How does strategy execution change the governance process?
Anyone interested in execution has to go through a number of steps. Some of them could lead to a change in governance structure. For example, in order to execute a strategy, you have to clearly define the strategy. Why? Strategy has implications for execution. If I create a strategy at the business level to gain more market share and it works over time, then I gain power over my suppliers, and my buyers. The power translates into an ability to get things done. I can execute a lot easier if I have market power, and if I have large scale. I worry about strategy first. I worry about imitation. If I create the strategy that others can imitate very quickly, I’m not going to execute it successfully because others can imitate what I do very fast. I’m not going to gain an advantage. I want to focus on other things. For example, I want to look at capabilities and resources to support the strategy, and organizational structure and coordination. I have to worry about the interdependence, if there
