STRATEGY IMPLEMENTATION

Pooja Dubey
Poonam Tanwar
Rahul Alok
Simranjeet Singh
Structural Considerations
 From a strategy implementation standpoint, an
organisation structure is the arrangement of tasks and
sub-tasks required to implement a strategy.
 Organisation structure specifies three key components
as below.
 It identifies formal reporting relationships, including the
number of levels in the hierarchy and the span of
control of managers.
 It specifies the grouping of individuals into departments
and of departments into the total organisation.
 It consists of design of systems to ensure effective
communication, coordination, and integration of efforts
across departments.
 Vertical structure dominant:
Specialised tasks
Hierarchy of authority
Rules and regulations
Vertical communication
and formal reporting systems
Centralised decision making
Emphasis on efficiency

Horizontal structure dominant:

Shared tasks
Flexible authority
Few rules and regulations
Horizontal communication and sharing
of information
Decentralised
decision-making
Emphasis on learning
Interrelationship Between Structure
and Strategy

determines
STRATEGY STRUCTURE

affects
Why is Structural Implementation
Needed?

Strategic plan is New strategies Implementation of Mismatches

implemented put in place new strategies occur

Performance Structure is Effectiveness is Performance

improves changed reduced declines
Environment, Strategy, Structure, and
Effectiveness

Environment

Strategy

Structure

Effectiveness
Types of Organisational Structures

 Entrepreneurial
 Functional
 Divisional
 SBU
 Matrix
 Network
 Other types of structures:
 Product-based, customer-based, process-based, geographic, and
intrapreneurial structures
Emerging Forms of Structures

 Horizontal organisations are based on structure that

corresponds to the process of providing product or
service to the customer rather than the functions that
the organisations perform.
 Delaminated matrices are combinations of horizontal
organisations with functional structure.
 Mechanistic structures are rigid, hierarchical, suited to
stable conditions while organic structures are flexible
arrangements, adapting to conditions of rapid change
and innovation.
 The structure of an organisation may consist of the
characteristics of mechanistic and organic structures in
different parts making it an ambidextrous organisation
structure
Organisational Design and Change

 Organisation design has two dimensions:

 Structural dimensions
 Contextual dimensions
 Organisational change has two dimensions:
 Structural changes
 Accompanying behavioural changes
Steps in Organisation Design

 Identification of key activities necessary to be performed for

the achievement of objectives and realisation of mission
through the formulated strategy.
 Grouping of activities that are similar in nature and need a
common set of skills to be performed.
 Choice of structure that could accommodate the different
groups of activities.
 Creation of departments, divisions, etc. to which the group of
activities could be assigned.
 Establishing interrelationship between different departments
for the purpose of coordination and communication.
Organisation Design for Business
Strategies

CEO CEO

Centralised
staff R&D Mktg

Fin HRM Mktg Oper Fin HRM Oper

Structure for attaining cost Structure for attaining

leadership differentiation
Evolution of Systems and Processes
Within Organisations
 Defining the major tasks required to implement a strategy
 Grouping tasks on the basis of common skill requirements or activities
in value chain
 Sub-division of responsibility and delegation of authority to perform
tasks
 Coordination of divided responsibility
 Design and administration of the information system
 Design and administration of the control system
 Design and administration of the appraisal system
 Design and administration of the motivation system
 Design and administration of the reward system
 Design and administration of the development system
 Design and administration of the planning system.
The Control Cycle

Establish Measure
standards performance

Evaluate
Correct
performance
performance if
against
needed
standards
Strategic Leadership
 Strategic leaders manage the strategic
management process that is designed to help
the organization achieve its objectives.
 Levels of Organization
 Corporate-level
 Business-level
 Functional-level
 Operational-level
Tasks of Strategic Leaders
 Determining strategic Direction
 Effectively Managing the Organizational
Resources Portfolio
 Sustaining an Effective Organizational
Culture
 Emphasizing Ethical Practices
 Establishing Balanced Organizational
Controls
CORPORATE CULTURE AND
STRATEGIC MANAGEMENT
 Impact of culture on two different groups
Dimensions Multinational subsidiaries Family
and professionally-managed Businesses and
companies NRI’s companies

Nature of desired Emphasis on professional Emphasis on

managerial skills and qualifications and rank demonstrated
capabilities skills, depth and
quality of
knowledge
Actual performance Emphasis on seniority, Emphasis on
conformity to organizational originality of
values and loyalty. action and
thinking.
Managerial style of Emphasis on information- Emphasis on selective
planning and decision- gathering, bureaucratic information usage and
making mode of functioning and intuitive and quantitative
non- entrepreneurial decision-making of an
decision-making. entrepreneurial nature.
Management systems Emphasis on the use of Emphasis on reliance on
adopted elegant, and rational business sense and ‘no-
systems which degenerate frills’ systems geared to
due to low usage quick action.
Strategy-Supportive Culture
 To Ignore corporate culture
 To adopt strategy Implementation to suit
corporate culture
 to change the corporate culture to suit
strategic requirements
 to change the strategy to Fit the corporate
Culture.
CORPORATE POLITICS AND
POWER
 Reward power
 Coercive power
 Legitimate power
 Referent power
 Expert power
Strategic Use of Power and Politics
 To accept the inevitability of politics
 Understand how an organisation’s power
structure works.
 to be sensitive and alert to political signals
 to lead strategy and not to dictate it
 to reward organizational commitment
 to practice principled polities and use
honesty.
 Personal Values and Business
Ethics
 Personal value refers to a conception of what an
individual or group regards as desirable.
 A value is a view of life and a judgement of what is
desirable, which is very much a part of a person’s
personality and group’s morale.
 Business ethics is the study of how personal moral
norms apply to activities and goals of a commercial
enterprise.
Inculcating Values and Ethics
 Considering Values and Ethics in recruitment and selection to
ensure compatibility of the character traits of potential employees
to the ethical system f the organization.
 Incorporating the statement of values and code of ethics into
employee training and educational programmes.
 Communication of the values and code of ethics through wide
publicity and explanation of compliance procedures.
 constant monitoring of compliance by superior staff and top
management
 consistent nurturing of values within the organization through
their integration into policies, practices and actions.
Thank you