the heads of major units (business divisions, functional departments, and key operating units) are ultimately responsible for seeing that strategy is executed successfully, the process typically affects every part of the firm-all value chain activities and all work groups.

Question 17

The two best signs of good strategy execution are whether:
A) the company is challenging its current performance targets and whether value chain activities are fully integrated within the strategic response criteria.
B) managers are personally leading the change process and whether they are meeting deadlines set for budgetary requirements.
C) the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.
D) managers are fully behind the changes and whether the company's value chain managers are executing them diligently.
E) the company identifies what the organization must do and how to make the necessary internal changes.

Accepted Answer

The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.

Question 18

In formulating an action agenda to implement and execute a new or different strategy,the place for managers to begin is with:
A) the task of revising and enhancing the company's core competencies.
B) choosing which leadership style to employ in trying to carry out the strategy successfully.
C) evaluating whether existing policies and procedures are adequately strategy-supportive.
D) allocating more resources to strategy-critical parts of the business.
E) a probing assessment of what the organization must do differently and better to carry out the strategy successfully.

Accepted Answer

In devising an action agenda for executing strategy, managers should start by conducting a probing assessment of what the organization must do differently to carry out the strategy successfully.

Question 19

Which of the following statements falsely characterizes the managerial task of executing strategy?
A) 	Executing strategy is an action-oriented, make-things-happen task.

B) 	Executing strategy tests a manager's ability to direct organizational change, achieve continuous improvement in operations and business processes, create and nurture a strategy-supportive culture, and consistently meet or beat performance targets.

C) 	Implementing new strategic initiatives principally involves employing managerial techniques to overcome resistance to change.

D) 	Executing strategy requires a team effort which entails that every manager think through the answer to "What does my area have to do to implement its part of the strategic plan, and what should I do to get these things accomplished effectively and efficiently?"

E) 	Implementing and executing strategy is primarily an operations-driven activity revolving around the management of people and business processes.

Accepted Answer

The challenge of successfully implementing new strategic initiatives goes well beyond managerial adeptness in overcoming resistance to change. What really makes executing strategy a tougher, more time-consuming management challenge than crafting strategy are the wide array of managerial activities that must be attended to, the many ways to put new strategic initiatives in place and keep things moving, and the number of bedeviling issues that always crop up and have to be resolved.

Question 20

The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves:
A) generalized activities that will underscore the particulars of the company's situation.
B) some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies, or that works for all types of managers.
C) a set of unimportant managerial tasks that must be covered no matter what the circumstances.
D) senior management's judgment about how to proceed in light of prevailing circumstances.
E) a high-end differentiation strategy for proficient implementation and execution.

Accepted Answer

There's no definitive managerial recipe for successful strategy execution that cuts across all company situations and all strategies or that works for all managers. Rather, the specific actions required to execute a strategy-the "to-do list" that constitutes management's action agenda-always represent management's judgment about how best to proceed in light of prevailing circumstances.

Quiz 10: Building an Organization Capable of Good Strategy Execution

Building an organization capable of good strategy execution entails:

The most important leadership trait in the strategy execution process is:

Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT:

The managerial approach to implementing and executing a strategy should always:

What makes the managerial task of executing strategy so challenging and demanding is:

The principal managerial components of the strategy execution process include:

Implementing and executing a company's strategy:

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

When strategies fail,it is often because of:

What does a good strategy execution require?

While ultimate responsibility for implementing and executing strategy falls upon the shoulders of senior executives:

The three components of building a capable organization are:

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Which of the following is NOT among the principal managerial components of the strategy execution process?

Which of the following statements about implementing and executing a new strategy is true?

Ultimate responsibility for seeing that a strategy is executed successfully primarily falls upon the shoulders of:

The two best signs of good strategy execution are whether:

In formulating an action agenda to implement and execute a new or different strategy,the place for managers to begin is with:

Which of the following statements falsely characterizes the managerial task of executing strategy?

The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves: