Strategic Management process does not end upon deciding what strategy or strategies to pursue.

There must be a translation of strategic thought into strategic action.

The Nature of Strategy Implementation

Strategy formulation success does not guarantee successful strategy implementation. It is always
harder doing something (strategy implementation) than saying you are going to do it (strategy
formulation). They are way more different in each other.

Management Perspectives

The transitioning of strategy formulation to strategy implementation also requires a shift of

responsibility from strategist to divisional and functional managers. Problems may occur when the shift
of responsibility come as a surprise to middle and lower level managers. The role of managers and
employees in strategy implementation should be build upon the involvement on strategy formulation
activities.

Annual Objectives

Building up annual objectives serves as guidelines for action, directing and channeling efforts and
activities of organization members. It should be measurable, consistent, reasonable, challenging, clear
communicated throughout the organization, characterized by an appropriate time dimension and
accompanied by commensurate rewards and sanctions. It also requires to be compatible with
employees' and managers' values and supported by clearly stated policies.

This is essential for strategy implementation because:

•Represent the basis for allocating resources

•Are a primary mechanism for evaluating managers

•Are the major instrument for monitoring progress toward achieving long term objectives

•Establish organizational, divisional and departamental priorities.

Policies

It refers to specific guidelines, methods, procedures, rules, forms and administrative practices
established to support and encourage work toward stated goals. They provide a basis for management
control, allow coordination across organizational units and reduce the amount of time managers spend
making decisions. It also clarify what work is to be done and be done by whom and promotes delegation
of decision making to appropriate managerial levels where various problems usually rise.

Table 7-3 A Hierarchy of Policies

•Company Strategy

-Supporting Policies

•Divisional Objective

-Supporting Policies

•Production Department Objective

-Supporting Policies