STRATEGY IMPLEMENTATION

SUBMITTED BY :
AKSHIMA
HARI
MANISH
KISHAN
 Contents

 Nature Of Implementation.
 Structural Considerations
 Environment Strategy
 Types Of Organisational Structure
 Organisation Design
 Strategic Leadership
 Project Management
 Corporate Culture
 Nature Of Strategy Implementation

 Action Orientation.
 Comprehensive in Scope.
 Demanding Varied Skills, Knowledge, Abilities
etc.
 Wide Ranging Involvement Of Middle Level
Managers.
 Integrated Process of Various Tasks.
 Barriers to Strategy Implementation

 An inability to manage change.

 Poor or Vague strategy.
 Not having guidelines or a model to guide
implementation efforts.
 Poor or inadequate information sharing.
 Unclear responsibility and accountability.
 Working against the organizational power
structure.
Strategy Management Process
 Major Themes in Strategy Implementation.

 Activating Strategies – It serves to prepare the

ground for managerial tasks and activities of strategy
implementation.
 Managing Change in complex Situations.
 Achieving Effectiveness of functional and operational
implementation.
Strategy Activation Pyramid
 Structural Considerations

 From a strategy implementation standpoint, an organisation

structure is the arrangement of tasks and sub-tasks required to
implement a strategy.
 Organisation structure specifies three key components as
below.
 It identifies formal reporting relationships, including the
number of levels in the hierarchy and the span of control of
managers.
 It specifies the grouping of individuals into departments and of
departments into the total organisation.
 It consists of design of systems to ensure effective
communication, coordination, and integration of efforts across
departments.
 Vertical structure dominant:
Specialised tasks
Hierarchy of authority
Rules and regulations
Vertical communication
and formal reporting systems
Centralised decision making
Emphasis on efficiency

Horizontal structure dominant:

Shared tasks
Flexible authority
Few rules and regulations
Horizontal communication and sharing
of information
Decentralised
decision-making
Emphasis on learning
Interrelationship Between Structure
and Strategy

determines
STRATEGY STRUCTURE

affects
Why is Structural Implementation Needed?

Strategic plan is New strategies Implementation of Mismatches

implemented put in place new strategies occur

Performance Structure is Effectiveness is Performance

improves changed reduced declines
Environment, Strategy, Structure, and
Effectiveness

Environment

Strategy

Structure

Effectiveness
Types of Organisational Structures

 Entrepreneurial
 Functional
 Divisional
 SBU
 Matrix
 Network
 Other types of structures:
 Product-based, customer-based, process-based,
geographic, and intrapreneurial structures
Entrepreneurial Structure

Owner- Manager

Employees
 Entrepreneurial
Advantages
 The main advantage of the
entrepreneurial business structure is
the ability to make decisions quickly.
 This allows businesses to quickly
adapt to any change in market
conditions.
 decisions can be made pretty much
instantly and changes put into place.
 it is one of the least expensive
business structures available.
Disadvantages
 Because of its autocratic nature,
with workers being told what to do
with no input on the decision.
 there is always a real danger of
them losing morale and motivation
if they strongly disagree with the
decision.
 Those making the decisions may
not know as much about the
problem, market conditions etc.
 Functional Structure

Chief Executive
Officer

Public
Legal
Relations

Human
Finance Marketing Resource Production
Management
 Functional
Advantages
 efficiency and clear lines of
authority, communication and
accountability.
 Workers easily coordinate and
communicate within their
departments.
 Providing time for top
management to focus on
strategic decisions.
Disadvantages
 a departmental focus
causes interdepartmental
communication and
coordination to suffer.
 Hierarchical layers mean
ideas for change must
brave a bureaucratic
chain of command.
 Divisional Structure

Chief
Executive
Officer

Corporate Corporate
Finance Legal / PR

General General
Manager Manager
Division A Division B

Human Human
Marketing Operations Resource Marketing Operations Resource
Management Management
 Divisional
Advantages
 The divisional structure groups
workers according to geography,
product line or customer.
 Each division operates as a separate
company, complete with all the
necessary functions, though
sometimes upper management
controls some functional areas such as
finance.
 the divisional structure lets each
product line excel, better serves
customer niches
Disadvantages
 Duplication of roles across
divisional units is one of this
structure's drawbacks, as it
means less efficiency and
economy.
 interdivisional rivalries and
poor communication and
coordination among units may
result.
 Matrix
Advantages
 The matrix structure blends the
functional and divisional
structures, gaining the
advantages of both.
 Teams benefit from the
functional expertise of
members, while the functional
hierarchy exerts a measure of
control and accountability for
business activities.
Disadvantages
 everyone has two
bosses with possible
conflicting interests
and loyalties.
 Divisional and
functional power
struggles can erupt.
Network Organizational Structure

