UNIT 11 IMPLEMENTATION PROCESS 1 Introduction Once strategies

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UNIT 11: IMPLEMENTATION PROCESS 1

UNIT 11: IMPLEMENTATION PROCESS 1

Introduction • Once strategies have been developed, they need to be implemented. • A

Introduction • Once strategies have been developed, they need to be implemented. • A strategy may be good, but if its implementation is poor, the strategic objective for which it was intended may not be achieved. • There are four possible strategy implementation outcomes as illustrated below: 2

Figure: Strategy Implementation Outcomes SUCCESS Good Poor TROUBLE Good ROULETTE (GAMBLE) FAILURE Implementation Poor

Figure: Strategy Implementation Outcomes SUCCESS Good Poor TROUBLE Good ROULETTE (GAMBLE) FAILURE Implementation Poor Strategy Formulation 3

• For strategy to be successfully implemented, it requires two things: – Operationalization

• For strategy to be successfully implemented, it requires two things: – Operationalization and – Institutionalization 4

A. OPERATIONALIZATION OF STRATEGY • Corporate or business strategy must be operationalized for implementation.

A. OPERATIONALIZATION OF STRATEGY • Corporate or business strategy must be operationalized for implementation. • Operationalization of strategy refers to developing operational plans and tactics through which an otherwise abstract strategy will be implemented. • Operationalization ensures that the organization’s daily activities and work efforts directly relate to the strategy. 5

• Operational strategy is more specific, concrete and short-term in nature. • It

• Operational strategy is more specific, concrete and short-term in nature. • It spells out what will be done immediately or within short periods (e. g. yearly periods) by a functional unit in order to implement a given strategy. 6

B. INSTITUTIONALIZATION OF STRATEGY • Institutionalizing strategy is matching strategy to the institutions of

B. INSTITUTIONALIZATION OF STRATEGY • Institutionalizing strategy is matching strategy to the institutions of the organization. • Whatever is required to implement a strategy must be built into organizational institutions such as: • • • Structure Leadership Culture Support systems Processes and Policies 7

C. PROBLEMS IN STRATEGY IMPLEMENTATION • Problems can arise when attempts are made to

C. PROBLEMS IN STRATEGY IMPLEMENTATION • Problems can arise when attempts are made to implement strategy. • These problems may arise from external or internal sources. • These problems may be classified into three categories: 8

1. Poor strategy • Due to a number of reasons, managers may have selected

1. Poor strategy • Due to a number of reasons, managers may have selected an inappropriate strategy. • Implementing such a strategy can become a futile exercise. 2. Poor implementation • • While the strategy selected may be sound, implementation procedures can be flawed. Here again, efforts to execute strategy are impaired. 9

3. Failure to couple strategy development and implementation • Strategy development and implementation should

3. Failure to couple strategy development and implementation • Strategy development and implementation should be thought through together. • Persons who will implement the strategic plan should be involved in its development. 10

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