STRATEGY IMPLEMENTATION

•Once the strategy is crafted it requires resources and

power to implement

•Also requires the right atmosphere to implement

•The resources could be monitory, human, machinery,

infrastructure, etc,

•Allocation of funds and other resources will enable the

implementing managers to activate the strategy
 STRATEGY IMPLEMENTATION
MEANING

• Translates vision in to action

• What exactly to be done today and tomorrow

• Short term objectives help implement strategy

• Primarily operation driven activity

• Revolves around management of people and Business

process
 STRATEGY IMPLEMENTATION
NATURE

• WORKING WITH AND THROUGH OTHER PEOPLE

• BUILDING AND STRENGTHENING COMPETITIVE CAPABILITIES

• MOTIVATING AND REWARDING PEOPLE

• INSTILLING A DESCIPLINE OF GETTING THINGS DONE

 STRATEGY IMPLEMENTATION
NATURE

• ACTION ORIENTED

• MAKE THINGS HAPPEN

• ACHIEVE CONTINOUS IMPROVEMENT IN OPERATIONS AND

BUSINESS PROCESS

• CREATE AND NURTURE STRATEGY SUPPORTIVE CULTURE

• CONSISTENTLY MEET OR BEAT PERFORMANCE TARGETS

 CONTRAST AND INTERDEPENDENCE OF STRATEGY
FORMULATION & IMPLEMENTATION

• MANAGERS MAY SEE STRATEGY AS

1. CONTRARY TO THE ORGANIZATIONAL INTEREST

2. UNLIKELY TO SUCCEED

3. THREAT TO THE DEPARTMENT

4. THREAT TO THEIR CAREERES

 CONTRAST AND INTERDEPENDENCE OF STRATEGY
FORMULATION & IMPLEMENTATION

• INTERNAL CHANGES ARE NEEDED TO IMPLELMENT THE

STRATEGY

• INDIVIDUAL EMPLOYEES MAY HAVE DIFFERENT IDEA ABOUT

THE SAME

• LONG STANDING ATTITUDES, VESTED INTERESTS, INERTIA

AND INGRAINED ORGANIZATIONAL PRACTICES COMES IN
THE WAY OF IMPLEMENTING NEW STRATEGIES
 CONTRAST AND INTERDEPENDENCE OF STRATEGY
FORMULATION & IMPLEMENTATION

• STRATEGY IMPLEMENTATION EMPHASISES ON CONVERTING

STRATEGY IN TO ACTION AND GOOD RESULTS
• EFFECTIVENESS OF STRATEGY DEPENDS ON STRUCTURE
OF THE ORGANIZATION
McKinsey & co SEVEN ‘S’ MODEL

STRATEGY ----- ---------STRUCTURE---------------------SYSTEM

SUPER ORDINATE GOALS

STYLE---------------------------SKILLS--------------------------------STAFF
 OPERATIONALISING THE STRATEGY

TWO GENERAL CLASSES

SINGLE USE PLANS AND STANDING PLANS

• SINGLE USE PLANS

DISSOLVED ONCE THEY HAVE ACHIEVED SPECIFIC NON-
RECURRING GOALS
NOT LIKELY TO BE REPEATED
MAJOR SINGLE USE PLANS ARE PROGRAMS
PROJECTS &
BUDGETS
 PROGRAMMES

