Strategy Implementation - Step 3/4 : Str. Mgt. Process/Framework I

 

A.    Strategy Implementation- Definition & Meaning

 

Strategy implementation is the process of turning plans into action to reach a desired outcome. Essentially, it's the art of getting stuff done. The success of every organization rests on its capacity to implement decisions and execute key processes efficiently, effectively, and consistently

Implementation of strategy is the process through which a chosen strategy is put into action. It involves the design and management of systems, it achieve the best integration of people, structure, processes and resources in achieving organisational objectives. It deals with the way in which a firm creates the organisational arrangements that allow it to pursue its strategy

Strategy is mainly implemented through appropriate structure and control. Strategic implementation is the sum total of the activities and choices required for the execution of a strategic plan. Selecting the right combination of organisational structure and control is known as organisational design. Strategies most often fail because they aren’t executed well.

“Successful strategy formulation does not guarantee successful strategy implementation.”

                                                                            –     Larry Bossidy and Ram Charan

 

Strategy implementation is actually putting strategies in to action.  The Strategies formulated at various levels of the organizations are implemented so as to achieve the objectives taken up at the corporate level. 

After a strategy is formulated, the company needs to establish specific targets or goals related to putting the strategy into action, and allocate resources for the strategy’s execution. The success of the implementation stage is often determined by how good a job upper management does in regard to clearly communicating the chosen strategy throughout the company and getting all of its employees to “buy into” the desire to put the strategy into action.

Effective strategy implementation involves developing a solid structure, or framework, for implementing the strategy, maximizing the utilization of relevant resources, and redirecting marketing efforts in line with the strategy’s goals and objectives.

Strategy implementation happens in two stages

1.      Project Implementation

2.      Procedural Implementation

 A poor control on strategy implementation may result in unexpected situation of Malfunctioning of Strategy

Steps in Implementing Strategy

•      Developing an organisation’s potential for carrying out a strategy successfully

•      Disbursement of abundant resources to strategy –essential activities

•      Creating strategy –encouraging policies

•      Employing best policies and programs for constant improvement

•      Liking reward structure to accomplishment of results

•      Making use of strategic leadership

Strategy Implementation Dimensions 

Interrelationship of Strategy & Implementation has two aspects: viz.., Forward & Backward linkages.

The Forward Linkage refers to the Strategy implementation needs some restructure in Organization or in Resources to match with the strategy. Strategy Provides overall direction for implementation

The Backward Linkage refers to the Strategies selected based on current structure and resources that are available for effective implementation. Circumstances may affect selection of Strategy

Strategy Implementation Process 

Differences between Strategy Formulation & Implementation

 

Strategy Formulation	Strategy Implementation
Positioning forces before the action	Managing forces during the action
Focus on effectiveness	Focus on efficiency
Primarily intellectual	Primarily operational
Requires good intuitive and analytical skills	Requires special motivation and leadership skills
Requires coordination among few people	Requires coordination among many people
Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making.	Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions.

Some of the popular strategic implementation tools are

•       Balanced Score Card

•    Henry Mintzberg’s 5 Ps

•      McKinsey’s 7 S framework