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ReferenceforBusinessEncyclopediaofBusiness,2nded.ScStrStrategyImplementation

STRATEGYIMPLEMENTATION

AkeyroleofaCEO'sistocommunicateavisionandtoguide
strategicplanning.Thosewhohavesuccessfullyimplementedstrategicplanshaveoftenreportedthatinvolvingteamsatall
levelsinstrategicplanninghelpstobuildasharedvision,andincreaseseachindividual'smotivationtoseeplanssucceed.
Clarityandconsistentcommunication,frommappingdesiredoutcomestodesigningperformancemeasures,seemtobe
essentialtosuccess.Successfulleadershaveoftenengagedtheirteamsbysimplytellingthestoryoftheirsharedvision,and
publiclycelebratinglargeandsmallwins,suchastheachievementofmilestones.Toensurethatthevisionisshared,teams
needtoknowthattheycantestthetheory,voiceopinions,challengepremises,andsuggestalternativeswithoutfearof
reprimand.
Implementingstrategicplansmayrequireleaderswholeadthroughinspirationandcoachingratherthancommandand
control.Recognizingandrewardingsuccess,inspiring,andmodelingbehaviorsismorelikelytoresultintruecommitment
thanuseofauthority,whichcanleadtopassiveresistanceandhiddenrebellion.

