Catherine D.

Ollinas BME 2 FSA (2:30-4:00 PM)

BSHM – 4A Prof. Anna C. Del Rosario
WEEK 12 - MODULE

INTERRELATIONSHIP BETWEEN FORMULATION AND

IMPLEMENTATION OF STRATEGIES
The interrelationship between the formulation and implementation of strategies is a
fundamental concept in the field of strategic management. It emphasizes that the process of
developing and executing strategies is not linear but rather a dynamic and iterative one. The
formulation of a strategy and its subsequent implementation are deeply interconnected and
mutually influence each other. Here's how these two aspects are interrelated:

1. Strategy Formulation Informs Implementation:

• Formulation is the initial step where an organization defines its mission, sets
objectives, and formulates strategies to achieve those objectives.
• The strategies developed during the formulation phase provide a roadmap and a clear
direction for the organization. They serve as a guide for decision-making and resource
allocation during implementation.
2. Alignment and Consistency:
• Successful implementation relies on the alignment of actions with the formulated
strategies. If there is a misalignment, it can lead to confusion and ineffective
execution.
• The formulation phase ensures that strategies are consistent with the organization's
goals, capabilities, and the external environment. This alignment is crucial for
successful implementation.
3. Adaptation and Flexibility:
• As strategies are implemented, organizations often encounter unexpected challenges,
changes in the external environment, or internal limitations. In such cases, the
formulation-implementation interrelationship becomes evident.
• Organizations may need to adapt or adjust their strategies during implementation to
address new information or changing circumstances. This requires a feedback loop
between the two phases.
4. Resource Allocation and Budgeting:
• Implementation involves allocating resources, both human and financial, to specific
projects or initiatives. The resources allocated during implementation must align with
the budget and resource allocation decisions made during formulation.
• If the organization formulates ambitious strategies but fails to allocate adequate
resources for their execution, the implementation is likely to fall short.
5. Monitoring and Control:
• The implementation phase involves continuous monitoring and control to ensure that
the strategies are on track and are producing the desired outcomes.
• The feedback from the implementation phase can inform adjustments in the
formulation phase. If a particular strategy is consistently underperforming, it may
require a revision in the formulation of the strategy.
6. Learning and Improvement:
• The interrelationship between formulation and implementation allows for
organizational learning. Successes and failures during implementation provide
valuable insights that can be used to refine future strategy formulation.
• Organizations can apply lessons learned to improve their strategic planning processes.
7. Communication and Organizational Buy-In:
• Effective communication of the formulated strategy to all levels of the organization is
crucial for successful implementation.
• The formulation phase sets the stage for communicating the strategy's goals,
rationale, and expected outcomes, which can influence the degree of buy-in and
commitment from employees.