CHAPTER 9

STRATEGY IMPLEMENTATION

Introduction

Strategy implementation refers to the process of turning strategic plans into action to achieve the
organization's goals. While formulating a solid strategy is crucial, the success of an organization
largely depends on how well that strategy is executed. The process of implementation involves
aligning organizational structures, allocating resources, managing change, and creating a culture
that supports strategic initiatives. Many organizations fail, not because they lack a good strategy,
but because they are unable to execute it effectively.

i. Organizational Structure and Strategic Alignment

1. Organizational Structure Defined

Organizational structure refers to the formal arrangement of roles, responsibilities, and

relationships within an organization. It determines how tasks are divided, coordinated, and
controlled, and it plays a critical role in strategy implementation. The structure must align with
the strategic goals of the organization to ensure effective execution.

There are several types of organizational structures that influence strategic alignment:

 Functional Structure: Organizes departments based on functions (e.g., marketing,

finance, HR). This is suitable for organizations with a narrow product focus or in stable
environments.
 Divisional Structure: Divides the organization based on products, services, or
geographical regions. This allows for flexibility and responsiveness in diverse markets.
 Matrix Structure: Combines functional and divisional structures, with employees
reporting to two managers—one functional and one project or product-based.

2. Strategic Alignment

Strategic alignment refers to ensuring that the organization’s structure, resources, and processes
are coordinated to achieve strategic goals. Misalignment between strategy and structure can lead
to inefficiencies, internal conflicts, and failure to achieve objectives. Leaders must ensure that
the organizational structure supports the execution of the strategic plan, fostering collaboration,
communication, and efficient decision-making.

 Example from Tanzania: CRDB Bank restructured its organization into distinct
divisions such as retail banking, corporate banking, and digital services to align with its
strategy of becoming a regional leader in digital financial solutions.

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3. Role of Organizational Structure in Strategy Implementation

1. Facilitating Communication:
o The structure determines how information flows within the organization. Clear
lines of communication enable quick decision-making, efficient execution of
tasks, and alignment with strategic goals.
o Example: Vodacom Tanzania’s matrix structure ensures cross-functional
collaboration, allowing faster response to market changes, especially in its digital
services and mobile money platforms.
2. Coordination and Control:
o An effective structure facilitates coordination between different departments,
ensuring that all parts of the organization are working towards common strategic
objectives.
o Example: Tanzania Breweries Limited (TBL) has a divisional structure that
allows each division (e.g., beer, soft drinks) to operate independently while
aligning with the broader corporate strategy of market expansion.
3. Adaptability and Flexibility:
o In rapidly changing environments, the structure must allow for flexibility and
quick adaptation to new strategies or market conditions. The ability to reconfigure
structures is critical in industries facing technological disruption.
o Example: The Tanzania Postal Bank (TPB) underwent a structural transformation
to become more flexible in adapting to the increasing competition from digital
and mobile banking services.

4. Aligning Structure with Strategy

To achieve strategic alignment, leaders must regularly assess whether the current structure
supports the implementation of new strategies. Key factors for aligning structure with strategy
include:

 Business Complexity: Larger, more diversified organizations may need a divisional

structure to manage different products or markets effectively.
 Strategic Goals: A company's structure should reflect its priorities, such as focusing on
innovation, customer service, or cost leadership.
 External Environment: In dynamic industries, such as technology, an organization may
need a more flexible structure to adapt quickly to change.

ii. Resource Allocation, Change Management, and Culture in Strategy

Implementation

1. Resource Allocation in Strategy Implementation

Resource allocation is the process of assigning the necessary financial, human, technological,
and material resources to execute the strategic plan. Effective resource allocation is essential for
ensuring that key projects and initiatives have the support they need to succeed.

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 1. Financial Resources:
o Adequate financial support is necessary to fund new initiatives, expand
operations, invest in technology, or enter new markets. Leaders must prioritize
spending to ensure that the most critical strategic goals receive sufficient funding.
o Example from Tanzania: National Microfinance Bank (NMB) allocates a
significant portion of its budget toward digital banking transformation,
recognizing that technology will be a key driver of future growth.
2. Human Resources:
o Success depends on having the right people in the right roles. Strategic HR
planning involves recruiting, training, and retaining talent that aligns with the
strategic direction of the organization.
o Example: The Tanzania Revenue Authority (TRA) focuses on hiring and training
specialists in tax collection and compliance to support its strategic objective of
improving tax revenues.
3. Technological Resources:
o Investing in technology is crucial for gaining a competitive advantage, especially
in industries where digital transformation is reshaping markets.
o Example: Tanzania Electric Supply Company (TANESCO) allocated resources to
upgrade its infrastructure to support its strategy of expanding access to electricity
in rural areas.
4. Time Management:
o Strategic implementation often requires setting clear timelines for achieving
specific milestones. Proper time management ensures that strategic initiatives are
executed without delays.

