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Lecture 16Implementing Strategies:
Management Issues
Lecture Outline
• The nature of Strategy Implementation
• Annual Objectives
• Policies
• Resource Allocation
Lecture Outline
• Managing Conflict
• Matching Structure with Strategy
• Restructuring, Reengineering, and E-Engineering
• Linking Performance and Pay to Strategies
Lecture Outline
• Managing Resistance to Change
• Managing the Natural Environment
• Creating a Strategy-Supportive Culture
Lecture Outline
• Production/Operations Concerns When Implementing Strategies
• Human Resource Concerns When Implementing Strategies
Implementing Strategies: Management Issues
Pretend that every single person you meet has a sign around his or her neck that says, “Make me feel important.”
-- Mary Kay Ash, CEO of Mary Kay, Inc.
Contrasting strategy formulation and strategy implementation
– Formulation is positioning forces before the action
– Implementation is managing forces during the action
Implementing Strategies: Management Issues
Contrasting strategy formulation and strategy implementation
– Formulation focuses on effectiveness
– Implementation focuses on efficiency
Implementing Strategies: Management Issues
Contrasting strategy formulation and strategy implementation
– Formulation is primarily an intellectual process
– Implementation is primarily an operational process
Implementing Strategies: Management Issues
Contrasting strategy formulation and strategy implementation
– Formulation requires good intuitive and analytical skills
– Implementation requires special motivation and leadership skills
Implementing Strategies: Management Issues
Strategy Analysis & Choice
Contrasting strategy formulation and strategy implementation
– Formulation requires coordination among a few individuals
– Implementation requires coordination among many persons
Implementing Strategies: Management Issues
Strategy Analysis & Choice
Strategy implementation –
– Varies among different types and sizes of organizations
Implementing Strategies: Management Issues
Strategy Analysis & Choice
Strategy implementation Actions –
– Altering sales territories– Adding new departments– Closing facilities– Hiring new employees– Cost-control procedures– Changing advertising strategies– Building new facilities
Implementing Strategies: Management Issues
Formulation to Implementation transition –
– Shift in responsibility• From strategists to division and functional
managers
Management Perspectives
Management Issues
ManagementIssues
ResourcesResources
Organizational structureOrganizational structure
RestructuringRestructuring
Rewards/IncentivesRewards/Incentives
Annual ObjectivesAnnual Objectives
PoliciesPolicies
Management Issues (continued)
ManagementIssues
Supportive cultureSupportive culture
Production/operationsProduction/operations
Human resourcesHuman resources
DownsizingDownsizing
Resistance to ChangeResistance to Change
Managers & strategyManagers & strategy
Annual ObjectivesAnnual Objectives
• Decentralized activityDecentralized activity• Involves all managers in the firmInvolves all managers in the firm
Annual Objectives
1. Basis for allocating resources2. Primary mechanism for evaluating
managers3. Major instrument for monitoring progress
toward long-term objectives4. Establish organizational, divisional, and
departmental priorities
Annual Objectives
• Horizontal consistency of objectives
• Vertical consistency of objectives
Annual Objectives
Objectives should state –
– Quantity– Quality– Cost– Time
PoliciesPolicies
Policies facilitate solving recurring problems Policies facilitate solving recurring problems and guide the implementation of strategyand guide the implementation of strategy
Policies
Policies set –
– Boundaries– Constraints– limits
Policies
Example Issues requiring management policy --
– To offer extensive or limited management development workshops and seminars
– To centralize or decentralize employee-training activities
– To recruit through employment agencies, college campuses, and/or newspapers
– To promote from within or hire from the outside– To establish a high- or low-safety stock of inventory– To buy lease, or rent new production equipment
Resource Allocation
Resource Allocation –
A central management activity that allows for strategy execution
Thank You