NOTE: Because there is considerable overlap between this course (Strategy Execution, #1312) and the spring course Systems for Scaling Ventures (SSV, #1789), it is recommended that students not take both of them.

Educational Objectives

Having a good strategy is not enough to succeed in today’s competitive environment. More than 50% of start-ups fail within five years and more than half of the companies on the S&P 500 in 2000 no longer exist. Many of these firms had sound strategies but were unable to execute them effectively. With changing customer preferences, increasing global competition, disruptive technologies, heightened employee expectations, and unpredictable macroeconomic shocks, execution is more critical (and difficult) than ever.

Course Content

Instead of focusing on how to formulate a great business strategy, this course focuses on how to implement that strategy. In other words, this course takes strategy as given and teaches what you need to know to win in highly competitive markets. The more competitive your marketplace—with competitors trying to steal your customers, attract your best people, and leapfrog you in technology—the more valuable this course will be to you.

Using fundamental building blocks based on accountability systems and structures, we will teach you how to make the tough choices needed to ensure successful strategy execution. The course is divided into seven modules:

1. Allocating resources to customers: You will learn how to choose a primary customer and allocate resources to market-facing and operating core units in a way that delivers maximum value to those customers.
2. Prioritizing core values: You will learn how and when to create core values and beliefs systems to prioritize the needs of customers, employees, and shareholders.
3. Tracking performance goals: You will learn how to select a small number of critical performance variables and design management control systems to track progress in achieving key goals.
4. Controlling strategic risk: You will learn how to identify various types of internal and external risks and implement internal controls and boundary systems to protect your business franchise.
5. Spurring innovation: You will learn how to design systems and structures to push people out of their comfort zone, foster creative tension, and drive innovation and entrepreneurial behavior.
6. Building commitment: You will learn how to use systems and structures to build an organization culture that motivates people to help others achieve shared goals.
7. Adapting to change: You will learn how to identify the strategic uncertainties that could upend your strategy, build early warning systems, and adapt current strategies to changing competitive conditions.

Concepts will be illustrated using case studies in both early-stage and mature firms in a variety of industries including consulting, consumer products, education, financial services, healthcare, hospitality, military, publishing, retail, robotics, software development, and space exploration.

By the end of the course, students will have gained the practical knowledge and confidence to execute strategy, measure performance, deliver results, and win in any competitive market.

Grading

The course grade will comprise class participation (40%), graded hand-ins and peer feedback (20%), and a final paper (40%).

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