PAN AFRICAN INSTITUTE FOR DEVELOPMENT

-WEST AFRICA (PAID-WA) BUEA

DEPARTMENT OF BUSINESS AND

MANAGEMENT STUDIES

LECTURE NOTES FOR COMPETITIVE

MANAGEMENT STRATEGIES

PROGRAMME: MBA MARKETING & STRATEGIC

MANAGEMENT

COURSE TITLE: COMPETITIVE MANAGEMENT STRATEGIES

COURSE CODE: STM713

TOTAL CREDITS: 3

BY
NGANG PEREZ (MAJOR 1)

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 WEEK 5:
SESSION 5/ CHAPTER 5 STRATEGY IMPLEMENTATION/EXECUTION

5.0 Brief Introduction:

The development of organizational strategy is a complex and demanding process, and leaders who
have devoted time, effort and resources to the selection of a strategy they believe will secure the
ongoing success of their company may feel they have reason to be confident about the future.
Nonetheless, their chosen strategy stands little chance of success unless it is acted on. Effective
implementation is critical to the success of organizational strategy.
If strategy is to be more than an expression of hopes and aspirations for the future, the practical
implications for organizational operations and activities must be thought through and put into
practice. Strategy implementation requires organizations to put initiatives in place which are
focused and realizable. A strategic focus should encourage an organization to develop disciplined
processes for feeding strategic initiatives across the organization in a meaningful, realistic and
achievable way.
The implementation or execution of strategy, however, is often neglected and its results are
frequently unpredictable. Problems encountered with the implementation of strategy often lie not
with any flaws in the strategy itself, but rather in a failure to implement it effectively. Such failures
can mean that strategic initiatives are only partially successful and lead to frustration as the hoped
for strategic benefits are not realized. Ultimately, they can result in the decline or even, failure of
the business as a whole.
5.1 Learning Objectives
By the end of this session, students should be able to:
• Understanding the rationale for implementation
• Apply the ‘7S’ framework of implementation
• Consider the role of internal marketing in strategy implementation

5.2 Definition of Key Terms

(a) Mckinsey ‘Seven s’ Model: The McKinsey 7S Model is a framework for organizational
effectiveness that postulates that there are seven internal factors (strategy, structure, systems,
shared values, style, staff and skills,) of an organization that need to be aligned and reinforced in
order for it to be successful.

(b) Internal Marketing: Internal marketing is the promotion of a company's objectives, products
and services to employees within the organization. The purpose is to increase employee
engagement with the company's goals and fostering brand advocacy.

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(c) Strategy: A strategy refers to a method or plan chosen to bring about a desired future (Pearce
and Robinson, 2007).

(d) Strategy Implementation: Implementation is the process that turns strategies and plans into
actions in order to accomplish strategic objectives and goals. Implementing your strategic plan is
as important, or even more important, than your strategy.
5.3 Main Content
Translating strategies into actionable processes in an ordered fashion is, however, not easy. The
setting of priorities and the development of plans may present organizations with formidable
management challenges. The effective execution of strategy can be impeded by many and varied
difficulties including; weak or inconsistent senior-level commitment, a lack of support from
managers and employees, cross-departmental conflicts, ambiguity in roles and responsibilities or
a lack of accountability.
In this last chapter of our study on the competitive strategic management strategies, we shall be
focusing on the following subtopic; the rationale for implementation, the ‘7S’ framework of
implementation and internal marketing.
5.3.1 What is a Strategy-Brief Overview?
We cannot implement what we don’t know. "If a man takes no thought about what is distant, he
will find sorrow near at hand. He who will not worry about what is far off will soon find something
worse than worry."—Confucius. Jim Skinner, CEO of McDonald’s, says, “We do so well because
our strategies have been so well planned out.” And let me say here that, just as a football team
needs a good game plan to have a chance for success, a company must have a good strategic plan
to compete successfully.

