Strategy implementation


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Strategy implementation

  1. 1. STRATEGY IMPLEMENTATION: How do we ensure arrival?
  2. 2. A good strategy without proper implementation is like a poor strategy or no strategy at all However having a good strategic plan is half the battle won, and the other half is won through effective strategy implementation
  3. 3. Strategy implementation A rigorous process of transforming the plan / strategy into action (from mere strategic planning to strategic management) This transformation involves planning further( for our chosen strategy to be applied) through effectively communicating to implementers (internal buy-ins), organizing resources, leading,and controlling
  4. 4. Cont- • Putting our grand plan/blue print into action to ensure that we competitively get where we want to be (strategic direction) • Executing the chosen strategy (s) through putting its tactics(actionable steps/competitive activities) into action
  5. 5. Common features /characteristics of the implementation stage 1. Every strategy to be implemented has its unique strategic window 2. Its own requirements/changes
  6. 6. Cont- 3. Successful implementation is usually spearheaded by top management applying team work/participatory styles of leadership 4. Strategies are implemented by people, so you need their commitment/goal contract
  7. 7. More features/observations 5. Some implementation is actually out- sourced from those with better value- adding core competences in some of our tactics/activities that make up your chosen strategy 6. Planning for strategy implementation is usually ignored due to that excitement after choosing our strategy
  8. 8. • You need to plan for this critical stage- why? • An implementation plan is very critical at this stage • It is in line with that strategy’s tactics and the generic steps for effective strategy implementing
  9. 9. What it contains What activities are to be done When they will be done (Timing) Who will do them (Persons responsible)
  10. 10. What resources will be required What will be the performance indicators Objectively verifiable indicators (OVIs) Means of verification/evaluation Key Result Areas (quantitive and qualitative indicators)
  11. 11. •Note: Coherent and integrated Work Plans can then be developed from this Implementation Plan’s schedule of tactics/activities/actionable steps A good strategic choice with wrong tactics/work plans is likely to fail, and vice-versa
  12. 12. Implementation process • Communication / clarification of the goals, objectives and strategies( at different levels of hierarchy) • Determine the key managerial & operational tasks to be performed • Assign tasks to the various departments and their mgrs/leaders (departmentation)
  13. 13. • Delegate authority with responsibility,and establish a linking/coordination mechanism • Budget and allocate resources to the implementing divisions/departments/sections • Formulate and state policies, work plans,procedures, and the models/manuals to guide the coherent set of tactics (activities) to be used
  14. 14. • Operationalize those tactics in your strategy • Determine the necessary indicators for measuring performance (participatory styles of leadership/mgt) • Build an information system to provide the required accurate, adequate, and timely feedback • Establish a recognition and reward system for motivating your staff
  15. 15. • Develop your staff and inculcate/reinforce your firm’s corporate values • Establish an appropriate control mechanism • Evaluate performance, ascertain gaps, provide feedback and take corrective action where necessary
  16. 16. The McKinsey 7-S frame work for effective implementation of strategy (key success factors/pre-requisites) • Strategy • Structure • Systems • Style • Shared values • Staff • Skills
  17. 17. Revision Questions 1. “A good strategy with poor implementation is like a poor strategy or no strategy at all,” Discuss 2. Explain the McKinsey’s prerequisites for effective implementation of strategy 3. Alignment of your strategy to other KSFs is vital for competitive assurance of arrival to where you want to be.Discuss
  18. 18. • Good strategy formulation alone will not make your organization successful. There are other elements that must work and fit together with the strategy to make an organization realize its goals and objectives competitively. Discuss the above statements.