1. Closing the gap in
strategy implementation
Presented by : George Magdy
2. 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
3. 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.
4. 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?
5. 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.
6. 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).
7. 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)
8. 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
11. 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.
13. 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)
14. 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)
Organizational culture defined as the norms, values and beliefs and shared assumptions, which shapes how people act, perform their jobs and behave inside the organization. Lack of trust between senior level management layer and frontline employees considered one of the most important culture problems (Hrebiniak2005) short term orientation considered also from the most common problems that is related to the organizational culture context.
Change management is crucial for strategy implementation Top management must clearly identify the important behaviors and process that needs change also identifying the source of resistance and overcoming it
These are the three components of
The model that are somewhat simpler to characterize. managment has a tendency to have a superior time impacting the hard components in the organization. Such case of hard s components strategy statement and organizational chart. The bottom four Soft S
Components: skills, staff, style and shared values, are more hard to portray and are
Affected by corporate culture rather than management. As should be obvious in the outline
Over, every one of the seven of the components are associated of each other. Change inside
One component requires change in the remaining six. (Manktelow).