A strategy refers to a method or plan chosen to bring about a desired future (Pearce and Robinson,
2007). Johnson, Scholes, and Whittington (2005) describe strategy as the direction and scope of
an organization over the long term, which achieves advantages in an ever changing environment
through its configuration of resources and competencies with the aim of fulfilling stakeholder
expectations. Strategy which is a fundamental management tool in any organization is a multi-
dimensional concept that various authors have defined in different ways. It is the match between
an organization's resources and skills and the environmental opportunities as well as the risks it
faces and the purposes it wishes to accomplish.

For a firm to survive and prosper a strategy is important. Strategy helps a firm create a fit between
the organization and its environment in an effort to enable the organization adapt to its turbulent
environment. How the strategy is planned formulated and implemented is therefore important.
Strategy formulation and implementation is a continuous and systematic process for making
decisions about the organization future, developing the necessary procedures and operations to
achieve that future and determine how success is to be measured (Simiyu, 2013). It is a systematic
process through which an organization argues on and builds on commitment among stakeholders

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to priorities which are essential to its vision and mission and to be responsive to the ever-changing
operating environment (Barney, 1991).

5.3.1.1 The Concept of Strategy Implementation

Karami (2005) defines strategy implementation as the manner in which an organization should
develop, utilize, and amalgamate organizational structure, control systems, and culture to follow
strategies that lead to competitive advantage and a better performance.
On the other hand, strategy implementation is defined as the process that turns strategies and plans
into actions in order to accomplish strategic objectives (John, 2005). According to Kaplan (2005)
the concept of successful strategy implementation requires the input and cooperation of all players
in the company. Pearce and Robinson (2007) describe five critical variables that are usually
considered for the successful implementation of strategy. These are: tasks, people, structures,
technologies, and reward systems. Successful strategy implementation calls for effective design
and management in order for these factors to be integrated.

Johnson, Scholes and Whittington (2005) define strategy implementation as a process revolving
around ensuring that strategies are working in practice. It involves various activities including
structuring an organization to achieve successful performance, enabling success through the way
in which the separate resources of people, information, finance and technology support strategy
and manage change. Whereas enabling success is important, the extent to which new strategies are
built on and given resources is also crucial. To effectively manage change, there will be need to
understand how the context of an organization should influence the approach to change, different
roles of people managing change, styles that can be adopted to manage change and the levers by
which change can be effected.

To operationalize strategy, an organization needs to identify short term objectives, initiate specific
functional tactics, and communicate policies that empower people in the organization and design
effective rewards (Pearce and Robinson, 2007). Short term objectives are necessary for translating
long range plans into yearly targets. Functional tactics on the other hand translate business strategy
into daily activities for people to execute. Policies are empowerment tools that simplify decision
making by empowering operating managers and their subordinates. Effective rewards for the
desired action and results are a powerful way of getting things done in an organization. To realize
strategy, people in the organization that actually do the work of the business need guidance on
exactly what needs to be done today and tomorrow to make the strategies realistic. This is achieved
by action plans and short term objectives, providing much more specific guidance for what is to
be done, and a clear delineation of impending actions needed, which translate vision into action
(Pearce and Robinson, 2007). Another important aspect to be considered is who is responsible for
each action in the plan. Accountability is necessary in order to ensure that plans are acted upon
(Pearce and Robinson, 2007).

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5.3.2 Rationale for Implementation
A key maxim in business is: never acquire a business you don’t understand how to run. Equally,
it would be true to say: never adopt a strategy you don’t understand how to implement.

Here is the fundamental problem: People think of implementation as the tactical side of business,
something leaders delegate while they focus on the perceived “bigger” issues. This idea is
completely wrong, and I strongly condemn it as business lecturer. Managers need to understand
that implementation is not just tactics—it is a discipline and a system. It has to be built into a
company’s strategy, its goals, and its culture. And the leader of the organization must be deeply
engaged in it. He can delegate its substance but not its entirety. Hope you understand!

