MODULE 4

What Is Strategic Implementation?

Strategic implementation is a process that puts plans and strategies into action to reach desired
goals. The strategic plan itself is a written document that details the steps and processes needed
to reach plan goals, and includes feedback and progress reports to ensure that the plan is on
track.
Definition: Strategy Implementation refers to the execution of the plans and strategies, so as to
accomplish the long-term goals of the organization. It converts the opted strategy into the
moves and actions of the organisation to achieve the objectives. Simply put, strategy
implementation is the technique through which the firm develops, utilises and integrates its
structure, culture, resources, people and control system to follow the strategies to have the edge
over other competitors in the market.

What Strategic Implementation Addresses

Strategic implementation is critical to a company’s success, addressing the who, where, when,
and how of reaching the desired goals and objectives. It focuses on the entire organization.
Implementation occurs after environmental scans, SWOT analyses, and identifying strategic
issues and goals. Implementation involves assigning individuals to tasks and timelines that will
help an organization reach its goals.
Basic Features
A successful implementation plan will have a very visible leader, such as the CEO, as he
communicates the vision, excitement and behaviors necessary for achievement. Everyone in
the organization should be engaged in the plan. Performance measurement tools are helpful to
provide motivation and allow for followup. Implementation often includes a strategic map,
which identifies and maps the key ingredients that will direct performance. Such ingredients
include finances, market, work environment, operations, people and partners.
Common Mistakes
A very common mistake in strategic implementation is not developing ownership in the
process. Also, a lack of communication and a plan that involves too much are common pitfalls.
Often a strategic implementation is too fluffy, with little concrete meaning and potential, or it
is offered with no way of tracking its progress. Companies will often only address the
implementation annually, allowing management and employees to become caught up in the
day-to-day operations and neglecting the long-term goals. Another pitfall is not making
employees accountable for various aspects of the plan or powerful enough to authoritatively
make changes.
Necessary Elements
To successfully implement your strategy, several items must be in place. The right people must
be ready to assist you with their unique skills and abilities. You need to have the resources,
which include time and money, to successfully implement the strategy. The structure of
management must be communicative and open, with scheduled meetings for updates.
Management and technology systems must be in place to track the implementation, and the
environment in the workplace must be such that everyone feels comfortable and motivated.

Process of Strategy Implementation

1. Building an organization, that possess the capability to put the strategies into action
successfully.
2. Supplying resources, in sufficient quantity, to strategy-essential activities.
3. Developing policies which encourage strategy.
4. Such policies and programs are employed which helps in continuous improvement.
5. Combining the reward structure, for achieving the results.
6. Using strategic leadership.
The process of strategy implementation has an important role to play in the company’s success.
The process takes places after environmental scanning, SWOT analyses and ascertaining the
strategic issues.

Prerequisites of Strategy Implementation

• Institutionalization of Strategy: First of all the strategy is to be institutionalized, in
the sense that the one who framed it should promote or defend it in front of the
members, because it may be undermined.
• Developing proper organizational climate: Organizational climate implies the
components of the internal environment, that includes the cooperation, development of
 personnel, the degree of commitment and determination, efficiency, etc., which
converts the purpose into results.
• Formulation of operating plans: Operating plans refers to the action plans, decisions
and the programs, that take place regularly, in different parts of the company. If they
are framed to indicate the proposed strategic results, they assist in attaining the
objectives of the organization by concentrating on the factors which are significant.
• Developing proper organisational structure: Organization structure implies the way
in which different parts of the organisation are linked together. It highlights the
relationships between various designations, positions and roles. To implement a
strategy, the structure is to be designed as per the requirements of the strategy.
• Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals
so as to identify whether the strategy so implemented is relevant to the purpose of the
organisation. As the organization operates in a dynamic environment, which may
change anytime, so it is essential to take a review, to know if it can fulfil the needs of
the organization.
Even the best-formulated strategies fail if they are not implemented in an appropriate manner.
Further, it should be kept in mind that, if there is an alignment between strategy and other
elements like resource allocation, organizational structure, work climate, culture, process and
reward structure, then only the effective implementation is possible.

