3. Activating Strategy
Activation is the process of stimulating an activity -so that it is undertaken
effectively. Activating Strategy is required because only a very small group of
people is involved in strategy
formulation while its implementation involves a large number of people in the
organization. So long as a strategy is not activated, it remains in the mind of
strategists. Activating Strategy or set of strategies requires the performance
of following activities:
1. Institutionalization of strategy,
2. Formulation of derivative-plans and programs,
3. Translation of general objectives into specific objectives. and
4. Resource mobilization and allocation.
4. Measurement
One of the tasks in strategy evaluation is
measuring the results of strategy
implementation. Maintaining objectivity in
assessing and measuring the results of
strategic plans is a major challenge. Although
strategists use evaluation tools such as
financial statements, questionnaires and
interviews, some concepts such as manager
opinions or contributions are difficult to
measure. If the right tools for measuring are
available, then the process of strategic
evaluation becomes simpler. Lack of
appropriate measuring tools slows down
strategic evaluation.
Reporting
Strategy evaluations have some similarity with
audit reports, which can deliver bad news
sometimes. Strategists face the challenge of
presenting an honest report of the progress of
the strategic plan. As in methods of measuring
results, objectivity is also a challenge during
the reporting of these results. Inevitably not all
personnel or stakeholders will agree with the
findings of the strategy report. Strategists
therefore face the task of presenting a fair
report and one which does not trigger
organizational conflict.
6. Strategy implementation is the translation of
chosen strategy into organizational action so as
to achieve strategic goals and objectives.
Strategy implementation is also defined as the manner in
which an organization should develop, utilize, and
amalgamate organizational structure, control systems, and
culture to follow strategies that lead to competitive
advantage and a better performance. Organizational
structure allocates special value developing tasks and roles to
the employees and states how these tasks and roles can be
correlated so as maximize efficiency, quality, and customer
satisfaction-the pillars of competitive advantage. But,
organizational structure is not sufficient in itself to motivate
the employees.
7. Following are the main steps in implementing a
strategy
1)
2)
3)
4)
5)
6)
Developing an organization having potential of carrying out strategy successfully.
Disbursement of abundant resources to strategy-essential activities.
Creating strategy-encouraging policies.
Employing best policies and programs for constant improvement.
Linking reward structure to accomplishment of results.
Making use of strategic leadership.
9. Corrective Action
It is not uncommon for organizations to
change their strategic plans during evaluation.
This is corrective action. Yet sometimes the
organization must undertake corrective action
which completely overhauls the entire strategic
plan. This means that people evaluating the
strategy have to lower the standards or
benchmarks of the strategy. Lowering the
standards has the implication of reformulating
the strategic plan, its goals and objectives. This
requires more resources and time.
Lack of Cooperation
Strategy evaluation, like strategy
implementation, requires the cooperation and
participation of management and personnel.
Unfortunately strategy evaluation, being the
final stage of strategy management, is often
overlooked. One of the reasons that
management and staff may not take strategy
evaluation seriously is because they perceive it
as time consuming. Strategists thus face the
challenge of emphasizing the importance of
evaluation to determine if the organization has
met its strategic goals.
10. 3 Models of Strategy
LINEAR
ADAPTIVE
INTERPRETIVE
11. Model I - Linear strategy
This approach focuses on planning such that goals, and the
means of achieving them, are the results of strategic
management. This model is inherent in Chandler's definition
cites above. In linear strategy, leaders of the organization
plan how they will deal with competitors to achieve their
organization's goals
12. Model II - Adaptive strategy
This approach corresponds to the notion of incrementalism.
"Strategy is concerned with the development of a viable match
between the opportunities and the risks present in the external
environment and the organization's capabilities and resources for
exploiting these opportunities."In adaptive strategy, the organization
and its parts change, proactively or reactively, in order to be aligned
with consumer preferences
13. Model III - Interpretive strategy
Like adaptive strategy this approach sees the organization and its
environment as clearly related, but the emphasis is placed on
managers "holding a cognitive map that provides a view of the
world, helps interpret the changes the organization faces, and
provides appropriate responses. In interpretive strategy,
organizational representatives convey meanings that are intended to
motivate stakeholder in ways that favor the organization.
15. Structural Considerations in Strategic
Implementation
Before implementing a new or revised strategy, company leaders must ensure the
organizational structure can support the planned activities. After identifying the tasks that the
company must perform well to succeed, company executives configure organizational hierarchies
to support primary strategic goals and achieve competitive advantages.
They also identify areas of weakness that pose risks and devise techniques for handling crises.
Successful strategic implementation depends on structuring the organization’s employees so they
can most effectively use the tools and resources available to create quality products and services.
16. Structuring Activities
To prevent their staff from spending time on activities not directly related to
achieving companies' strategic goals, managers identify tasks that can be
outsourced to third-party vendors. Structuring work this way allows experts to
perform these jobs, typically at a lower cast, while employees focus on their core
competencies supporting main businesses. For example, computer
manufacturers typically outsource assembly while focusing internally on design,
sales and distribution duties.
17. Aligning Functions to Strategic Objectives
Before corporate leaders can implement new strategies, they need to ensure
that all personnel in the organizational structure possess the necessary skills,
knowledge and resources to accomplish the tasks. Work must flow from one
function to another so leaders should establish clear processes with policies and
procedures that define roles and responsibilities. The strategy must be consistent
across all departments, adaptive to changes, competitively advantageous and
technically feasible.
18. Establishing Authority
Successfully implementing a new strategy requires that managers and
employees understand what activities require executive approval and which
decisions employees have the empowerment to make without further approval.
Ideally, decision makers should be those people who are closest to the situation
and most knowledgeable about the impact. By avoiding micro-managing the
organization, managers streamline operations and eliminate wasteful tasks. If
the organization is structured to allow employees the flexibility to make critical
decisions, they must also be held accountable for their actions.
19. Developing Partnerships
Strategic implementations require personnel to work together to achieve
specific, measurable, attainable, relevant and time-constrained goals and
objectives. Establishing a common balanced scorecard prevents groups from
competing against each other to succeed individually at the expense of the
whole company. If company executives foster a cooperative environment
between departments, managers share resources, personnel and knowledge
effectively. Additionally, the organizational structure should encourage new
employees to seek out coaching and mentoring from corporate executives. By
encouraging learning and development, company leaders establish a framework
for sustainable growth.
