Closing the gap in

strategy implementation

Presented by : George Magdy

Introduction

• it is obvious that the execution of strategy is not merely as clear and understood as the formulation of strategy.

• Hrebiniak admitted that strategy formulation is difficult but he argued that the execution is harder mission.

• Fortune magazine (Gurowitz2007) stated that in well formulated strategies only 10 % is properly implemented.

• There are a lot of components that impact the accomplishment of implementation process, extending from the people who convey or implement the strategy to structure and culture of the organization

Problem definition

• There is always a gap between the formulated strategies and its

implementation we will investigate most relevant factors that affect

implementation process, also we will highlight the impact of organizational

culture and internal communication on implementation.

Research questions:

• Q1what are the barriers for successful Implementation?

• Q2 what is the impact of corporate culture on implementation of strategies?

• Q3 what is the Impact of internal communication on strategy

implementation?

• Q4 what are the models that enhance implementation during change?

barriers to strategy implementation:

• Hrebiniak (2005) shows a special attention to major four contextual elements

• The context of organizational culture, the context of change management,

the context of leadership, and the context of organizational structure.

impact of organizational culture on

strategy implementation

• Embedded culture in formulated strategy as values, beliefs and practice help

in the efforts for strategy execution. If an organization want one of the

generic strategies which is cost leadership so a culture of cheapness and

thrift will help in implementation. In Corporates that directed towards

customer intimacy culture of employee empowerment and operational

excellence will help. Corporates that adopted innovation and creativity would

require risk taking culture, challenging status quo and cooperation

(Comerford1985).

impact of internal communication on

strategy implementation:

• Internal communication is an ongoing activity to all organization that want

to succeed in facing every day challenges and market volatility

• Internal communications is integral part in all strategic plans

• Communication to be effective and positively impact implementation

employee’s goals should be clearly transferred to the management to ensure

goal alignment and secure employees motivation, And avoidance of

misleading information. (pickel2008,barrett2004,erikson1992,and others)

Models that enhance implementation

during change:

• Lewin’s Change Management Model: Lewin in his model tackling the

importance of communication and generation of organizational culture

showing trust.

• Unfreeze, change and refreeze.

• Mckinsey 7 S model of change: addressing the part of coordination as

instead of structure in organizational effectiveness

Kotter’s 8 step change model.

Empirical research proposal.

• in this chapter we will focus on methods of managing resistance to change

and its impact on degree of strategy implementation.

• Our example for the research is a local pharmaceutical company (Biomed)

undergoes operational change in the following,

• 1-switching from weekly hand written visits reporting system to daily CRM

system.

• 2-changing of car loan policy from optional to obligatory for all layers.

Conceptual model.

Resistance

to change

Strategy

implementation

Research variables.

• Independent variable: resistance to change

• Defined as is the action taken by individuals and groups when they perceive that a change that is occurring as a threat to them.

• Key words here are 'perceive' and 'threat'. The threat need not be real or large for resistance to occur.

• Dependent variable: strategy implementation.

• Defined as is the steps to translate chosen strategy into organizational action so as to achieve strategic goals and objectives

• (defined as in case of reporting system as % of employees who submit daily reports, and in case of car loan % of employees who submit car loan application to HR)

Methods for managing resistance to change Degree of strategy implementation

Formal Informal

1st wave

(one month)

*Memos from senior management

announcing the activation of new rules for

reporting and car loan.

*official meeting on level of each business

unit to educate the team about new systems

benefits and rules.

*one to one meeting with selected

middle managers and front liners

before announcement to gain support

from opinion leaders.

*Spreading positive WOM about the

benefits of new system through loyal

staff.

defined as in case of reporting system as % of

employees who submit daily reports, and in case

of car loan % of employees who submit car loan

application to HR)

2nd wave

(two months)

Individual E-mails from the HR to elaborate

the actions will be taken against employees

who will not comply with the new rules.

HR and senior management meeting with

employees

Role modeling by unofficially

spreading results of first line mangers

and second line managers completion

of the new processes.

defined as in case of reporting system as % of

employees who submit daily reports, and in case

of car loan % of employees who submit car loan

application to HR)

Thanks