A.N.S-
nsserwanga@yahoo.com
STR.MGT BSC ACC 1
Strategy implementation
How do we ensure arrival?
ABAHO ERNEST STR.MGT BSC ACC 2
Strategy implementation is the sum
total of activities and choices
required to implement a ...
ABAHO ERNEST STR.MGT BSC ACC 3
Basic issues to be addressed in
implementing strategy
 Who are the staff who will undertak...
ABAHO ERNEST STR.MGT BSC ACC 4
Common problems encountered in
strategy implementation
 Time taken is more than that origi...
ABAHO ERNEST STR.MGT BSC ACC 5
The strategy implementer’s task is to
convert the plan into action and
undertake what is ca...
ABAHO ERNEST STR.MGT BSC ACC 6
The eight managerial components of
implementing strategy
1. Building a capable organization...
ABAHO ERNEST STR.MGT BSC ACC 7
Building a capable organization
 Selecting people for key positions – creating a strong
ma...
ABAHO ERNEST STR.MGT BSC ACC 8
Strategic advantages and disadvantages of various
organization structures
 Functional spec...
ABAHO ERNEST STR.MGT BSC ACC 9
Strategy and stage of corporate
development
Stage one
1. Major problem- survival and growth...
ABAHO ERNEST STR.MGT BSC ACC 10
Strategy and stage of corporate
development ctnd
Stage two
1. Major problems- growth, expa...
ABAHO ERNEST STR.MGT BSC ACC 11
Strategy and stage of corporate
development ctnd
Stage three
1. Major problems- agency/ tr...
ABAHO ERNEST STR.MGT BSC ACC 12
Functional organization structure
Advantages:
• Centralizes control
• Good for single biz ...
ABAHO ERNEST STR.MGT BSC ACC 13
GEOGRAPHIC ORGN STRUCTURE
Advantages:
1. Strategy made specific to region
2. Reaps advanta...
ABAHO ERNEST STR.MGT BSC ACC 14
Strategic business unit orgn structure
Advantages:
• Enables decentralization/ delegation ...
ABAHO ERNEST STR.MGT BSC ACC 15
A MATRIX ORGN
STRUCTURE HAS TWO OR
MORE CHAINS OF
COMMAND, TWO LINES OF
BUDGET AUTHORITY A...
ABAHO ERNEST STR.MGT BSC ACC 16
MATRIX STRUCTURE CTND
Advantages
 Gives formal attention to each dimension of strategic
p...
ABAHO ERNEST STR.MGT BSC ACC 17
Supplementing the basic orgn structure
1. Special project teams
2. Cross functional task f...
ABAHO ERNEST STR.MGT BSC ACC 18
IMPLEMENTING STRATEGY –
BEST PRACTICES
 TQM- ENTAILS CREATING A TOTAL
QUALITY CULTURE KEE...
ABAHO ERNEST STR.MGT BSC ACC 19
BUILDING TOTAL QUALITY
MANAGEMENT CULTURE
 PASSION FOR TOTAL QUALITY
INCLUDING QUALITY VI...
ABAHO ERNEST STR.MGT BSC ACC 20
STRATEGY SUPPORTIVE
REWARD SYSTEMS
CREATING EMPLOYEE COMITMENT
AND WINNING ATTITUDES IS
IM...
ABAHO ERNEST STR.MGT BSC ACC 21
WHAT IS COMMITMENT?
 COMMITMENT DETERMINES THE
RELATIONSHIP BTN EMPLOYER AND
EMPLOYEE
 B...
ABAHO ERNEST STR.MGT BSC ACC 22
HOW EMPLOYEES VIEW
COMMITMENT
 PERFORMANCE ON THE JOB/ OUT PUT
 VOLUNTARISM “ GOING AN E...
ABAHO ERNEST STR.MGT BSC ACC 23
NATURE OF EMPLOYEE
COMMITMENT
 COMMITMENT TO THE BOSS
 COMMITMENT TO WORKMATES
 COMITME...
ABAHO ERNEST STR.MGT BSC ACC 24
FACTORS CAUSING LOW
COMMITMENT
 LOW PAY
 DELAYS IN PAYING STAFF CLAIMS
 NATURE OF EMPLO...
ABAHO ERNEST STR.MGT BSC ACC 25
Indicators of commitment
 Attendance and punctuality
 Daily performance on the job
 Abi...
ABAHO ERNEST STR.MGT BSC ACC 26
Incentives for commitment
 Pay for extra work
 Housing and Transport
 Advances and loan...
ABAHO ERNEST STR.MGT BSC ACC 27
BEST PRACTICE IN REWARDS
 LINK WORK ASSIGNMENT TO
PERFORMANCE TARGETS
 REWARD ACHIEVEMEN...
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Strategy%20 implementation%20pgdmf%2007[1]

  1. 1. A.N.S- nsserwanga@yahoo.com STR.MGT BSC ACC 1 Strategy implementation How do we ensure arrival?
