STRATEGY IMPLEMENTATION

Sapna
Module 4

CONCEPT OF SI
SI refers to various activities involved in executing the strategies of an organization Features of Strategy implementation are as follows:

Action oriented- implies that a strategy should be actionable

Varied Skills- implies that SI involves wide ranging skills Wide involvement- means that SI involves participation of the Top, middle & lower level management Wide Scope- involves a range of managerial & administrative activities

CONNECTION B/W SI & S F O R M U L AT I O N ( S F )

SF is mainly entrepreneurial & based on decision making, whereas SI is primarily administrative & action oriented There is a 2 way connection b/w SI & SF - Forward Linkage- impact of formulation on implementation - Backward linkage- impact of implementation on formulation Generally an organization tries to formulate the strategies that can

be easily implemented

DIFFERENCE B/W SI & SF

SF 1. Involves S planning about organizational goals 2. Intellectual process 3. Requires analytical skills SI 1. Involves the execution of S Planning 2. Operational process 3. Requires motivational & leadership skills

4. Involves co-ordination among Top Management

4. Involves co-ordination among top, middle & lower management

PROCESS OF SI
Activating Strategies- S is activated by dividing the S into plans, programs, projects, policies, procedures & rules & regulation Managing change- Change is an essential element , since every organization has deal with the dynamic forces present in the business environment Achieving effectiveness- refers to achieving the organizational effectiveness

PROJECT IMPLEMENTATION
PI is done through Project management that is defined as the functional discipline of management that involves planning, organizing, leading & controlling activities

Process of Project management consists ofConception phase- different ideas are noted down Definition phase- develops the idea generated in the 1st phase Planning & organising phase- this phase also starts immediately after 1st stage

PROJECT IMPLEMENTATION
- Execution phase- implementation phase, here final output is produced & presented to customers for acceptance - Project clean-up phase- termination phase or post completion evaluation phase. It is the phase of formal closure of the project.

P RO C E D U R A L I M P L E M E N TAT I O N
Procedures give an framework to an organization to implement strategies Plans, projects & programs of the organization come under the procedural framework, which consists of various legislative enactments & administrative orders laid down by the government. Formation of an organization- companies act 1956 Licensing proceduresSEBI requirements MRTP requirements

Foreign collaboration procedures

Import export requirements

P RO C E D U R A L I M P L E M E N TAT I O N
- copyrights, patents & trademarks - Labor legislations - Environmental protection & pollution control requirements - Consumer protection requirements

RESOURCE ALLOCATION
It is defined as the allocation/ division of resources that are used in the implementation of S in the organization This is done by the process called Budgeting, which helps in matching the

resource availability with the resource needs to plan the total expenditure. Resource
allocation through budgeting involves 3 approachesTop down approachBottom up approach- participative environment

Strategic approach- mix of above two

ORGANIZATION STRUCTURE
OS refers to design or organization that determines task allocation, coordination, supervision & aims to achieve the goals of the organization Aligning OS with the S is called Structural implementation Structural implementation is very important for an organization, as organizational strategies cannot be implemented in the absence of appropriate OS

TYPES OF OS
Entrepreneurial structure- owned & managed by one person Functional structure- decision making authority to different functional areas Divisional structure- division of work according to different product lines,

customers or geography
Strategic business Units- created when organizations face difficulty in managing different divisions Matrix structure- for specific projects Customer based structure Virtual organizations

B E H AV I O U R A L I M P L E M E N TAT I O N
Deals with the behavioural aspect of employees, which plays an important role in SI A separate field called OB analyses how individuals & group acts in an organization Factors like culture, politics & values, ethics etc. all effect the overall behavioural implementation in an organization

CORPORATE CULTURE & SI

Sum of values, customs & traditions of an organization Weak & strong corporate culture affect the organizations ability to perform S Management Types of Corporate culture are- Strong culture- it shares the core values deeply & extensively - Dominant culture- mini or small cultures within an organization

