Implementing strategy

Putting the strategy into effect and getting the organization moving in the direction of strategy
accomplishment calls for a set of managerial tasks and skills.

Strategy implementation has to be tailored to the organization’s overall condition and setting, the
nature of the strategy and the amount of strategic change involved, and to the manager’s own
skills, style, and method.

Implementing strategy requires managing the following activities:

Building an organization capable of carrying out the strategic plan having as the key tasks:
developing a strategy-supportive organization structure and selecting people for key positions.

Allocating and focusing resources on strategic objectives by performing as key tasks: seeing
that each organizational unit has the budget and programs to carry out its part of the strategic
plan and getting individuals and organization units to gear their efforts closely to achieving the
target strategic objectives.

Creating commitment and culture with the key tasks: motivating the organizational units and
individuals to accomplish strategy; creating a strategy-supportive work environment and
corporate culture; promoting a results orientation and a spirit of high performance; keeping the
reward structure tightly linked to strategic performance and the achievement of target objectives.

Installing internal administrative support systems by: establishing strategy-facilitating policies

and procedures; generating the right strategic information on a timely basis; instituting internal
control to keep the organization on its strategic course; creating fits between strategy and the
various internal ways of doing things.

Exerting strategic leadership by: leading the process of shaping values, molding culture, and
energizing strategy; keeping the organization innovative, responsive, and opportunistic; dealing
with the politics of strategy, coping with power struggles, and building consensus; initiating
corrective actions to improve strategy execution.

As regard to the organizational structure there are five strategy-related approaches to

organization: functional specialization, geographic organization, decentralized business
divisions, strategic business units, and matrix structures.

These structures along with their pros and cons are exemplified below.

1
Geographic Organization Structure

2
Decentralized Organization Structure

3
Strategic Business Units Structure

4
Matrix Organization Structure