Unit -5

Strategy implementation
 Course Content
• Concept
• Organizational structures- the entrepreneurial, functional, divisional, matrix and
network
• Strategic leadership
• Leadership and Management
• The learning organization
• Emotional intelligence and Leadership performance
• Leadership capabilities
• Impact of leadership on vision, values and culture
• Corporate Culture and Leadership
• Leading strategic change.
 Concept- Strategic Implementation
• Successful strategy – formulation does not guarantee successful strategy
implementation.
• It is always more difficult to do something ( strategy implementation)
than to say you are going to do it ( strategy formulation )!
• Strategic implementation process is the mechanism to translate strategic
thought into organizational action.
• Strategy formulation refers to “planning of work”, strategy
implementation refers to “working of plan” in action.
• Strategy implementation may be defined as the sum total of the activities
required for the successful execution of strategy. Or It involves
translation of strategic thought into strategic action.
 Concept- Strategic Implementation
• It affects an organization from top to bottom and all functional or
divisional areas.

“Strategy implementation is the process by which

objectives, strategies and policies are put into action through the
development of programs budgets and procedures”.
Wheelen and Hunger
Process of strategy implementation:
 Communicating strategy
 Structuring Organization
 Preparing resource plan
 Establishing management system
 Implementing Strategy
 Evaluation and Control
 Concept- Strategic Implementation
• Strategic formulation vs Strategic Implementation
 Strategy formulation is positioning forces before the action.
 Strategy implementation is managing forces during the action.
 Strategy formulation is primarily an intellectual process.
 Strategy implementation is primarily an operational process.
 Strategy formulation requires good intuitive and analytical skills.
 Strategy implementation requires special motivation and leadership
skills.
 Strategy formulation requires coordination among a few individuals.
 Strategy implementation requires coordination among many
individuals.
 Organizational structures
1. Entrepreneurial structure:
 The owner or manager makes all major decisions
 The staff serves as the assistant of managers.
 The structure is characterized by informal- relationships, few rules, limited task
specialization, and informal information systems.
 The coordination is relatively high due to frequent and informal communications b/w
the owner- manager and employees.
 Advantages:
 Centralized system facilitates prompt decisions and speedy action is possible.
 Easy to implement
 Simple and suitable for small organization with single business, single products or single
service.
 Personal relationships are developed.
 Disadvantages:
 Lack of Specialization
 No clear authority and responsibility among employees
 Problem in risk tasking, authority and responsibility.
 Not suitable for complex and dynamic business environment.
2. Functional structure:
 It allows functional specialization.
 It consists of a chief executive officer and with the functional line managers in
functional areas such as production ,accounting marketing etc.
 it facilitates active sharing of knowledge within each functional area.
 This organizational structure is simple and economic.
 It ensures proper allocation of resources among the functional units.
 This structure is suitable for the organizations pursuing low level
diversification strategy.
3. Divisional organizational structure
• A divisional organizational structure is one in which a set of relatively autonomous
units, or divisions, are governed by central corporate office but where each operation
division has its own functional specialists who provide products or services different
from those of other divisions.
• A divisional structure allows corporate management to delegate authority for the
strategic management of distinct business entities the division.
• This enables decision making in response to varied competitive environments and
corporate management to concentrate on corporate level strategic level decisions.
4. Matrix structure:
 It is the most complex of all structures.
 It depends upon both horizontal and vertical flows of authority and
communication.
 It include dual lines of budget authority with dual sources of reward and
punishment, shared authority, dual reporting channels, and a need for an
extensive and effective communication system.
 It enables organizational effectiveness by utilizing the resources in an
optimum way.
 Functional resources are shared. Individuals with a high degree of expertise
can divide their time as needed among projects, and they in turn develop their
own skills and competencies more than in other structures.
5. Network structure
 Also called as virtual structure or non structure.
 It is a series of independent business units linked together by computers
information system that designs, produces, and markets a products or service.
 It is most useful when the environment of the firm is unstable.
 Under this ,manufacturing is subcontracted or out sources to other companies in
low-costs locations around the world.
 It provides flexibility to an organization to cope with rapid technological change
and environmental dynamism.
 It allows an organization to concentrate on its core competencies.
 Strategic Leadership
• Is concerned with creating a shared vision of where the organization is trying
to get to, and formulating strategies to bring about the changes needed to
achieve this vision.
• It is the ability of the leaders to communicate organizational goals clearly and
guide employees to focus their attention on achieving these goals.
• The role of the strategic leaders should be to encourage and create an
organizational culture that empowers individuals to respond to opportunities.
• Strategic leadership entails the ability to anticipate, envision, maintain
flexibility, and empower others to create strategic change as necessary.
• Strategic leaders must learn how to effectively influence human behavior in
uncertain environments.
• The most critical ability of strategic leadership is to attract and then manage
human capital.
• Strategic leaders must learn how to deal with diverse and complex
environmental situation.
 Strategic Leadership
• The role of Strategic Leadership is Strategic
Implementation
 Benchmarking

 Defining strategic direction ( Vision, Mission, objectives and strategies)

 Effectively managing the firm resource

 Providing information

 Team Building

 Sustaining the effective organizational culture and ethical practices.

