1 unit 11: implementation process. 2 introduction once strategies have been developed, they need to...
TRANSCRIPT
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UNIT 11:
IMPLEMENTATION PROCESS
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Introduction
• Once strategies have been developed, they need to be implemented.
• A strategy may be good, but if its implementation is poor, the strategic objective for which it was intended may not be achieved.
• There are four possible strategy implementation outcomes as illustrated below:
Figure: Strategy Implementation Outcomes
Good Imple-
mentation
Poor
Good Poor
Strategy Formulation
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SUCCESS ROULETTE(GAMBLE)
TROUBLE FAILURE
• For strategy to be successfully implemented, it requires two things:
– Operationalization and– Institutionalization
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A. OPERATIONALIZATION OF STRATEGY
• Corporate or business strategy must be operationalized for implementation.
• Operationalization of strategy refers to developing operational plans and tactics through which an otherwise abstract strategy will be implemented.
• Operationalization ensures that the organization’s daily activities and work efforts directly relate to the strategy.
• Operational strategy is more specific, concrete and short-term in nature.
• It spells out what will be done immediately or within short periods (e.g. yearly periods) by a functional unit in order to implement a given strategy.
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B. INSTITUTIONALIZATION OF STRATEGY
• Institutionalizing strategy is matching strategy to the institutions of the organization.
• Whatever is required to implement a strategy must be built into organizational institutions such as:
• Structure • Leadership• Culture• Support systems• Processes and • Policies
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C. PROBLEMS IN STRATEGY IMPLEMENTATION
• Problems can arise when attempts are made to implement strategy.
• These problems may arise from external or internal sources.
• These problems may be classified into three categories:
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1. Poor strategy
• Due to a number of reasons, managers may have selected an inappropriate strategy.
• Implementing such a strategy can become a futile exercise.
2.Poor implementation• While the strategy selected may be sound,
implementation procedures can be flawed.• Here again, efforts to execute strategy are
impaired.
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3. Failure to couple strategy development and implementation
• Strategy development and implementation should be thought through together.
• Persons who will implement the strategic plan should be involved in its development.