STRATEGY IMPLEMENTATION
Translation of strategic thoughts into strategic actions
DIFFERENCE BETWEEN STRATEGY FORMULATION & IMPLEMENTATION
POSITIONING FORCES BEFORE THE ACTION / MANAGING FORCES DURING THE ACTION FOCUSING ON EFFECTIVENESS / EFFICIENCY INTELLECTUAL PROCESS / OPERATIONAL PROCESS
REQUIRING INTUITIVE & ANALYTICAL SKILL / MOTIVATION & LEADERSHIP SKILL COORDINATION AMONG A FEW INDIVIDUALS / AMONG MANY INDIVIDUALS
CENTRAL MANAGEMENT ISSUES
ESTABLISHING ANNUAL OBJECTIVES DEVISING POLICIES ALLOCATING RESOURCES ALTERING AN EXISTING ORGANIZATIONAL STRUCTURE RESTRUCTURING & REENGINEERING
REVISING REWARD & INCENTIVE PLANS MINIMIZING RESISTANCE TO CHANGE MATCHING MANAGERS WITH STRATEGY DEVELOPING A STRATEGYSUPPORTIVE CULTURE DEVELOPING AN EFFECTIVE HUMAN RESOURCE FUNCTION
TOTAL INVOLVEMENT & PARTICIPATION
TOP-DOWN FLOW OF COMMUNICATION FOR BOTTOM-UP SUPPORT BENCHMARKING AGAINST BEST COMPETITORS IN THE MARKET CHALLENGES TO BECOME PERSONAL
ANNUAL OBJECTIVES
ESTABLISH ORGANIZATIONAL, DIVISIONAL & DEPARTMENTAL PRIORITIES BASIS FOR ALLOCATING RESOURCES GUIDELINE FOR ACTING, DIRECTING AND CHANNELISING EFFORTS AND ACTIVITIES OF MEMBERS SERVE AS A STANDARD OF PERFORMANCE PRIMARY MECHANISM FOR EVALUATING MANAGERS
ANNUAL OBJECTIVES
MEASURABLE IN TERMS OF QUALITY, QUANTITY, COST AND TIME CONSISTENT REASONABLE CHALLENGING CLEARLY COMMUNICATED THROUGHOUT THE ORGANISATION COMMENSURATE REWARDS & PUNISHMENT
POLICIES
REFER TO SPECIFIC GUIDELINES, METHODS, PROCEDURES, RULES, FORMS, AND ADMINISTRATIVE PRACTICES ESTABLISHED TO SUPPORT AND ENCOURAGE WORK TOWARD STATED GOALS e.g. to promote from within; No smoking within the premises
RESOURCE ALLOCATION
Financial resources Physical resources Human resources Technological resources ALLOCATION ON THE BASIS OF PRIORITIES APPROVED BY ANNUAL OBJECTIVES
BARRIERS TO EFFECTIVE RESOURCE ALLOCATION
OVERPROTECTION OF RESOURCES EMPHASIS ON SHORT- RUN FINANCIAL CRITERIA ORGANIZATIONAL POLITICS VAGUE STRATEGY TARGETS RELUCTANCE TO TAKE RISKS LACK OF SUFFICIENT KNOWLEDGE
Managing conflicts: causes
DIFFERING EXPECTATIONS & PERCEPTIONS MISUNDERSTANDING BETWEEN LINE & STAFF SHORT-TERM PROFITS VS. LONGTERM GROWTH HI-RISK VS. LO RISK SOCIAL RESPONSIVENESS VS. PROFIT MAXIMISATION
RESOLVING CONFLICTS
AVOIDANCE DEFUSION
CONFRONTATION
Matching structure with Strategy
FUNCTIONAL STRUCTURE DIVISIONAL STRUCTURE BY GEOGRAPHIC AREA, BY PRODUCT OR SERVICE, BY CUSTOMER, BY PROCESS STRATEGIC BUSINESS UNITS (SBU) MATRIX STRUCTURE