 Establishing balanced organizational controls

 Managing conflicts

 Managing resistance to change

 Leadership and management
Leadership :
 Is about dealing with change.
 Is concerned with setting the direction for organizational change.
 It is about producing a vision and developing strategies to realize that vision.
 It includes motivating and inspiring the employees.

Management:
 It is all about coping with complexity to produce orderly and consistent results.
 It involves in controlling and problem solving to ensure strategy is implemented.
 Role is to develop coherent systems which will allow plans to be efficiently
implemented.
 It involves organizing and staffing to achieve Strategy.
 It is about pushing people in a given direction.
 Planning and budgeting is also concerned with management.
 The learning Organization
• Learning is only sustainable competitive advantage is the speed & ability of
an organization to learn.
• In past there were great leaders who thought and learned for an organization.
These included Thomas J. Watson of IBM, Alfred Sloan of General Motors
and the eponymous Henry Ford and Walt Disney.
• A transition form adaptive learning to generative learning can be seen in the
Total Quality movement TQM in Japan.
• A major reason for success of Japanese automobiles co’s such as Toyota and
Honda is their ability to view issues in manufacture in a systematic way.
• The leadership role in a learning organization is one of designer, teacher and
Steward.
• Learning organization is based on knowledge and learning that facilitates the
learning of its employees so that the organization can continuously transform
itself.
 The learning Organization
• A learning organization is skilled at creating, acquiring and transforming
knowledge. It modifies its behaviour to reflect new knowledge and insights.
• Some characteristics of learning organization are:
– An intense desire to learn about itself.
– A strong commitment to generating and transforming new knowledge
and technology.
– Openness to the external environment.
– Values that emphasize shared values and system thinking.
– Focus on interrelationships among factors and long term rather than
short term apporaoches to problem.
 Building Learning Organization
• The roles and skills of a leader matter a lot for creating or building learning
organization. These roles are:
• The leader as a designer:
The leader’s role as designer can be seen in the building of the core
values and purpose of the organization. The other aspects of the leader as
designer include developing the strategies and structures that help to convert
organizational values and purposes into business decisions.
• The leader as a teacher:
The leader as a teacher involves helping individuals in the organization
to be aware of their mental models and the assumptions on which these are
based. Leaders in learning organizations influence individuals perceptions of
reality at three levels such as events , patterns of behavior and systematic
structure.
• The leader as Steward:
It involves stewardship for all people in the organization that he
directs. It also involves stewardship for the purpose and the core values on
which the organization is based.
 Building Learning Organization
• The leadership skills need to be disseminated through the organization. They are not the
preserve of a few key individuals. These skills are :
-Building a shared vision:
Creating a shared vision is an ongoing process which involves the leader sharing vision
with members of the organization to ensure that it accords with their own personal values.

-Surfacing and testing mental models:

If the leader is to attract new and innovative ideas , another leadership skill which needs
to be disseminated throughout the organization is surfacing & testing mental models. The
leader needs to ensure that members of organization can differentiate b/w generalization and
observable facts on which they are based.

-Systems Thinking:
To engage in systems thinking leaders need to move beyond a blame culture. They need
to discern the interrelationships b/w actions .they should recognize that small well-focused
actions can have magnified results ,if they occur in the right places . A visionary leader
who deals only in events or patterns of behavior will disseminate a responsive culture
rather than a generative one.
 Emotional Intelligence And Leadership Performance
Emotional intelligence
 Is an ability to recognize your own emotions and the emotions of others.
 Emotional intelligence is manifest in self awareness, self regulation, motivation,
empathy and social skills.
Components of Emotional Intelligence are:
a) Self awareness:
 It is an ability to speak honestly about one’s own emotions the impact they
have on one’s work as well as their effect on others.
b) Self regulation:
 Is a recognition that as human beings we are driven by our emotions but we
can also manage them and channel them for productive purposes. leaders who
are in control of their feelings and emotions can create an environment
characterized by trust and fairness.
Emotional Intelligence And Leadership Performance

c)Motivation:
 Is a desire to achieve for the sake of achievement. People who are
motivated will be passionate about their work and actively seek ways to
improve what they are doing. They constantly seek to measure their
individual performance and that of their organization.
d)Empathy:
 Implies that leaders will consciously consider employees’ feelings as
well as other factors when they are making decisions. It is required to
interpret accurately what people from different regions and cultures may
be saying.
e)Social Skills:
 Concern our abilities for managing relationships with others. It involves
moving people in a desired direction. They are the culmination of self-
awareness, self regulation , motivation, and empathy.
 Leadership Capabilities
• The role of leadership can be judged by the functions which a leader performs. For this
excellent function to be performed the organization needs a dynamic leader and should
have following capabilities:
Sense Making- It is a capability of making sense of the context in which an organization
operates.
• Leaders should hold such capacity to know where to go and what to do, what is
happening around them and in the company, how do people see the situation?
Relating- It is the capability of developing a key relationships within and across
organization.
• Leaders need to understand who those people are, what they care about, why they
think , how they view the situations.
Visioning- It is the capability of creating a compelling vision of the future. It is the map of
what could be.
Inventing- It is creating structures and processes, shifting the ways people work together to
move towards the vision, to get the product out of the door, to get the organization going
where it needs to move forward.
 Impact Of Leadership On Vision, Values And Culture