It can be said that, in terms of strategy, planning is the easy part. With a basic grounding in
business, most managers could sit down with a blank sheet of paper and develop an outline
business plan. This plan may contain all the correct ‘buzz-words’. Ideas relating to market product
development, corporate expansion, market penetration, segmentation, globalization and
competitive advantage would fill the page and a clear concise way forward formulated. However,
it is not that simple. While many managers could produce such an outline – how many could
implement it? Without implementation, the plan remains some ideas on a piece of paper. In fact
talk is cheap! You usually hear many people say, this year I shall do “this and that and etc” but
how many people actually did what they said they will do by the end of the same year. This is a
mere justification of the fact that it is easy to talk or set objectives than implementing them. Even
the government fails in this.
In the context of marketing the goal will be to achieve and/or maintain a marketing orientation:
success by a process of understanding and meeting customer need. It is doubtful if a marketing
strategy can be implemented where this orientation does not exist. Achieving such a view is
dependent on the quality of the organization’s management and their understanding of marketing
as a business philosophy.

It is reasonable to suggest that implementation is often a key determinant in the success or failure
of any strategic activity. Therefore, it should be an integral part of any marketing strategy. This
view is supported by examining the history of corporate strategy. Recent times have seen a move
away from corporate planning to the concept of strategic management. The main difference is that
strategic management addresses the issue of implementation.

5.3.3 The Blame Game in Strategy Implementation

When an organization appears not to be achieving its objectives who should be held responsible?
Who should pay for the losses? And who should be replaced? This is called the blame game. But
at times it not necessary the “who” rather it could be that the strategy was not even understood by
the employees.

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Critical actions move a strategic plan from a document that sits on the shelf to actions that drive
business growth. Sadly, the majority of companies who have strategic plans fail to implement
them. According to Fortune Magazine, nine out of ten organizations fail to implement their
strategic plan for many reasons:
60% of organizations don’t link strategy to budgeting
75% of organizations don’t link employee incentives to strategy
86% of business owners and managers spend less than one hour per month discussing strategy
95% of the typical workforce doesn’t understand their organization’s strategy.
It can be explained that when a company appears to be failing or breaking down the blame is often
placed on the CEO. It’s assumed that the strategy the CEO had in place was wrong and is to blame.
However, Bossidy (2002) stresses that often the strategy itself wasn’t wrong, but it wasn’t executed
effectively. And this is where things start to fall apart. To be successful, you need more than just
an excellent strategy, you also need excellent execution.

5.3.3.1 Execution as a Discipline

Bossidy (2002) identifies execution as ‘the missing link between aspirations and results’. He
believes that if you can learn how to connect the two, then success will follow. It’s important to
note that execution is a discipline and needs to be practiced by company leaders at all levels. It’s
not just a single component but it needs to be part of all strategies and goals. Without this,
companies will fail to deliver. It’s so important that a business leader knows how to execute well.
You can be a leader full of ideas and aspirations but without the ability to execute well, these ideas
will amount to nothing.
Bossidy (2002) identifies three key points to consider when thinking about execution:
1. Execution is a discipline, it’s a critical component of the strategy.
2. The business leader is responsible for encouraging and promoting execution.
3. Execution needs to be at the core of an organizations culture.

a. Discipline: “Tactics are central to execution, but execution is not tactics. Execution is
fundamental to strategy and has to shape it. No worthwhile strategy can be planned without taking
into account the organization’s ability to execute it.”

It is important that you as a business student be thinking of execution as a process. Always be

asking how and what, ask questions and remain accountable. Part of executing means that you
need to be in a position to understand the business environment and the organizations capabilities.
You need to be able to make assumptions and forecasts.
Execution requires the ability to link strategy + operations + people who are going to execute the
strategy. If these links aren’t clear and synchronized then the execution won’t be streamlined or

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effective. Therefore, Bossidy (2002) explains that there are three processes that are critical to
effective execution: the people process, the strategy process, and the operations process.

b. Business Leaders: Bossidy (2002) stresses the importance of having a great business
leader who is totally committed to the company and has a clear understanding of the business and
the current business environment. Without this commitment, a leader will not be in a position to
execute strategies.