C O R P O R AT E P O L I T I C S & P OW E R
Organizational politics can be defined as the activities that are not included in the job profile/ JD of an employee Here employee try to increase their power & pursue goals that favour

their individual & group interest

Generally its the political behaviour of an employee that determines the success or failure of an organization It is essential to maintain balance b/w power & politics for the smooth

functioning of an organization

P E R S O N A L VA LU E S & E T H I C S IN SI
Personal values determines the difference b/w right & wrong. The types of personal values areInstrumental values- imply values that are used to achieve the other

organizational goals
Terminal Values- results that an individual desires to achieve

Ethics examines good & bad practices within the framework of a moral duty Organization can adopt values & ethics by controlling its fraudulent activities to

get competitive edge in the market

L E A D E R S H I P I M P L E M E N TAT I O N
LI helps an organization in attaining goals. There are 4 types of leaders- Corporate level leaders- Top management - Business level leaders- SBUs or division level leaders, VP & GM - Functional level leaders- they take the function of implementation of strategies within the functional areas

STYLES OF LEADERSHIP
Authority style- here leaders use authority to get the task done from their subordinates. They are of three types- Autocratic leadership style- they believe inn power, they gives order & control subordinates through rewards & punishments - Democratic leadership style- believes in communication & participation of subordinates in decision making

- Free rein leadership style- they do not use power

STYLES OF LEADERSHIP
Behaviour style- here leaders posses different attitudes. Robert Blake & Jane Mouton developed the behavioural model called Managerial grid model, it includes following 5 styles-

Impoverished style- they have little concern for people & production
Country club- they give more emphasis on serving the needs of the people Team leadership style- they use control & domination on his/her subordinates Middle of the road leadership style- involves compromise by the leaders

between the organizational goals & subordinates needs

FUNCTIONAL & OPERATIONAL IMPLEMENT

Implementation of functional strategies includesPlans which are formulated at business & corporate levels Suitable functional strategy for each functional area Allocation of required resources for proper functioning among themselves- Vertical Fit There has to be equivalence & harmonization among different activities taking place at the same level- Horizontal fit

S operate at different levels & thus needs resemblance & coordination

IMPLEMENTING FUNCTIONAL PLANS & POLICIES

A plan is a course of action; a policy acts as a guidelines for action Functional plans are formulated at 2 levelsa) Formal- in large organizations, plans & policies published in manual document b) Informal- small organization, plans may or may not in written form Organizational functional areas- marketing, finance, operations etc., these all have their own plans & policies formulated by their functional managers

IMPLEMENTING- FINANCIAL PLANS

The organizations financial plans & policies formulate the financial decision like,- Sources of funds - Usage of funds - Management of funds

IMPLEMENTING- MARKETING PLANS

Game plans by which marketing objectives are achieved- Product - Price - Place/ distribution channels - Promotion

IMPLEMENTINGO P E R AT I O N A L P L A N S
It deals with production systems, operational planning & control & R&D They affect the capability of an organization They also relates to efficient use of resources

IMPLEMENTING- PERSONNEL PLANS

These plans deals with employees, HRP, T & D, Compensation, Industrial relations & appraisal etc. They also include union management, employee satisfaction & collective bargaining issues

IMPLEMENTING- IT PLANS
Process of planning, acquiring & deploying IT resources in the organization It refers to establishment of entire Hardware & Software systems related with IT. This also ensures successful implementation of business S

I N T E G R AT I N G F U N C T I O N A L PLANS
5 points that must be considered areInternal Consistency requirement Application with the development of Organizational capability Make opportunity cost decisions- selecting most preferred alternative Determining the strength of connections between different functional areas

Implementation timing of plans policies

I N T E G R AT I N G F U N C T I O N A L PLANS
5 types of mechanisms that may be used for integration of functional plans- Info systems - Task forces- for solving a precise issue - Permanent integrator permanent departments or positions that serve the purpose of cross functional coordination

- Teams- permanent teams that works with permanent integrator

OPERATIONAL IMPLEMENT
Final aspect of SI It deals with the fundamentals of the S & refers to the time for action, it is the phase that helps in completion of most of the Tangible work

Operational effectiveness is achieved byProductivity- output for a given amount of input Processes People

Pace

Questions???