Strategy Implementation Module 4

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STRATEGY

IMPLEMENTATION

Sapna

Module 4


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CONCEPT OF SI

SI refers to various activities involved in executing the strategies of an

organization

Features of Strategy implementation are as follows:

- Action oriented- implies that a strategy should be actionable

- Varied Skills- implies that SI involves wide ranging skills

- Wide involvement- means that SI involves participation of the Top,

middle & lower level management

- Wide Scope- involves a range of managerial & administrative activities


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CONNECTION B/W SI & S

FORMULATION(SF)

SF is mainly entrepreneurial & based on decision making, whereas

SI is primarily administrative & action orientedThere is a 2 way connection b/w SI & SF

- Forward Linkage- impact of formulation on implementation

- Backward linkage- impact of implementation on formulation

Generally an organization tries to formulate the strategies that can

be easily implemented


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DIFFERENCE B/W SI & SF

SF SI

1. Involves S planning aboutorganizational goals

1. Involves the execution of SPlanning

2. Intellectual process 2. Operational process

3. Requires analytical skills 3. Requires motivational &

leadership skills

4. Involves co-ordination amongTop Management

4. Involves co-ordination amongtop, middle & lower management


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PROCESS OF SI

Activating Strategies- S is activated by dividing the S into plans,

programs, projects, policies, procedures & rules & regulation

Managing change- Change is an essential element , since every

organization has deal with the dynamic forces present in the business

environment

Achieving effectiveness- refers to achieving the organizational

effectiveness


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PROJECT IMPLEMENTATION

PI is done through Project management that is defined as the

functional discipline of management that involves planning, organizing,

leading & controlling activities

Process of Project management consists of-

- Conception phase- different ideas are noted down

- Definition phase- develops the idea generated in the 1st phase

- Planning & organising phase- this phase also starts immediately after

1st stage


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- Execution phase- implementation phase, here final output is

produced & presented to customers for acceptance

- Project clean-up phase- termination phase or post completion

evaluation phase. It is the phase of formal closure of the project.

PROJECT IMPLEMENTATION


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PROCEDURAL IMPLEMENTATION

Procedures give an framework to an organization to implement strategies

Plans, projects & programs of the organization come under the procedural framework,

which consists of various legislative enactments & administrative orders laid down by thegovernment.

- Formation of an organization- companies act 1956

- Licensing procedures-

- SEBI requirements

- MRTP requirements

- Foreign collaboration procedures

- Import export requirements


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- copyrights, patents & trademarks

- Labor legislations

- Environmental protection & pollution control requirements

- Consumer protection requirements

PROCEDURAL IMPLEMENTATION


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RESOURCE ALLOCATION

It is defined as the allocation/ division of resources that are used in the

implementation of S in the organization

This is done by the process called Budgeting, which helps in matching the

resource availability with the resource needs to plan the total expenditure. Resource

allocation through budgeting involves 3 approaches-

- Top down approach-

- Bottom up approach- participative environment- Strategic approach- mix of above two


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ORGANIZATION STRUCTURE

OS refers to design or organization that determines task allocation,

coordination, supervision & aims to achieve the goals of theorganization

Aligning OS with the S is called Structural implementation

Structural implementation is very important for an organization, as

organizational strategies cannot be implemented in the absence of

appropriate OS


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TYPES OF OS

Entrepreneurial structure- owned & managed by one person

Functional structure- decision making authority to different functional areas

Divisional structure- division of work according to different product lines,

customers or geography

Strategic business Units- created when organizations face difficulty in managing

different divisions

Matrix structure- for specific projects

Customer based structure

Virtual organizations


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BEHAVIOURAL IMPLEMENTATION

Deals with the behavioural aspect of employees, which plays an

important role in SI

A separate field called OB analyses how individuals & group acts

in an organization

Factors like culture, politics & values, ethics etc. all effect the

overall behavioural implementation in an organization


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CORPORATE CULTURE & SI

Sum of values, customs & traditions of an organization

Weak & strong corporate culture affect the organizations ability to

perform S Management

Types of Corporate culture are-

- Strong culture- it shares the core values deeply & extensively

- Dominant culture- mini or small cultures within an organization


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CORPORATE POLITICS & POWER

Organizational politics can be defined as the activities that are not

included in the job profile/ JD of an employee

Here employee try to increase their power & pursue goals that favour

their individual & group interest

Generally its the political behaviour of an employee that determines

the success or failure of an organization

It is essential to maintain balance b/w power & politics for the smoothfunctioning of an organization