Bossidy (2002) explains that business leaders have three key roles when it comes to the execution.
They must select the people who will also be managing the strategy and execution. The leader is
responsible for setting the strategic direction and ensuring that everyone involved understands the
goals. They are also in charge of coordinating operations. Bossidy stressed the importance of
having the leader do these jobs, they are not something that should be delegated to a lower
colleague.

”Leading for execution is not about micromanaging, or being “hands-on,” or disempowering

people. Rather, it’s about active involvement—doing the things leaders should be doing in the first
place.”

c. Culture: Bossidy (2002), like many other authors, stressed the importance of culture
within a business. Execution needs to be a core part of this culture, it needs to be the norm and
something that all employees understand. A leader who executes is someone who is constantly
analyzing the gap between the actual results and the desired results of any strategic plan. By
learning from this gap they can take their knowledge onto the next project and make significant
improvements.

Although Bossidy (2002) has pointed out that execution is the responsibility of senior leaders, it
doesn’t mean that everyone in any organization should not practice the skills. By learning the skills
of execution at any level, you will be making strides in advancing your career and eventually
reaching that senior leadership role.

It’s the combination of people as individuals and as a collective that aid execution. If you can get
everyone moving in the same direction and at the same time then successful execution is much
more likely. Any leader that lacks the discipline of execution, isn’t really a leader at all. They must
strive to be rigorous and consistent with their actions and encourage all team members to practice
the discipline of execution.

5.3.4 The Pillars of Strategy Execution

5.3.4.1 Pillar One: Seven Essential behaviors of a Leader
1. The first essential behavior a leader needs it to know the people and the business. It’s so
important that a leader is in touch with who they work with and the current business climate.

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2. Realism is the second behavior that a leader needs. Rather than avoiding the truth a great leader
needs to embrace the truth. And if this means identifying and acknowledging weaknesses then be
as real as possible.

3. Leaders need to be setting goals and priorities. It’s a good idea to focus on a few key goals
that the entire team can focus on. Don’t overcomplicate things with too many goals or priorities.

4. Being someone that always follows through is important for a leader, it means that people will
believe what you say and take you seriously. Never be someone who has a lot to say but never puts
anything into action.

5. The fifth behavior a leader must have is the ability to reward people. In doing so you encourage
your team to work hard and achieve results. Consider bonuses, pay rises or stocks.

6. Pass on knowledge, always be expanding other people’s capabilities. Someone that you work
with may be the leader one day so it’s important to share as much knowledge as possible.

7. Leaders need to be strong characters who know themselves well. Accepting and
acknowledging your own weaknesses and working to improve these is a great trait for a leader.
It’s important that leaders are self-aware, have humility and are authentic.

5.3.4.1 Pillar Two: Cultural Change

Bossidy (2002) explains that companies often focus on changing their strategy and structures. But
they fail to work on the people, the beliefs, and behaviors of those that they work with. He
emphasizes that cultural change is just as important (if not more) as strategy and structure.

Companies who make an effort to change their culture often fail because they don’t find the direct
link between culture and business outcomes. When the changes are so disconnected, they are not
likely to succeed. A business needs to understand the deep connections between company culture
and business outcomes.
”To change a business’s culture, you need a set of processes— social operating mechanisms. These
will change the beliefs and behavior of people in ways that are directly linked to bottom-line
results.”

a. Change people’s behavior: By changing people’s behaviors, you are having a direct
impact on the results they produce. So it’s important to ensure that the behavioral changes you
encourage, promote a positive outcome. Bossidy (2002) explains that the first step is to clearly
identify and communicate what results you are after. Then have a discussion about how those
results are going to be reached. And finally, you reward people when the goals are reached. In the
scenario where you and your team do not reach the end goal adequately, assess what happened and
ask how you can learn for next time. It’s all about creating a culture of getting things done.

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 b. Actions: Behaviors are the outcome of beliefs being turned into action. The results are a
direct result of the behaviors. When Bossidy (2009) talks about behavior, he’s not referring to it
on an individual level. He’s talking about collective behavior from groups in corporate settings.