CREATINGSTRATEGICPLANS
Theseniormanagementteammustcometogethertoreview,discuss,challenge,andfinallyagreeonthestrategicdirection
andkeycomponentsoftheplan.Withoutgenuinecommitmentfromtheseniorteam,successfulimplementationis
unlikely.
Strategicgroupmembersmustchallengethemselvestobeclearintheirpurposeandintent,andtopushforconsistent
operationaldefinitionsthateachmemberoftheteamagreesto.Thispreventsdifferingperceptionsorturfdriven
viewpointslateron.Acarefullychosen,neutralfacilitatorcanbeessentialinhelpingtheteamtoovercomeprocess,group
dynamics,andinterpersonalissues.
Acommonwaytobeginistoreviewtheorganization'scurrentstateandfuturepossibilitiesusingaSWOT(strength,
weakness,opportunity,andthreat)analysis.Thisinvolvesidentifyingstrengthsandcorecapabilitiesinproducts,resources,
people,andcustomers.Thesearewhattheorganizationisbestat,andwhyitisinbusiness.Manyorganizationshave
respondedtothisreviewbyspinningoffventuresthatwerenotrelatedtotheircorebusiness.Forexample,Chryslersoldits
interestsinMaserati,Lambourghini,andDiamondStarandthenconcentratedondeveloping"greatcars,greattrucks."
Thissentaclearmessagetoemployeesandotherstakeholders,andtriggeredthecompany'srenaissance.
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UsingSWOT,oncestrengthsandcorecapabilitiesaredefinedthenextstepistoidentifyweaknessesorvulnerabilities.This
isusuallythemostdifficultfororganizationsandleaderstoassess.Theidentificationofgapsisoftenthreatening.Insome
organizationsitisnotconsideredsafetoadmittoweaknessbutanhonestappraisalcanmakethedifferencebetween
successandfailure.Again,reviewsshouldincludealookatproducts,services,resources,customers,andemployees.Dothe
rightskillsexistinthecurrentstaff?Arethereenoughresourcestoinvestinareasofcriticalneed?Aretheappropriate
systemsandstructuresinplacetosupporttheneedsoftheteam?Doestheculturereinforceandconnectwiththemission
andvisionoftheorganization?
Nowthereviewmovestotheexternalenvironment.Whatopportunitiesexistfordevelopmentandgrowth?Dothese
opportunitiescorrespondtotheorganization'sstrengths?Whatarethecriticalchangesthemarketfacesoverthenextone,
three,andfiveyears?Howwellistheorganizationpositionedfortheanticipatedmarketchanges?Additionalpointsfor
debateincludethegreatestinnovationorchangethatneedstooccurfortheorganizationtobesuccessful,andthevalues
thatwilldrivethesechanges.
Next,usingtheSWOTassessmentprocess,threatsinthecurrentandfuturemarketareidentified.Howisthecompetition
positionedrelativetotheopportunitiesforgrowththathavebeenidentified,andhowaretheypositionedrelativetothe
organization'sstrengthsandweaknesses?
Withthisinformation,organizationscanfinalizetheirstrategybydefiningthevision,creatingamissionstatement,and
identifyingtheircompetitiveadvantages.Thecommunicationofthestrategywillrequireaclear,consistentmessage.Itisan
idealtimefortheleadershiptooperationallydefineeachcriticalareaoftheplantoensureagreementandcommitment.Key
stakeholdersshouldbeincludedintheprocess.Solicitingtheirinputisoftenavaluableaideinimplementation.
Finally,organizationsshouldrevieweachofthegapsthathavebeenidentified.Dothenecessaryresourcesexisttoinvestin
shoringupthegaps?Aretheseresourcesallocatedproperly?Itisusuallynotpossibletoaddressallofthegapsatonce.
Organizationsshouldcreateaprioritylistforactionsoplansarerealisticandfocusedonthegreatestareasofneed.These
prioritieswillbecomeakeyfocusofimplementingtheplan.
Oncetheseniorleadershipteamhascompletedthetoplevelstrategy,thenextstepistobreakthatoverallgoaldowninto
functionalareasorcorestrategies.Typicallythiswillincludeservice/operationsmanagement,technologymanagement,
productmanagement,suppliermanagement,peoplemanagement,andfinancialmanagement,orsomevariationonthese
areas.Eachidentifieshowtheycontributetoachievingtheoverallstrategicplan.Theycanmodelthestepstakenbythe
seniorteamandconductaSWOTanalysisfromtheirvantagepoint.Oncethecorestrategiesaredefined,theseniorteam
mustensurethattheoverallstrategywillbeachievedthatis,thatthesumoftheparts(functionalstrategies)willaddupto
thewhole(overallstrategy).
Strategycommunicationcontinuestobecritical,sooperationaldefinitionsshouldnotbeoverlooked.Eachfunctionalarea
shouldcreatetheirowndefinitionstoensureagreementandcommitment.Acommonsourceofproblemsin
implementationisthatdivergentfunctionalperspectivesmaynotbealignedwiththeoverallstrategy.Unlesstheseissues
areaddressed,eachareamayinterprettheplanwithalensof"Howdoesmyareawin?"ratherthan"Howdoesthe
organizationwin?"
Keystakeholderscanbeengagedindifferentways.Asidefromevents,publicity,andpersonificationofthevisionand
strategybykeyleaders,stakeholderscanbeengagedbysolicitingtheirinputonthecurrentstateoftheorganizationandthe
vision(similartotheSWOTanalysisdescribedearlier).Involvingstakeholdersinthismannershouldbedoneseriously,
withanintenttousetheirdistinctperspectivesthiscanaddtothesoundnessoftheanalysis.Askingforopinionsandthen
ignoringthemcanarousedistrustandresentment.
Asthestrategicplanandperformancemeasuresarebeingcreated,theorganizationmustmakesurethattheyarealigned
withthesystems,structure,culture,andperformancemanagementarchitecture.Thebestplansmayfailbecausethereward
systemsmotivatedifferentbehaviorsthanthosecalledforinthestrategymapandmeasurementdesign.Forexample,ifa
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teamapproachtobusinessdevelopmentisoutlinedintheplan,butsalescommissionremainsindividual,organizationswill
behardpressedtoseeateamfocus.
Thecareerdevelopment,performancemanagementandrewardsystemsmustbereviewedtoensurelinkagetoandsupport
ofthestrategicintent.Manyorganizationshavefoundtheyneededtolinktheirstrategicplantotheirinternalsystemsand
structurestoensureoverallalignmentandtoavoidconfusion.

