Strategy Implementation

Definition: Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the
long-term goals of the organization. It converts the opted strategy into the moves and actions of the organisation
to achieve the objectives.

Simply put, strategy implementation is the technique through which the firm develops, utilises and integrates its
structure, culture, resources, people and control system to follow the strategies to have the edge over other
competitors in the market.

Strategy Implementation is the fourth stage of the Strategic Management process, the other three being a
determination of strategic mission, vision and objectives, environmental and organisational analysis, and
formulating the strategy. It is followed by Strategic Evaluation and Control.

Process of Strategy Implementation

 Building an organization, that possess the capability to put the strategies into action successfully.
 Supplying resources, in sufficient quantity, to strategy-essential activities.
 Developing policies which encourage strategy.
 Such policies and programs are employed which helps in continuous improvement.
 Combining the reward structure, for achieving the results.
 Using strategic leadership.

The process of strategy implementation has an important role to play in the company’s success. The process
takes places after environmental scanning, SWOT analyses and ascertaining the strategic issues.

Prerequisites of Strategy Implementation

 Institutionalization of Strategy: First of all the strategy is to be institutionalized, in the sense that the one
who framed it should promote or defend it in front of the members, because it may be undermined.
  Developing proper organizational climate: Organizational climate implies the components of the
internal environment, that includes the cooperation, development of personnel, the degree of
commitment and determination, efficiency, etc., which converts the purpose into results.
 Formulation of operating plans: Operating plans refers to the action plans, decisions and the programs,
that take place regularly, in different parts of the company. If they are framed to indicate the proposed
strategic results, they assist in attaining the objectives of the organization by concentrating on the factors
which are significant.
 Developing proper organisational structure: Organization structure implies the way in which different
parts of the organisation are linked together. It highlights the relationships between various
designations, positions and roles. To implement a strategy, the structure is to be designed as per the
requirements of the strategy.
 Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals so as to identify
whether the strategy so implemented is relevant to the purpose of the organisation. As the organization
operates in a dynamic environment, which may change anytime, so it is essential to take a review, to
know if it can fulfil the needs of the organization.
 Even the best-formulated strategies fail if they are not implemented in an appropriate manner. Further, it
should be kept in mind that, if there is an alignment between strategy and other elements like resource
allocation, organizational structure, work climate, culture, process and reward structure, then only the
effective implementation is possible.

Aspects of Strategy Implementation

 Creating budgets which provide sufficient resources to those activities which are relevant to the strategic
success of the business.
 Supplying the organization with skilled and experienced staff.
 Conforming that the policies and procedures of the organisation assist in the successful execution of the
strategies.
 Leading practices are to be employed for carrying out key business functions.
 Setting up an information and communication system, that facilitate the workforce of the organisation,
to perform their roles effectively.
 Developing a favourable work climate and culture, for proper implementation of the strategy.
 Strategy implementation is the time-taking part of the overall process, as it puts the formulated plans
into actions and desired results.

Following steps should be kept in mind while implementing strategies:

1. Proper Communication of Strategies:

The first thing in implementing strategies is their proper communication to decision-making managers. Unless
otherwise the strategies are communicated and understood in the same way in which planners want, the same
will not give desired results. The chief executive officer or top level planners may be clear about the strategies
and the results expected but if the same thing is not communicated properly then the objectives may not be
achieved.

2. Developing and Communicating Planning Premises:

Planning premises are the anticipated environmental factors in which plans are expected to operate. Some
assumptions have to be made while planning for future. Managers must develop premises critical to plans and
decisions and explain them to all those who are in the chain of decision-making. In the absence of such
premises, decisions will be based on personal assumptions and predictions and it may lead to uncoordinated
plans.

3. Reviewing Strategies Regularly:

The strategies should be reviewed regularly. There may be a change in conditions or assumptions in which
these were based. Unless strategies are changed to suit the new conditions, there will be no use of persisting
with the old ones. The regular review of strategies will help in their update.

4. Developing Contingency Strategies:

There is always a possibility of change in competitive factors or other elements in the environment may occur,
strategies for such contingencies should be formulated. One cannot wait for the certainty of the environment.
Even if there is uncertainty and the events may make objectives and programmes absolute, a manager has to
proceed on the most credible set of premises possible at that time. The contingency plans, if available, will help
in such situations.

5. Organization Structures be Suitable to Planning Needs:

The organization structure should be designed to help managers accomplish goals and make decisions to put
plans into effect. If possible, each person should be responsible for the accomplishment of each goal and
implement the strategies to achieve this goal. The key areas and end results should be identified and assigned to
single position as far down the organization structure as is feasible. This type of organisation structure will help
in making the strategies more effective and result oriented.

