STRATEGY IMPLEMENTATION

PRESENTED BYSWETA SUPARNA SHAMA SIMRAN

Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance

NATURE OF STRATEGY IMPLEMENTATION

The characteristics of Strategy Implementation are as follows: Action Oriented Strategy Implementation involves putting the formulated strategies into action. Comprehensive in scope- SI transverses a wide range of functions and activities Different aspects involved in strategy implementation covers practically everything that is included in the discipline of management studies. Activities such as establishing cost control measures, designing training programs etc constitute implementation activities. Demanding varied skills- the strategist has to bring wide range of skills, knowledge, attitudes and abilities to allocate the resources, design structures , formulate policies etc.

Wide ranging involvement- Strategy implementation requires the involvement of middle- level managers. Integrated process- The various tasks in strategy implementation are interrelated and therefore strategy implementation has to act in a holistic manner.

BARRIERS TO STRATEGY IMPLEMENTATION

Strategy Implementation has the following obstacles

Inability to manage change Poor or vague strategy Not having guidelines or a model to guide implementation efforts Poor or in adequate information sharing Unclear responsibility and accountability Working against the organizational power structure

Environment
Organization

TOOLS FOR PUTTING STRATEGY INTO ACTION

Leadership Persuasion Motivation Culture/values

Strategy

Structural Design Organization Chart Teams Centralization Decentralization, Facilities, task design

Human Resources Recruitment/selection Transfers/promotions Training Layoffs/recalls

Performance

Information and Control Systems Pay, reward system Budget allocations Information systems Rules/procedures

ORGANISATIONAL DESIGN AND CHANGE

Organization design is a process that involves decisions about six key elements, work specialization, departmentalization, chain of command, span of control, centralization, decentralization and formalization.

DIMENSIONS OF ORGANISATIONAL DESIGN

The dimensions describe organizations much the same way that personality and physical trait describe the people. Structural : Provide labels to describe internal characteristics of an organ and create basis for measuring and comparing organizations. Contextual : It characterize the whole organ including it size, technology, environment and goals, and describe organizational setting that influences and shapes the structural dimensions.

Interacting contextual and structural dimensions of organizational design

Environme nt

Goals and Strategy

1. 2. 3. 4. 5. 6.

Size

Culture

Formalization Specialization Hierarchy of authority Technolo gy Centralization Professionalism Personnel ratios

Interacting Contexual and structural Dimensions of organisational Design

Structural Dimensions: 1. Formalisaton: It pertains to the amount of written documentation in the oraganisation. Documentation includes: -Procedures These documents -Job- descriptions describe the behavior and -Regulations activities of the organisation. -Policy Manuals

2. Specialisation: If is the degree to which organizational tasks are subdivided into separate jobs. If specialisation is extensive, each employee performs only a narrow range of task 3. Hierarchy of authority: It describes who reports to whom and span of control for teach manager. It is depicted by an organization chart. 4. Centralisation: It refers to hierarchical level that has authority to make a decisions. When decision-making is kept at the top level, the organization is centralised other wise decentralized. 5. Professionalism: The level of formal education and training of employee is professionalism. Professionalism is considered high when employees require long periods of training to hold job in the organization. 6. Personnel Ratio: Personnel ratio is measured by dividing the number of employees in a classification by the total number of organizational employees. This may be Administrative Ratio, Clerical Ratio, Professional staff Ratio and Ratio of direct and indirect labor.

CONTEXTUAL DIMENSIONS- It describes the organisational setting that influences and shapes the structural dimensions. These are as follows:-

ENVIRONMENT

GOALS AND STRATEGY CULTURE TECHNOLOGY SIZE

STEPS IN ORGANISATIOANL DESIGN

The steps followed in an organizational design are as follows:1.

2. 3. 4. 5.

Identification of key activities necessary to be performed for the achievement of objectives and realization of mission through formulated strategy. Grouping of activities that are similar in nature and need a common set of skills to be performed. Choice of structure that could accommodate the different groups of activities. Creation of departments, divisions, etc to which the group of activities could be assigned. Establishing interrelationship between departments for the purpose of coordination and communication.

ORGANISATIONAL CHANGE
CHANGE IS THE LAW OF NATURE. THOSE WHO CHANGE, SURVIVE, THOSE WHO DONOT, PERISH.

ORGANISATIONAL CHANGE

In todays business world, most of the organizations are facing a dynamic & changing environment. Change means any alteration which occurs in the overall work environment of an organization. When the organizational system is disturbed by some internal or external forces , change occurs frequently. Such changes related to the organisation is known as organisational change.

There are Business strategies Corporate strategies Integration strategies Diversification strategies Internationalization strategies Cooperative strategies Digitalization strategies

FEATURES OF ORGANISATION CHANGE

Changes results from the pressure of both internal & external forces in the organization. Change in any part of the organization Change may affect people , structure , technology . Change may be reactive or proactive.

