The document discusses strategic management concepts including the McKinsey 7s model, strategic leadership, portfolio analysis tools like the BCG matrix and GEC model, strategic control, and strategy evaluation. It provides details on each element of the McKinsey 7s model. It also explains the key components of strategic leadership, different types of strategic control like premise and implementation control, and the strategic evaluation process of setting standards, measuring performance, analyzing variances, and taking corrective actions.

1. Strategic Implementation
Strategic Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. McKinsey 7s Model
• McKinsey 7s model is a
tool that analyzes firm’s
organizational design by
looking at 7 key internal
elements: strategy,
structure, systems, shared
values, style, staff and
skills, in order to identify if
they are effectively
aligned and allow
organization to achieve its
objectives.

4. McKinsey 7s Model

5. Strategy
• Strategy is a plan
developed by a firm to
achieve sustained
competitive advantage
and successfully compete
in the market. In general,
a sound strategy is the
one that’s clearly
articulated, is long-term,
helps to achieve
competitive advantage
and is reinforced by strong
vision, mission and values.

6. Structure
• Structure represents the
way business divisions and
units are organized and
includes the information
of who is accountable to
whom. In other words,
structure is the
organizational chart of the
firm. It is also one of the
most visible and easy to
change elements of the
framework.

7. Systems
• Systems are the processes
and procedures of the
company, which reveal
business’ daily activities
and how decisions are
made. Systems are the
area of the firm that
determines how business
is done and it should be
the main focus for
managers during
organizational change.

8. Skills
• Skills are the abilities that
firm’s employees perform
very well. They also
include capabilities and
competences. During
organizational change, the
question often arises of
what skills the company
will really need to
reinforce its new strategy
or new structure.

9. Staff
• Staff element is
concerned with what
type and how many
employees an
organization will need
and how they will be
recruited, trained,
motivated and
rewarded.

10. Style
• Style represents the way
the company is
managed by top-level
managers, how they
interact, what actions do
they take and their
symbolic value. In other
words, it is the
management style of
company’s leaders.

11. Shared Values
• Shared Values are at the
core of McKinsey 7s
model. They are the
norms and standards
that guide employee
behavior and company
actions and thus, are the
foundation of every
organization.

12. Example of McKinsey 7s Model

13. Strategy
• Imagine that your
organization is planning
to implement lean
culture.

14. Strategy
• Focus on the firms core
competencies and
deploying lean
manufacturing principles
throughout the firm,
targeting and
eliminating waste.

15. Structure
• A small hierarchy is
needed, which
encompasses self
directed work teams.
Daily interdepartmental
stand up meetings to be
held daily.

16. Systems
• A bonus system which
supports Lean
improvement and the
new ways of working, a
pay grade structure that
is aligned to the new
team structure.

17. Skills
• Develop new team skills,
problem solving, waste
elimination and process
analysis skills,
empowerment to make
decisions, the ability to
run and close out Kaizen.

18. Staff
• Team players, goal
sharing, acting as
change agents and
driving improvements
on an individual level.

19. Style
• Leadership that is
trained in Emotional
Intelligence and the
courage to delegate and
empower subordinates.
Leadership that leads by
example and can coach
and mentor employees
in Lean techniques.

20. Shared Values
• Creating an organization
that respects each and
every employee,
committed to the
environment and
continuously strives for
waste elimination and
perfection in everything
it does.

21. Leadership in strategic
management

22. Strategic leadership
• The term strategic
leader is used to
describe the manager
who head the
organization and who
are primarily responsible
for creating and
implementing strategic
change.

23. Themes of strategic leadership

24. Strategic Vision
• A well crafted,
appreciated and
supported mission is at
the heart of a leader’s
strategic vision. It may
reflect his own current
assessment of where the
firm should go or how he
may continue to carry out
the long term plans
established by his
predecessor.

25. Pragmatism
• Pragmatism is the ability
to make things happen
and achieve positive
results. This can happen
only when leader utilize
resource in an efficient
and effective way.

26. Structure and policies
• A visionary strategic
leader, as an agent of
change, should lay down
the rules of the game in
concrete terms and
resolve all contentious
issues in a proper way

27. Communication network
• Both formal and informal
network should be used by
the leader to inform people
about priorities and
strategies and ensure that
these are implemented
expeditiously. Lateral
communication should be
encouraged, in addition to
upward and downward
communication channels,
between various
departments and divisions.

