Strategic implementation

It is managerial exercise of implementing strategy. This requires .

a. b. c. d. e. f. g. h. Adding new departments Closing facilities Hiring employees Transferring managers Changing structure New financial budgets New employee benefits Change of advertising

Difference between formulation and implementation

Formulation It is positioning forces before action..
Focuses on effectiveness It is an intellectual process

implementation Managing forces during the action

It focuses on efficiency It is an operational process

Need good intuitive and analytical skills

It needs coordination among few individuals

Ti needs motivation and skills

It needs co-operation among many individuals.

Formulation and implementation mix and risk

SF
Sound

A
F/I

B
success

flawed

C
Weak

D
excellent

SI

Combination of effective and efficiency

Strategic management

effective efficient
Operational management

ineffective

thrive
survive

Die slowly

OM/SM

inefficient

Die quickly

Linkages in formulation and implementation

a. Forward linkages b.Backward linkages

Strategic formulation

Strategic implementation

Summary of elements of strategic management

Strategic analysis

Strategic choice

Strategic implementation

Strategic analysis

Strategic analysis

Company expectations

The environment

Resources and capabilities

Strategic choice

Strategic choice

Strategic evaluation and selection

Strategic options

Bases of strategic options

Strategic implementation

Strategic impleme ntation

Organisation structure and design

change

Resource allocation

Issues in strategic implementation

Activation strategies projects

change

Achieving effectiveness

Strategic plan

procedures

Structural Leadership behavioral

functional evalu ation operational

Resource allocation

Organisation structure
a. It is skeleton of a. roles and b. responsibilities of organization b. It reflects the a. tasks and b. departments c. It shows the administration and controls

Three components of structure

Reporting

departments

Communicati on and coordination

Structure are of two types

Structures

Vertical

horizontal

Features of vertical structure

a. b. c. d. e. f. Specialized tasks Hierarchy authority Rules and regulations Vertical communication Centralized decision making Emphasis on efficiency

Functional structure CEO

R&D
Finance
Strategic planning
Marketing

HRD

R&D

Finance

HR

marketing

Sales

Advantages of functional structure

a. b. c. d. e. f. Simple Inexpensive Promote specialization Encourages efficiency Rapid decision making Minimizes the need for elaborate control system

Divisional structure
Chief executive officer

Corporate finance General manager Division A Marketing

Human resource

Corporate legal General Manager Division B

Marketing
Human resource

Advantages of divisional structure

a. b. c. d. e. f. Delegation of authority Accountability Employee morale is high Career development and scope Local control of situations Leads to competitive climate

3. Strategic business unit

Chief executive officer

SBU 1
Div 1 Div 2 Div 3

SBU 2
Div 1 Div 2 Div 3

SBU 3
Div 1 Div 2 Div 3

What is SBU???

An Independent business unit Has its own mission Has is own competitors Has its won CEO Group of multi- businesses Has well defined tasks and roles

Matrix structure
This is a combination of function and product structures

It will have two superiors

This is most suitable for infrastructure industries

Matrix structure
Advantages are; a. More focus on projects b. Better control and performance c. Suitable for large scale firm with many projects of various varieites

Matrix structure
Chief executive officer
Finance Marketing
Human resource

Project manager Project manager Project manager

Functional expert

Net work structure: This is useful for an unstable environment, and for a company which has projects changing frequently
Advantages; Cost effective More flexible More apt for these days Outsourcing is more vibrant

Net work structure

Project A Function HR

Region B

CEO
Region A

Function FIN

Project B

Michael E porters Value chain analysis

Support Margin

infrastructure

Human resource management

Technology development

Procurement
Margin IL OP OL MKTG

After sales services

Primary

Leadership role SM
organization Envir.scanning Information system Management control

design
Strategic planning

leadership
Policy formulation Reward system

implementation
Feed back Management development

Responsibilties of a leader

a. Managing human capital b. Sustaining high performance c. Willing to take courageous decisions d. Feed back by face to face e. Delegation of duties

Types of leaders

a. Transactional leadership: a. People are motivated by carrot and stick policy.. b. Employee must do what the leader says.. c. Rewards and as well as punishment d. More of corrective actions

Types of leaders

b. Transformational leadership
He acts like a parent. He inspires people He shows passion towards work He encourages and recognizes the potential of people He motivates rather than corrections Creates learning atmosphere He attacks emotions

Five roles of a leadership

a. Monitoring the progress b. Promoting good culture c. Alert to opportunities d. Following ethical leadership e. Taking proactive decisions

Corporate culture
a. Where does it come from ????
a. b. c. d. e. f. g. Management practices Ethical standards Policies Relationships with agencies Traditions and communities Attitudes Pressures and support

Corporate culture
a. Response of an organisation
a. To ignore corporate culture b. To adopt strategy to culture

c. Change culture as per the need

d. Change strategy as per the culture

Corporate culture
a. Important things in culture

a. Specify new behavior b. Replace old culture c. Promote individuals who are good to every one d. Hire only those people who have positive attitude e. Visible awards f. Walk the talk g. Follow best practices

Strategic change

Steps to initiate change

a. Recognize the need for change

b. Create shared vision to manage change c. Institutionalize change

Kurt lewin change process

a. Unfreezing the situation

b. Introduce the change

c. Refreeze the change

H C kellman change methods

a. Compliance

b. Identification ( comparison)
c. internalisation

control
a. Operation control

b. Management control
c. Strategic control

Operational control
a. b. c. d. e. Stock control Production control Quality control Cost control Budgetary control

Management control
a. Integrating all the departments b. Controlling plans c. Controlling and checking resource mobilization

Strategic control
a. Whether strategy is implemented or not. b. Whether results are as per the plans or not

Types of strategic control

a. b. c. d. e. f. Premise control Strategic surveillance Special alert control Implementation control Mile stone reviews Monitoring thrust areas