IMPLEMENTINGSTRATEGICPLANS
Oncestrategieshavebeenagreedon,thenextstepisimplementationthisiswheremostfailuresoccur.Itisnotuncommon
forstrategicplanstobedrawnupannually,andtohavenoimpactontheorganizationasawhole.
Acommonmethodofimplementationishooplaatotalcommunicationeffort.Thiscaninvolveslogans,posters,events,
memos,videos,Websites,etc.Acriticalsuccessfactoriswhethertheentireseniorteamappearstobuyintothestrategy,
andmodelsappropriatebehaviors.SuccessappearstobemorelikelyiftheCEO,oraveryvisibleleader,isalsoachampion
ofthestrategy.
Strategicmeasurementcanhelpinimplementingthestrategicplan.Appropriatemeasuresshowthestrategyisimportant
totheleaders,providemotivation,andallowforfollowthroughandsustainedattention.Byactingasoperational
definitionsoftheplan,measurescanincreasethefocusofthestrategy,aligningtheworkforcearoundspecificissues.The
resultscanincludefasterchanges(bothinstrategicimplementation,andineverydaywork)greateraccountability(since
responsibilitiesareclarifiedbystrategicmeasurement,peoplearenaturallymoreaccountable)andbettercommunication
ofresponsibilities(becausethemeasuresshowwhateachgroup'sprimaryresponsibilityis),whichmayreduceduplication
ofeffort.
Creatingastrategicmap(orcausalbusinessmodel)helpsidentifyfocalpointsitshowsthetheoryofthebusinessineasily
understoodterms,showingthecauseandeffectlinkagesbetweenkeycomponents.Itcanbeafocalpointfor
communicatingthevisionandmission,andtheplanforachievingdesiredgoals.Iftestedthroughstatisticallinkage
analysis,themapalsoallowstheorganizationtoleverageresourcesontheprimarydriversofsuccess.
Theseniorteamcancreateastrategicmap(ortheoryofthebusiness)byidentifyingandmappingthecriticalfew
ingredientsthatwilldriveoverallperformance.Thiscanbetested(sometimesimmediately,withexistingdata)througha
varietyofstatisticaltechniquesregressionanalysisisfrequentlyused,becauseitisfairlyrobustandrequiresrelatively
smalldatasets.
Thismapcanleadtoaninstrumentpanelcoveringafewareasthatareofcriticalimportance.Thepaneldoesnotincludeall
oftheareasanorganizationmeasures,ratherthefewthatthetopteamcanusetoguidedecisions,knowingthatgreater
detailisavailableiftheyneedtodrilldownformoreintenseexamination.Thesecriticalfewaretypicallywithinsixstrategic
performanceareas:financial,customer/market,operations,environment(whichincludeskeystakeholders),people,and
partners/suppliers.Eachareamayhavethreeorfourfocalpointsforexample,thepeoplecategorymayincludeleadership,
commonvalues,andinnovation.
Oncethestrategicmapisdefined,organizationsmustcreatemeasuresforeachfocalpoint.Thefirststepistocreatethese
measuresatanorganizationallevel.Oncethesearedefined,eachfunctionalareashouldidentifyhowtheycontributetothe
overallmeasures,andthendefinemeasuresoftheirown.Ideally,thisprocesscascadesdownwardthroughtheorganization
untileachindividualislinkedwiththestrategyandunderstandsthegoalsandoutcomestheyareresponsibleforandhow
theirindividualsuccesswillbemeasuredandrewarded.
Goodperformancemeasuresidentifythecriticalfocuspointsforanorganization,andrewardtheirsuccessfulachievement.
Whenusedtoguideanorganization,performancemeasurescanbeacompetitiveadvantagebecausetheydrivealignment
andcommonpurposeacrossanorganization,focusingeveryone'sbesteffortsatthedesiredgoal.Butdefiningmeasurescan
betricky.Teamsmustcontinuetoaskthemselves,"Ifweweretomeasureperformancethisway,whatbehaviorwouldthat
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motivate?"Forexample,ifthedesiredoutcomeisworldclasscustomerservice,measuringthevolumeofcallshandledby
representativescoulddrivetheoppositebehavior.