28. Culture
• A strategic leader can
influence the culture of a
company significantly. In
fact, every company
reflects the character and
personality of its leader.
The beliefs and values of
the leader have a strong
bearing on how
employees behave and
react to situations on a
daily basis.

29. Managing change
• Effective leaders are
responsible for initiating
necessary changes that
ensure continued
organizational success. To
manage change
effectively, the leader
need to have a clear vision
of the future – where the
organization is heading
together with the means
for creating and reaching
this future.

30. Governance and Management
• The major responsibilities
of strategic leaders with
respect to corporate
governance are provide
direction in the form of
mission, formulate and
implement changes,
monitor and control
operations, provide
policies and guidelines to
other team members and
achieve results in a
manner acceptable to
society at large.

31. Portfolio Analysis

32. Portfolio Analysis
• Executives in charge of
firms involved in many
different businesses
must figure out how to
manage such portfolios.

33. Portfolio Analysis
• General Electric (GE), for
example, competes in a very
wide variety of industries,
including financial services,
insurance, television, theme
parks, electricity generation,
lightbulbs, robotics, medical
equipment, railroad
locomotives, and aircraft jet
engines. When leading a
company such as GE,
executives must decide
which units to grow, which
ones to shrink, and which
ones to abandon.

34. The Boston Consulting Group
(BCG) Matrix

35. (BCG) Matrix
• The Boston Consulting
Group (BCG) matrix is the
best-known approach to
portfolio planning. Using
the matrix requires a
firm’s businesses to be
categorized as high or low
along two dimensions: its
share of the market and
the growth rate of its
industry.

36. Question Marks
• Divisions in Quadrant I have a
low relative market share
position, yet they compete in
a high-growth industry.
Generally these firms’ cash
needs are high and their cash
generation is low. These
businesses are called
Question Marks because the
organization must decide
whether to strengthen them
by pursuing an intensive
strategy.

37. Stars
• Quadrant II businesses (Stars)
represent the organization’s best
long-run opportunities for growth
and profitability. Divisions with a
high relative market share and a
high industry growth rate should
receive substantial investment to
maintain or strengthen their
dominant positions. Forward,
backward, and horizontal
integration; market penetration;
market development; and product
development are appropriate
strategies for these divisions to
consider.

38. Cash Cows
• Divisions positioned in
Quadrant III have a high
relative market share
position but compete in a
low-growth industry. Called
Cash Cows because they
generate cash in excess of
their needs, they are often
milked. Many of today’s Cash
Cows were yesterday’s Stars.
Cash Cow divisions should be
managed to maintain their
strong position for as long as
possible.

39. Dogs
• Quadrant IV divisions of the
organization have a low
relative market share
position and compete in a
slow- or no-market-growth
industry; they are Dogs in the
firm’s portfolio. Because of
their weak internal and
external position, these
businesses are often
liquidated, divested, or
trimmed down through
retrenchment.

40. GEC Model

41. GEC Model
• In consulting
engagements with
General Electric in the
1970's, McKinsey &
Company developed a
nine-cell portfolio matrix
as a tool for screening
GE's large portfolio of
strategic business units
(SBU).

42. GEC Model
• The GE matrix attempts to
improve upon the BCG matrix
in the following two ways:
– The GE matrix generalizes the
axes as "Industry
Attractiveness" and "Business
Unit Strength" whereas the
BCG matrix uses the market
growth rate as a proxy for
industry attractiveness and
relative market shares as a
proxy for the strength of the
business unit.
– The GE matrix has nine cells vs.
four cells in the BCG matrix.

43. GEC Model

45. Strategic Implications
• Grow strong business
units in attractive
industries, average
business units in
attractive industries, and
strong business units in
average industries.

46. Strategic Implications
• Hold average businesses
in average industries,
strong businesses in weak
industries, and weak
business in attractive
industries.

47. Strategic Implications
• Harvest weak business
units in unattractive
industries, average
business units in
unattractive industries,
and weak business units
in average industries.

48. Strategic control

49. Strategic control
• Strategic control is
concerned with tracking a
strategy as it is being
implemented, detecting
problems or changes in its
underlying premises and
making necessary
adjustments. The most
important purpose of
strategic control is to help
top achieve organizational
goals through monitoring
and evaluating the strategic
management process.

