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Note on Implementation Strategy -A Harvard Business Review Kenneth R. Andrews


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Note on Implementation Strategy -A Harvard Business Review Kenneth R. Andrews

  1. 1. Note on Implementation Strategy A Harvard Business Review Kenneth R. Andrews Priyank Jain(92) Radhika Shrama(93) Rahul Shrama(94) Rakesh Kumar(96)
  2. 2. This Review contains…. Framework for Strategy Implementation The Implementation Task: Implementation Plan Creating ‘Fits’ Reasons Functional Administr Implementing fit a-tive fits for Skills Misfits
  3. 3. Framework for Strategy Implementation Assumptions:  Strategy already defined  Strategy not subject to sudden change  Strategy Development separate from Implementation
  4. 4. Establishment of Formulation of Implementat- Strategic strategic intent strategies ion of strategies evaluation Strategic control
  5. 5. Strategy Implementation Strategic Vision Concrete Do-able Steps (Thought) (Action)  Define Key Implementation Tasks  Review Alternative Approaches  Identify Key Skills
  6. 6. Nature of Strategy Implementation  Action Oriented  Comprehensive in scope  Demanding varied skills  Wide-ranging involvement  Integrated process
  7. 7. The Implementation Task: Creating ‘Fits’  Strategy embodied in ALL Organizational Activities  2 Types:  Functional Fit: Strategy  Functional Policy  Administrative Fit: Strategy  Organizational Structure/Process / System
  8. 8. FUNCTIONAL FIT Strategic fit express the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment.  Adoption & Execution of Manufacturing Functional Policies consistent with Strategic Objectives  Broad & Detailed policies Marketing FUNCTIONS Engineering aligned to Organizational Strategy Finance
  9. 9. CASE-Functional Fits Core Strength – Unique Order as per Customer Specifications New Strategy to make products before orders & Reduce Delivery Cycle Results: Costly Rework,Customer Complaints,Missed Targets,Costly Penalities Bonus Allusions Loss in Sales= to “King Sales Order Size Customer”
  10. 10. Administrative Fits Major Systems to be aligned with Strategy Organization Information Incentive Structure Systems Systems Strategic Organization Control Planning Processes Systems Systems Management Corporate Leadership Selection & Culture Style Development
  11. 11. Implementation Plan Two or Three of the most critical issues must be identified & addressed Develop plans for each Address key human & Include a set of alternative organizational issues actions Present sequence of actions to be taken Determine how manager should take actions and assure that they are taken
  12. 12. Implementation Situations As organizations grow they usually develop through a number of distinct stages One model posits that corporations develop through three distinct stages Each of the stage requires entirely different ways of running the company Transitions difficult to manage
  13. 13. Three Stages of Organizational Development Company Stage 1 Stage 2 Stage 3 Characteristics 1. Product line Single Product or Single Single Product Line or Multiple Product Lines Line business 2. Distribution One channel or set of One set of channels Multiple channels channels 3. Organization Little or no formal Specialization based on Specialization based on Structure structure structure product-market relationships 4. Product/Service - Na - Integrated pattern of Not Integrated transactions A B C Market Markets 5. R&D Not institutionalized Increasingly Institutionalized search institutionalized search for new products as well for product or process as for improvements improvements
  14. 14. Three Stages of Organizational Development Company Stage 1 Stage 2 Stage 3 Characteristics 6. Performance By personal contact & Increasingly impersonal Increasingly impersonal measurement subjective criteria using technical and/or using market criteria cost criteria 7. Rewards Unsystematic Increasingly systematic Increasingly systematic with emphasis on with variability related to stability and service performance 8. Control System Personal control Personal control of Delegation of product strategic decisions market decisions, with indirect control based on analysis of results 9. Strategic Choices Needs of owner vs. needs • Degree of integration • Entry and exit from of firm • Market share industries objective • Allocation of • Breadth of product resources by industry line • Rate of growth
  15. 15. Implementation Situations  Transitions present recurring implementation problems in strategic situations.  Each situation presents some unique problems which requires different skills.  All situations however require achievement of fits.
  16. 16. IMPLEMENTATION CHOICES  Two Broad choices available for Strategic Implementation are Classified as:  Degree of Involvement  Attention to Administrative Constraints
  17. 17. Modes of Implementation Degree of Attention to Admin Constraints Degree of Involvement High Low Political Entrepreneur High Manager Manager Low Administrative People & Organisation Manager Shaker
  18. 18. Entrepreneurial Political Manager Manager Deeply involved in Deeply involved in implementation process. implementation process. Also aware of Little awareness towards administrative administrative constraints constraints. Administrative Organisation Shaker Manager Manager Little concern over Little involvement in implementation and implementation process. administrative More concern towards constraints. the administrative Just manages and adjusts implications. people or system.
  19. 19. Reasons for Misfits  Misfits evolves due to rapid change of environment and strategy.  Some misfits are permitted deliberately but consciously.(time and energy)  When a need to keep the options open is their, misfits are many times useful and a necessity.
  20. 20. Implementing Skills • Technical Component • Organizational Analytical Component • Interpersonal Component
  21. 21. • Communication Administrative • Timing Skill • Identify individuals who will be affected by strategy
  22. 22. • Commitment to purpose Leadership • Business Standards, Ethical Skill Standards • Trust of subordinates
  23. 23. Application to case study Spell out all Identify those Develop Identify the Administrative fits which are implementation strategy & Functional crucial plan Fits
  24. 24. Guide to analysis of cases Strategy Administrative Functional & leadership policies skills Implementation Management mode systems Implementati Misfits on Timing Mix of TOI
  25. 25. "However beautiful the strategy, you should look carefully at the Implementation…..." Winston Churchill PM British