11 Strategey Implementation

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Makerere University

Business School
Strategic Management Course

STRATEGY IMPLEMENTATION
How do we ensure arrival?
Introduction
 A good strategy alone does not
guarantee success.
 Proper implementation is

necessary
 However, a good strategic plan is

a mandatory start
 Need to establish structural &

administrative mechanisms
Strategy Implementation Definitions
 A rigorous process of transforming the
plan / strategy into action (from mere
strategic planning to strategic
management)
 This transformation involves detailed
planning
 And effective communication with
implementers (internal buy-ins),
 Plus organizing resources, providing
leadership, and controlling the process
Definitions - Cont.
 Putting our grand plan/blue print into
action to ensure that we competitively
get where we want to be (strategic
direction)

 Executing the chosen strategy (s)


through putting its tactics(actionable
steps / competitive activities) into action
Strategy Levels
 The main direction is provided by top
management, but
 Implementation filters through lower
levels
 Some situations demand lower level
strategies, as follows:
 Corporate level strategy
 Business level strategy
 Functional level strategy
Implementation stage features
1. Successful implementation is
spearheaded by top management
2. Every strategy to be implemented has
a) its unique strategic window
b) Its own requirements / changes
3. Need for commitment from implementers /
goal contract
4. Some implementation is actually out-
sourced from those with better value-
adding core competences
5. Planning for strategy implementation is
usually ignored due to that excitement after
choosing our strategy
Content
 What activities are to be done
 When they will be done (Timing)
 Who will do them (Persons responsible)
 What resources will be required
 What will be the performance indicators
 Objectively verifiable indicators (OVIs)

 Means of verification / evaluation

 Key Result Areas (quantitive and

qualitative indicators)
Note
 Coherent and integrated Work
Plans can then be developed from
this Implementation Plan’s
schedule of
tactics/activities/actionable steps
 A good strategic choice with wrong

tactics/work plans is likely to fail,


and vice-versa
Implementation process
 Communicate / clarify of the goals,
objectives and strategies( at
different levels of hierarchy)
 Determine the key managerial &
operational tasks to be performed
 Assign tasks to the various
departments and their managers
Process – Cont.
 Delegate authority to match
responsibility
 Budget and allocate resources to the
implementing divisions / departments /
sections
 Formulate and state policies, work
plans,procedures, and the
models/manuals to guide the coherent
set of tactics (activities) to be used
Process – Cont.
 Operationalize those tactics in your
strategy
 Determine the necessary indicators for
measuring performance (participatory
styles of leadership)
 Build a management information system
(MIS) to provide the required accurate,
adequate, and timely feedback
 Establish a recognition and reward system
for motivating your staff
Process – Cont.
 Develop staff and inculcate /
reinforce the firm’s corporate values
 Establish an appropriate control
mechanism
 Evaluate performance, ascertain
gaps, provide feedback and take
corrective action where necessary
McKinsey 7-S frame work
For effective strategy implementation
(key success factors/pre-requisites)

 Strategy  Style
 Structure
 Shared
values
 Systems  Staff
 Skills
 Strategy: the plan devised to maintain
and build competitive advantage over
the competition.
 Structure: the way the organization is
structured and who reports to whom.
 Systems: the daily activities and
procedures that staff members engage
in to get the job done.
 Skills: the actual skills and
 Shared Values: called "superordinate
goals" when the model was first
developed, these are the core values of
the company that are evidenced in the
corporate culture and the general work
ethic.
 Style: the style of leadership adopted.
 Staff: the employees and their general
capabilities.
Revision Questions
1. “A good strategy with poor implementation
is like a poor strategy or no strategy at
all,” Discuss
2. Explain the McKinsey’s prerequisites for
effective implementation of strategy
3. Alignment of your strategy to other KSFs
is vital for competitive assurance of
arrival to where you want to be. Discuss
Questions – Cont.
 Good strategy formulation

alone will not make your


organization successful. There
are other elements that must
work and fit together with the
strategy to make an
organization realize its goals
and objectives competitively.
Discuss the above statements.

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