ix we describe how companies can establish strong linkages from strategy to operations so that employees' everyday operational activities will support strategic objectives.

p.1 Operational effectiveness and strategy are both essential to superior performance... A visionary strategy that is not linked to excellent operational and governance processes cannot be implemented. Conversely, operational excellence may lower costs, improve quality, and reduce process and lead times; but without a strategy's vision and guidance, a company is not likely to enjoy sustainable success from its operational improvements alone.

p.2 MVCI [Marriott Vacation Club International] enjoyed rapid and substantial gains - what we refer to as the execution premium - by linking the planning of strategy to its operational execution.

p.3 In a 2006 global survey, The Monitor Group asked senior executives about their priorities. Number 1, by a clear margin, was strategy execution.

p.9 1. What business are we in, and why? (Clarify your mission, values, and vision)... 2. What are the key issues? (Conduct strategic analysis)... 3. How can we best compete? (Formulate the strategy)... What key processes create the differentiation in the strategy?

p.31 Many of the building blocks of effective strategy execution already exist. Strategic visioning and strategy formulation tools have been developed. Strategy planning tools, including strategy maps and Balanced Scorecards, have been available for use by companies for more than ten years.

p.54 most successful companies build strategies around core market niches in which they have expertise, credibility, and a deep knowledge of customer preferences.

p.63 To develop a new, transformational strategy, a company might start by reexamining and changing major components of the existing strategy, including the long-term mission, values, vision, and strategic themes, as well as financial (mission) expectations, customer niche and value proposition, key strategic processes, and enabling human, information, and organizational capital capabilities.

p.66 given that all strategies have only a finite effective life - typically five years or less - the executive team periodically draws on a wide range of strategy formulation tools to develop a transformational strategy that will guide the company forward for the next several years.

p.69 The process to plan the strategy... converts statements of strategic direction into specific objectives, measures, targets, initiatives, and budgets that guide actions and align the organization for effective strategy execution.

p.72 Strategic themes... generally deliver their benefits over different time periods.

p.84 Lord Kelvin: "I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind."

p.92 The cause-and-effect links in Figure 3-14 provide a bottom-up, clear, logical test of the strategy's feasibility.

p.151

• Knowledge is what an individual knows, an understanding gained through education and experience. It represents mastery of a field of study, a professional or technical discipline, or a focused area of expertise.
• Skill is the knowledge of how to do something in a consistent and efficient manner, such as running a complex machine, performing an audit, developing a customer's financial plan, facilitating a meeting, or executing a sales call.
• Values are the behaviors, traits, and motivations that people bring to the tasks they perform. Values can be described as customer focused, pragmatic, innovative, or goal oriented.