Model of Strategy Implementation

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Model of strategy Implementation
Each steps in Strategy Implementation Model
• Resource Allocation
• Structural Changes
• Behavioural changes through effective leadership and motivation
• Functional strategies
• Policy and Procedures
Resource Allocation
• After selection of strategy for the organisation, fund is allocated to
strategy through resource allocation.

• The most prevalent technique for resource allocation is budgeting.

• Before budgeting, strategy is divided into various programs and

thereafter budgeting is done for each program separately.
Purpose of Resource Allocation
Programs:
• Strategy is divided into number of programs.
• New programs developed under proposed strategy may replace or co–exist with
existing programs.
• In matrix of change, new programs are placed at columns and existing programs are
placed at rows.
• overall matrix is analysed to identify problematic area and coherent solution is drawn
so as to achieve proper integration and coordination between and among different
functions and units of the organisation.
• This coherent solution helps in identifying the changes that should be made for
successful implementation of strategy. 5
Purpose of Resource Allocation
Budgets:
• After making programs, fund is allocated to these programs
through budgets.

• Budget is pragmatic test of proposed strategy in terms of resource.

• It can be known that what is the estimated cost of proposed strategy

and whether it is within the resource constraint of the organisation.

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Structural Changes:
•Structure is very important for successful implementation of
strategy.
•Organisation tries to incorporate changes into the organisation.
•Structural changes are not easy to implement and it consume too
much resources in terms of time and money.
•Structure can become culprit if not taken care off.
•Strategy and structure should be in alignment.
•If these two are not aligned then organisation can sustain heavy
losses.
•

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Behavioural changes through effective leadership and
motivation:
• Changes can be incorporated upon willingness of employees.
• Organisation culture should be developed in such a way so as to
support proposed strategy and related changes.
• Like structure, culture should also be compatible with strategy and it
can be developed through effective leadership and motivation.
• Various leadership and management techniques can be used to bring
desired changes in the organisation culture.
• If it is still not possible to change culture in any way then organisation
must work backward and should change its proposed strategy with
another alternative strategy.
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Functional strategies:
• Functional strategies are designed so as to develop and nurture a
distinctive competence for an organisation.
• Distinctive competence developed by function can become
competitive advantage and organization can leverage this competitive
advantage.
• Sometime functional managers are so much obsessed with their
functional strategies that they may overlook strategies at organisation
level.
• Top – level management should ensure that functional level managers
do not develop tendencies of overlooking organisational strategy for
functional strategies. 9
Policy and Procedures:
• Policy and procedures are designed at functional level for day–to–day
smooth running of organisation.
• As managers at functional level are continuously involved in decision–
making, policies help them in making decision.
• Policy are broad and clear guidelines, which helps in decision–
making.
• On other hand procedure are detailed activities, which are carried on to
achieve functional objectives with effectiveness and efficiency.

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