Aspects of Strategy Implementation

• Creating budgets which provide sufficient resources to those activities which are
relevant to the strategic success of the business.
• Supplying the organization with skilled and experienced staff.
• Conforming that the policies and procedures of the organisation assist in the successful
execution of the strategies.
• Leading practices are to be employed for carrying out key business functions.
• Setting up an information and communication system, that facilitate the workforce of
the organisation, to perform their roles effectively.
• Developing a favourable work climate and culture, for proper implementation of the
strategy.
Strategy implementation is the time-taking part of the overall process, as it puts the formulated
plans into actions and desired results.

Resource Allocation
Resource allocation is a process and strategy involving a company deciding where scarce
resources should be used in the production of goods or services. A resource can be considered
any factor of production, which is something used to produce goods or services. Resources
include such things as labor, real estate, machinery, tools and equipment, technology, and
natural resources, as well as financial resources, such as money.
How to Allocate Resources?
Successful strategic management involves ensuring that all company resources perform
effectively. By learning how to manage competing priorities, successful business professionals
enable employees to balance job tasks, schedule work efficiently and ensure that work flows
smoothly from one process to the next. Today’s dynamic, global environment poses challenges
for company executives and project managers. By establishing a comprehensive strategic plan
for allocating workers and supplies, you avoid costly mistakes that lead to overruns and delays.
1. Coordinate project and operational effectively by establishing a comprehensive
program management strategy. Evaluate project proposals on a monthly or quarterly
basis to decide which ones gets sponsorship. Consolidate multiple similar efforts under
one program leader; this tends to enable the use of key resources more effectively and
allow you to make critical deadlines.
2. Employ software tools, such project management software such as Microsoft Project,
dotProject.net or Basecamp, to identify project tasks, allocate resources effectively,
avoid overallocation and prevent employee burnout. Approve budgets, finish dates and
the amount of flexibility in the deadlines if you are a company executive to help project
managers make decisions aligned with the company’s strategic goals.
3. Delay tasks until staff have time available to work on them or split up tasks and hire
additional workers to prevent staff from working more than 40 hours in a typical week
and becoming burned out.
4. Outsource routine tasks to companies that specialize in a particular function, such as
payroll processing, customer service or technical support.
5. Train employees so they have the required skills and job tasks get completed on time
to ensure timely delivery of products and services. Train less experienced workers to
complete job tasks if you experience unexpected demand or attrition. Obtain specialized
training from authorized providers to ensure that your company runs a safe workplace
that complies with local, state and federal regulations.
6. Manage suppliers by analyzing work flow of resource materials from one process to
the next. Gather input from experts before considering alternative solutions to backlogs.
Take prompt action to rectify problems if a supplier provides poor quality materials or
delivers them late. Require that the supplier improves the quality of raw materials and
provides them on time.
Method of Resource Allocation
In an economist’s perfect world, which doesn’t exist, of course, resources are optimally
allocated when they are used to produce goods and services that match consumers’ needs and
wants at the lowest possible cost of production. Efficiency of production means fewer resources
are expended in producing goods and services, which allows resources to be used for other
economic activities, such as further production, savings, and investment. This basically boils
down to creating what customers want as cheaply and efficiently as possible.

Strategy and Structure

Strategy and structure are two independent elements in business that are somewhat co-
dependent. The strategy – which is created often – determines the structural elements
associated with the business. Some businesses also use the inverse and shape strategy, which
is based on structure. Combining these forces effectively leads to a cohesive business model
that functions to achieve common goals.
How Strategy Fits into Business
Strategy is the actionable aspect of running a business. It includes pricing models, marketing
and branding tactics and competitor assessment. Formulating a strategy is done to determine
how the business will fit within the market – and more importantly – how the business will
compete.
Designing a strategy requires specific goal setting and a big picture vision for the business.
You can form the strategy first and mold the structure later to work with the strategy. In an
established business that has firm structural elements, you can also form a strategy based on
the existing structure and processes.
Elements of Strategy
The key element of the strategy revolves around the mission statement and the goals. The
company must first ask big questions about identity and what it wants to achieve. Based on this
important information, the strategy can develop so that it can differentiate the business, while
also driving revenue.
The strategy defines key concepts and also creates a uniform vision for the company. This
affects every employee and influences their vision and approach toward performing job
functions and identifying as a member of the team.
Structural Strategy Definition
Structure involves the nuts and bolts of the business, and it varies widely, based on the niche
and business model. The structure begins with the job roles for executives, management and
departmental needs.
Common universal departments include accounting, human resources, sales, operations and
product development. A specific business model such as manufacturing will add departments
such as floor production, shipping, supply chain logistics and so on.
How Structure Works with Strategy
The structural elements determine how day-to-day operations are managed and run. The
structure works with the strategy to reach end goals that are set by the business. In a creative
environment, structure is often more loosely defined, with overlapping job roles and less
oversight. This environment is based on the goal to create and innovate.
In a strict production-style business, the structural elements are far more strict. Without strict
structural processes, which built on a data driven approach, these businesses would struggle to
meet production goals.