6. Emphasis on Strategy Implementation:

The managers should continuously emphasize the decision-makers to implement planning and strategies. Even
though this is a tedious task to say the same thing regularly but it will certainly have desired results. Making a
good strategy and then ignoring its implementation will amount to nothing.

STEPS IN STRATEGY IMPLEMENTATION

To ensure an effective and successful implementation of strategies, it’s a good idea to have a system to go about
it. Take a look at the steps to ensure that happens.
Step #1: Evaluation and communication of the Strategic Plan

The strategic plan, which was developed during the Strategy Formulation stage, will be distributed for
implementation. However, there is still a need to evaluate the plan, especially with respect to the initiatives,
budgets and performance. After all, it is possible that there are still inputs that will crop up during evaluation
but were missed during strategy formulation.

 There are several sub-steps to be undertaken in this step.

 Align the strategies with the initiatives. First things first, check that the strategies on the plan are
following the same path leading to the mission and strategic goals of the organization.
 Align budget to the annual goals and objectives. Financial assessments conducted prior will provide an
insight on budgetary issues. You have to evaluate how these budgetary issues will impact the attainment
of objectives, and see to it that the budget provides sufficient support for it. In the event that there are
budgetary constraints or limitations, they must first be addressed before launching fully into
implementation mode.
 Communicate and clarify the goals, objectives and strategies to all members of the organization.
Regardless of their position in the organization’s hierarchy, everyone must know and understand the
goals and objectives of the organization, and the strategies that will be employed to achieve them.

Step #2: Development of an implementation structure

The next step is to create a vision, or a structure, that will serve as a guide or framework for the implementation
of strategies.

 Establish a linking or coordination mechanism between and among the various departments and their
respective divisions and units. This is mainly for purposes of facilitating the delegation of authority and
responsibility.
 Formulate the work plans and procedures to be followed in the implementation of the tactics in the
strategies.
 Determine the key managerial tasks and responsibilities to be performed, and the qualifications required
of the person who will perform them.
 Determine the key operational tasks and responsibilities to be performed, and the qualifications required
of the person who will perform them.
 Assign the tasks to the appropriate departments of the organization.
 Evaluate the current staffing structure, checking if you have enough manpower, and if they have the
necessary competencies to carry out the tasks. This may result to some reorganization or reshuffling of
people. In some cases, it may also require additional training for current staff members, or even hiring
new employees with the required skills and competencies. This is also where the organization will
decide if it will outsource some activities instead.
  Communicate the details to the members of the organization. This may be in the form of models,
manuals or guidebooks.

Step #3: Development of implementation-support policies and programs

Some call them “strategy-encouraging policies” while others refer to them as “constant improvement
programs”. Nonetheless, these are policies and programs that will be employed in aid of implementation.

 Establish a performance tracking and monitoring system. This will be the basis of evaluating the
progress of the implementation of strategies, and monitoring the rate of accomplishment of results, or if
they were accomplished at all. Define the indicators for measuring the performance of every employee,
of every unit or section, of every division, and of every department.
 Establish a performance management system. Quite possibly, the aspect of performance management
that will encourage employee involvement is a recognition and reward structure. When creating the
reward structure, make sure that it has a clear and direct link to the accomplishment of results, which
will be indicated in the performance tracking and monitoring system.
 Establish an information and feedback system that will gather feedback and results data, to be used for
strategy evaluation later on.

Again, communicate these policies and programs to the members of the organization.

Step #4: Budgeting and allocation of resources

 It is now time to equip the implementors with the tools and other capabilities to perform their tasks and
functions.
 Allocate the resources to the various departments, depending on the results of financial assessments as
to their budgetary requirements.
 Disburse the necessary resources to the departments, and make sure everything is properly and
accurately documented.
 Maintain a system of checks and balances to monitor whether the departments are operating within their
budgetary limits, or they have gone above and beyond their allocation.

Step #5: Discharge of functions and activities

It is time to operationalize the tactics and put the strategies into action, aided by strategic leadership, utilizing
participatory management and leadership styles.

Throughout this step, the organization should also ensure the following:

 Continuous engagement of personnel by providing trainings and reorientations.

 Enforce the applicable control measures in the performance of the tasks.
  Evaluate performance at every level and identify performance gaps, if any, to enable adjusting and
corrective actions. It is possible that the corrective actions may entail changes in the policies, programs
and structures established and set in earlier steps. That’s all right. Make the changes when necessary.
 Basically, the results or accomplishments in Step #5 will be the input in the next step, which is the third
stage of Strategic Management: “strategy evaluation”.

Some argue that implementation of strategies is more important than the strategies themselves. But this is not
about taking sides or weighing and making comparisons, especially considering how these two are important
stages in Strategic Management. Thus, it is safe to say that formulating winning strategies is just half the battle,
and the other half is their implementation.