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PERSO NAL VALUES & ETH ICS

IN SI

Personal values determines the difference b/w right & wrong. The types of

personal values are-

- Instrumental values- imply values that are used to achieve the other

organizational goals

- Terminal Values- results that an individual desires to achieve

Ethics examines good & bad practices within the framework of a moral duty

Organization can adopt values & ethics by controlling its fraudulent activities toget competitive edge in the market


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LEADERSHIP IMP LEMENTATION

LI helps an organization in attaining goals.

There are 4 types of leaders-

- Corporate level leaders- Top management

- Business level leaders- SBUs or division level leaders, VP & GM

- Functional level leaders- they take the function of implementation

of strategies within the functional areas


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STYLES OF LEADERSHIP

Authority style- here leaders use authority to get the task done

from their subordinates. They are of three types-

- Autocratic leadership style- they believe inn power, they gives

order & control subordinates through rewards & punishments

- Democratic leadership style- believes in communication &

participation of subordinates in decision making- Free rein leadership style- they do not use power


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Behaviour style- here leaders posses different attitudes. Robert Blake & Jane

Mouton developed the behavioural model called Managerial grid model, it includes

following 5 styles-

- Impoverished style- they have little concern for people & production

- Country club- they give more emphasis on serving the needs of the people

- Team leadership style- they use control & domination on his/her subordinates

- Middle of the road leadership style- involves compromise by the leadersbetween the organizational goals & subordinates needs

STYLES OF LEADERSHIP


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FUNCTIONAL &

OPERATIONAL IMPLEMENT

Implementation of functional strategies includes-

- Plans which are formulated at business & corporate levels

- Suitable functional strategy for each functional area

- Allocation of required resources for proper functioning

S operate at different levels & thus needs resemblance & coordination

among themselves- Vertical Fit

There has to be equivalence & harmonization among different

activities taking place at the same level- Horizontal fit


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IMPLEMENTING FUNCTIONAL

PLANS & POLICIES

A plan is a course of action; a policy acts as a guidelines for action

Functional plans are formulated at 2 levels-

a) Formal- in large organizations, plans & policies published in manual

document

b) Informal- small organization, plans may or may not in written form

Organizational functional areas- marketing, finance, operations etc.,

these all have their own plans & policies formulated by their functional

managers


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IMPLEMENTING- FINANCIAL

PLANS

The organizations financial plans & policies formulate the

financial decision like,-- Sources of funds

- Usage of funds

- Management of funds


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Game plans by which marketing objectives are achieved-

- Product

- Price

- Place/ distribution channels

- Promotion

IMPLEMENTING- MARKETING

PLANS


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It deals with production systems, operational planning & control &

R & DThey affect the capability of an organization

They also relates to efficient use of resources

IMPLEMENTING-

OPERATIONAL PLANS


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These plans deals with employees, HRP, T & D, Compensation,

Industrial relations & appraisal etc.They also include union management, employee satisfaction &

collective bargaining issues

IMPLEMENTING- PERSONNEL

PLANS


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Process of planning, acquiring & deploying IT resources in the

organization It refers to establishment of entire Hardware & Software systems

related with IT. This also ensures successful implementation of

business S

IMPLEMENTING- IT PLANS


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INTEGRATING FUNCTIONAL

PLANS

5 points that must be considered are-

- Internal Consistency requirement

- Application with the development of Organizational capability

- Make opportunity cost decisions- selecting most preferred alternative

- Determining the strength of connections between different functional

areas

- Implementation timing of plans policies


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5 types of mechanisms that may be used for integration of

functional plans-

- Info systems

- Task forces- for solving a precise issue

- Permanent integratorpermanent departments or positions that

serve the purpose of cross functional coordination- Teams- permanent teams that works with permanent integrator

INTEGRATING FUNCTIONAL

PLANS


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OPERATIONAL IMPLEMENT

Final aspect of SI

It deals with the fundamentals of the S & refers to the time for action, it is the

phase that helps in completion of most of the Tangible work

Operational effectiveness is achieved by-

- Productivity- output for a given amount of input

- Processes

- People

- Pace


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Questions???

Documents

Strategy Implementation Module 4