Improving Performance: How to Manage the White Space on the Organization Chart

7.4. Linking Performance to Strategy: An Example

Baldwin Drug Stores, Inc. (a fictional company), is a retail pharmacy and sundries chain. To succeed in its highly competitive industry, Baldwin's executives realize that they need to establish a strategy that clearly guides day-to-day performance. They use the eleven questions to be sure that all of the bases are covered. We can summarize the results of top management's strategy formulation decisions:

1. They establish a list of value statements. Among them are:

   • Baldwin will sell only the highest-quality products.

   • Baldwin employees will go the extra mile to provide service that meets or exceeds customers' expectations.

   • Because employees are the best source of ideas, the business will be run in a participative, ...