MECHANISTIC VS. ORGANIC STRUCTURES
TEAM STRUCTURE VIRTUAL STRUCTURE BOUNDARYLESS ORGANISATION:JACK WELCH OF GE
Restructuring
DOWNSIZING, RIGHTSIZING, DELAYERING TO COMBAT RECESSIONARY ECONOMIC CONDITIONS FOCUS BOTH ON EFFICIENCY & EFFECTIVENESS IMPROVING COST, QUALITY, SERVICE & SPEED CONCERNED WITH SHAREHOLDER WELLBEING RATHER THAN EMPLOYEE WELLBEING
RESTRUCTURING
BENCHMARKING: COMPARING THE FIRM AGAINST THE BEST ONES IN THE INDUSTRY ON VARIOUS PERFORMANCE RELATED CRITERION e.g. corporate staff to operating staff ratio
LIMITATIONS
REDUCED EMPLOYEE MORALE, COMMITMENT
CREATIVITY & INNOVATION
UNCERTAINTY & TRAUMA
REENGINEERING
CONCERNED MORE WITH EMPLOYEE & CUSTOMER WELL-BEING CHANGE IN MINDSET NOT GOVERNED BY FUNCTIONS BUT BY OVERALL CUSTOMER SERVICE, PRODUCT QUALITY, CORPORATE PERFORMANCE ELIMINATION OF BOTH PHYSICAL WALL & MENTAL WALLS
REENGINEERING
USING IT TO BREAK DOWN FUNCTIONAL BARRIERS DECENTRALISATION, RECIPROCAL INTERDFEPENDENCE, INFORMATION SHARING KNOCKING BOTH INTERNAL WALLS & EXTERNAL WALLS CO-OPERATION EVEN WITH RIVAL FIRMS HEWLETT-PACKARD SHARES ITS FORECASTS WITH ALL ITS SUPPLY-CHAIN PARTNERS & STAKEHOLDERS
E-engineering
TAKING FULL ADVANTAGE OF THE INTERNET TO DEAL WITH THE SUPPLIERS, CUSTOMERS, DISTRIBUTORS ELIMINATING THE GEOGRAPHIC PROTECTION /MONOPOLY OF LOCAL BUSINESS
Linking performance & pay to strategies
THREE CONSIDERATIONS: INDIVIDUAL PERFORMANCE GROUP PRODUCTIVITY COMPANYWIDE PROFITABILITY BONUSES NOT TO BE BASED SOLELY ON SHORT-TERM RESULTS IGNORING LONG-TERM STRATEGIES
Managing resistance to change
FORCE CHANGE STRATEGY EDUCATIVE CHANGE STRATEGY RATIONAL / SELF-INTEREST CHANGE STRATEGY Motivation, incentive, self-interest, communication, & feedback
MANAGING THE NATURAL ENVIRONMENT
COMPREHENSIVE ENVIRONMENTAL AUDIT DEVELOPING ENVIRONMENTAL PERSPECTIVES AMONG EMPLOYES DIFFERENTIATION STRATEGY THROUGH GREEN PRODUCT FEATURES
CREATING A STRATEGYSUPPORTIVE CULTURE
IDENTIFYING THOSE ASPECTS OF THE EXISTING CULTURE WHICH IS ANTAGONISTIC TO PROPOSED STRATEGY
LINKING CULTURE TO STRATEGY
FORMAL STATEMENT OF ORGANISATIONAL PHILOSOPHY REDESIGING OF THE PHYSICAL SPACE TEACHING & COACHING EXPLICIT REWARD & PROMOTION STORIES & LEGENDS ABOUT KEY PEOPLE & EVENTS
WEAK LINKAGES BETWEEN STRATEGIC MANAGEMENT & ORGANISATIONAL CULTURE CAN JEOPARDISE PERFORMANCE & SUCCESS