Value adding manager
Implementation exercise
The final step using the co-alignment model is to develop an implementation plan that can be translated into a business plan. This means providing assurances to all stakeholders that the environment has been scanned, competitive methods and core competencies identified, and resources positioned to get the job done. Implied in this effort is that the cash flow worksheets for each competitive method are now combined into one worksheet for the firm’s coming fiscal period. It requires ownership of each competitive method by someone in management who will oversee its development, delivery, and evaluation.
Upon completion of this exercise the learner shall possess a comprehensive understanding of the co-alignment principle by matching the concepts of environmental opportunities with competitive methods and core competencies and how those competencies are aligned with the competitive methods the firm employs to achieve sustainable competitive advantage. In addition, the learner should be capable of performing a critical analysis of how well aligned the firm is in order to deliver the competitive methods that have been identified as the greatest value producers. The process of developing an operational plan and budget will be accomplished along with the identification of performance criteria and the timing of the performance evaluation effort. This will be accomplished using the attached forms.
The learner is directed toward chapters seven, eight and eleven in Strategic Management in the Hospitality Industry, 2nd Edition, by Olsen, West and Tse and published by John Wiley and Sons. Additional resources include:
Barney, J. & Griffin, T. (1992), The Management of Organizations: Strategy, Structure, Behavior, Boston: Houghton Mifflin Company.
Deal, T. E. & Kennedy, A. A., (1982). Corporate Cultures. Reading, Massachusetts: Addison-Wesley Publishing Co.
Galbraith, J. R. & Kazanjian, R. K., (1986). Strategy Implementation, Structure, Systems, and Process. New York: West Publishing Company.
Goold, M. & Quinn, J. J., (1990). The paradox of strategic controls, Strategic Management Journal, 11, 43-57.
Greenberg, J. & Liebman, M., (1990). Incentives: The missing link in strategic performance,The Journal of Business Strategy, 11(4), 8-11.
Hambrick, D. C. & Cannella, A. A., (1989). Strategy implementation as substance and selling, The Academy of Management Executive, III(4), 278-285.
Hambrick, D. C. & Snow, C. C., (1989). Strategic reward systems, In C. C. Snow (Ed.), Strategy, Organization Design, and Human Resource Management. Greenwich, Connecticut: JAI Press Inc.
Hax, A. C. & Majluf, N. S., (1984). Strategic Management: An Integrative Perspective. Englewood Cliffs, NJ: Prentice-Hall, Inc.
Hrebiniak, L. G. & Joyce, W. F., (1984). Implementing Strategy. New York: Macmillan Publishing Company.
Lorange, P., (Ed.), (1982). Implementation of Strategic Planning. Englewood Cliffs, NJ: Prentice-Hall, Inc.
Lorange, P. & Murphy, D., (1984). Considerations in implementing strategic control,Journal of Business Strategy, 4(4), 27-35.
Mintzberg, H., (1975). The manager's job: Folklore and fact. Harvard Business Review, 53(4), 49-61.
Nutt, P. C., (1987). Identifying and appraising how managers install strategy. Strategic Management Journal, 8, 1-14.
Ouchi, W. G., (1977). The relationship between organizational structure and organizational control, Administrative Science Quarterly, 22, 95-113.
Pearce, J. A. & Robinson, R. B. Jr., (1994). Strategic Management. Homewood, IL: Richard D. Irwin, Inc.
Schmelzer, C.D., (1992). A case study investigation of strategy implementation in three multi-unit restaurant firms. Doctoral Dissertation, Virginia Polytechnic Institute and State University.
Tushman, M. & Nadler, D., (1988). Strategic Organization Design. Glenview, IL: Scott, Foresman and Company.
West, J. J. & Olsen, M. D. (1988). Tactics in foodservice: are high performers different? Cornell Hotel and Restaurant Administration Quarterly, 30(1), 68-71.
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Value adding manager
Implementation exercise
Competitive Methods / Resources and Capabilities NeededNeded Needed
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Value adding manager
Implementation exercise
Figure 7-12Implementation Planner
The Relationship Among Environment, Domain and Objectives
Indicate the environmental event under consideration.
Indicate what competitive method(s) you are employing to take advantage of the opportunities presented by this environmental event.
Clearly describe how the competitive method(s) relate to your domain and mission statement.
List the products and services that make up this competitive method. / Describe the performance standard for each product and service in the context of your domain and mission statement.
State objectives necessary to bring products and services into alignment with the performance standards required to achieve competitive advantage
Figure 7-13
Implementation Planning and Execution FormIdentify the environmental event affecting a competitive method.
Describe the competitive method and the products and services making it up.
List the objectives to be accomplished regarding this competitive method.
Provide a detailed list of steps necessary to accomplish the objectives. / Identify the human, capital, and material resources needed at each step. / Provide measurable, time oriented measures for each step.
Identify the date that the objective must be completed.
Indicate the person(s) responsible and accountable for completing the objective.
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Value adding manager
Implementation exercise
Period 1 / Period 2 / Period 3 / Period 4 / Period 5 / Period 6 / Period 7 / Period 8 / Period 9 / Period 10Change in Revenues
less change in operating expenses
equals - change in EBITDA
less change in depreciation and amortization
equals - change in EBIT
less change in interest expenses
equals change in earnings before
taxes
less change in taxes
equals change in net income
plus change in depreciation and amortization
equals change in cash flow from operations
less working capital changes
equals changes in operational cash
flows to equity
Discount rate for project
Present value of cash flows
Competitive method
/ Person responsible / Performance measurement reporting timetable1