2. 1.Introduction
2.Nature
3.Strategy formulation-Implementation: Interrelationship
4.Obstacles in Strategy Implementation
5.Overcoming the Potential Challenges of Strategy
Implementation
6. Managing Resistance to Change
7. There are approaches for implementing change Managing
Resistance to Change
8. Matching Structure with Strategy
9.McKinsey 7 S Model
10.Conclusion
11.Questions & Quires
3. INTRODUCTION
Implementation of strategy is the process through which a chosen strategy
is put into action. It involves the design and management of systems to
achieve the best integration of people, structure, processes and resources in
achieving organizational objectives.
• “Successful strategy formulation does not guarantee
successful strategy implementation”
• “Strategies most often fail because they aren’t executed well.”
9. Strategy Formulation – Implementation:
Interrelationship
STRATEGY FORMULATION
• It is positioning forces before
action.
• It focuses on effectiveness.
• It is an intellectual process
• It requires good intuitive and
analytical skills.
• It requires coordination among few
individuals.
STRATEGY IMPLEMENTATION
• It is managing forces during action.
• It focuses on efficiency.
• It is primarily and operational
process.
• It requires special motivational and
leadership skills.
• It requires combination of many
individuals.
10. Obstacles in Strategy
Implementation
1.Lack of a dynamic learning environment
2. Project-based work leaders exhibit no strategic
leadership presence
3.Organizational structures and processes are inflexible
4. Resistance to Change
5. Lack of Resources
6. Too Distracted
11.
12. Overcoming the Potential Challenges
of Strategy Implementation
1. Managing change
2. Developing effective incentives and controls
3. Clarifying responsibilities and accountability
4. Integrating strategy and short-term objectives
5. Develop leadership and system change strategy
6. Establish performance measures; set goals
7. Define effective treatment strategies and
establish procedural guidelines
13. Managing Resistance to Change
The single greatest threat to successful
strategy implementation.
Resistance to change can emerge at any
stage of the strategy implementation
process.
14. There are approaches for
implementing change:
1) A force change strategy
Giving orders and enforcing those order.
2) The educative change strategy
Presents the information to convince people of the need
for change.
3) Self-Interest change strategy
Attempts to convince the individual that the change is to
their personal advantage
15. Matching Structure with
Strategy
The Functional Structure
The Divisional Structure
The Strategic Business Unit (SBU) Structure
The matrix Structure
16. • Mean: The most common structure found within organizations,
functional
structure consists of units or departmental groups identified by
specialty,
such as engineering, development, marketing, finance, sales or human
resources that are controlled from the top level of management.
• Advantages: Functional structure promotes specialization of labour,
encourages efficiency, minimizes the need for an elaborate control
system,
and allows rapid decision making.
• Disadvantages: It forces accountability at the top, minimize career
development opportunities, low employee morale, line/staff conflicts,
poor
delegation of authority, inadequate planning for products and markets.
Mostly it is abandoned in favour of decentralization and improved
accountability.
The Functional Structure
18. The Divisional Structure
• When a company expands to supply goods or services to a variety of customers, offers a
variety of different products or are engaged in business in several different markets, the
company could adopt a divisional
organizational structure.
• A divisional structure groups its divisions according to the specific demands of products,
markets or customers. Unlike the functional organizational structure, where the different
organizational functions of the company
conduct activities satisfying all customers, markets and products, the divisional structure
focuses on a higher degree of specialization within a specific division, so that each
division is given the resources, and autonomy, to swiftly react to changes in their specific
business environment.
Therefore,each division often has all the necessary resources and functions within it to
satisfy the demands put on the division
• Each division will likely be structured as a functional structure. A company with a
divisional structure therefore has a subset of different and
specialized SBU's satisfying the demands of different customers, markets or
products.
20. The Strategic Business Unit (SBU) Structure
• Large, diversified companies organize themselves into divisions to
break the management of the company into smaller,
organizationally cohesive part .The company headquarters still gives
the divisions strategic direction.
• Strategic Business Units, or SBUs, are organizationally complete
and separate units that develop their own strategic direction. They
still report back to company headquarters but operate as
independent businesses organized according to their target markets.
They are often large enough to have their own internal
organizational divisions.
22. The Matrix Structure
• • The matrix structure is an organizational design that groups employees by
both function and product. The organizational structure is very flat, and the
structure of the matrix is differentiated into whatever functions are needed
to accomplish certain goals. Each functional worker usually reports to the
functional heads, but do not normally work directly under their supervision.
• • Instead, the worker is controlled by the membership of a certain project,
and each functional worker usually works under the supervision of a project
manager. This way, each worker has two superiors, who will jointly ensure
the progress of the project. The functional head may be more interested in
developing the most exiting products or technologies, whereas the project
manager may be more concerned with keeping deadlines and controlling
product costs.
• • When work is accomplished, the project team may get dissolved, and
workers from different functional areas may get reassigned to other
projects and tasks.
24. McKinsey 7 S Model
• The 7-S Framework was first mentioned in "The Art Of
Japanese Management" by Richard Pascale and Anthony Athos
in 1981.
• They had been investigating how Japanese had been so
successful.
• At around the same time, Tom Peters and Robert Waterman
were exploring what makes a company excellent.
• The 7 S model was born at a meeting of these four authors
in 1978.
• It was taken up as a basic tool by the global management
consultancy company McKinsey.
26. THE HARD S-1- Strategy
• Strategy: the direction and scope of the
company over the long term.
• Ways to achieve competitive advantage.
Examples.
• Low-cost strategy through economic production
or delivery
• Product differentiation through distinct features
or innovative sales.
27. THE HARD S-2- Structure
Ways in which task and people are specialized
and divided, and authority is distributed.
Four main structures:
• Functional Structure
• Divisional Structure
• Matrix Structure
• Network Structure
28. • Formal processes and procedures to manage the
organization.
Examples:
• Performance Measurements
• Reward Systems
• Planning
• Budgeting
• Resource Allocation
• Information System
• Distribution System
THE HARD S-3- Systems
29. People, their background & competencies.
Organization’s approach to recruitment, selection,
socialization, training and employee development is
important for effective staffing.
THE Soft S-1: Staffing
30. THE Soft S-2 Skills
• Distinctive competencies in the
organization.
• Can be of People, Management Practices,
Systems and/or Technologies.
31. • Leadership style of top management and
overall operating style of organization.
• Impacts norms followed by people, how
they work and interact with each other and
customers.
THE Soft S-3 Style
32. THE Soft S-4 Shared Values
• Core values shared in the organization and
serve as guiding principles of what is
important.
• Helps focus attention and provides a
broader sense of purpose.
33. In conclusion, successful strategy implementation requires
committed leadership, appropriate programme structure
and documented programme outcomes that are brought
together within an integrated programme methodology
in order to achieve success.
