Note on implementing Strategy

The purpose of this note is to provide a framework for addressing the problem of implementing strategy. The 3 key focus areas are: 1) Define the key implementation tasks 2) Review of approaches the managers can adopt to implement these tasks 3) Identify the key skills required to implement the strategy

Implementation task
This section focuses on the fits that the general manager has to focus to make sure that the organization functions in a way that facilitates the implementation of the strategic roadmap that has been formulated.

Functional Fits
Engineering

Manufacturing

Key Functions

Marketing

Finance

Functional policies should be aligned with the strategic objectives of the business Ingrained behaviour of each function might not be always in line with the strategic objectives Inducing change in the behaviour of each function to suit the business strategy is one of the key steps in successful implementation of strategy

Eg: Marketing departments incentive structures are not favourable for the sales staff to act in line with the strategic objectives of the business.( example is mentioned in the case)

Administrative fits
For successful implementation of strategy, the management systems and processes must be consistent with and reinforce the strategy itself. Infact, they are considered the most importance source of influence a general manager in guiding his organization. 9 key major system and processes: 1. 2. 3. 4. 5. 6. 7. 8. 9. Organization structure Information systems Incentive systems Control systems Strategic planning systems Organizational processes Management selection and development Corporate culture Leadership style

Implementation plan
It is essential that we identify the functional and administrative fits and chalk out 2 or 3 critical fits that are most essential for the strategic implementation to be successful.Once these key areas are identified, plans for each of the areas need to be developed with a focus on : 1) Addressing key HR and organizational issues likely to arise 2) Present a sequence of actions to be taken over time 3) Create a set of alternative actions that can be implemented if events do not unfold ar per plan

Implementation plan

Degree of involvement and direction

High

Political Manager

Entrepreneurial Manager

Low

Administrative Manager

People and organization Shaker

High

Low

Degree of Attention to administrative fits

Reasons for Misfit

Changing business environment and thus strategy is constantly evolving Cost of correcting the misfits in terms of time and money far greater than the benefits accrued from making the change

Key implementation skills

Ability to identify the right balance between the technical, administrative and interpersonal components involved in strategy implementation Ability to identify if the decision making should be solitary or a collaborative process Ability to identify group of individuals most affected by the strategy implemented and take proactive steps to mitigate the adverse impact Timing: Taking the right actions at the right time Setting achievable objectives and being agile enough to change objectives based on changing business scenarios Leadership skills