CHAPTER 9

STRATEGY
IMPLEMENTATION AND
CHANGE
Group 3
 Introduction
Strategy implementation or execution is the most important phase in the SM. Organizations
make use of drivers, namely leadership, culture, reward systems, structure, and resource
allocation.

PREVIOUS FRAMEWORK
● seven factors: strategy, structure, systems, style, staff, skills, and subordinate goals.
 TOWARD AN IMPLEMENTATION
FRAMEWORK
11 key factors can be identified that play an important role in the strategy
formation process:

1. Strategy development
2. Environmental uncertainty
3. Organizational structure
4. Organizational culture
5. Leadership
6. Operational planning
7. Resource allocation
8. Communication
9. People
10. Control
11. Outcome
the 11 implementation factors can further be grouped into four
categories: strategic content, strategic context, process, and outcome.
1. Strategic content includes the development of strategy.
2. Strategic context is further divided into external and internal contexts.
The former includes environmental uncertainty, and the internal context
includes organizational structure, culture, and leadership.
3. Operational process includes operational planning, resource allocation,
people, communication, and control.
4. Outcome includes the results of the implementation process.
Key
a. Changes in the external environment influence the
strategic context and force organizations to deploy new
initiatives.
b. Problems and inconsistencies in the internal context
require new initiatives.
c. The strategy is implemented in the internal context, and
the characteristics of organizational structure, culture,
and leadership influence the process factors.
d. Having an organizational context that is receptive to
change is essential for the successful implementation of
strategy.
e. The process factors are primarily used on a continuous
basis to implement the strategy and manipulate the
internal context.
f. The characteristics of the context and process factors and
how they are used directly influence the outcomes.
DEFINING KEY IMPLEMENTATION FACTORS, THEIR ROLES,
AND THEIR IMPACT ON THE PROCESS

Strategic Content

Strategy development refers to why and how strategy is initiated. Key areas to be
considered are:

▪ The new strategy should be consistent with the overall strategic direction of the
company.
▪ The aims of the new initiative should be clearly identified.
▪ The expertise and knowledge of strategy developers in managing change are
crucial.
External Context
ironmental uncertainty refers to the degree of uncertainty and changes in the task and
general environment.

Internal Context
Organizational structure refers to the shape, division of labor, job duties and
responsibilities, distribution of power, and decision-making procedures in the company.

Organizational culture is the shared understanding of employees

about how they do things in an organization.

Leadership refers to the actual support and involvement of the CEO

in the strategic initiative.
Organizational
Process
Operational planning is the process of initiating the project and the operational planning
of the implementation activities and tasks.

Resource allocation is the process of ensuring that all necessary time, financial
resources, skills, and knowledge are made available.

People refer to recruiting new staff and providing training and incentives for relevant
employees.

Communication refers to the mechanisms that send formal and informal messages about
the new strategy.

Control and feedback refer to the formal and informal mechanisms that allow the efforts
and results of implementation to be monitored and compared against predetermined
objectives.

Outcome is the intended and unintended results of the implementation process, which
can be tangible and intangible.
BARRIERS AND RESISTANCE TO STRATEGY
IMPLEMENTATION
✓ Time limitation or more time needed than originally planned.
✓ Lack of or poor communication.
✓ Lack of resources.
✓ Lack of coordination.
✓ Lack of support from other management levels.
✓ Resistance from lower levels.
✓ Poor planning activities.
✓ Sudden changes.
✓ Fear of losing something valuable.
✓ Lack of skills and knowledge.
✓ Unpleasant previous experiences.
✓ Commitment to previous practices.
✓ Strong organizational culture.
✓ Internal politics.
✓ Trade unions.
✓ Government regulations.
✓ Cost of change.
✓ Financial difficulties.
✓ Other priorities.
✓ Technical difficulties.
✓ Fear of insecurity
 Strategy Implementation and Change in the
International Context
It is important to pay close attention to diversity and cultural differences when developing
and implementing strategies in different locations and cultures. According Hofstede
(1993) provides interesting examples of how leadership styles, organizational cultures,
structures, and, subsequently, communication vary among countries. For example,
Hofstede claims that matrix organizational structure is commonly accepted in the United
States, but in France it is not popular, since employees do not like to report to two
bosses. Again, barriers and resistance to strategies may vary depending on the location
and culture, which may require the use of different strategies in overcoming these
barriers. In short, developing and implementing a strategy in an international context is
more challenging and complicated.
De Wit and Meyer (2004) suggest that the research on strategy formation and
managing change in the international context is limited. However, they tentatively
suggest a number of areas to explain why strategy formation may be different in different
countries.

The first issue they refer to is the difference of mechanic and organic organizations.
De Wit and Meyer further note that in some countries, like the United States and the United Kingdom,
companies value their employees and managers but often try to minimize their dependence on
them by implementing formalized systems and procedures.

· The third issue raised by De Wit and Meyer (2004) is the role of senior managers. In some
countries, new strategies, plans, and initiatives come from (or are expected to come from) the
senior managers, and the lower managers are expected to implement them.

· The fourth issue raised by De Wit and Meyer is the short-term time orientation versus the long-
termtime orientation. In short-term-oriented cultures, such as English-speaking countries, there is a
stronger preference for fast, radical change and to generate quick results. In longer-term-oriented
cultures, the focus is on long-term success and therefore they see the strategy development and
implementation as a marathon.

There may be important differences in leadership, organizational structure, culture, decision making,
and communication among cultures and countries
It would be helpful to use Hofstede’s (1993) cross cultural dimensions when looking at managing
change in different cultures
· Individualism versus collectivism
· Masculinity versus feminity
· Power distance
· Uncertainty avoidance
· Long-term orientation