Strategic Management

Concepts & Cases

Fred R. David
Chapter 7:
Implementing Strategies:
Management Issues
PowerPoint Slides By:
Anthony F. Chelte
Western New England College

Ch.7-1
© 2001 Prentice Hall
 Comprehensive Strategic Management Model

External
Audit

Chapter 3

Vision Strategies Strategy Strategy Implement Measure &

& Implementation: Strategies:
In Analysis Evaluate
Mission Management Marketing, Performance
Statements Action & Issues Fin/Acct,
Choice R&D, CIS
Chapter 2 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9

Internal
Audit

Chapter 4

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 Management Issues

“You want your people to run the business

as if it were their own.”

—William Fulmer —

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 Management Issues

“A management truism says structure

follows strategy. However, this truism is
often ignored. Too many organizations
attempt to carry out a new strategy with
an old structure.”

—Dale McConkey—

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 Management Issues

“In most organizations, the top performers

are paid too little and the worst
performers too much.”

—Cass Bettinger—

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 Management Issues

Successful strategy formulation

does NOT guarantee
successful strategy implementation!

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 Management Issues

Strategy Implementation
—more difficult to “do” something

Strategy Formulation
—easier to say “going to do it”

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 Management Issues
Strategy Formulation Strategy Implementation
Positioning forces before the Managing forces during the
action action

Focuses on effectiveness Focuses on efficiency

Primarily an intellectual Primarily an operational

(logical) process process
Requires good intuitive and Requires motivation and
analytical skills leadership skills
Requires coordination among a Requires coordination among
few individuals many persons
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 Management Issues
Transition to Strategy Implementation

 Shift in responsibility from strategists to

divisional and functional managers

 Implementation problems may arise

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 Management Issues

Important Implementation Concerns

• Managers & employees motivated more

by self-interests than organizational
interests
• Need to involve divisional and
functional managers in strategy
formulation
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 Management Issues & Strategy Implementation

Altering
Establishing Existing Restructuring
Devising
Annual Allocating Organizational &
Policies Structure Reengineering
Objectives Resources

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 Management Issues & Strategy Implementation

Revising Minimizing Managing Developing a

Adapting
Strategy
Reward & Resistance the Production/
Supportive
Incentive to Natural Culture
Operations
Programs Change Environment Processes

Developing
If Necessary
HR
Downsizing
Function

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 Management Issues & Strategy
Implementation

• Basis for allocating

resources
• Mechanism for evaluating
Establishing managers
Annual • Monitor progress toward
Objectives long-term objectives
• Establish organizational,
divisional, and
departmental priorities
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 Management Issues & Strategy
Implementation

• Basis for solving recurring

problems
• Sets boundaries,
Devising constraints, and limits on
administrative actions
Policies
• Sets expectations for
managers and employees
• Basis for management
control and coordination
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 Management Issues & Strategy
Implementation

Allocating
Resources

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 Management Issues & Strategy
Implementation

Altering
Existing
Organizational
Structure

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 Management Issues & Strategy
Implementation

Restructuring

Ch.7-17
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 Management Issues & Strategy
Implementation

Reengineering

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 Management Issues & Strategy
Implementation

Revising
Reward &
Incentive
Programs

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 Management Issues & Strategy
Implementation

Managing
Resistance
To
Change

Ch.7-20
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 Management Issues & Strategy
Implementation

Managing
the
Natural
Environment

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 Management Issues & Strategy
Implementation

Creating a
Strategy-
Supportive
Culture

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 Management Issues & Strategy
Implementation

Production/
Operations
Concerns

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 Management Issues & Strategy
Implementation

Human
Resources
Concerns

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 Management Issues

Important Implementation Concerns

• Strategy implementation means

change
• Successful implementation requires:
 Support
 Discipline
 Motivation
 Hard work
Ch.7-25
© 2001 Prentice Hall