Goal and Mission Statements

As a component of strategy and structure, the big picture is critical. Realistic goals are
important and mission statements help define the business identity and brand. For example, a
business might decide to build a better product, while charging a premium price. Other similar
products may exist within the market, but this specific business is determined to differentiate
as a top-tier provider.
Another approach to the same product might involve finding the lowest cost manufacturing
solutions, which would enable mass production at a lower price point that the competition. In
this instance, the brand is focused on affordability and mass production. They have a similar
product and a vastly different mission statement.
For any business, the big picture goal is profitability, but defining sustainable profit models
and working strategies to achieve that sustainability is important, and this influences the
relationship between strategy and structure.
Formulating the Strategy
Strategy is a multifaceted element in business. Multiple strategies are often formed around
specific products and services with the overarching idea of penetrating the market. There is
rarely a single, simplified version of a strategy.
Forming a strategy begins by determining which internal job roles needed to achieve the goals.
Then the company must decide which job functions are assigned to each role. This process
overlaps with the structure, because ultimately, the roles will shape the company organization.

Supportive Organizational Culture

A supportive organizational culture provides the social and psychological conditions that
optimize employee health, safety, and well-being. This can involve supporting employees’
growth and development and intentionally building positive relationships between people, their
work, and their organization.
When an organization has a supportive culture employees are more likely to be engaged,
empowered and perform at their natural best which will enhance service delivery, product
quality and overall organizational performance.
Importance
Developing organizational culture is an important part of strategic management. No strategy
succeeds without a strategy supportive organizational culture. This is not any different in sport
organizations than any other organizations. At the end, people are the final frontier. They make
or break even the best written strategic plan. Plans are just plans written by executives but
implementing them requires strategic management. This involves leadership and motivating
people. Without motivation, people will not implement what executives want them to
implement. People must be empowered to feel engaged before they are ready to implement.
Executives can force compliance but true loyalty and engagement is earned. There is a
difference between continuance commitment or normative commitment and affective
commitment. Strategy supportive cultures engage and empower people while creating affective
commitment and organizational citizenship behaviors. People work towards established and
collectively agreed upon goals when they are intrinsically motivated to do so. They cannot be
forced to do so in a way that would create quality performance. It has been well established
that executives that use expert and referent power over positional and coercive power are more
effective in long-term. These types of leaders understand that leaders have followers while
managers have subordinates. Organizations that have strategy supportive cultures are led by
visionary leaders. They have flat and organic organizational structures, and they value and trust
their employees.
Culture building is an intentional process and must start from the top. Leaders must
demonstrate genuine care and communicate vision. It is also important to recruit people who
are a good fit and socialize them well. This process starts from great orientation and good job
training. People become part of the culture when they are properly initiated. It is not accidental.
Organizational design and development are essential areas to be understood by strategic leaders
who build high performance organizations. Culture is built by establishing a clear code of
conduct and implementing a systematic training program to teach people the intended
organizational values and principles. Great cultures have great traditions and initiation rites.
They have mechanisms to continuously promote desired behaviors and support established
value systems. This culture building involves everyone in the organization. It is not a top down
activity. It is not done to people but rather by the people and with the people. Participative
decision making and quality circles are just some of the features of good organizational
cultures. These cultures are flexible and continuously changing. They are open minded and
inclusive to all types of diversity. Some would call them learning organizations. When you
experience one you will be able to feel it and recognize it. These organizations are highly
successful and well performing. They are not country clubs. Instead, they are energized and
optimized for strategy implementation. They are innovative and competitive. In these
organizations, people are the main competitive advantage.

Functional areas
Functional areas are teams of employees who have similar skills and expertise. For example, a
company's sales department is a common functional area, and the staff in this area would all
be focused on selling the company's products.