Strategy Implementation

Strategy Implementation
Glueck-Strategy implementation is the assignment and reassignment of corporate and SBU leaders to match the strategy Steiner-The implementation of policies and strategies is concerned with the design and management of systems to achieve the best integration of people, structures, processes and resources, in reaching the organizational purpose.

Characteristics of strategy implementation

Action orientation Comprehensive in scope Demanding varied skills Wide-ranging involvement Integrated process

(c) Dr. Azhar Kazmi 2008

Barriers to strategy implementation and overcoming them

An inability to manage change Poor or vague strategy Not having guidelines or a model to guide implementation efforts Poor or inadequate information sharing Unclear responsibility and accountability Working against the organizational power structure Overcoming barriers
Adopting a clear model of strategy implementation Effective management of change in complex situations

(c) Dr. Azhar Kazmi 2008

Interrelationship between formulation and implementation of strategy

Two types of linkages: - Forward linkage: deals with the impact of strategy formulation on implementation, many changes need to be undertaken to operationalize the formulated strategies. - Backward linkage: deals with the impact of implementation on formulation. Eg. Strategic choice is affected by implementation of past strategies.

Two-way linkage between formulation and implementation of strategy

STRATEGY FORMULATION
(THOUGHT)

STRATEGY IMPLEMENTATION
(ACTION)

(c) Dr. Azhar Kazmi 2008

Mintzbergs conception of the type of strategies

Formulated strategy Implemented strategy

Intended strategy

Deliberate strategy

Realised strategy

Unrealised strategy

Emergent strategy

Based on H. Mintzberg: Pattern in strategy formation Management Science May 1978; 24, 9, p. 945.

(c) Dr. Azhar Kazmi 2008

Elements of strategy implementation

Two interrelated task systems: - Differentiation: segmentation or dividing up the total strategic plan into component parts. - Integration: management should coordinate and integrate diverse activities and roles into an unified and cohesive approach.

Major themes in strategy implementation

Activating strategies Managing change Achieving effectiveness

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A model of strategy implementation

ACTIVATING STRATEGIES MANAGING CHANGE ACHIEVING EFFECTIVENESS

--------------------------------------------------------------------------------------------PROJECT IMPLEMENTATION STRUCTURAL IMPLEMENTATION PROCEDURAL IMPLEMENTATION LEADERSHIP IMPLEMENTATION BEHAVIOURAL IMPLEMENTATION RESOURCE ALLOCATION OPERATIONAL IMPLEMENTATION FUNCTIONAL IMPLEMENTATION

STRATEGIC PLAN

EVALUATION & CONTROL

FEEDBACK

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Theme of activating strategies: The pyramid of strategy activation

STRATEGY PLANS PROGRAMMES PROJECTS BUDGETS POLICIES, PROCEDURES, RULES AND REGULATIONS

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Theme of managing change

Three issues involved: Degree of change Timing of change Activity areas of change

Theme of achieving effectiveness

Four models of organizational effectiveness: Goal model Resource based model Internal process model Conflicting values model Method of achieving effectiveness covers wide managerial functions.

Project implementation
A project is the basic unit of a programme. A programme is a portfolio of projects that may be interrelated and interdependent in complex ways. Several programmes are required to implement a plan. A number of plans are involved in implementing a strategy.

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The process of project management

Initiating Planning Executing Controlling Closing

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Strategy implementation through project management

STRATEGIC MANAGEMENT PROCESS

STRATEGY IMPLEMENTATION

STRATEGY EVALUATION AND CONTROL

PROJECT OBJECTIVES

CONTROL MEASURES

INITIATING

PLANNING

EXECUTING

CONTROLLING

CLOSING

PROJECT MANAGEMENT PROCESS

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Procedural implementation

Regulatory mechanisms in India

Formation of a company Licensing procedures Securities and Exchange Board of India (SEBI) requirements Monopolies and Restrictive Trade Practices (MRTP) requirements Foreign collaboration procedures Import and export requirements Patenting and trade marks requirements Labour legislation requirements Environmental protection and pollution control requirements Consumer protection requirements Incentives and facilities benefits

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Procedural implementation in action

Strategists can try to conform to the regulations,

confront the regulations by informed criticism and

lobbying and public relations or work with the government to improve the regulatory framework. At the same time they can adopt an 'existentialist' view and continually look for opportunities within the

business environment.

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Resource allocation
Resource allocation deals with the procurement, commitment, and distribution of financial, human, informational, and physical resources to strategic tasks for the achievement of organisational objectives.
Strategic budgeting: Top down approach, bottom up approach Aligning resource allocation to strategy: Challengesmisallocation of resources, trade-offs, focus on objectives, clear strategic intent Factors affecting resource allocation: objectives of the org., preference of dominant strategies, internal politics, external influences Difficulties in resource allocation: scarcity of resources, restrictions on generating resources, overstatement of needs, tendency to imitate competitors.
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Approaches to resource allocation

Using analytical conceptual models Eg.: BCG Growth share matrix Product life system of budgeting Capital budgeting Performance budgeting Zero-based budgeting Strategic budgeting

Making of a strategic budget

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