Strategic Implementation

Strategic Implementation

Simply stated, strategy formulation refers to “planning of work” while strategy implementation refers to “working of plan”.

According to Thompson and Strickland, “Implementing strategy entails converting the organization’s strategic plan into action and then into results.”

Efficient Inefficient

Strategy Formulation

Relationship

1.Thrive

2.Die Slowly

3.Surviv e

4.Die quickly

Effective

Ineffective

Strategy Implementation

The McKinsey 7-S Framework - Developed in the early 1980s - Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm

- the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

- Improve the performance of a company. - Examine the likely effects of future changes within a company. - Align departments and processes during a merger or acquisition. - Determine how best to implement a proposed strategy.

M C K I N S E Y’s

F R A M E W O R K

Strategy: the coherent set of actions selected as a course of action Structure: the division of tasks as shown on the organization chart Systems: the processes and flows that show how an organization gets things done

Style: how management behaves

Staff: the people in the organization

Shared-values: values shared by all in the organization Skills: capabilities possessed by the organization.

 Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated.  Organizational structure also determines how information flows from level to level within the company.  In a centralized structure, the top layer management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degree of independence.

The Functional Structure

Behavioral Issues

 Corporate Culture  Strategic leadership  Organizational Politics and Power

1. Corporate Culture  Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions.  Often, corporate culture is implied, not expressly defined.  Reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client satisfaction and every other aspect of operations.  Google's corporate culture has helped it to consistently earn a high ranking on Fortune magazine's list of 100 Best Companies to Work For.

Corporate Culture In an article for Entrepreneur, Robert McGarvey outlined some warning signs of trouble with the company culture,  increased turnover;  difficulty in hiring talented people;  employees arriving at work and leaving for home right on time;  low attendance at company events;  a lack of honest communication and understanding of the company mission;  an "us-versus-them" mentality between employees and management;  declining quality and customer satisfaction.

2. Strategic leadership 

Strategic leadership refers to a manager’s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision.

 Strategic leadership can also be defined as utilizing strategy in the management of employees.  It is the potential to influence organizational members and to execute organizational change.  Strategic leaders create organizational structure, allocate resources and express strategic vision.

Some examples…. In an oil refinery on the U.S. West Coast, a machine malfunction in a treatment plant was going to cause a three-week shutdown. Ordinarily, no one would have questioned the decision to close, but the company had recently instituted a policy of distributed responsibility. One plant operator spoke up with a possible solution. She had known for years that there was a better way to manage the refinery’s technology, but she hadn’t said anything because she had felt no ownership. The engineers disputed her idea at first, but the operator stood her ground. The foreman was convinced, and in the end, the refinery did not lose a single hour of production.

Google has made use of a number of channels to promote innovation. A few examples: Employees can directly email any of the leaders across the organization; the company established “Google cafés” to spark conversation by encouraging interaction among employees and across teams; and executives hold weekly all-hands meetings (known as TGIFs) to give employees at every level in-person access to senior leaders. People at Google learn to make the most of these opportunities — they know the conversations will be tough, but that genuinely worthwhile innovative thinking will be recognized and rewarded.

Honda is one enterprise that has taken this approach to heart. Like several other industrial companies, the automaker has had a dramatic, visible failure in recent years. The installation of faulty equipment from its favored airbag supplier, Takata, has led Honda to recall about 8.5 million vehicles to date. Although the accountable executives were fired, the company’s leaders also explicitly stated that the airbag failure, in itself, was not the problem that led to dismissal. The problem was the lack of attention to the failure at an early stage, when it could have been much more easily corrected. As one Honda executive told Jeffrey Rothfeder, author of Driving Honda: Inside the World’s Most Innovative Car Company (Portfolio, 2014), “We forgot that failure is never an acceptable outcome; instead, it is the means to acceptable outcomes.”

3. Organizational Power and Politics