CASCADINGTHEPLAN
Inlargerorganizations,cascadingthestrategicplanandassociatedmeasurescanbeessentialtoeverydayimplementation.
Toadegree,hoopla,celebrations,events,andsooncandrivedownthemessage,butinmanyorganizations,particularly
thosewithoutextremelycharismaticleaders,thisisnotsufficient.
Cascadingisoftenwheretheimplementationbreaksdown.Forexample,onlysixteenpercentoftherespondentsina1999
MetrusGroupsurveybelievedthatassociatesatalllevelsoftheircompanycoulddescribethestrategy.Ina1998national
surveyofQualityProgressreaders,cascadingwasoftennotedasbeingaseriousprobleminimplementingstrategic
measurementsystems.
Organizationshavefoundittobehelpfultoaskeachfunctionalareatoidentifyhowtheycontributetoachievingtheoverall
strategicplan("functionalarea"designatingwhatevernaturalunitsexistintheorganizationfunctions,geographies,
businessunits,etc.).Armedwiththestrategicmap,operationaldefinitionsandtheoverallorganizationalstrategic
performancemeasures,eachfunctionalareacreatestheirownmapofsuccessanddefinestheirownspecificperformance
measures.TheycanfollowthemodeloutlinedabovestartingwiththeirownSWOTanalysis.
Forexample,inthe1990s,Searscascadeditsstrategicplantoallofitsstoresthroughlocalstorestrategysessionsinvolving
allemployees.Theplanwasshowngraphicallybyastrategymap,andreinforcedthroughactionssuchasthesaleof
financialbusinessessuchasAllstate.Onlineperformancemeasureshelpedstoremanagerstogainfeedbackontheirown
performance,andalsoletthemsharebestpracticeswithothermanagers.
Functionalarealeadersmaybemoresuccessfulusingacascadeteamtoaddinputandtakethemessageforwardtoothers
inthearea.Developingambassadorsorprocesschampionsthroughouttheorganizationtosupportandpromotetheplan
anditsimplementationcanalsoenhancethechancesofsuccess.Thesechampionsmaybecandidatesforparticipationon
thedesignorcascadeteams,andshouldbeinvolvedinthestakeholderreviewprocess.

EXTERNALCONSULTANTS
Externalconsultantscanplayanimportantroleinbuildingandimplementingstrategicplansiftheyareusedappropriately.
Ratherthancreatingorguidinganorganization'sstrategy,theprimaryroleofaconsultantshouldbethatofafacilitator,a
sourceofoutsideperspective,andperhapsasaresourceforguidingtheprocessitself.Thisallowseachmemberofthe
internalteamtoparticipatefullywithouthavingtomanagetheagendaandkeeptheteamfocusedonthetaskathand.
Consultantscankeeptheforumontrackbydirectingthediscussiontoensureobjective,strategicthinkingaroundkey
issues,tappingeveryone'sknowledgeandexpertise,raisingpertinentquestionsfordiscussionanddebate,managing
conflict,andhandlinggroupthinkandothergroupdynamicsissues.
Consultantscanextractthebestthinkingfromthegroup,andensurethatthevisionandmissionarebasedonasound,
criticalreviewofthecurrentstateandanticipatedfutureopportunities.Oncethisisaccomplished,consultantscanfacilitate
theidentificationofdesiredoutcomesandthedriversneededtoachievethem.Theycanalsohelptoassurethatatrue
consensusisactuallyreached,ratherthananappearanceofaconsensusduetofear,conformity,orothergroupeffects.
Duringthecascadingphase,consultantscanhelptoavoidfailurebyfacilitatingthelinkagefromtheoverarchingcorporate
strategy,throughthedepartmentalandorfunctionalleveltotheteamandindividuallevel.Thisisapointwhereturf
interestscaninvadethethoughtprocess,coloringlocalmeasurementdesigntoensurelocalrewards.Thismaynotalign
withtheoverallstrategicintent,socaremustbetakentocontinuallylinkbacktotheoverarchingvisionofthe
organization.
Buildingandimplementingwinningstrategicplansisacontinuousjourney,requiringroutinereviewsandrefinementofthe
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measuresandthestrategicplansthemselves.Bypartneringwithinternalteams,stakeholdersandtrustedexternal
consultants,leaderscandevelopbetterstrategicplansandimplementthemmoresuccessfully.

STRATEGYIMPLEMENTATIONISSUES
Strategyimplementationalmostalwaysinvolvestheintroductionofchangetoanorganization.Managersmayspend
months,evenyears,evaluatingalternativesandselectingastrategy.Frequentlythisstrategyisthenannouncedtothe
organizationwiththeexpectationthatorganizationmemberswillautomaticallyseewhythealternativeisthebestoneand
willbeginimmediateimplementation.Whenastrategicchangeispoorlyintroduced,managersmayactuallyspendmore
timeimplementingchangesresultingfromthenewstrategythanwasspentinselectingit.Strategyimplementationinvolves
bothmacroorganizationalissues(e.g.,technology,rewardsystems,decisionprocesses,andstructure),andmicro
organizationalissues(e.g.,organizationcultureandresistancetochange).

