STRATEGIC MANAGEMENT

AND BUSINESS POLICY

THIRD EDITION

Chapter 10
Activating strategies

AZHAR KAZMI
Learning objectives
 Examine the nature of strategy implementation
 Describe the barriers to strategy implementation
 Discuss the interrelationship between formulation and
implementation of strategies
 Explain the three themes that constitute our model of
strategy implementation
 Review the role of project management in strategy
implementation
 Review the role of regulatory mechanisms in
procedural implementation
 Deliberate on the value of aligning resource allocation
to strategy
 Discuss the factors that affect resource allocation and
the difficulties that arise in resource allocation

(c) Dr. Azhar Kazmi 2008 2

Characteristics of strategy
implementation
 Action orientation
 Comprehensive in scope
 Demanding varied skills
 Wide-ranging involvement
 Integrated process

(c) Dr. Azhar Kazmi 2008 3

Barriers to strategy implementation
and overcoming them
 An inability to manage change
 Poor or vague strategy
 Not having guidelines or a model to guide
implementation efforts
 Poor or inadequate information sharing
 Unclear responsibility and accountability
 Working against the organizational power
structure
 Overcoming barriers
• Adopting a clear model of strategy implementation
• Effective management of change in complex situations

(c) Dr. Azhar Kazmi 2008 4

Two-way linkage between formulation
and implementation of strategy

STRATEGY STRATEGY
FORMULATION IMPLEMENTATION
(THOUGHT) (ACTION)

(c) Dr. Azhar Kazmi 2008 5

Mintzberg’s conception of the type
of strategies

Formulated Implemented
strategy strategy

Intended Deliberate strategy Realised

strategy strategy

Unrealised Emergent
strategy strategy

Based on H. Mintzberg: “Pattern in strategy formation” Management Science May 1978; 24, 9, p. 945.

(c) Dr. Azhar Kazmi 2008 6

A model of strategy implementation
ACTIVATING MANAGING ACHIEVING
STRATEGIES CHANGE EFFECTIVENESS
---------------------------------------------------------------------------------------------
PROJECT
IMPLEMENTATION
STRUCTURAL FUNCTIONAL
IMPLEMENTATION IMPLEMENTATION

PROCEDURAL LEADERSHIP
STRATEGIC IMPLEMENTATION IMPLEMENTATION EVALUATION
PLAN & CONTROL
BEHAVIOURAL OPERATIONAL
IMPLEMENTATION IMPLEMENTATION
RESOURCE
ALLOCATION

FEEDBACK

(c) Dr. Azhar Kazmi 2008 7

Major themes in strategy
implementation
 Activating strategies
 Managing change
 Achieving effectiveness

(c) Dr. Azhar Kazmi 2008 8

The pyramid of strategy activation

STRATEGY

PLANS

PROGRAMMES

PROJECTS

BUDGETS

POLICIES,
PROCEDURES,
RULES AND
REGULATIONS

(c) Dr. Azhar Kazmi 2008 9

Project implementation
 A project is the basic unit of a
programme. A programme is a
portfolio of projects that may be
interrelated and interdependent in
complex ways. Several programmes
are required to implement a plan. A
number of plans are involved in
implementing a strategy.

(c) Dr. Azhar Kazmi 2008 10

The process of project
management
 Initiating
 Planning
 Executing
 Controlling
 Closing

(c) Dr. Azhar Kazmi 2008 11

Strategy implementation through
project management

STRATEGIC MANAGEMENT PROCESS

STRATEGY IMPLEMENTATION STRATEGY EVALUATION AND

CONTROL

PROJECT CONTROL
OBJECTIVES MEASURES

INITIATING PLANNING EXECUTING CONTROLLING CLOSING

PROJECT MANAGEMENT PROCESS

(c) Dr. Azhar Kazmi 2008 12

Procedural implementation
 Regulatory mechanisms in India
 Formation of a company
 Licensing procedures
 Securities and Exchange Board of India (SEBI) requirements
 Monopolies and Restrictive Trade Practices (MRTP)
requirements
 Foreign collaboration procedures
 Import and export requirements
 Patenting and trade marks requirements
 Labour legislation requirements
 Environmental protection and pollution control requirements
 Consumer protection requirements
 Incentives and facilities benefits

(c) Dr. Azhar Kazmi 2008 13

Procedural implementation in
action
 Strategists may adopt a submissive,
confrontational, or collaborative stance.
They can try to conform to the regulations,
confront the regulations by informed
criticism and lobbying and public relations
or work with the government to improve
the regulatory framework. At the same
time they can adopt an 'existentialist' view
and continually look for opportunities within
the business environment as such an
environment is substantially affected by
government plans, priorities, policies and
actions.
(c) Dr. Azhar Kazmi 2008 14
Resource allocation
 Resource allocation deals with the
procurement, commitment, and
distribution of financial, human,
informational, and physical resources
to strategic tasks for the achievement
of organisational objectives.
 Strategic budgeting
 Aligning resource allocation to strategy
 Factors affecting resource allocation
 Difficulties in resource allocation
(c) Dr. Azhar Kazmi 2008 15
Making of a strategic budget

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