2. Change Management in Strategy Implementation

Change management refers to the process of guiding organizations through transitions that result
from new strategies. As organizations execute their strategies, they often face resistance from
employees or stakeholders who may be uncomfortable with change. Successful change
management involves clear communication, training, and leadership support.

1. Understanding Resistance to Change:

o Resistance is a natural reaction when employees are asked to adapt to new
strategies, processes, or structures. Effective leaders must understand the root
causes of this resistance and address it proactively.
o Example: When Tanzania's government shifted to a digital tax collection system,
many businesses resisted the changes due to concerns about transparency and data
security. TRA launched public education campaigns to ease this transition.
2. Communication of Strategic Changes:
o Clear communication is key to reducing uncertainty and ensuring buy-in from
employees and stakeholders. Leaders must clearly explain the strategic objectives
behind the changes and how they will benefit the organization in the long run.
o Example: Tanzanian telecom companies, such as Airtel, communicated their
digital transformation strategies to employees through town hall meetings and
internal communications platforms to ensure alignment.

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 3. Training and Development:
o Employees must be equipped with the skills and knowledge necessary to execute
the new strategy. This may involve reskilling, upskilling, or leadership
development programs.
o Example: To support its strategic goals, Tanzania Breweries Limited (TBL)
offers leadership training programs for managers to build skills in implementing
and driving the company’s strategy.
4. Leadership in Change Management:
o Leaders must be visible champions of change, actively guiding the organization
through the transition. Their ability to inspire confidence and trust is critical to
overcoming resistance and ensuring the successful implementation of strategic
initiatives.
o Example: At Bakhresa Group, leaders played a central role in navigating the
organization through its diversification strategy, promoting innovation and
encouraging employees to embrace change.

3. Organizational Culture in Strategy Implementation

Organizational culture plays a critical role in the successful implementation of strategy. Culture
refers to the shared values, beliefs, and norms that influence how employees behave and make
decisions within the organization. A strong, supportive culture can facilitate the implementation
of strategy, while a misaligned culture can hinder progress.

1. Aligning Culture with Strategy:

o For strategies to be successfully implemented, the organizational culture must
align with the strategic goals. Leaders may need to cultivate a culture of
innovation, collaboration, or customer service, depending on the strategic
objectives.
o Example from Tanzania: SEGA NGO’s focus on empowering young girls
through education is reflected in its organizational culture, which promotes
inclusivity, empowerment, and social responsibility.
2. Culture as a Competitive Advantage:
o A positive and aligned culture can serve as a competitive advantage, fostering
employee engagement, innovation, and a strong sense of purpose. It helps
organizations adapt to changes and remain resilient during periods of
transformation.
o Example: Vodacom Tanzania’s customer-centric culture has been instrumental in
maintaining its competitive position as a leader in mobile and data services in the
Tanzanian market.
3. Changing Organizational Culture:
o When the existing culture is at odds with the new strategic direction, leaders must
initiate cultural change. This is often one of the most challenging aspects of
strategy implementation, as it involves shifting deeply ingrained beliefs and
behaviors.

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 oExample: Bakhresa Group successfully shifted its organizational culture from a
traditional family-owned business to a more innovative and customer-focused
enterprise, as part of its regional expansion strategy.
4. Leadership's Role in Shaping Culture:
o Leaders play a critical role in shaping and sustaining organizational culture.
Through their actions, communication, and decision-making, they model the
behaviors and values that support the company’s strategic goals.
o Example: Serengeti Breweries emphasizes a performance-driven culture, which
aligns with its strategic objective of maintaining market leadership in Tanzania’s
competitive beverage industry.

Conclusion

Strategy implementation is the bridge between planning and achieving organizational success. A
well-structured organization that is aligned with strategic goals, efficient resource allocation,
effective change management, and a supportive culture are critical elements for successful
execution. Leaders must focus on aligning their organization's structure, resources, and culture
with their strategic objectives to ensure long-term success.

References

 Daft, R. L. (2021). Organization Theory and Design. Cengage Learning.

 Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (201

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