Implementing Strategies: Management & Operations
Issues
Strategic Implementation is vital & tough
The Nature of Strategic Management
Shift in Responsibility
Divisional or
Strategists Functional
Managers
Strategy Formulation vs. Implementation
Strategy
StrategyImplementation
Formulation (SF) (SI)
Positioningforces
Managing forcesduring
beforethe
theaction
action
Focus on efficiency
effectiveness
Primarily operational
intellectual
Requires special
good intuitive
motivation
and analytical
and leadership
skills skills
Requires coordination among many people
Requires coordination among a few people
Issues Central to Strategy Implementation
Establish annual objectives
Devise policies
Allocate resources
Alter existing organizational structure
Restructure & reengineer
Revise reward & incentive plans
Minimize resistance to change
Develop a strategy-supportive culture
Purpose of Annual Objectives
Basis for resource allocation
Mechanism for management evaluation
Major instrument for monitoring progress toward achieving long-
term objectives
Establish priorities (organizational, divisional, and departmental)
Clearly Communicated Objectives are Critical to success
Horizontal consistency is as important as vertical consistency
Annual Objective Should be measurable, consistent, reasonable
etc
Policies
Policies are instrument for strategy implementation
Policy refers to specific guidelines, methods, procedure, rules
& administrative practices establishes to support work
towards goals
Surfing Web while work, “10 foot” rule
They assist for control & delegation
Policies can apply to all division & departments/ single
department
Resource Allocation
Four Types of Resources
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Managing Conflict
Conflict – a disagreement between two or more parties. Interdependency
of objectives and competition for limited resources can cause conflict.
Conflict not always “bad”
Lack of conflict may signal apathy
Can energize opposing groups to action
Resolving Conflict
Avoidance
Defusion
Confrontation
MATCHING STRUCTURE WITH STRATEGY
Change in strategy requires change in structure
Structure largely dictates how objectives & Policies will be
established
Structure dictates how the resource will be allocated
Structure should be to facilitate strategy
No optimal organization design or structure
MATCHING STRUCTURE WITH STRATEGY
Basic Forms of Structure
Functional Structure
Divisional Structure
Strategic Business Unit Structure (SBU)
Matrix Structure
Restructuring & Reengineering
Restructuring - reducing the size of an organization. Also called:
Downsizing
Rightsizing
Delayering
Reducing the number of employees, number of divisions, and number
of hierarchical levels in a firm’s organizational structure.
Reducing the size of an organization is intended to improve its
efficiency and effectiveness.
Linking Performance & Pay to Strategies
Managing Resistance to Change
Forced Change
Educative Change Strategy
Self Interest Change strategy