Co-aligning Strategies with Management Structures and Systems

Abstract

There are key differences between higher and lower performing firms in regard to their approaches to execution: (1) what to centralize or decentralize; (2) recognizing external barriers to execution; (3) knowing the internal barriers to implementation; (4) investing in local human capital; and (5) creating a performance-based corporate culture. In all, higher performing firms are more likely to delegate authority to local management whom they regard as having good ability and competence. Lower performing firms do not consider their local management in the same regard. Higher performing firms see external barriers that limit both demand and supply. Lower performing firms see regulation and poor infrastructure in general as barriers. Finally, higher performing firms regard an unsupportive local culture as a key impediment to execution.