STRAMA CH4

Strategy Implementation

+A process through which a chosen strategy is put into action.

+The implementation of policies and strategies is concerned with the design and management of systems to achieve the best integration of people, structures,

processes, and resources, in reaching organizational purposes. (Steiner et al.)

Securing resources (money, people, materials, technology, and information), organizing these resources and directing the use of these resources within and outside the organizations.

Unsatisfactory coupling of strategy and operational actions-

This happens when there is a gap between what is planned (strategy) and what is

actually done (operations). Employees may not understand how their daily tasks contribute to strategic goals.

Insufficient attention to the negotiation of outcomes in decision situations-

When managers or departments fail to communicate and agree on expected results, conflicts and misunderstandings arise. Effective coordination and consensus are

necessary for successful implementation.

Defective Strategy

Sometimes, failure happens not in implementation but in the strategy itself. A poorly analyzed or unrealistic strategy cannot succeed, no matter how well it’s implemented.

STRATEGY IMPLEMENTING MODEL

It explains how the organization will use its people, resources, structure, policies, and activities to achieve its strategic goals.

Capabilities

___?___ are the fundamental link between strategic analysis and implementation. Lack of capability is a gap that must be overcome. Apart from

strategic capabilities, successful implementation requires effective capabilities at all functional levels.

Organizational Systems

Effective execution of systems requires:

Clear processes which are accepted

Operational and technical efficiency

People must take responsibility

Good control systems

Rigorous performance measurement

A culture of continuous improvement

Ability to adapt rapidly

No cross-subsidizing of business units

Organizational Structure

The structure of an organization is the way in which activities are arranged. It refers to how an organization arranges its people, departments, responsibilities, and activities to accomplish its goals.

Organizations

they change structures continually (when they grow, adopt new technology, enter new markets, or face changes in the business environment.)

FUNCTIONAL STRUCTURE

STRUCTURE BASED ON FUNCTIONAL DEPARTMENTS.

GEOGRAPHIC STRUCTURE

+ STRUCTURE BASED ON REGIONAL UNITS.

PRODUCT/ SERVICE

STRUCTURE BASED ON LOGICAL PRODUCT FAMILIES.

BUSINESS UNIT

STRUCTURE BASED ON SELF-CONTAINED BUSINESS UNITS

MATRIX STRUCTURE

A COMBINATION OF FUNCTIONAL AND PROJECT DESIGN.

NETWORK STRUCTURE

A CONFIGURATION OF OUTSOURCED ACTIVITIES THAT ARE CONTROLLED BY A CENTRAL HUB.

KNOWLEDGE BASED ORGANIZATIONS

IS A KEY ORGANIZATIONAL RESOURCE

KNOWLEDGEABLE EMPLOYEES HAVE POWER

LEADERSHIP

THE ABILITY TO DEVELOP AND

ARTICULATE A VISION OF THE FUTURE FOR THE

ORGANIZATION TO MOTIVATE OTHERS TO BUY

INTO THAT VISION AND TO GET IT

IMPLEMENTED.

MANAGEMENT

THE ABILITY TO EFFICIENTLY

AND EFFECTIVELY IMPLEMENT EXISTING

POLICIES AND PROCEDURES THROUGH OTHER

PEOPLE.

BOARD OF DIRECTORS

TO ENSURE THAT CORPORATE MANAGEMENT IS

CONTINUOUSLY AND EFFECTIVELY STRIVING FOR

ABOVE-AVERAGE PERFORMANCE TAKING ACCOUNT OF

RISK

TOP MANAGEMENT TEAM (TMT)

THESE ARE EXECUTIVES WHO REPORT TO THE

CEO AND THEY ARE INVOLVED IN INFLUENCING

STRATEGY AND IMPLEMENTATION.

SIGNIFICANT MANAGERS

THE UNIT HEAD IS THE LEADER AND PEOPLE

WATCH THE LEADER’S BEHAVIOR.

INCONGRUENCE BETWEEN LOCAL LEADER

BEHAVIOR AND ORGANIZATIONAL STRATEGY

IMPEDES IMPLEMENTATION.