Project
Group M
Structure
Function
Region A
X
structure
structure

Corporate
Headquarter

Function
Region B
Y
structure
structure
Project
Group N
Structure
 Network

Advantages Disadvantages

 Rather than hiring workers for  Creating a network-

all of its business functions, a
company using the network based company,
structure relies on outside however, means losing
companies. control over whatever
 The network structure lowers
costs and gains flexibility
processes the company
because it uses outside help delegates to others.
according to need.
Emerging Forms of Structures

 Horizontal organisations are based on structure that

corresponds to the process of providing product or
service to the customer rather than the functions that
the organisations perform.
 Delaminated matrices are combinations of horizontal
organisations with functional structure.
 Mechanistic structures are rigid, hierarchical, suited to
stable conditions while organic structures are flexible
arrangements, adapting to conditions of rapid change
and innovation.
 The structure of an organisation may consist of the
characteristics of mechanistic and organic structures in
different parts making it an ambidextrous organisation
structure
Organisational Design and Change

 Organisation design has two dimensions:

 Structural dimensions
 Contextual dimensions
 Organisational change has two dimensions:
 Structural changes
 Accompanying behavioural changes
 Organisational Design

 Structural Dimensions describe the internal

characteristics of an organisation.
 Formalisation is the amount of written documentation,
including procedures, job descriptions, regulations and
policy manuals.
 Specialisation is the degree to which organisational
tasks are subdivided into separate jobs.
 Cont.

 Hierarchy of authority describes who reports to whom and the

span of control for each manager.
 Centralisation is the extent to which decision-making is done by
the top management. Decentralisation is the extent to which
authority to make decision is delegated to lower levels of
management.
 Professionalism is the level of formal education and training of
employees.
 Personnel ratios refer to deployment of people to various
functions and departments. i.e. no. of clerks, no. of officers, no. of
supervisors, etc.
 Cont.

 Contextual Dimensions describe the organisational

setting that influences and shapes the structural
dimensions. The sub-dimensions of the contextual
dimensions are self-explanatory.
 Environment
 Goals and strategy
 Culture
 Technology
 Size
 Change

 Due to structural change behavioral change.

 Major ideas in this context-
 Restructuring

 Re-engeneering

 Delayering

 Flatter Structures
Steps in Organisation Design

 Identification of key activities necessary to be performed for

the achievement of objectives and realisation of mission
through the 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 different departments
for the purpose of coordination and communication.
Organisation Design for Business
Strategies

CEO CEO

Centralised
staff R&D Mktg

Fin HRM Mktg Oper Fin HRM Oper

Structure for attaining cost Structure for attaining

leadership differentiation
Evolution of Systems and Processes
Within Organisations
 Defining the major tasks required to implement a strategy
 Grouping tasks on the basis of common skill requirements or activities
in value chain
 Sub-division of responsibility and delegation of authority to perform
tasks
 Coordination of divided responsibility
 Design and administration of the information system
 Design and administration of the control system
 Design and administration of the appraisal system
 Design and administration of the motivation system
 Design and administration of the reward system
 Design and administration of the development system
 Design and administration of the planning system.
 Information System (I.S)

 I.S serves two important purposes:

 It enables the managers to know what they need to grasp in order to
perform their tasks and
 Also to coordinate their activities with others.

The I.S play a significant role through the techniques of data

warehousing and data mining, help in storing data and making sense
of it, in order to make better quality decisions.

I.S plays an important role in developing business strategies for

Human Resource Management, Marketing and Finance.
 Control System

 Control has traditionally been considered as a major

management function along with planning, organizing and
leading.
 In controlling, managers essentially deals with ‘the
processes for ensuring that behaviors and performance
conform to an organisation’s standards, including rules,
procedures and goals.’
The Control Cycle

Establish Measure
standards performance

Evaluate
Correct
performance
performance
against
if needed
standards
 Reward System

 Organisation design and operate their reward systems on

the basis of the appraisal of performance of individuals.
 Organisations strive to control employees behavior by
linking reward systems to their control systems.
 Reward system have two components :
 Performance evalution
 Feedback and compensation.

Reward system has an impact on strategic and structural design.

 Strategic Leadership

 Strategic leaders manage the strategic

management process that is designed to help the
organization achieve its objectives.
 Levels of Organization
 Corporate-level
 Business-level
 Functional-level
 Operational-level
 Tasks of Strategic Leaders

 Determining strategic Direction

 Effectively Managing the Organizational Resources
Portfolio
 Sustaining an Effective Organizational Culture
 Emphasizing Ethical Practices
 Establishing Balanced Organizational Controls
 Roles of Strategic Leaders

 Role of Chief Executive Officer (CEO):

 The chief architect of organizational purpose, strategist
or planner
 The organisational leader, organiser or organisation
builder
 The chief administrator, implementer or coordinator

 The communicator of organisational purpose, motivator,

personal leader or mentor.
 Roles of senior managers

 Responsible for implementing strategies and plans and for

periodic evalution of performance.
 Modernisation
 Technology upgradation
 Diversification
 Expansion
 New product development
 Role of Business- Level Executives

 Role is important in strategic management.

