Strategy

Implementation
Presented by:
Rojina Thapaliya
Strategy Implementation

Definition:
 Sum total of the activities and choices required for the
execution of a strategic plan.
 Process by which strategies and policies are put into action
through programs, budgets, and procedures.
Implementation

Implementation Process Questions:

 Who are the people to carry out the strategic plan?
 What must be done to align operations with new direction?
 How is work going to be coordinated?
Strategy Implementation
• More time than planned
• Unanticipated problems
• Activities ineffectively coordinated
• Crises deferred attention away
Problems in • Employees insufficient capabilities
implementing • Inadequate employee training
• Uncontrollable external factors
strategy
• Inadequate leadership
• Poorly defined tasks
• Inadequate information systems
Strategy Implementation
Who implements strategy:
 Those who implement will probably be a much more
diverse set of people than those who formulate it
 People involving from all organizational levels in the
formulation and implementation of strategy tends to result
in better organizational performance

What must be done:

 Developing programs, budgets and procedures
Strategy Implementation
Programs:

 The main purpose of program is to make the strategy

“action-oriented.”

 It also compare proposed programs and activities with

current programs and activities.

 Matrix of change is proposed to help managers to decide

how quickly change should proceed, in what orders changes
should take place e.t.c
Strategy Implementation
Matrix of change:
• Feasibility
• Sequence execution
• Location
• Pace and nature of change
• Stakeholder evaluations
Strategy Implementation
Budgets:
 After program have been developed, the budget process
begins
 Planning a budget is the last real check a firm has on the
feasibility of the selected strategy
Strategy Implementation
Procedures:
 Often called standard operating procedure(SOPs)
 Detail the various activities that must be carried out to
complete a corporation’s programs.
Strategy Implementation
Achieving Synergy:

Synergy:
 If the return on investment (ROI) is greater than what the return
would be if the division was an independent business.
 There are 6 Forms of Synergy:
• Shared know-how
• Coordinated strategies
• Shared tangible resources
• Economies of scale or scope
• Pooled negotiating power
• New business creation