PEOPLE

CAN CREATE VALUE WITH THEIR

KNOWLEDGE, SKILLS, ABILITIES AND

ORIENTATIONS (KSAOS). KSAOS AND

PEOPLES’ ATTITUDES SIGNIFICANTLY

AFFECT ORGANIZATIONAL PERFORMANCE.

ORGANIZATIONAL CULTURE

THE UNDERLYING VALUES (HONESTY, TEAMWORK, CUSTOMER SATISFACTION, INNOVATION) , BELIEFS (“HAPPY

EMPLOYEES PROVIDE BETTER CUSTOMER SERVICE.

”) AND PATTERNS OF BEHAVIOR (EMPLOYEES HELP ONE ANOTHER, ARRIVE

ON TIME, OR REGULARLY ASK FOR CUSTOMER FEEDBACK) , THAT AFFECT HOW THE OPERATIONS OF THE ORGANIZATION SHOULD BE CONDUCTED.

STRATEGIC CHANGE

IS ABOUT THE WAY IN WHICH AN ORGANIZATION INTERACTS WITH ITS ENVIRONMENT.

+IT’S ABOUT CREATING NEW AND INNOVATIVE WAYS OF DOING BUSINESS.

+IT INVOLVES CHANGING AN ORGANIZATION’S SYSTEMS IN ORDER TO ADAPT TO EXTERNAL CHANGES.

RATIONAL CHANGE PERSPECTIVE-

WHICH IS SEQUENTIAL AND PLANNED SEARCH FOR OPTIMAL

SOLUTIONS. (PLAN CAREFULLY, THEN IMPLEMENT

THE BEST SOLUTION.) EX. CUSTOMER COMPLAINTS

LEARNING APPROACH TO CHANGE

-WHICH OCCURS THROUGH A SERIES OF SMALL STEPS OF

EXPERIMENTATION AND ACTION. (TRY, LEARN,

IMPROVE, AND TRY AGAIN) EX. KIOSKS

COGNITIVE APPROACH TO CHANGE

-A CHANGE IN MANAGERIAL AND EMPLOYEE COGNITION MUST OCCUR BEFORE BEHAVIOR WILL CHANGE. (CHANGE THE WAY PEOPLE THINK FIRST, THEN THEIR BEHAVIOR WILL CHANGE.) EX. ENVIRONMENTAL FRIENDLY PRACTICES.

FINE-TUNING

MINOR CHANGES THAT HAVE NO

MAJOR IMPACT (EG. EMPLOYEE ID CARDS)

INCREMENTAL ADJUSTMENT

MINOR CHANGE

THAT IMPACTS ACROSS THE WHOLE ORGANIZATION

(EG. NEW ATTENDANCE SYSTEM)

MODULAR TRANSFORMATION

MAJOR CHANGE IN A PART OF THE ORGANIZATION (EG. MARKETING

DEPARTMENT)

CORPORATE TRANSFORMATION

NEW STRATEGIC ORIENTATION OR REALIGNMENT, NEW STRUCTURE

AND/OR SIGNIFICANT CHANGE TO THE CULTURE,

WORKFORCE OR SKILLS MIX. (TRADITIONAL

RETAILER → E-COMMERCE COMPANY)

UNFREEZE

CRISIS TRIGGERS SHIFT OUT OF ESTABLISHED MINDSET

BREAKS DOWN ROUTINES AND SYSTEMS (EX. WFH)

CHANGE

CHANGES TO THE CONTENT OF THE ORGANIZATION ARE

ENACTED MAY OFTEN BE SHORT TERM, ORGANIZATIONAL SURVIVAL MAY

BE PARAMOUNT CHANGE PROCESSES VARY DEPENDING ON ORGANIZATION AND CONTEXT (EX. WFH)

CONSOLIDATION

NEED FOR CONSOLIDATION WITH NEW SYSTEMS, CULTURE AND

STRUCTURES

NEW IDEAS AND INDIVIDUAL ACTIONS INSTITUTIONALIZED

WITHOUT THE RIGIDITY IMPLIED BY ‘FREEZING’

ORGANIZATION IS NOT MOVING FROM A TO B, BUT FROM A TO B

ON THE WAY TO C... Z. (EX. WFH)