”You cannot have an execution culture without robust dialogue. One that brings reality to the
surface through openness, candor, and informality. Robust dialogue makes an organization
effective in gathering information, understanding the information, and reshaping it to produce
decisions. It fosters creativity—most innovations and inventions are incubated through robust
dialogue. Ultimately, it creates a more competitive advantage and shareholder value.”

5.3.4.1 Pillar Three: The Job no Leader should Delegate

Bossidy (2009) explains that there is one job that no leader should ever delegate, and that’s
ensuring that the right people are in the right job. It’s absolutely critical that leaders fully
understand the importance of having the right people in the right roles. After all, it’s the people
that are responsible for generating the results and outcomes.

These are the people that make decisions every day and take actions towards either success or
failure. Consistently successful businesses always have a leader who is dedicated to selecting the
perfect people for the perfect roles. This isn’t a task that can be rushed or overlooked. It takes time
and dedication when selecting the right employees but it is always going to be worth it.

a. Development: Further to selecting the right people, one needs to emphasize the
importance of developing people within your company. Whether it be providing experiences,
learning opportunities, feedback, coaching education or training. It is critical that everyone is
always learning and developing. This encourages them to stay motivated, stay on track and better
themselves and their work.

”When you interview, you have to create a full picture of the person in your mind based on things
you can learn by probing them. Then you need to find out about their past and present
accomplishments, how they think, and what drives their ambitions.”

5.3.5 The Three Core Processes of Strategy Execution

Bossidy (2009) identified three processes that should be at the core of execution. The people
process, the strategy process, and the operation process. All are equally important.

5.3.5.1 The people process

This process is all about connecting the people to the strategy and operations. People are at the
core of any business, they are the ones that make decisions and create strategies. It’s absolutely
critical that the right people understand how to translate the strategy into an operational reality.
By having an effective people process you will achieve three different things:
1. You’ll be able to evaluate the people you work with.

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 1.1. A framework will be provided to identify and develop leadership.
1.2. You’ll establish a leadership pipeline.

It’s important to create the links between the people and the strategy and operations. Establishing
this link will encourage people to remain focused and motivated and will keep everyone
accountable.

a. Leaders and those that don’t perform: We’ve already discussed the idea of having a
leadership pipeline, this should be dedicated to continuous improvement for the staff. By
identifying milestones (both medium and long-term) you will have a system by which you can
assess your staff. By assessing how quickly and effectively they meet their milestones you will be
in a better position to understand who is better equipped to take on more responsibility. It’s
inevitable that processes like this will bring attention to the non-performers. In some cases, people
who have been promoted will be underperforming in their new role and need to be shifted back or
eliminated altogether. This can be extremely difficult but it’s a necessary part of a leader’s job.

When the right people are in the right jobs it will become evidently clear. The way everyone works
together seamlessly and delivers the desired results will be a clear identifier. ”It’s the consistency
of practice that develops expertise in appraising and choosing the right people. The people process
begins with one-on-one assessments, but when developed and practiced as a total process, it
becomes incredibly effective as an execution tool.”

5.3.5.2 The strategy process:

Strategy process is all about linking the people to operations. Strategies all have a common,
ground-level goal: to win over the customers and establish a competitive advantage. And this needs
to be done within current financial restraints. So Bossidy asked the question, if it’s so
straightforward, then why do strategies often fail? A strategic plan needs to be essentially an action
plan. This plan needs to be clear and easily understood. Business leaders need to be able to
understand what needs to be done in order to reach their goals. In order to establish an effective
action plan, you first need to define and understand the critical issue. All good strategies have a
critical issue that is the driving force behind it. Once the plan has been established, you should
develop it further by asking the following questions:
- How good are the assumptions upon which the plan hinges?
- What are the pluses and minuses of the alternatives?
- Do you have the organizational capability to execute the plan?
- What do you need to do in the near and medium terms to make the plan work in the long run?
- Can you adapt the plan to rapid changes in the business environment?
c. Strategic planning: It’s absolutely essential that your strategy not only addresses “the
what” but also “the how”. Without understanding how the strategy will be implemented you will

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face almost certain failure. Bossidy (2009) stresses the importance of defining six or less key
concepts and actions behind any strategy. By being able to pinpoint these key concepts leaders
will be able to understand and implement the strategy better. Even though a comprehensive
strategy may be a lengthy document, you should be able to define the overall essence of the strategy
on a single page.

