Implementing Strategies:

Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
Formulation is positioning forces before the action
Implementation is managing forces during the action

Overview

Aligning People Behind Strategy

Managing Conflict
Organizational structures
Managing change
Organisational culture
Stakeholder analysis
Implementation steps
Managing Knowledge & technology

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
Formulation focuses on effectiveness
Implementation focuses on efficiency

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and strategy
implementation
Formulation is primarily an intellectual process
Implementation is primarily an operational process

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
Formulation requires good intuitive and analytical skills
Implementation requires special motivation and
leadership skills

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
Formulation requires coordination among a few
individuals
Implementation requires coordination among many
persons

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Strategy implementation
Varies among different types and
sizes of organizations

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Strategy implementation Actions

Altering sales territories

Adding new departments
Closing facilities
Hiring new employees
Cost-control procedures
Changing advertising strategies
Building new facilities

Management Perspectives
Formulation to Implementation
transition
Shift in responsibility
From strategists to division and
functional managers

Aligning People Behind Strategy

Strategy would be difficult to implement if
there is resistance
Requires two area:
- Relationship Management: support change
agents & supporters; dont alienate
gatekeepers & others
- Need key influencing skills: keep momentum
towards change & coalition building

Managing Conflict
Conflict
Disagreement between two or more
parties on one or more issues

Managing Conflict

Conflict is not always bad

Absence of conflict
Signal indifference or apathy

Can energize opposing groups to action

May help managers identify problems

Managing Conflict
Conflict Management and Resolution
Avoidance
Defusion
Confrontation

Matching Structure with Strategy

Changes in Strategy

Changes in Structure

1. Structure largely dictates how objectives

and policies will be established.
2. Structure dictates how resources will be
allocated

Basic Forms of Structure

1. Functional Structure

Groups tasks and activities by business

function

2. Divisional Structure

Decentralized and organized by

geography, product, customer, or process

Basic Forms of Structure

3. Strategic Business Unit Structure (SBU)

Groups similar divisions; delegates authority

and responsibility to SBU executive

4. Matrix Structure

Most complex of all designs. Depends upon

both vertical and horizontal flows of authority
and communication

Managing Resistance to Change

Resistance to change
Single greatest threat to successful
strategy implementation

Managing Resistance to Change

Change raises anxiety over fear of:
Economic loss
Inconvenience
Uncertainty
Break in status-quo

Change Strategies

Force Change Strategy

Educative Change Strategy
Rational or Self-Interest Change
Strategy

Creating a Strategy-Supportive
Culture
Strategists should strive to preserve,
emphasize, and build upon aspects
of existing culture that support new
strategies.

Creating a Strategy-Supportive
Culture
Elements linking culture to strategy:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Formal statements of philosophy, charters, etc. used for

recruitment and selection, and socialization
Designing of physical spaces, facades, buildings
Deliberate role modeling, teaching and coaching
Explicit reward and status system, promotion criteria
Stories, legends, myths about key people and events
What leaders pay attention to, measure and control
Leader reactions to critical incidents and crises
How the organization is designed and structured
Organizational systems and procedures
Criteria used for recruitment, selection, promotion, retirement

Prioritising Implementation

Root Cause (Fishbone analysis)

From To - Analysis
Attractiveness Difficulty Analysis
Wishbone Analysis

Implementation Strategy
Force-Field Analysis
Stakeholder Analysis: Steps:
- identify key stakeholders
- evaluate whether they have high,
medium or low influence on the strategy
- evaluate whether they are for, against
or neutral

Stakeholder Analysis: Next Step

Can new stakeholders be brought in/old
stakeholders removed to improve
support?
Boost influence of for stakeholders?
Reduce influence of against
stakeholders
Coalition of for stakeholders possible?

Stakeholder Analysis (contd)

Can coalition of against stakeholders
prevented?
Can the project be reformulated to
make it acceptable?
Possible to bring abroad against
stakeholders by including their prized
areas?
Need to redefine project?

Planning Implementation Steps

Establish objectives
Identify actions (steps) required
Identify & assess resources available
Allocate accountabilities/responsibilities
Plan monitoring & review activities

Resource Allocation
Resource Allocation
A central management activity that
allows for strategy execution

Resource Allocation
Four types of resources
1.
2.
3.
4.

Financial resources
Physical resources
Human resources
Technological resources

Knowledge & Technology Effects

Business strategy: creates new
opportunities, e.g., services available
over the net instead of in person
Culture: more innovative and open
culture due to electronic info
dissemination (free-flow of info)
Organizational structure: Flatter & fluid

Knowledge & Technology

Effects (contd)
Management: unstructured
management processes possible with
info on net, etc
Work: all professional work includes IT
component
Workplace de-centralised; can work
from home