An assignment of

Strategic Management
Topic: Strategy Implementation & Its Objectives

Submitted To: Submitted By:

Dr. Vijay Rathee Gulsan
Assistant Prof. Roll no. 02mba20174
MDU-CPAS MBA- 3rd Sem.
Gurugram
Strategy Implementation & its Objectives.
Strategy implementation represents the deployment of chosen
strategy with a view to achieving strategic objectives.
The transition from strategy formulation to strategy implementation
usually requires a shift in responsibility from corporate strategist to
functional, SBU and divisional managers. Most implementation
problems arise from this shift in responsibility. Management
issues, central to implementation include:
- Crafting annual objectives
- Devising policies to operationalise strategy
- Resource allocation
- Managing conflict
- Minimizing resistance to change
- Matching strategy with structure
- Matching managers with strategy
The McKinsey 7s
framework can be used to
show how complex the
key components
managers must consider
in making sure strategy
implementation
permeates the day-to-day
life of the organization.
1.Crafting annual objectives:
Establishing Management issues central to strategy implementation include
establishing annual objectives that relate logically to the strategy's long-term
objectives. Annual objectives are essential for strategy implementation
because they:
• represent the basis for allocating resources,
• are a primary mechanism for evaluating managers,
• are the major instrument for monitoring progress towards achieving long-
term objectives, and
• establish organizational, divisional and departmental priorities.

Annual objectives are specific, measurable statements of what an

organization subunit is expected to achieve in contributing to the
accomplishment of the business's grand strategy.
2.DEVISING POLICIES TO OPERATIONALISE STRATEGY:
Policies in this context refer to specific guidelines methods, procedures, rules, and
administrative practices established to support and encourage work towards stated
annual/semi annual objectives. Strategy implementation will involve devising
policies that help operationalise strategy at all levels of the organisation.
Policies not only let managers know what is expected of them,
they also provide basis for management control.

3.RESOURCE ALLOCATION:
This is an important strategic management activity. This is why strategic
management is sometimes conceived as a resource allocation activity. Strategic
management process enables scarce organizational resources to be allocated
according to priorities established in the annual budget.
Means of resource allocation include:
• Strategic budgeting
• BCG based budgeting
• PLC based budgeting
• Capital budgeting
• Zero based budgeting
4.MANAGING CONFLICT:
Interdependence of objectives and competition for scarce (limited)
resources often lead to conflict (structural conflicts) Establishing
annual objectives can lead to conflict because individual have
different expectations and perceptions. Schedules create pressure,
personalities are incompatible and misunderstanding between line
and staff and between functions e.g.(between production and
marketing) occur
The existence of conflict in itself is not an unusual thing for
managers.

5.MANAGING RESISTANCE TO CHANGE:

No organization can escape change. But the thought of change causes
anxieties because people are not too sure of the consequences of
change. Resistance to change can be viewed as the single most
important threat to successful strategy implementation. One way
modern organizations manage resistance to change is to link
performance and pay to strategy related achievement.
6.MATCHING STRATEGY WITH STRUCTURE:
As Alfred Chandler observed long time ago, a new Strategy always calls for a new or
modified structure. Strategy implementation could call for restructuring and
reengineering an organization.
Restructuring does not always call for redeployment of managers. It does however call
for managers to re-examine the level of structural complexity, formalization,
centralization and decentralization. For any given strategy there is an optimum level
for these dimensions. Managers must recognize areas in which strategy
implementation requires restructuring.

7.MATCHING MANAGERS WITH STRATEGY:

Also called Leadership Implementation, organizations must make sure that the right
managers are put in the right position. This could involve:
• Redeployment of managers
• Motivating managers for strategic accomplishments through revising reward and
incentive plans. Research shows that most organisations are aligning strategy,
performance and pay closely
• Training and Developing managers for present and future strategic needs.