”To be effective, a strategy has to be constructed and owned by those who will execute it, namely
the line people. Staff people can help by collecting data and using analytical tools, but the business
leaders must be in charge of developing the substance of the strategic plan.”
Questions and reviews
Some key things that a strategic plan must address:
- Understanding existing customers and markets.
- Identifying the best way to grow the business and make a profit.
- What are some obstacles preventing growth?
- Identify the competition.
- Is the strategy realistic?
- Does the strategy have realistic short term and long term milestones?
- Identify each milestone.
- Are there any issues that the business will face?
- How is the business going to make money as a result of this strategy?
- Is the profit going to be sustainable?
Once the strategy has been finalized, the next step is to review it. Here’s what you consider for a
review:
- Raise any questions you have.
- Revisit questions that have been asked previously. Have these been adequately answered?
- Does the team understand the competition completely?
- Does the organization have the capability to carry this strategy out?
- Is there a clearly defined focus?
- Has the right idea been chosen?
- Can you clearly identify the link between people and operations?

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5.3.5.3 The operation process
The operations process is all about linking the strategy to the people. As we’ve discussed, the
strategy is designed to identify where the business is headed and how it’s getting there. The people
process defines who is going to help the business get there. The final piece of the puzzle is the
operation process, designed to define the road ahead, the path the people can follow.

”It breaks long-term output into short-term targets. Meeting those here-and now targets forces
decisions to be made and integrated across the organization, both initially and in response to
changes in business conditions. It puts reality behind the numbers.”

An operating plan includes the path to reaching objectives including earnings, sales, margins, and
cash flows. It also includes product launches, marketing plans, sales plans, manufacturing plans,
and productivity plans. Everyone involved needs to be responsible for constructing the operations
process. This isn’t purely the job of a leader. Bossidy (2009) identifies synchronization as a critical
part of the execution process. It’s important to ensure that all parts of the organization have a
common understanding and know who is responsible for what. By having synchronization within
the organization you are much more likely to execute the strategy and reach your goals.

a. Defining the operations process: Setting realistic goals is the first step, and in order to do
that, you need to make sound assumptions. This is a critical step and every manager is encouraged
to spend time debating the assumptions. Once you’ve come to a clear conclusion, you can then
move on to set realistic goals. The next step in the process is the building of the operations plan.
You begin by setting targets. Followed by developing the action plans, short-term and long-term
objectives. Also, spend time developing contingency plans. Finally, everyone needs to agree on
the plan and ensure that it’s clear and straightforward. Managers are encourage to have follow-up
measures in place to ensure that everyone is staying on track and working on the right steps and
the right time. Keep accountability going throughout the process.

”Quarterly reviews help keep plans up to date and reinforce synchronization. They also give a
leader a good idea about which people are on top of their businesses, which ones aren’t, and what
the latter need to do.”

5.3.6 McKinsey 7s Model

McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal
elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if
they are effectively aligned and allow organization to achieve its objectives.

McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the
introduction, the model has been widely used by academics and practitioners and remains one of
the most popular strategic planning tools. It sought to present an emphasis on human resources
(Soft S), rather than the traditional mass production tangibles of capital, infrastructure and

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equipment, as a key to higher organizational performance. The goal of the model was to show how
7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values,
can be aligned together to achieve effectiveness in a company. The key point of the model is that
all the seven areas are interconnected and a change in one area requires change in the rest of a firm
for it to function effectively.

Below you can find the McKinsey model, which represents the connections between seven areas
and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes
interconnectedness of the elements.

Figure 5.1 McKinsey 7s Model

The model can be applied to many situations and is a valuable tool when organizational design is
at question. The most common uses of the framework are:
To facilitate organizational change.
To help implement new strategy.
To identify how each area may change in a future.
To facilitate the merger of organizations.