50. Types of strategic control

51. Premise control
• Premise control is
designed to check
systematically and
continuously whether the
premises on which the
strategy is based are still
valid. If an important
premise is no longer valid,
the strategy may have to
be changed.

52. Premise control
• It involves the checking of
environmental conditions.
Premises are primarily
concerned with two types
of factors:
– Environmental factors (for
example, inflation,
technology, interest rates,
regulation, and
demographic/social
changes).
– Industry factors (for
example, competitors,
suppliers, substitutes, and
barriers to entry).

53. Implementation control
• Implementation control is
aimed at assessing whether
the plans, progammes and
policies are actually guiding
the organization towards its
predetermined objectives
or not. If the resources that
are committed to a project
at any point of time would
not benefit an organization
as envisaged, corrective
steps should be undertaken
immediately.

54. Implementation control
• The two basis types of
implementation control are:
– Monitoring strategic thrusts
- to agree early in the
planning process on which
thrusts are critical factors in
the success of the strategy or
of that thrust.
– Milestone Reviews.
Milestones are significant
points in the development of
a programme, such as points
where large commitments of
resources must be made.

55. Strategic surveillance
• Strategic surveillance aims at a
more generalized overreaching
control designed to monitor “
a broad range of events inside
and outside the company that
are likely to threaten the
course of firm’s strategy”. It is
done generally through a
general kind of monitoring
based on selected information
sources to uncover events that
are likely to affect the strategy
of an organization.

56. Strategic surveillance
• For example, the success
of Arvind Mill’s Ruf and
Tuf brand encouraged
rampant sale of spurious
products under the same
brand name forcing the
company to constitute
vigilance squads to crack
down on the
unscrupulous
businessmen

57. Strategic alert control
• A strategic alert control is
the thorough and often
rapid consideration of the
firm’s strategy because of a
sudden unexpected event.
Examples of such events
can be the sudden fall of
the government, a natural
calamity etc. In the face of
such unexpected events,
the firm should respond
immediately, and releases it
strategies quickly.

58. Control Process Analysis

59. Control Process Analysis
• Setting performance
standards.
• Measuring the
performance.
• Variance Analysis.
• Taking corrective action.

60. Setting performance standards
• This is the starting phase of
control process where the
strategists lays down
foundation for comparing
actual performance with
the planned one, variance
analysis and taking of
corrective action if needed.

61. Measuring the performance
• Operationally, measurement of
performance is done through
accounting, reporting and
communication systems. What
is important is that
performance evaluation should
reflect the actual position
which may be plus, minus or
nil.

62. Variance Analysis
• Variance analysis is to point out
the variation of actual
performance from the standard
one. Variation can be positive,
negative or matching. The main
idea behind variation analysis is to
find out the extent of deviation
and the causes for the same so to
hold responsible the person in
charge of cost or profit centres.

63. Taking corrective action
• Findings of variance
analysis paves way for
taking necessary corrective
actions. Correcting the
performance calls for
further details as to the
organizational structure and
systems plus behavioral
implementations.

64. Evaluation Strategy

66. Activity one: Reviewing Bases of Strategy
• Develop a revised External
Factor Evaluation EFE Matrix
- A revised EFE Matrix should
indicate how effective a
firm’s strategies have been
in response to key
opportunities and threats.

67. Activity one: Reviewing Bases of Strategy
• Develop a revised Internal
Factor Evaluation IFE Matrix – A
revised IFE Matrix should focus
on changes in the organization’s
management, marketing,
finance/accounting
production/operations, R&D,
and management information
systems strengths and
weaknesses.

68. Activity two – Measuring Organizational
Performance
• Another important strategy-
evaluation activity is measuring
organizational performance. This
activity includes comparing
expected results to actual results,
investigating deviations from
plans, evaluating individual
performance, and examining
progress being made toward
meeting stated objectives.

69. Activity Three – Taking Corrective Action
• The final strategy-evaluation
activity, taking corrective actions,
requires making changes to
competitively reposition a firm for
the future. Examples of changes
that may be needed are altering an
organization’s structure, replacing
one or more key individuals, selling
a division, or revising a business
mission.