MACROORGANIZATIONALISSUES
OFSTRATEGYIMPLEMENTATION
Macroorganizationalissuesarelargescale,systemwideissuesthataffectmanypeoplewithintheorganization.Galbraith
andKazanjianarguethatthereareseveralmajorinternalsubsystemsoftheorganizationthatmustbecoordinatedto
successfullyimplementaneworganizationstrategy.Thesesubsystemsincludetechnology,rewardsystems,decision
processes,andstructure.Aswithanysystem,thesubsystemsareinterrelated,andchangingonemayimpactothers.
Technologycanbedefinedastheknowledge,tools,equipment,andworkmethodsusedbyanorganizationinprovidingits
goodsandservices.Thetechnologyemployedmustfittheselectedstrategyforittobesuccessfullyimplemented.
Companiesplanningtodifferentiatetheirproductonthebasisofqualitymusttakestepstoassurethatthetechnologyisin
placetoproducesuperiorqualityproductsorservices.Thismayentailtighterqualitycontrolorstateoftheartequipment.
Firmspursuingalowcoststrategymaytakestepstoautomateasameansofreducinglaborcosts.Similarly,theymightuse
olderequipmenttominimizetheimmediateexpenditureoffundsfornewequipment.
Rewardsystemsorincentiveplansincludebonusesandotherfinancialincentives,recognition,andotherintangible
rewardssuchasfeelingsofaccomplishmentandchallenge.Rewardsystemscanbeeffectivetoolsformotivatingindividuals
tosupportstrategyimplementationefforts.Commonlyusedrewardsystemsincludestockoptions,salaryraises,
promotions,praise,recognition,increasedjobautonomy,andawardsbasedonsuccessfulstrategyimplementation.These
rewardscanbemadeavailableonlytomanagersorspreadamongemployeesthroughouttheorganization.Profitsharing
andgainsharingaresometimesusedatdivisionalordepartmentallevelstomorecloselylinktherewardstoperformance.
Questionsandproblemswillundoubtedlyoccuraspartofimplementation.Decisionspertainingtoresourceallocations,job
responsibilities,andprioritiesarejustsomeofthedecisionsthatcannotbecompletelyplanneduntilimplementation
begins.Decisionprocesseshelptheorganizationmakemidcourseadjustmentstokeeptheimplementationontarget.
Organizationalstructureistheformalpatternofinteractionsandcoordinationdevelopedtolinkindividualstotheirjobs
andjobstodepartments.Italsoinvolvestheinteractionsbetweenindividualsanddepartmentswithintheorganization.
Currentresearchsupportstheideathatstrategiesmaybemoresuccessfulwhensupportedwithstructureconsistentwith
thenewstrategicdirection.Forexample,departmentalizationsonthebasisofcustomerswilllikelyhelpimplementthe
developmentandmarketingofnewproductsthatappealtoaspecificcustomersegmentandcouldbeparticularlyusefulin
implementingastrategyofdifferentiationorfocus.Afunctionalorganizationalstructuretendstohaveloweroverheadand
allowsformoreefficientutilizationofspecialists,andmightbemoreconsistentwithalowcoststrategy.

MICROORGANIZATIONALISSUESOF
STRATEGYIMPLEMENTATION
Microorganizationalissuespertaintothebehaviorofindividualswithintheorganizationandhowindividualactorsinthe
largerorganizationwillviewstrategyimplementation.Implementationcanbestudiedbylookingattheimpactorganization
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cultureandresistancetochangehasonemployeeacceptanceandmotivationtoimplementthenewstrategy.
PetersandWatermanfocusedattentionontheroleofcultureinstrategicmanagement.Organizationalcultureismorethan
emotionalrhetoricthecultureofanorganizationdevelopsoveraperiodoftimeisinfluencedbythevalues,actionsand,
beliefsofindividualsatalllevelsoftheorganization.
Personsinvolvedinchoosingastrategyoftenhaveaccesstovolumesofinformationandresearchreportsabouttheneedfor
changeinstrategies.Theyalsohavetimetoanalyzeandevaluatethisinformation.Whatmanymanagersfailtorealizeis
thattheinformationthatmaymakeonestrategicalternativeanobviouschoiceisnotreadilyavailabletotheindividual
employeeswhowillbeinvolvedinthedaytodayimplementationofthechosenstrategy.Theseemployeesareoften
comfortablewiththeoldwayofdoingthingsandseenoneedtochange.Theresultisthatmanagementseestheemployee
asresistingchange.
Employeesgenerallydonotregardtheirresponsetochangeaseitherpositiveornegative.Anemployee'sresponseto
changeissimplybehaviorthatmakessensefromtheemployee'sperspective.Managersneedtolookbeyondwhattheysee
asresistanceandattempttounderstandtheemployee'sframeofreferenceandwhytheymayseethechangeasundesirable.

