Strategy Implementation

Topics: Strategic management, Management, Organization Pages: 11 (2665 words) Published: August 17, 2013
STRATEGY IMPLEMENTATION
I. What is strategy?
* Defined from atleast 2 perspectives:
1. From the perspective of what an organization intends to do * The broad program for defining and achieving an organization’s objectives and implementing its missions 2. Pattern of the organization’s responses to the environment over time * Every organization has a relationship with its environment that can be examined and described * This view includes managers who are reactive—who respond and adjust to the environment as the need arises II. Strategic Management

* Charting the course of the entire enterprise
* Steps:
1. Analysis of the internal and external environment of the firm 2. Definition of the firm’s mission
3. Formulation of strategies
4. Strategy implementation
5. Evaluation and control
III. Strategy Implementation
* The strategic management process does not end with formulation, there must be a translation into action * This translation is much easier if managers and employees of the firm understand the business, feel part of the company and through participation in strategy formulation are committed in making the company succeed * Without understanding and commitment, implementation efforts face major problems * Even the best conceived plans are of little value if they are not implemented effectively IV. Relationship of formulation and implementation / Differences * Formulation and implementation are 2 sides of the coin, very essential to strategic management * But successful strategy formulation does not guarantee the same with implementation. * Always more difficult to do something than to say you are going to do something * Although inextricably linked, the 2 can be contrasted in the following points: 1. Strategy formulation is positioning forces before the action, while implementation is managing forces during the action. 2. Formulation focuses on effectiveness while implementation is on efficiency. -effectiveness- doing things that will help the organization reach its goals -efficiency – getting the most output from least amount of inputs 3. Formulation is primarily an intellectual process while implementation is primarily an operational process 4. Formulation requires good intuitive and analytical skills, while implementation requires special motivation and leadership skills 5. Formulation requires coordination among a few individuals and implementation requires coordination among many individuals V. In the perspective of management

* Transition from formulation to implementation requires shift in responsibility from strategists to divisional and functional managers * Implementation problems can arise because of this shift in responsibility, especially if strategy formulation decisions come as a surprise to middle and lower level managers. * Those members of the organization needed for implementation maybe totally ignorant of the time effort poured into formulation, unless changes in the mission, objectives, strategies and policies and their importance to the to the company and communicates early with operational managers, there can be a lot of resistance and foot-dragging * Managers and employees are motivated more by perceived self-interests than by organizational interests unless the 2 coincide * Hence, essential that divisional and functional managers be involved as much as possible in strategy formulation, as well as strategists VI. What must be done?

- top management and divisional or functional managers work together to develop objectives, resource allocations and policies for the implementation of strategy -all work to achieve synergy among the divisions and functional areas in order to establish company’s distinctive competence

* Central strategy implementing activities

a. Annual Objectives/Programs
* Decentralized activity that directly involves all managers. * Active...
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