ABSTRACT

Introduction Every new game strategy has to be executed well if its full potential is going to be realized. Executing a new game strategy involves organizing people to carry out the set of new game activities-it is about who works for whom, how to measure and reward performance, how information should flow in the organization, who to hire, what culture one would like to see develop and so on. For example, when Dell decided to pursue a build-to-order and direct sales strategy, it had to structure its organization to fit the new strategy, put in the right systems to measure and reward performance, hire the right people, and try to build the right culture. To perform all the activities that enabled it to provide relevant searches, and monetize them using a paid-listing revenue model, Google used an organizational structure that fit its informal tech culture, developed its own incentive systems, and hired the right type of technical and other personnel. Effectively, to execute its new game strategy successfully, a firm needs an organizational structure, systems, and people that reflect not only the strategy but also the environment in which it is being pursued. Strategy implementation is about the relationships among the strategy, the structure of the organization that must execute the strategy, the systems and processes that complement the structure, and the people that must carry out the tasks in the given environment. We explore some of these relationships using a strategy, structure, systems, people, and environment (S3PE) framework (Figure 7.1).1