STRATEGY IMPLEMENTATION

Introduction

Strategy implementation is a process by which strategies and policies are put into action through
development of programs, budgets and procedures.

Resources are allocated

Structure and systems are designed

Functional plans are developed for operational effectiveness

Strategies-----Plans------Programmes----Projects---Budget allocation

INTERLINK BETWEEN STRATEGY FORMULATION AND STRATEGY IMPLEMENTATION

Strategy Formulation Strategy Implementation

Entrepreneurial activity based on strategic Administrative activity based on operational

decisions decision making

Focuses on Effectiveness Focuses on effciency

Positioning forces before action Managing forces during actions

Intellectual process Operational process

Requires analytical skills Requires motivational and leadership and

operational skills.

ASPECTS OF STARTEGY IMPLEMENTATION

It basically involves three things

Who will carry out the strategic plan

What must be done

How will it be done

WHO

All functional areas will be involved

Normally functional heads and SBU heads will be involved

Type and number of people involved depends on size and structure of the organization.

WHAT
 Managers develop programmes, budgets and procedures to implement strategic plans

Programmes have a combination of objectives and action plans

They have to be SMART

Budgets

Procedures

Achieving synergies

HOW

It is not limited to formulation of programmes, budgets and procedures.

Some changes may be required

Structural

Behavioural

Functional

STRUCTURAL ASPECTS OF IMPLEMETATION

It is more than naming the people in hierarchy .

It is also to do with the tasks and sub tasks to implement the strategy.

Some questions that will arise are

Should activities be grouped together?

Should authority to take decisions be centralized or decentralized?

Should the organization have tall structure with many layers of managers?

Like product life cycle , the projects in strategic plans also will have

Introduction

Growth

Maturity

Decline

Stage 1
 Simple or entrepreneurial structurein case of small firms

Functional structure

Divisional structure

SBU structure

Advance type of Organizational structure

MATRIX---

o It has both vertical and horizontal flows of authority and communication.

Network/ Virtual Structure

o Where in a series of projects are linked in non-hierarchical cob-web like manner

o A virtual organization is defined as A temporary network of independent

companies , suppliers , customers are linked primarily by IT to share skills , access to
markets and costs.

o 90% of the orders to CISCO are without being touched by human hands.

BEHAVIOURAL ASPECTS OF IMPLEMENTATION

Corporate leadershipJack Welch

Corporate culturebeliefs and value systems of organizationsReliance vs Tatas

Corporate Politics

OPERATIONAL ASPECTS OF IMPLEMENTAION

Strategic operations at different levels

Corporate

Business

Functional

Functional strategies are derived from business strategies.

It provides specific objectives for specific functions

A key task of strategy implementation is to align the capabilities & activities of an organization with
its strategies

There has to be congruence and coordination among the different activities.