FORCEFIELDANALYSIS
Onetechniqueforevaluatingforcesoperatinginachangesituationisforcefieldanalysis.Thistechniqueusesaconcept
fromphysicstoexaminetheforcesforandagainstchange.ThelengthofeacharrowasshowninFigure1representsthe
relativestrengthofeachforceforandagainstchange.Anequilibriumpointisreachedwhenthesumofeachsetofforcesis
equal.Movementrequiresthatforcesforthechangeexceedforcesresistingthechange.Reducingresistingforcesisusually
seenaspreferabletoincreasingsupportingforces,astheformerwilllikelyreducetensionandthedegreeofconflict.
Thismodelisusefulforidentifyingandevaluatingtherelativepowerofforcesforandagainstchange.Itisausefulwayof
visualizingsalientforcesandmayallowmanagementtobetterassesstheprobabledirectionandspeedofmovementin
implementingnewstrategies.Forcesforchangecancomefromoutsidetheorganizationorfromwithin.Externalforcesfor
changemayresultfromsocioculturalfactors,governmentregulations,internationaldevelopments,technologicalchanges,
andentryorexitofcompetitors.Internalforcesforchangecomefromwithintheorganizationandmayincludechangesin
marketshare,risingproductioncosts,changingfinancialconditions,newproductdevelopment,andsoon.
Similarly,forcesresistingchangemayresultfromexternalorinternalsources.Commonexternalpressuresopposing
changearecontractualcommitmentstootherbusinesses(suppliers,union),obligationstocustomersandinvestors,and
governmentregulationsofthefirmorindustry.Internalforcesresistingchangeareusuallyabundantlimited
organizationalresources(money,equipment,personnel)isusuallyoneofthefirstreasonsofferedastowhychangecannot
beimplemented.Laboragreementslimittheabilityofmanagementtotransferand,sometimes,terminateemployees.
Organizationculturemayalsolimittheabilityofafirmtochangestrategy.AstheexperienceatLeviStrauss&Co.suggests,
itisoftenhardtoconvinceemployeesoftheneedforchangewhentheirpeersandothermembersoftheorganizationare
notsupportiveoftheproposedchange.
Thetotaleliminationofresistancetochangeisunlikelybecausetherewillalmostalwaysremainsomeuncertainty
associatedwithachange.Techniquesthathavethepotentialtoreduceresistancetochangewhen

