Strategy Implementation-Lec 3

Dr. M.K.Satish
Implementation Situations
 Implementation Situations
Three Stages of Corporate Development (Bruce Scott)
Company STAGE 1 STAGE 2 STAGE 3
Characteristics
Product line Single product Single product line Multiple product lines
Distribution One channel One set of channels Multiple channels
Organization Little or no formal Specialization based on Specialization based on
structure structure-one man show function product market
relationships

R&D organization Not institutionalized, Increasingly Institutionalised search

guided by owner-manager institutionalized search for new products as well
for product or process as for improvements
improvements
 Implementation Situations
Three Stages of Corporate Development (Bruce Scott)
Company STAGE 1 STAGE 2 STAGE 3
Characteristics
Performance By personal contact and Increasingly impersonal Increasingly impersonal
measurement subjective criteria using technical and/or cost using market criteria (return
criteria on investment and market
share)
Rewards Unsystematic and often Increasingly systematic, Increasingly systematic,
paternalistic with emphasis on stability with variability related to
and service performance
Control system Personal control of both Personal control of strategic Delegation of product
strategic and operating decisions decisions with increasing market decisions within
delegation of operating existing businesses, with
decisions through policy indirect control based on
analysis of results
Strategic choices Needs of owner versus needs of Degree of integration; Entry and exit from
company market share objectives; industries; allocation of
breadth of product line resources by industry, rate
of growth
Implementation Plan
Implementation Plan
 Identification of functional and administrative fits usually produces a lengthy list of
problem areas
 Instead of trying to address everything, the implementation plan should focus of 2-3
most critical issues
 IMPLEMENTATION PLAN SHOULD DETAIL OUT
1. Key human and organizational issues that are likely to arise
2. Present a sequence of actions to be taken over time
3. Include a set of alternative actions that can be taken if events do not unfold as planned
 Next step is to determine how the manager should take the actions
 MANAGER APPROACH TO ACTIONS SHOULD CONSIDER THE FOLLOWING
FACTORS
 Seriousness of the firm’s strategic problems
 Financial resources
 Degree of change that needs to be accomplished
 Strength of existing norms
 Personal managerial style and preferences
Implementation Situations
 As organizations grow they tend to develop through a number of distinct
stages
 Problems come in transition
 Also, problems come in typical strategic situations- Implementing Rapid
Growth, Consolidation, Strategic Change, Turnaround, Integrating new
Acquisition
Implementation Modes
Implementation Modes-Kenneth Andrews
In strategic situation, the manager faces two critical choices
 Degree of Involvement in the implementation process
 The attention the manager gives to Administrative Constraints

Combining these two dimensions produces the matrix below

Degree of attention to administrative constraints

High Low
involvement and direction
High

Political Manager Entrepreneurial

Degree of Managers

Manager

Administrative People and

Low

Manager Organization Shaker

Implementation Modes
Political Manager
 Manager is deeply involved in and direct the implementation process and will also
be cognizant of the administrative implications of the plan
Entrepreneurial Manager
 Manager is deeply involved in implementation of strategy but would plan little
attention to administrative constraints
 Great strength of entrepreneurial manager is the speed with which strategy is
implemented
Administrative Manager
 Manager is concerned with the administrative consequences of implementing
strategy and limits his involvement in achieving the strategy
People and Organization Shaker
 Manager involve themselves in the processes and systems and also with the people
that must implement the strategy
 Reliance on key subordinates
Reason for Misfits
 Strategies tend to change and evolve in response to environmental conditions
 When competing in a stable environment it is possible for a company to formulate
strategy that can be implemented with a consistent set of policies
 When environment and strategy change more frequently a company’s functional
policies and management systems seldom change rapidly enough to keep pace
 IMPLEMENTATION IS A MUCH MORE TIME CONSUMING PROCESS THAN
FORMULATION OF A NEW STRATEGY
Implementation Skills
Manager should have the following skills
 Analytic
 Administrative
 Leadership
Implementing strategy requires the manager to perform the diagnosis of the below three
components
 Strategic or technical component
 Administrative or organizational component
 Interpersonal component

Other implementation skills

 Communication
 Timing- knowing when it is appropriate to take action
 Winners and Losers- rewards the winners and identify losers in advance and take action
 What can be done and what cannot be done
 Exercise leadership
Thank You