Strategy Implementation

Managers’MentalModels

(Beliefs &Understanding

Visionand

Mission

BusinessDefinition

CorporateStrategy

BusinessStrategy

Functional Strategy

MarketPosition

Performance

SetObjectives

Implementation

Decisions about

A Framework for the Strategy Making Process

Feedback

Strategic Management Model

Create a Vision orMission

SetObjectives

Craft a Strategy

Implementthe

Strategy

Measureand

Evaluate

Strategic Management Model

Create a Vision orMission

SetObjectives

Craft a Strategy

Implementthe

Strategy

Measureand

Evaluate(Long-term)

Short-termObjectives

Functional StrategyFunctional Tactics

Is there a difference between strategy and tactics?

if so

How do we distinguish betweenstrategy and tactics?

Each functional area will have differentfunctional tactics

What is functional strategy? What is theoverall purpose of functional strategy?

Business-LevelStrategy

Functional-LevelStrategy

FunctionalTactics

Implementation is about action!

Once the strategy has been formulated it is initiated throughfour interrelated steps:

1. Creation of short-term objectives

2. Development of specific functional tactics that createcompetitive advantage

3. Empowering operating personnel through policies thatguide decisions

4. Development of effective rewards

Functional Tactics and Short-termobjectives

FunctionalStrategy

ActionPlans

Policies and Rewards

Implementation Requires

Time frameResponsibilityPerformance

What are policies and why are theyimportant in implementation?

What is organizational culture and why is it important to implementation?

Why are reward systems so important tostrategy implementation?

Which are more effective intrinsic or extrinsic?

Which ones motivate you?

Strategic Management Model

Create a Vision orMission

SetObjectives

Craft a Strategy

Implementthe

Strategy

Measureand

Evaluate(Long-term)

Short-termObjectives

Functional StrategyFunctional Tactics

McKinsey 7-S

McKinsey 7-S is a framework for understanding effective organizational change.

Implementation Impacts and is Impacted by the components of McKinsey 7-S

McKinsey 7-S

Structure

Skills (organizational, management, employee)

Staff (management and employee)

Shared values (culture)

Style (leadership)

Systems

(current) Strategy

Strategic Management Model

Create a Vision orMission

SetObjectives

Craft a Strategy

Implementthe

Strategy

Measureand

Evaluate(Long-term)

Short-termObjectives

Functional StrategyFunctional Tactics

Control

Control (Strategic and Operational)

What does control mean in an organizational context?

Strategic Control

Strategic control is concerned with tracking strategy once it has been implemented, detecting changes or problems as theyoccur and guiding action whose result will manifest severalyears from the initial execution.

Premise control: systematically checks whether the premises (assumptions) on which the strategy is based are still valid.

Implementation control: is designed to assess whether the overallstrategy should be changed in light of results associated withincremental actions.

Strategic Control continued

Strategic surveillance: monitors a broad range of events inside andoutside of the firm that are likely to affect the course of its strategy

Special Alert Control: is a thorough and often rapt reconsiderationof the firm’s strategy because of a sudden unexpected event

Operational Control

Operational controls monitor performance, evaluate deviationsand initiate corrective action.

They are designed to monitor, guide and evaluate the firm’sprogress in meeting short-term objectives.

Operational controls (e.g., budgets, scheduling resources):

-set standards of performance-measure actual performance-identify deviations-initiate corrective action