 They are also known as profit centre.
 Business-level strategy formulation and
implementation are primary responsibilities.
 Sometimes, there could even be separate
management boards and strategic planning cells to
formulate business strategy proposals and review
the performance of SBUs.
 Role of Functional and Operational Managers

 The major role of the functional and operational managers,

relates to functional and operational matters.
 These are also called middle-level managers.
 They rarely play an active role in higher-level strategic
management.
 They involved as ‘sounding boards’ for departmental and
operational plans, as implementers of the decision taken by
the corporate and business-level managers.
 The importance of middle management cadres lies in the
fact that they form the reservoir of talent and expertise for
developing future strategies for the organisation.
 Developing Strategic Leaders

 Strategists have to be developed before they can take

up the onerous responsibilities of strategy
formulation and implementation.
 There are three issues in the context of developing
strategic leaders :
 The choice of future strategists
 Their career planning and development
 Succession Planning
 Project Implementation.

 It consists of strategies that leads to plans,

programmes and projects.
 A project is the basic unit of programme.
 Programmes are required to implement a plan.
 Project Management

 It is the Application of knowledge, skills, tools and

techniques to a broad range of activities in order to
meet the requirements of project.
 It is a temporary endeavour irrespective of how big it
is, how much money required etc.
Project Management Process
 Project Management Process.

 Initiating Project.
 Planning a Project.
 Executing the major part.
 Controlling.
 Closing the formal end of the project.
 Resource Allocation

 Resource allocation deals with the procurement,

commitment and distribution of financial,
human, informational and physical resources to
strategic tasks for the achievement of
organisational objectives.
 Factors Affecting Resource Allocation.

 Objectives of the organisation.

 Preference of Dominant Strategists.
 Internal Politics.
 External Influences.
 Strategic Budgeting.

 Budget - main instrument for resource allocation.

 It is a common technique used as a planning,
coordination and control device in management.
 Widespread usage.
 Used a Dynamic Management Tool.
 CORPORATE CULTURE AND STRATEGIC
MANAGEMENT

 Impact of culture on two different groups

Dimensions Multinational subsidiaries Family
and professionally-managed Businesses and
companies NRI’s companies

Nature of desired Emphasis on professional Emphasis on

managerial skills and qualifications and rank demonstrated
capabilities skills, depth and
quality of
knowledge
Actual performance Emphasis on seniority, Emphasis on
conformity to organizational originality of
values and loyalty. action and
thinking.
Managerial style of Emphasis on information-
planning and decision- gathering, bureaucratic mode
making of functioning and non-
entrepreneurial decision-
making.
Management systems Emphasis on the use of
adopted elegant, and rational systems
which degenerate due to low
usage
Emphasis on selective
information usage and
intuitive and quantitative
decision-making of an
entrepreneurial nature.
Emphasis on reliance on
business sense and ‘no-
frills’ systems geared to
quick action.
 Strategy-Supportive Culture

 To Ignore corporate culture

 To adopt strategy Implementation to suit corporate
culture
 to change the corporate culture to suit strategic
requirements
 to change the strategy to Fit the corporate Culture.
 CORPORATE POLITICS AND POWER

 Reward power
 Coercive power
 Legitimate power
 Referent power
 Expert power
 Strategic Use of Power and Politics

 To accept the inevitability of politics

 Understand how an organisation’s power structure
works.
 To be sensitive and alert to political signals
 To lead strategy and not to dictate it
 To reward organizational commitment
 To practice principled polities and use honesty.
 Personal Values and Business Ethics

 Personal value refers to a conception of what an

individual or group regards as desirable.
 A value is a view of life and a judgement of what is
desirable, which is very much a part of a person’s
personality and group’s morale.
 Business ethics is the study of how personal moral
norms apply to activities and goals of a commercial
enterprise.
 Inculcating Values and Ethics

 Considering Values and Ethics in recruitment and selection to

ensure compatibility of the character traits of potential
employees to the ethical system f the organization.
 Incorporating the statement of values and code of ethics into
employee training and educational programmes.
 Communication of the values and code of ethics through wide
publicity and explanation of compliance procedures.
 Constant monitoring of compliance by superior staff and top
management
 Consistent nurturing of values within the organization
through their integration into policies, practices and actions.
Thank you