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5.3.7 Internal Marketing
No discussion relating to the ease, or otherwise, of implementation would be complete without
considering the potential use of internal marketing. Internal marketing focuses on the relationship
between the organization and its employees. Berry and Parasuraman (1991) define the process in
terms of viewing employees (or groups of employees) as internal customers.

Definitions of this type encompass the work traditionally within the remit of personnel/human
resource management function (e.g. recruitment, training, motivation, etc.). Few would argue with
the importance of staff in relation to implementation. Therefore, can marketing techniques be used
to motivate employees and ease the path of strategy implementation?

By applying the marketing concept internally, it may be possible to enhance the likely success of
a strategy. Factors such as internal segmentation and application of the ‘mix’ may well have a role
to play. Consider the following:

● Segmentation: The process of dividing groups into subgroups with similar characteristics. This
is perfectly feasible within any organization. For example, senior managers may have different
training needs from other staff. By grouping like types together more effective training and
communication is possible.

● Product: This may well be the strategy and accompanying process of change. Equally, the
individual’s job or function could be viewed as an ‘internal product’. The internal product, service
or task is a component in delivering the overall strategy.

● Promotion: Clear communication has a vital role to play in establishing success. The project
manager could design a ‘promotional campaign’, stressing the benefits of a new strategy. In all
cases, communication is an issue that must be considered when planning implementation.

Figure 5.2 Internal Marketing

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● Place: How to get the ‘product’ to the internal customer. Channels of distribution for
information, services and training can be developed and optimized. These could include team
briefings, seminars and day-to-day business interactions.

● Price: This is a complex issue. While it is relatively easy to cost factors like training,
communications vehicles and other associated tangible costs, it is worth remembering a price is
also paid by the group and/or individual. This ‘psychological’ price is difficult to measure, but
important. It takes the form of uncertainty, loss of status, stress and loss (hopefully short term) of
operational efficiency.

In its simplest form internal marketing offers a framework (the 4Ps) which can lay the foundations
of successful policy implementation. It offers the marketing concept as a way to achieve specific
strategic goals. Figure 2.5 illustrates how the concept could be applied to an organization. Here we
segment by level of support. However, other criteria (e.g. department or management level) could
be applied.

5.4 Conclusion
When companies fail to deliver on their promises, the most frequent explanation is that the CEO’s
strategy was wrong. But the strategy by itself is not often the cause, I tell you the truth students. It
is not often the real cause. Strategies most often fail because they aren’t implemented well. Things
that are supposed to happen don’t happen. Either the organizations aren’t capable of making them
happen, or the leaders of the business misjudge the challenges their companies face in the business
environment, or both.

The gap between promises and results is widespread and clear. The gap nobody knows is the gap
between what a company’s leaders want to achieve and the ability of their organization to achieve
it. Everybody talks about change. In recent years, a business consultants have preached revolution,
reinvention, quantum change, breakthrough thinking, audacious goals, learning organizations, and
the like. We’re not necessarily debunking this stuff. But unless you translate big thoughts into
concrete steps for action, they’re pointless. Without implementation, the breakthrough thinking
breaks down, learning adds no value, people don’t meet their stretch goals, and the revolution stops
dead in its tracks. What you get is change for the worse, because failure drains the energy from
your organization. Repeated failure destroys it.

No company can deliver on its commitments or adapt well to change unless all leaders practice the
discipline of execution at all levels. Implementation has to be a part of a company’s strategy and
its goals. If you don’t know how to execute, the whole of your effort as a leader will always be
less than the sum of its parts.

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5.5 Summary
Strategy implementation is defined as the process that turns strategies and plans into actions in
order to accomplish strategic objectives (John, 2005). According to Kaplan (2005) the concept of
successful strategy implementation requires the input and cooperation of all players in the
company. A key maxim in business is: never acquire a business you don’t understand how to run.
Equally, it would be true to say: never adopt a strategy you don’t understand how to implement.

