Strate

Implementa
gy
tion

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Strategy Implementation

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Formulation vs
Implementation

Strategy
Formulation

Strategy
Implementation

Positioning forces

Managing forces

before the action

Focus on effectiveness
Primarily intellectual
Requires good
intuitive and
analytical skills
Requires coordination
among a few people

during the action

Focus on efficiency
Primarily operational
Requires special
motivation and
leadership skills
Requires coordination
among many people

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Strategists
(Formulate)

Shift in responsibility

Divisional or
Functional Managers
(Implement)

PS: Problems can arise because of the shift in responsibility,

especially if decisions come as a surprise to middle- and
lower-level managers. Therefore, it is essential to involve
divisional and functional managers in Strategy
Formulation.

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Strategy - Structure

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Management & Operation

Issues

Establish annual

objectives
Formulate policies
Allocate resources
Alter existing
organizational structure
Restructure &
reengineer
Revise reward &
incentive plans
Minimize resistance to
change

Match managers to

strategy
Develop a strategysupportive culture
Adapt
production/operation
processes
Develop an effective
human resources
function
Downsize & lay off as
needed
Link performance & pay
to strategies

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