Figure1
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ForcesOperatinginStrategyChange
implementingnewstrategiesincludeparticipation,education,grouppressure,managementsupport,negotiation,co
optationandcoercion.
Participationisprobablythemostuniversallyrecommendedtechniqueforreducingresistancetochange.Allowingaffected
employeestoparticipateinboththeplanningandimplementationofchangecancontributetogreateridentificationwith
theneedforandunderstandingofthegoalsofthenewstrategy.Participationinimplementationalsohelpstocounteract
thedisruptionincommunicationflows,whichoftenaccompaniesimplementationofachange.Butparticipationhas
sometimesbeenoverused.Participationdoesnotguaranteeacceptanceofthenewstrategy,andemployeesdonotalways
wanttoparticipate.Furthermore,participationisoftentimeconsumingandcantaketoolongwhenrapidchangeisneeded.
Anotherwaytoovercomeresistancetoimplementinganewstrategyistoeducateemployeesaboutthestrategybothbefore
andduringimplementation.Educationinvolvessupplyingpeoplewithinformationrequiredtounderstandtheneedfor
change.Educationcanalsobeusedtomaketheorganizationmorereceptivetotheneedforthechange.Furthermore,
informationprovidedduringtheimplementationofachangecanbeusedtobuildsupportforastrategythatissucceeding
ortoredirecteffortsinimplementingastrategythatisnotmeetingexpectations.
Grouppressureisbasedontheassumptionthatindividualattitudesaretheresultofasocialmatrixofcoworkers,friends,
family,andotherreferencegroups.Thus,agroupmaybeabletopersuadereluctantindividualstosupportanewstrategy.
Groupmembersalsomayserveasasupportsystemaidingotherswhenproblemsareencounteredduringimplementation.
However,theuseofagrouptointroducechangerequiresthatthegroupbesupportiveofthechange.Acohesivegroupthat
isopposedtothechangelimitstheabilityofmanagementtopersuadeemployeesthatanewstrategyisdesirable.
Managementcantakestepsemployeeswillviewasbeingsupportiveduringtheimplementationofachange.Management
mayextendtheemployeestimetograduallyaccepttheideaofchange,alterbehaviorpatterns,andlearnnewskills.Support
mightalsotaketheformofnewtrainingprograms,orsimplyprovidinganoutletfordiscussingemployeeconcerns.
Negotiationisusefulifafewimportantresistorscanbeidentified,perhapsthroughforcefieldanalysis.Itmaybepossible
toofferincentivestoresistorstogaintheirsupport.Earlyretirementisfrequentlyusedtospeedimplementationwhen
resistanceiscomingfromemployeesnearingretirementage.
Cooptationissimilartonegotiationinthataleaderorkeyresistorisgivenanimportantroleintheimplementationin
exchangeforsupportingachange.Manipulationinvolvestheselectiveuseofinformationoreventstoinfluenceothers.
Suchtechniquesmayberelativelyquickandinexpensivehowever,employeeswhofeeltheyweretrickedintonotresisting,
nottreatedequitably,ormisledmaybehighlyresistanttosubsequentchangeefforts.Distrustofmanagementisoftenthe
resultofpreviousmanipulation.
Coercionisoftenusedtoovercomeresistance.Itmaybeexplicit(resistancemaybemetwithtermination)orimplicit
(resistancemayinfluenceapromotiondecision).Coercionmayalsoresultintheremovalofresistorsthrougheither
transferortermination.Coercionoftenleadstoresentmentandincreasedconflict.However,whenquickimplementationof
achangeisneededorwhenachangewillbeunpopularregardlessofhowitisimplemented,somemanagersfeelcoercion
maybeasgoodasmostalternativesandfasterthanmanyothers.

ROLEOFTOPMANAGEMENT
Topmanagementisessentialtotheeffectiveimplementationofstrategicchange.Topmanagementprovidesarolemodel
forothermanagerstouseinassessingthesalientenvironmentalvariables,theirrelationshiptotheorganization,andthe
appropriatenessoftheorganization'sresponsetothesevariables.Topmanagementalsoshapestheperceivedrelationships
amongorganizationcomponents.
Topmanagementislargelyresponsibleforthedeterminationoforganizationstructure(e.g.,informationflow,decision
makingprocesses,andjobassignments).Managementmustalsorecognizetheexistingorganizationcultureandlearnto
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workwithinorchangeitsparameters.Topmanagementisalsoresponsibleforthedesignandcontroloftheorganization's
rewardandincentivesystems.
Finally,topmanagementareinvolvedinthedesignofinformationsystemsfortheorganization.Inthisrole,managers
influencetheenvironmentalvariablesmostlikelytoreceiveattentionintheorganization.Theymustalsomakecertainthat
informationconcerningthesekeyvariablesisavailabletoaffectedmanagers.Toplevelmanagersmustalsoprovide
accurateandtimelyfeedbackconcerningtheorganization'sperformanceandtheperformanceofindividualbusinessunits
withintheorganization.Organizationmembersneedinformationtomaintainarealisticviewoftheirperformance,the
performanceoftheorganization,andtheorganization'srelationshiptotheenvironment.
SEEALSO:StrategicPlanningFailureStrategicPlanningToolsStrategyFormulationStrategyintheGlobal
EnvironmentStrategyLevels
CarolynOtt,
DavidA.KZatz,and
JoeG.Thomas
RevisedbyGerhardPlenert

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1986.
Harris,L."InitiatingPlanning:TheProblemofEntrenchedCulturalValues."LongRangePlanning32,no.1(1999):117
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Kaplan,R.S.,andD.P.Norton.TheBalancedScorecard:TranslatingStrategyIntoAction.Boston:TheHarvardBusiness
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Kotter,J.,andL.Schlesinger."ChoosingStrategiesforChange."HarvardBusinessReview,MarchApril1979,106114.
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