TOPIC 3
STRATEGY IMPLEMENTATION
“A successful strategy formulation does not guarantee successful
1
strategy implementation”
Feb 10, 2025
2 Introduction
There is no guarantee that a well designed strategy is
likely to be approved and implemented automatically. The
strategic leader must therefore
Defend the strategy from every angle
Communicate how the strategy when implemented would
benefit the whole organisation and
Secure the support of employees working at various
levels.
Feb 10, 2025
3 Introduction
Strategy implementation is the process of putting
organization's strategies into action by setting periodical
objectives, allocating resources, developing programmes,
policies, structures, etc
Even the best strategic plan will be useless unless it is
implemented properly. The strategy implementation is,
therefore, the most difficult element of the strategic
management process
This is so because there has to be a “fit” between the
strategy and the organization
Feb 10, 2025
4 Introduction
The strategic plan is put into action through six processes
Project – Organizational set up
Procedural – Regulatory framework
Resource – Right resources and competencies
Structural – Organizational structures
Behavioral – Leadership and culture
Functional implementation – Policies (productivity,
processes, pace of implementing the strategies)
Feb 10, 2025
5 Introduction
The complexities in the task of implementation arise from
organizational adjustments that are required and the need
to match them all to the strategy.
Key people need to be added or reassigned
Resources have to be mobilized and allocated
Functional strategies and policies are to be designed,
Organizational structure may have to be changed
Strategy- supportive culture may have to be developed
Reward and incentive plans are to be revised
Feb 10, 2025
6 Steps in strategic implementation
Formulation of plans
Identification of activities
Grouping of activities
Organizing resources
Allocation of resources
Feb 10, 2025
7 Model for Strategy Implementation
The implementation of strategies is concerned with the
design and management of systems to achieve the best
integration of people, structures, processes and
resources in reaching organisational purposes
Implementation of strategy therefore requires an
integration of people, structures, processes etc.
Mc Kinsey’s 7-S model is good at capturing the
importance of all these elements in the implementation
of strategy
The 7-S framework was developed in 1970s by the well-
known consultancy firm, the Mc Kinsey Company of the
Feb 10, 2025
United States
8 Model for Strategy Implementation
The implementation of strategies is concerned with the
design and management of systems to achieve the best
integration of people, structures, processes and
resources in reaching organisational purposes
Implementation of strategy therefore requires an
integration of people, structures, processes etc.
Mc Kinsey’s 7-S model is good at capturing the
importance of all these elements in the implementation
of strategy
The 7-S framework was developed in 1970s by the well-
known consultancy firm, the Mc Kinsey Company of the
Feb 10, 2025
United States
9 7-S Model
This framework basically deals with organizational
change
The 7-S framework suggests that there are several
factors that influence an organization's ability to
change
The factors are Strategy, Structure, Systems, Style,
Staff, Skills and Superordinate goals
The Mc Kinsey consultants call strategy, structure, and
systems as the “hard elements” of the organization and
the other 4 Ss i.e. style, skills, staff and super-ordinate
goals as the “soft elements” of the organization Feb 10, 2025
10 7-S Model
Strategy: the route that the company has chosen to
achieve competitive success
Structure: prescribes the formal relationships among
various positions and activities, communication channels,
roles to be performed by various members of an
organization
Systems: the procedures that make the organization
work (rules, regulations and procedures, both formal and
informal, that complement the organizational structure)
e.g production planning and control systems, cost
accounting procedures, budgeting, performance
evaluation systems etc Feb 10, 2025
11 7-S Model
Style: the way the company conducts its business.
The style of an becomes evident through the patterns
of actions taken by the top management team over a
period of time
Thus, an important part of managing change is
establishing and nurturing a good ‘fit’ between
culture and strategy
Feb 10, 2025
12 7-S Model
Staff: the pool of people who need to be developed,
challenged and encouraged
Three important aspects about staff are:
Selecting right people for specific organizational positions
Developing abilities and skills in them, to take up
challenging assignments
Motivating them to give their best to achieve strategic
goals
Feb 10, 2025
13 7-S Model
Skills: the learned ability to act with determined
results with good implementation often within a given
amount of time, energy, or both.
Hence, to implement a new strategy, it is necessary
to build new skills
Superordinate goals: goals of a higher order which
express the values, vision and mission that senior
management brings to the organization
These can be considered as the fundamental ideas
around which a business is built
Feb 10, 2025
14 7-S Model
These 7-S are interconnected so that altering one
element impacts other elements
Hence, significant changes cannot be achieved in any
factor without making changes in others.
There is no starting point or implied hierarchy in the
shape of the diagram, so it is not obvious which of the
7 factors would be the driving force in changing a
particular organisation at a particular point of time.
Feb 10, 2025
15 Assignment
Set out strategies for your business and specify how
the strategies will be implemented
Feb 10, 2025
16
Feb 10, 2025