Impact of Leadership in Vision

• Leadership is the ability to influence and motivate others to achieve a certain
goal successfully.
• Learship has impact on vision. The following points justify the impact of
leadership on vision of an organization.

1. Leaders create and articulate vision

2. Leaders communicate vision among the people in an understandable

form.

3. Leaders attempt to symbolize their vision in a way that makes them

trustful among people at work

4. Leaders are committed to vision.

 Impact Of Leadership On Vision, Values And Culture

Impact of Leadership on Values

 Leaders determine values, culture, change tolerance and emoloyee motivation.
They shape organizational strategies including their execution and effectiveness.
 The following points justify the impact of leadership on core values of an
organization.
1. Leaders respect core values of the organization and gives direction to it
to move forward.
2. Leaders are expert in promotion, protection and shaping of values.
3. Leaders guide, direct, and signal to share core values.
4. Leaders foster stakeholders commitment to organizational core values.
5. With the core values, leaders motivate employees to achieve
organizational goals.
 Impact Of Leadership On Vision, Values And Culture

Impact of Leadership on Culture

The following points justify the impact of leadership on culture of an organization:
– Leaders shape the way people thik and behave- leaders are viewed as role
model.
– Leaders sets agenda- that influence organization in long run.
– Leaders and managers set the context within organizational members who
strive for excellence.
– Leadership helps shape culture and culture in turn shapes leadership.

• Geert Hofstede identifies five cultural dimensions that affect employees work related
attitudes and behaviours.

1. Power distance index (PDI)

• Power distance is defined as the extent to which the less powerful members of
institutions and organizations within a country expect and accept that power is
distributed unequally
2. Individualism versus collectivism
Individualism refers to societies in which there are fewer ties between individuals
and where everyone is expected to look after themselves and their own immediate
family. Whereas collectivism; this involves societies where people are integrated
into strong cohesive groups, and the interests of the individual are subordinate to
those of the group.
3. Masculinity and femininity
Masculinity refers to societies in which gender roles are clearly defined: men are
expected to be assertive and tough. Femininity refers to societies in which gender
roles are less clearly defined: both men and women are expected to be modest and
caring.
4. Uncertainty avoidance
Uncertainty avoidance is the extent to which people feel threatened by uncertain or
unknown situations.
5. Long-term orientation
Nations with a long-term orientation value thrift, persistence, and hard work. In
contrast, nations with a short-term orientation tend to be less persistent and expect
quick results.
 Corporate Culture and Leadership

• Corporate culture is the combination of values, attitudes, beliefs and

expectations that are learned and shared by an organization member and
transmitted from one generation of employees to another.
• It is a combination of socual, cultural ,physical, psychological and other
conditions within an organization.
• It influence the motivation, attitudes, behaviour and performance of the
members of the organization.
• Corporate culture is a system of shared meaning and beliefs held by
organizational members. There is no one best organizational culture.
• An optimal culture is one that best supports the mission and strategy of the
company of which it is a part.
• Culture should support strategy so leadership shapes supportive corporate
culture for strategy implementation.
 Leading Strategic Change.
• Change is a continious phenomenon. Organization must be proactive in affecting
change.
• Change is a fact and reality of the universe and it is unavoidable. It is a duty of the
management to manage change properly.
• Strategic change is the process of shifts in organizations policies, target market,
mission or structure.
• The process of leading or managing strategic change involves the following steps:

1. Understanding the forces of change

• Analysis and understanding of environmental changes both internal and external
forces.
• External forces includes political forces, economic and market forces, socio-cultural
forces and technological forces
• Internal forces includes goals change, structure change, resource change, and
cultural changes.
 Leading Strategic Change.
2. Diagnosing the strategic change situation
 The important task of managing strategic change process involves
diagnosing strategic change situation involves: Types of strategic change,
importance of context, organizational culture and force field analysis.

3. Styles and Roles in Change management

 Styles of managing change – Eucation and communication, collaboration
and participation, intervention, direction.
 Roles in managing change – Strategic leaders, Middle managers, other
member of organization, external stakeholders.

4. Levers for managing strategic change

 The major levers or approaches to managing strategic change are: Structure
and control, Change in routines, Symbols, Power and politics,
communication and change tactics.
Complition of Course

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