Business policies and Strategies Strategy Implementation
Business Policies and Strategies Strategy Implementation
Strategy Implementation An internal, operations driven activity involving organizing, budgeting, motivating, culture building, supervising, and leading to make the strategy worked as intended There must be a fit between strategy and organizational resources and capabilities reward structure, internal support systems, and organizational structure
Strategy Implementation • An internal, operations driven activity involving organizing, budgeting, motivating, culture building, supervising, and leading to make the strategy worked as intended. • There must be a fit between strategy and organizational resources and capabilities, reward structure, internal support systems, and organizational structure
Implementation Questions Who are the people who will carry out the strategic plan? What must be changed to align the companys operations in the new intended direction? How is everyone going to do what is needed? Do we have the resources and capabilities to do So? Does our organizational culture and structure have to be changed? Can it be changed?
Implementation Questions • Who are the people who will carry out the strategic plan? • What must be changed to align the company’s operations in the new intended direction? • How is everyone going to do what is needed? Do we have the resources and capabilities to do so? • Does our organizational culture and structure have to be changed? Can it be changed?
Implementing Strategy is Tough? mplementing a new strategy takes adept management leadership to Overcome pockets of doubt Build consensus on how to proceed Secure commitment and cooperation Get all pieces in place Obtain the necessary resources and capabilities
Implementing Strategy is Tough? • Implementing a new strategy takes adept management leadership to – Overcome pockets of doubt – Build consensus on how to proceed – Secure commitment and cooperation – Get all pieces in place – Obtain the necessary resources and capabilities
Implementation Process Identify general strategic objectives dentify resistance to change Determine leadership required Determine if culture needs revision Formulate specific policies and plans Allocate resources and budgeting Monitor and control procedures Manage strategic change
Implementation Process • Identify general strategic objectives • Identify resistance to change • Determine leadership required • Determine if culture needs revision • Formulate specific policies and plans • Allocate resources and budgeting • Monitor and control procedures • Manage strategic change
mplementation Factors Seriousness of situation Nature and extent of change involved Type of strategy Strength of engrained behavior Financial resources available Organizational resources available Pressures for quick results
Implementation Factors • Seriousness of situation • Nature and extent of change involved • Type of strategy • Strength of engrained behavior • Financial resources available • Organizational resources available • Pressures for quick results
Typical Implementation Problems Took more time than planned Unanticipated internal major problems arose Poor coordination and leadership Inability to change the organizational culture Insufficient resources and capabilities Uncontrollable external events Inadequate information systems
Typical Implementation Problems • Took more time than planned • Unanticipated internal major problems arose • Poor coordination and leadership • Inability to change the organizational culture • Insufficient resources and capabilities • Uncontrollable external events • Inadequate information systems
Implementation Action Steps · Install the right leader Manage the change and stress · Benchmark the best Set goals and objectives Change the organizational structure Reengineer processes Outsource non-core activities Revise compensation systems Create a learning organization
Implementation Action Steps • Install the right leader • Manage the change and stress • Benchmark the best • Set goals and objectives • Change the organizational structure • Reengineer processes • Outsource non-core activities • Revise compensation systems • Create a learning organization
Leaders versus managers Managers are people who do things right and leaders are people who do the right things (Bennis and Nanus) Managers are concerned about how things get done and leaders are concerned with what the things mean to people.( Zaleznik
Leaders versus Managers • Managers are people who do things right and leaders are people who do the right things. (Bennis and Nanus) • Managers are concerned about how things get done and leaders are concerned with what the things mean to people. (Zaleznik)
Differences Managers Setting operational goals, establishing plans with timetables, and allocating resources Organizing and staffing Monitoring results and solving problems · Leaders Developing a vision of the future Communicating the vision Motivating and inspiring people
Differences • Managers – Setting operational goals, establishing plans with timetables, and allocating resources – Organizing and staffing – Monitoring results and solving problems • Leaders – Developing a vision of the future – Communicating the vision – Motivating and inspiring people