Strategic Implementation

Strategic Implementation

What is Implementation?

• Turns strategies and plans into actions• It’s a Road map• “a PLAN”

Strategy Formulation vs.

Implementation

Implementation

Formulation

Grand Strategy

Getting Your Strategy Ready for

Implementation

HOW?

WHEN?

WHAT?

HOW LONG?

WHO?

Avoiding the Implementation

pitfalls

Lack of Ownership Lack of Communication

Overwhelming Plan Getting Mired

Meaningless Plan Annual Strategy

No Progress Report No Accountability

No Empowerment

Making sure you have the support

People ResourcesStructure

Culture

System

Implementing Strategy Tools

Structural Design

Leadership

Human resources

Information & Control System

Strategic Leadership

• Communicating Plans

• Giving Out Assignments

• Monitoring Execution

• Encouraging Staff

• Conflict not always “bad”• Lack of conflict may signal apathy• Can energize opposing groups to action• May help managers identify problems

Organizational Culture

Culture

Communication

Norm

Values

Structure and

Control

Vertical Differentiation Vertical differentiation in the distribution of decision-making authority.

Span of control (division of authority)The number of subordinates that a single manager directly manages.

Organizational Hierarchy Choices

Flat structuresFew organizational levels

Wide spans of control

Tall structuresMany organizational levels

Narrow spans of control

Horizontal Differentiation Focus is on division and grouping of tasks to meet business objectives.

Simple structure:Characteristic of small entrepreneurial companies.Entrepreneur takes on most managerial roles.No formal organization arrangements.Horizontal differentiation is low.

Stages of

Corporate Development

Simple StructureFunctional StructureDivisional Structure

Beyond SBU’s

Simple Structure:

Stage I:• Entrepreneur

• Decision making tightly controlled

• Little formal structure• Planning short range/reactive

Functional Structure:

Stage II:• Management team• Functional specialization• Delegation decision making• Concentration/specialization in industry

Divisional Structure:

Stage III:• Diverse product lines• Decentralized decision making• SBU’s• Almost unlimited resources

Beyond SBU’s:

Stage IV:• Increasing environmental uncertainty• Technological advances• Size & scope of worldwide businesses• Multi-industry competitive strategy• Better educated personnel

Functional Structure

Multidivisional Structure

Matrix Structure

Packagers

Designers Suppliers

Distributors

Corporate Headquarters

(Broker)

Promotion/ Advertising

Agencies

Manufacturers

Network Structure

Information & Control System

• Pay, reward system • Budget allocations

• Information systems

• Rules/procedures

Human Resources

Task:

1. Helping employees to understand the strategy.

2. Augmenting employee commitment to the strategy. 3. Streamlining local effort with the strategy.

4. Inducing cross-system cooperation.