• SINGLE USE PLAN THAT COVERS A LARGE SET OF

ACTIVITIES. IT SHOWS

• MAJOR STEPS REQUIRED TO REACH AN OBJECTIVE

• THE ORGANIZATION UNIT OR MEMBER RESPONSIBLE FOR

EACH STEP

• THE ORDER AND TIMING OF EACH STEP

 PROJECTS

• ARE SMALLER, SPERATE PORTION OF PROGRAMMES

• LIMITED IN SCOPE

• CONTAIN DISTINCT DIRECTIVES

• CONCERING ASSIGNMENTS AND TIME

 BUDGETS

• ARE FINANCIAL RESOURCES SET ASIDE FOR SPECIFIC

ACTIVITIES IN A GIVEN PERIOD OF TIME

• PRIMARILY DEVICES TO CONTROL AN ORGANIZATION.S

ACTIVITIES

• IMPORTANT COMPONENTS OF PROGRAMMES AND

PROJECTS
 STANDING PLANS

• DECISSION/S THAT GUIDE REPEATEDLY OCCURING

ORGANISATIONAL ACTIVITIES

• SIMILAR SITUATIONS ARE HANDLED IN A PRE-DETERMINED

AND CONSISTENT MANNER

• MAJOR TYPES OF STANDING PLANS ARE

POLICIES
PROCEDURES
RULES
 POLICY

• IS A GENERAL GUIDELINE FOR DECISSION MAKING

• IT SETS BOUNDARIES AROUND DECISSION MAKING
• TELLS MANAGERS WHICH DECISSIONS CAN BE MADE AND
WHICH CANNOT BE MADE

PROCEDURE
• SET OF DETAILED GUIDELINES TO CARRY OUT POLICY
• SET OF INSTRUCTION FOR PERFORMING SEQUENCE OF
ACTIONS THAT OCCURS OFTEN OR REGULARLY
 RULES

• MOST EXPLICIT OF STANDING PLANS

• NOT GUIDELINGS TO THINKING OR DECISSION MAKING

• A DOCUMENTED AUTHENTIC INSTRUCTION THAT HAS TO BE

FOLLOWED
 ANNUAL OBJECTIVE

• SHORT TERM OBJECTIVE

• CONSISTS OF HALF YEARLY & QUARTERLY OBJECTIVES

• TASK OF SETTING & ACHIEVING TARGETS

• FOLLOWS BALANCED SCORE CARD APPROACH

 BALANCED SCORE CARD

CONSISTS FINANCIAL OBJECTIVES & STRATEGIC OBJECTIVES

FINANCIAL OBJECTIVES

ANNUAL SALES, PROFITS, PROFIT MARGINS, DIVIDEND, CASH

FLOWS, CREDIT RATINGS

STRATEGIC OBJECTIVES

MARKET SHARE, ACHIEVING LOWER COSTS, VALUE CHAIN,

PRODUCT SELECTION, LEADERSHIP, BRAND NAME APPEAL,
EXPANSION
 BUSINESS STRATEGY

• CONCERNS ACTIONS & APPROACHES TO PRODUCE

SUCCESSFUL PERFORMANCE IN ONE SPECIFIC LINE OF
BUSINESS

• CRAFTING RESPONSES TO CHANGIN MARKET

CIRCUMSTANCES

• INITIATING ACTIONS TO STRENGTHEN MARKET POSITION

• BUILDING COMPETITIVE ADVANTAGE

• DEVELOPING STRONG COMPETITIVE CAPABILITIES

 BUSINESS STRATEGY

• HAS TWO WAY INFLUENCE

• LOWE LEVEL STRATEGIES ARE WELL CONCEIVED MATCHES

WITH THE OVERALL STRATEGY

• GETTING APPROVAL FOR THE BUSINESS STRATEGY FROM

THE CORPORATE AUTHORITIES

• KEEP THE CORPORATE AUTHORITIES INFORMED ABOUT THE

MARKET DEVELOPMENTS AND EMERGING STRATEGIC
ISSUES
 FUNCTIONAL STRATEGIES

• CONSISTS OF ACTIONS, PERFORMENCES AND ACTIVITIES TO

BE PERFORMED WITHIN A SPECIFIC BUSINESS

• INCLUDES FUNCTIONAL DEPARTMENTS LIKE MARKETING,

PRODUCTION, FINANCE, ETC,

• AIMS AT ESTABLISHING & STRENGTHENING THE BUSINESS

UNIT’S COMPETENCIES AND CPABILITIES

• IT IS IMPORTANT THAT FUNCTIONAL DEPARTMENTS ARE

COMPATABLE AND MUTUALLY REINFORCING RATHER THAN
SERVING THEIR OWN NARROWER PURPOSE
DEVELOPING & COMMUNICATING CONCISE POLICIES

• DEVELOPMENT OF EXPLICT STRATEGIC PLANS

• BROKEN DOWN IN TO SHORT TERM PERFORMANCE
TARGETS
• FURTHER CONCISE TO POLICIES
• THE PERFORMANCE TARGETS ARE SPELLED OUT
EXPLICITLY AND COMMUNICATED TO MANAGERS AND
EMPLOYEES
• DIRECT ORGANIZATION CHANGE, MOTIVATE EMPLOYEES
AND CREATE STRATEGY SUPPORTIVE CULTURE