  2. 2. ABAHO ERNEST STR.MGT BSC ACC 2 Strategy implementation is the sum total of activities and choices required to implement a strategic plan. This requires the development of programs, budgets and procedures
  3. 3. ABAHO ERNEST STR.MGT BSC ACC 3 Basic issues to be addressed in implementing strategy  Who are the staff who will undertake the tasks?  What must be done to ensure congruence between current operations and the new strategic direction?  How is every one going to do what is required?
  4. 4. ABAHO ERNEST STR.MGT BSC ACC 4 Common problems encountered in strategy implementation  Time taken is more than that originally planned  Un foreseen problems set in  Ineffective coordination of activities  Other company activities overshadowed implementation of strategy  Respective staff lacked required skills  Lack of training to create required skills  Unforeseen external factors  Inadequate leadership from top management  Poorly defined activities to be implemented  Insufficient back up by ICT
  5. 5. ABAHO ERNEST STR.MGT BSC ACC 5 The strategy implementer’s task is to convert the plan into action and undertake what is called for by the plan. Managing strategy implementation is therefore more art than science.
  6. 6. ABAHO ERNEST STR.MGT BSC ACC 6 The eight managerial components of implementing strategy 1. Building a capable organization 2. Developing budgets and allocating ample resources to the strategic effort 3. Establishing strategy friendly and enabling policies 4. Instituting best practices and continuous improvement 5. Providing support systems that enable staff to perform 6. Linking rewards/ incentives with achievement of strategic targets 7. Creating corporate culture which ensures/ enhances strategy achievement 8. Exercising strategic leadership to drive implementation
  7. 7. ABAHO ERNEST STR.MGT BSC ACC 7 Building a capable organization  Selecting people for key positions – creating a strong management team  Building core competences and capabilities which are un matched: competitive advantage.  Employee training and retraining  Match orgn structure to strategy: identify and build structure around critical activities then consider outsourcing non core activities.  Resolving which decisions to centralize and which to decentralize
  8. 8. ABAHO ERNEST STR.MGT BSC ACC 8 Strategic advantages and disadvantages of various organization structures  Functional specialization  Geographic organization  Decentralized biz divisions  Strategic biz units  Matrix structures ( students to fill in )
  9. 9. ABAHO ERNEST STR.MGT BSC ACC 9 Strategy and stage of corporate development Stage one 1. Major problem- survival and growth, dealing with short term operational probs 2. Objectives- personal, subjective 3. Strategy- implicit, entrepreneur owner 4. Structure- one man show 5. Control – personal criteria, daily observation 6. Reward punishment- informal, incentives limited and used for control/ creating allegiances.
  10. 10. ABAHO ERNEST STR.MGT BSC ACC 10 Strategy and stage of corporate development ctnd Stage two 1. Major problems- growth, expansion of resources 2. Objectives – SMART meeting functional performance targets 3. Strategy – limited to exploitation of one product 4. Organization- one unit functionally specialized 5. Control – many persons and systems involved 6. Reward punishment – based on agreed policies
  11. 11. ABAHO ERNEST STR.MGT BSC ACC 11 Strategy and stage of corporate development ctnd Stage three 1. Major problems- agency/ trusteeship and control of diversified resources. 2. Objectives – SMART but expanded scope to include society and environment 3. Strategy – growth and product diversification 4. Organization- decentralized operations 5. Control – complex formal systems with divisional managers. 6. Reward punishment – based on agreed policies
  12. 12. ABAHO ERNEST STR.MGT BSC ACC 12 Functional organization structure Advantages: • Centralizes control • Good for single biz unit • Develops functional skills Disadvantages: • Interfunctional rivalry • Tall structure enters bureaucracy/ delay • Functional myopia/ conflicts • Limits development of staff with cross functional skills.
  13. 13. ABAHO ERNEST STR.MGT BSC ACC 13 GEOGRAPHIC ORGN STRUCTURE Advantages: 1. Strategy made specific to region 2. Reaps advantages of local operations/ scales 3. Improves functional coordination Disadvantages: • Difficult to attain uniformity across regions • Duplication of staff to run geographic units • Adds another layer of staff to run the geo. areas
  14. 14. ABAHO ERNEST STR.MGT BSC ACC 14 Strategic business unit orgn structure Advantages: • Enables decentralization/ delegation of authority • Responsibility for each biz unit lies with it • Profit responsibility rests on SBUs Disadvantages: • HQ managers may lose touch with sbu operations • Excessive rivalry among SBUs • HQ managemnt becomes heavily dependent on SBUs
  15. 15. ABAHO ERNEST STR.MGT BSC ACC 15 A MATRIX ORGN STRUCTURE HAS TWO OR MORE CHAINS OF COMMAND, TWO LINES OF BUDGET AUTHORITY AND TWO SOURCES OF PERFORMANCE AND REWARD
  16. 16. ABAHO ERNEST STR.MGT BSC ACC 16 MATRIX STRUCTURE CTND Advantages  Gives formal attention to each dimension of strategic priority  Creates chks and balances among competing view points  Encourages cooperation Disadvantages  Very complex to manage  Many people involved in decision  Promotes organization bureaucracy
  17. 17. ABAHO ERNEST STR.MGT BSC ACC 17 Supplementing the basic orgn structure 1. Special project teams 2. Cross functional task forces 3. Venture teams- manage launch of new product 4. Self contained work teams- work on semi permanent basis on continuous improvement of the company 5. Process teams- functional specialists 6. Contact persons – single point/ one stop port for all services.
