Strategy Implementation- Meaning, McKinsey 7S Framework , Operational issues and financial issues and Marketing issues

1. OD MBA -413 T
STATREGIC MANGEMENT
Topics to be Covered: L-7, Unit-iii
Strategy Implementation –Management and
Operational issues , Marketing and financial
Issues .
Prepared by: Amandeep
Assistant Professor
https://www.linkedin.com/in/amandeep-thakur-7a81942a

2. Strategy Implementation
Strategy implementation is the process of turning a strategic plan into action,
involving organizing resources, establishing structures, and aligning organizational
processes to achieve specific objectives.
The strategy implementation phase consist of the three Components
Operationalising of the strategy
Institutionalising the strategy
Evaluation and Control of Strategy

3. The McKinsey 7S Framework
The McKinsey 7S Framework, a strategic management tool, analyzes an organization's
effectiveness by examining the alignment of seven interconnected elements: Strategy, Structure,
Systems, Shared Values, Skills, Style, and Staff.
•Strategy: The organization's plan to achieve its goals and objectives.
•Structure: The organizational hierarchy and how different units and departments are
organized.
•Systems: The processes and procedures used to support operations and achieve goals.
•Shared Values: The core beliefs and principles that guide the organization's culture and
behavior.
•Skills: The capabilities and competencies of the workforce.
•Style: The leadership approach and management style within the organization.
•Staff: The people who work in the organization, including their roles, responsibilities, and
compensation.

4. Use the McKinsey 7S Framework:
1.Analyze the Current State:
Assess each of the seven elements within your organization to understand their current state and
how they interact.
2. Identify Alignment Issues:
Determine if the seven elements are aligned and working together effectively to achieve the
organization's goals.
3. Develop a Vision for the Future:
Define the desired state for each of the seven elements, ensuring they are aligned and support the
organization's strategic goals.
4. Create an Action Plan:
Develop a plan to address any alignment issues and move the organization towards the desired
future state.
5. Implement and Monitor:
Put the action plan into action and continuously monitor progress, making adjustments as needed
to ensure alignment and achieve desired outcomes.

5. Benefits of Using the McKinsey 7S
Framework
 Holistic View of the Organization
 Enables Organizational Alignment
 Improves Strategic Planning
 Facilitates Change Management
 Adaptability Across Industries
 Helps to identify internal strengths and weaknesses

6. Resource Allocation
Effective resource allocation is crucial for successful strategy implementation,
involving the strategic distribution of resources like finances, personnel, and
technology to support strategic goals and ensure efficient execution.
Means of Resource Allocation
Strategic Budget
Capital Budget
Performance Budget
Zero Based Budget

7. Factors Affecting Resource Allocation
Objectives of the organization
Preference of the Dominant strategy
Internal politics
External Influence

8. Difficulties in Resource Allocation
Scarcity of resources
Restrictions on generating resources
Overstatement of needs
Tedency to imitate competitors

9. Strategy Structure Relationship
A suitable organisation structure is essential to implement Strategies and achieve
stated goal the whole structure takes the shape of pyramid. Thus, the term
organisation structure describe the framework of an organisation in which
individual efforts coordinated.
An organisation structure specifies Three key components that are as follows:
1. It identifies the formal reporting relationship, including the number of levels
in the hierarchy and the span of control of managers.
2. It specifies the grouping of individuals into department and of departments
into the total organisation .
3. It consist of design of system to ensure effective communication coordination
and integration of efforts across department.

10. INTERRELATIONSHIP OF STRUCTURE AND
STRATEGY
SATRATEGY DETERMINES STRUCTURE
AFFECTS

11. Types of structure
Entrepreneurial Structure
Functional Structure
Divisional structure
SBU Structure
Matrix Structure
Network Structure

12. Operational issues in strategic implementation
Strategic implementation is where the rubber meets the road. Even the most
brilliant strategies can fail if they aren't executed effectively.
Misalignment and Lack of Clarity
Vertical Misalignment
Horizontal Misalignment
Lack of Clear Objectives and KPIs
Resource and Capability Challenges
Organizational Culture and Change Management
Monitoring and Control Issues

13. Marketing Issues in Strategy
Implementation
When it comes to strategic implementation, marketing
faces a unique set of challenges.
Misalignment with Overall Strategy
Target Audience and Market Dynamics
Digital Marketing and Technology Challenges
Organizational and Resource Issues

14. Financial issues in Strategy
implementation
Budgeting and Resource Allocation
Financial Planning and Control
Financial Risk Management
Return on Investment (ROI) and
Financial Metrics

15. THANKS