Execution should be understood as ‘the missing link between aspirations and results’. It’s
important to note that execution is a discipline and needs to be practiced by company leaders at all
levels. According to Fortune Magazine, nine out of ten organizations fail to implement their
strategic plan for many reasons. It can be explained that when a company appears to be failing or
breaking down the blame is often placed on the CEO. But at times it not necessary the “who”
rather it could be that the strategy was not even understood by the employees.

The seven essential behaviors of a Leader are: know the people, Realism, setting goals and
priorities, always follow through, ability to reward people, Pass on knowledge and lastly leaders
need to be strong characters who know themselves well. Today, companies often focus on
changing their strategy and structures. But they fail to work on the people, the beliefs, and
behaviors of those that they work with. Bossidy (2009) explains that there is one job that no leader
should ever delegate, and that’s ensuring that the right people are in the right job.

The three core processes of strategy execution are: the people process, the strategy process and the
operation process. The people process is all about connecting the people to the strategy and
operations. The strategy process is all about linking the people to operations. The operations
process is all about linking the strategy to the people.

McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal
elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if
they are effectively aligned and allow organization to achieve its objectives.

Internal marketing focuses on the relationship between the organization and its employees. By
applying the marketing concept internally, it may be possible to enhance the likely success of a
project. Factors such as internal segmentation and application of the ‘mix’ may well have a role to
play.

5.6 Review Questions

1) When an organization appears not to be achieving its objectives who should be held
responsible? With the aid of an example discuss the concept of the blame game in strategy
execution.
2) What are the pillars of strategy execution?

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 3) According to Bossidy (2009) three processes are at the core of strategy execution. State
and explain these processes
4) With the aid of a diagram, discuss the McKinsey model and explain the most common uses
of the framework
5) Can marketing techniques be used to motivate employees and ease the path of strategy
implementation? Support your answers with examples

5.7 References
 Pearce, J., & Robinson, R. (2007). Strategic management: formulation, implementation
control. 10th ed. London: Irwin Publishers.
 Johnson, G., Scholes, K., & Whittington, R. (2005). Exploring corporate strategy. 7th ed.
New Jersey: Prentice Hall.
 Simiyu, N. (2013). A study to investigate challenges affecting strategy implementation in
government corporations: A Case Study of Kenya Bureau of Standards (Unpublished MBA
Project). School of Business. Kenyatta University, Nairobi, Kenya.
 Karami, A. (2005). An exploration of the chief executive officers' perception of strategic
management process. Corporate Ownership and Control, 2(4), 62-64.
 John, N. (2005). Strategy is as good as a rest. Nairobi: A publication of Kenya Institute of
Management.
 Kaplan, R. (2005). How the balanced scorecard complements the McKinsey 7‐S model.
Strategy & Leadership, Vol. 33 (3), 41 – 46.
 Bossidy, L., Charan, R., & Burck, C. (2002). Execution: The discipline of getting things
done.

5.8 Task
 Read the notes on unit 5.3.5 (The Three Core Processes of Strategy Execution) and make
a brief summary of not more than half a page

5.9 Reading Assignment/Suggested Readings

Oewhifhsdv

 Read the titled, “How the balanced scorecard complements the McKinsey 7‐S model.
Strategy & Leadership, Vol. 33 (3), 41 – 46,” by Kaplan, R. (2005). from google book, accessed
from https://books.google.com › business strategy › General=pdf, January 03, 2019

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5.10 Reading Assignment Supplementary Source
 You Tube Video lecture: 3 The Secret to Strategic Implementation YouTube
 Video highlights: - The video teaches a great way to learn how to take your implementation
to the next level
 Note: To access the video, copy and paste this Playlist
 URL: https://youtu.be/6mmPa6a48z8?t=22
 Source: https://www.youtube.com/watch?v=6mmPa6a48z8. Retrieved 27 December 2018.

5.11 Written Assignment

 According to Bossidy (2009) three processes are at the core of strategy execution. State
and explain these processes

5.12 Discussion Assignment

 Can marketing techniques be used to motivate employees and ease the path of strategy
implementation? Support your answers with examples

5.13 Graded Quiz

Will be provided by the end of the lecture

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