  18. 18. ABAHO ERNEST STR.MGT BSC ACC 18 IMPLEMENTING STRATEGY – BEST PRACTICES  TQM- ENTAILS CREATING A TOTAL QUALITY CULTURE KEEN ON CONTINUOUS IMPROVEMENT OF EVERY ASPECT OF PERFORMANCE. STEP BY STEP IMPROVEMENTS.  REENGINEERING SEEKS ONE TIME QUANTUM IMPROVEMENT – BIG / RADICAL DEPATURES
  19. 19. ABAHO ERNEST STR.MGT BSC ACC 19 BUILDING TOTAL QUALITY MANAGEMENT CULTURE  PASSION FOR TOTAL QUALITY INCLUDING QUALITY VISION, SPECIFIC MEASURABLE GOALS  ENCOURAGING TQM SUPPORTIVE BEHAVIOURS: REWARDING, Q TRAINING USING QUALITY TEAMS  EMPOWERING EMPLOYEES  ICT SUPPORT  PREACH TQM, EAT TQM
  20. 20. ABAHO ERNEST STR.MGT BSC ACC 20 STRATEGY SUPPORTIVE REWARD SYSTEMS CREATING EMPLOYEE COMITMENT AND WINNING ATTITUDES IS IMPERATIVE.
  21. 21. ABAHO ERNEST STR.MGT BSC ACC 21 WHAT IS COMMITMENT?  COMMITMENT DETERMINES THE RELATIONSHIP BTN EMPLOYER AND EMPLOYEE  BINDS EMPLOYEE TO THE ORGANIZATION  RESULTS IN EXTRA ROLE CONTRIBUTIONS BY EMPLOYEES.
  22. 22. ABAHO ERNEST STR.MGT BSC ACC 22 HOW EMPLOYEES VIEW COMMITMENT  PERFORMANCE ON THE JOB/ OUT PUT  VOLUNTARISM “ GOING AN EXTRA MILE”  INVOLVEMENT  QUALITY OF WORK  NUMBER OF HOURS PUT IN THE JOB.
  23. 23. ABAHO ERNEST STR.MGT BSC ACC 23 NATURE OF EMPLOYEE COMMITMENT  COMMITMENT TO THE BOSS  COMMITMENT TO WORKMATES  COMITMENT TO THE ORGANIZATION  COMMITMENT TO THE JOB  COMMITMENT TO THE ORGANIZATION’S POLICIES
  24. 24. ABAHO ERNEST STR.MGT BSC ACC 24 FACTORS CAUSING LOW COMMITMENT  LOW PAY  DELAYS IN PAYING STAFF CLAIMS  NATURE OF EMPLOYMENT TERMS (PART-TIME)  LACK OF JOB SECURITY  PREVIOUS EXPERIENCES WITH FORMER EMPLOYERS  FAILURE TO RECOGNIZE AND REWARD EFFORT  LACK OF EMPATHY  LACK OF INCENTIVES  UNFULFILLED PROMISES  LAZINESS / WORK ETHIC
  25. 25. ABAHO ERNEST STR.MGT BSC ACC 25 Indicators of commitment  Attendance and punctuality  Daily performance on the job  Ability to meet deadlines  Willingness to market the organization / ambassadors  Time spent/helping developing skills of other employees  Willingness to voluntarily assist colleagues and administration (without pay)
  26. 26. ABAHO ERNEST STR.MGT BSC ACC 26 Incentives for commitment  Pay for extra work  Housing and Transport  Advances and loans  Financial bonuses  Recognition for good performance  Medical attention for self and family  Education subsidy for children  Financial assistance extended to staff in problems
  27. 27. ABAHO ERNEST STR.MGT BSC ACC 27 BEST PRACTICE IN REWARDS  LINK WORK ASSIGNMENT TO PERFORMANCE TARGETS  REWARD ACHIEVEMENT OF PERFORMANCE TARGETS  INCENTIVES SHOUL BE MORE THAN 20% OF SALARY  FAIRNESS IN REWARDS  INDIVIDUALS SHD BE ABLE TO AFFECT OUTCOME ( AVOIDS UNCONTROLLABLES)
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