EXTERNAL FACTORS

TECHNOLOGICAL CHANGES SOCIAL CHANGES POLITICAL CHANGES CHANGE IN MARKETING CONDITIONS

INTERNAL FACTORS

NATURE OF THE WORK FORCE CHANGE IN MANAGERIAL PESONNEL DEFICIENCIES IN EXISTING MANAGEMENT STRUCTURE

Strategic Evaluation and Control

Business Policy and Strategic Management

Strategic Evaluation and Control

Strategic evaluation and control constitutes the final phase of strategic management.

Strategic Evaluation and Control

Strategic evaluation operates at two levels:

Strategic level - wherein we are concerned

more with the consistency of strategy with the environment. Operational level wherein the effort is directed at assessing how well the organisation is pursuing a given strategy.

Purpose of Strategic Evaluation

The purpose of strategic evaluation is to evaluate the effectiveness of strategy in achieving organisational objectives.

Definition

Strategic evaluation and control could be defined as the process of determining the effectiveness of a given strategy in achieving the organisational objectives and taking corrective action wherever required.

Nature of Strategic Evaluation

Nature of the strategic evaluation and control process is to test the effectiveness of strategy. During the two proceedings phases of the strategic management process, the strategists formulate the strategy to achieve a set of objectives and then implement the strategy. There has to be a way of finding out whether the strategy being implemented will guide the organisation towards its intended objectives. Strategic evaluation and control, therefore, performs the crucial task of keeping the organisation on the right track. In the absence of such a mechanism, there would be no means for strategists to find out whether or not the strategy is producing the desired effect.

Nature of Strategic Evaluation

Through the process of strategic evaluation and control, the strategists attempt to answer set of questions, as below. Is the strategy guiding the organisation towards its intended objectives? Are the organisation and its managers doing things which ought to be done? Is there a need to change and reformulate the strategy? How is the organisation performing? Are the time schedules being adhered to? Are the resources being utilised properly? What needs to be done to ensure that resources are utilised properly and objectives met?

Importance of Strategic Evaluation

Strategic evaluation helps to keep a check on the validity of a strategic choice. An ongoing process of evaluation would, in fact, provide feedback on the continued relevance of the strategic choice made during the formulation phase. This is due to the efficacy of strategic evaluation to determine the effectiveness of strategy.

Importance of Strategic Evaluation

During the course of strategy implementation managers are required to take scores of decisions. Strategic evaluation can help to assess whether the decisions match the intended strategy requirements. In the absence of such evaluation, managers would not know explicitly how to exercise such discretion.

Strategic evaluation, through its process of control, feedback, rewards, and review, helps in a successful culmination of the strategic management process. The process of strategic evaluation provides a considerable amount of information and experience to strategists that can be useful in new strategic planning.

Participants in Strategic Evaluation

Shareholders Board of Directors Chief executives Profit-centre heads Financial controllers Company secretaries External and Internal Auditors Audit and Executive Committees Corporate Planning Staff or Department Middle-level managers

Barriers in Evaluation

Limits of control Difficulties in measurement Resistance to evaluation Rely on short-term implications of activities

STRATEGIC CONTROL

Strategic controls take into account the changing assumptions that determine a strategy, continually evaluate the strategy as it is being implemented, and take the necessary steps to adjust the strategy to the new requirements. In this manner, strategic controls are early warning systems and differ from post-action controls which evaluate only after the implementation has been completed.

STRATEGIC CONTROL

The types of strategic controls are:

Premise control Implementation control Strategic surveillance Special alert control

Premise Control

Premise control is necessary to identify the key assumptions, and keep track of any change in them so as to assess their impact on strategy and its implementation. Premise control serves the purpose of continually testing the assumptions to find out whether they are still valid or not. This enables the strategists to take corrective action at the right time rather than continuing with a strategy which is based on erroneous assumptions. The responsibility for premise control can be assigned to the corporate planning staff who can identify key asumptions and keep a regular check on their validity.

Implementation Control

Implementation control may be put into practice through the identification and monitoring of strategic thrusts such as an assessment of the marketing success of a new product after pre-testing, or checking the feasibility of a diversification programme after making initial attempts at seeking technological collaboration.

Strategic Surveillance

Strategic surveillance can be done through a broad-based, general monitoring on the basis of selected information sources to uncover events that are likely to affect the strategy of an organisation.

Special Alert Control

Special alert control is based on trigger mechanism for rapid response and immediate reassessment of strategy in the light of sudden and unexpected events.

Special Alert Control

Crises are critical situations that occur unexpectedly and threaten the course of a strategy. Organisations that hope for the best and prepare for the worst are in a vantage position to handle any crisis. Crisis management follows certain steps: Signal detection Preparation/prevention, Damage limitation, Recovery leading to organisational learning.

Oprational control

Recognizing the linkages that exist between the strategic planning and management control is vital to success. It is aimed at allocation and use of organizational resources, through an evaluation of performance of organizational units, such as divisions, SBUs and soon to assess their contribution to the achievement of the organizational objectives.

It is concerned with action or performance. The evaluation process for operation control deals with a. Setting standards for performance b. Measurement of performance c. Analysis variances d. Taking corrective action

Evaluation and Control Process

1 Determine what to measure.

2 Establish predetermined standards.

3 Measure performance.

Does performance match standards? Yes

5 No

Take corrective action.

STOP