Module VI

Introduction
Implementable
recommendations
Module I

Module II Module III Module IV

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Module V

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Action 1
Module VI Action 2
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Conclusion
Contents of Module VI

 Introduction

 Implementable recommendations
• Implementation plans

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 Introduction

Schedule for the A.T. CONSULTING Business Unit Strategy Training Program

Timing Monday Tuesday Wednesday Thursday Friday

8
Introduction
9

10 Module II Module III Module V Final presentation

11
Module I
12 Conclusion

1 Lunch Lunch Lunch Lunch Lunch

2 Module VI
Guest Speaker
3 Module IV Guest Speaker
4
Strategy literature
5 Case preparation Case preparation Case preparation
review
6
Case presentation Case presentation Case presentation Case Dinner
preparation
7

8 Dinner Dinner Dinner Dinner

9
10

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 Introduction

Positioning of Module VI in the overall context

Module II
Structure and
dynamics of the
industry

Module I Module III Module V Module VI

Identification of the key Characteristics and Definition and Implementable
issues of the dynamics of the evaluation of strategic recommendations
engagement individual companies alternatives

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Module IV
Execution
capacity of the
client

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Contents of Module VI

 Introduction

 Implementable recommendations
• Implementation plans

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Implementable recommendations Introduction

Business unit strategy must yield implementable recommendations

• Clients are increasingly requesting that consultants develop strategic

roadmaps that detail how the suggested solutions should be
implemented
• Accordingly, the module will focus on this technique and address the
following crucial questions:
– What to implement?
– How to implement?
– Who should implement?
– When to implement?
– How to measure the results/effectiveness?

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Contents of Module VI

 Introduction

 Implementable recommendations
• Implementation plans

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Implementable recommendations Implementation plans Description

Whereas the analysis phase of business unit strategy addresses the questions of
where and how to compete, the implementation phase focuses on what, how, who
and when strategic measures should be initiated and adopted

Strategic Recommendations

Where to compete? • Geographical segments Implementation

• Customer types
• Distribution channels
• Product categories What to be done? • Activities

How to compete? • Pricing By what means? • Resources

• Promotion
• Distribution Who to manage? • Responsibilities
• Skills
• Financing When to do it? • Timing
• Ownership
• Etc.

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Implementable recommendations Implementation plans Description

Multiple factors determine whether the implementation of a strategy is successful

Speed of
Implementation

Top The successful transformation

Resource
Management of recommendations into
Dedication
Involvement actions is dependent on a
systematic, structured plan that
Probability of
incorporates the
success
aforementioned factors

Change
•Effectiveness Evaluation
•Readiness and Control
•Ability

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 Implementable recommendations Implementation plans Description

The speed of implementation depends on the gap between the

recommendations and the organization's current capabilities, as well as on
its flexibility to make the required changes

Strategic Ambition Flexibility

Small Gap Flat Organization

Today Tomorrow
The speed of
implementation may
distinguish between
success and failure
Hierarchical Organization
Large Gap

Today Tomorrow

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Implementable recommendations Implementation plans Description

Active participation from top management helps to guide implementation

and remedy problems that arise when transforming strategy into actions

Top Competencies
Management

• Sets direction
• Leads by example
Line Managers • Allocates resources
• Motivates employees
• Collects progress results
• Undertakes corrective actions

Operations

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Implementable recommendations Implementation plans Description

Only by having a measurement system in place can the client rate its own
performance and undertake necessary corrective actions, while implementing
its strategy
Weeks
Activity Responsible Budget
1 2 3 4 5 6 7 8 9 10 11
XX YY $$

Milestones

Measurement system

• What to measure?
• How to measure?
• How often to measure?

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Implementable recommendations Implementation plans Description

Unexpected changes in the client’s external or internal environment

might influence its ability to reach its goals

Change in the macro environment

• Economic
• Political Change in the micro environment
• Technological
• Demographic
• Competitors
• Cultural
• Suppliers Change in the internal environment
• Natural
• Customers
• Distribution channels
• Employees
• Management team
• Other stakeholders
• Profits
• Capital

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 Implementable recommendations Implementation plans Description

The appropriate prioritization of actions and corresponding dedication of

resources are major drivers of successful implementation

Priority of Actions to Be Taken Resources to Be Allocated

High Capital People

Allocate more Reconsider • Cash amount • Number

resources if resource
• Guarantees • Skills
available spend

Downsize Technology Support

Disregard resource
spend • Production • Facilities
• Administration • Training
Low
Few Many
Resources Planned to Be Invested

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Implementable recommendations Implementation plans Description

The gap between recommendations and implementation can be effectively bridged

by translating the gap into the main questions critical for success and addressing
these issues through actions

Recommendations Main Questions Action Plan Implementation

• Activities
• Responsibility • Implementation
• Where and how • How to fulfill • Evaluation and
• Resources
to compete? requirements? control
• Timing
• Key performance
indicators

Gap

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Implementable recommendations Implementation plans Usage

The development of action plans and strategy implementation should immediately

follow the strategizing process

Activities Organizational Level

Vision

Completed Strategy Management

Targets

Action Plans and

To Be Done Implementation Whole Organization

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Implementable recommendations Implementation plans Usage

A theme provides a link between strategic recommendation and the actions

recquired to successfully implement it

An acquisition scenario
Strategic Recommendation

Acquire company X or Y
as soon as possible via a Theme
hostile take over

Conduct analyses to
choose candidate and define
Action Plan
the path forward

What, how, who, when? Implementation

Conduct and review

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Implementable recommendations Implementation plans Usage

The theme contains a series of main questions that must be addressed by the
client, before it can successfully implement its strategy

An acquisition scenario

Main questions

• How do we create a
systematic process for
selecting the right candidate?
• What criteria are most
important for selection?
Theme • What should be the path for
negotiation?
• How can we most effectively
draw on our resources to
complete the take over
without jeopardizing our
current business?

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 Implementable recommendations Implementation plans Example

All key questions must be addressed and a plan should be developed

Conduct analyses to choose candidate and define the path forward

Pose the main
questions Timing Clearance
Headcount
Main questions Activities Budget* with other Responsible
Determine activities resources
Start End activities
required to solve the
• How do we create • Strategic due diligence Unlimited 5 03.03 05.05 Yes KM
main questions a systematic of candidates
process for • Economic due
selecting the right diligence of candidates
candidate?
Specify resources
• What criteria are • Definition of criteria 10.0 6 03.03 04.04 Yes JS
most important for
Specify when the selection?
activity is to begin
• What should be • Contact with CEO’s of 5.0 3 03.03 06.06 No HMK
and end the path for each company
negotiation?
Note conflicts with
other activities/ • How can we most • Define acquisition team 10.0 4 03.03 06.06 No JG
effectively draw – Involve sales and
departments if on our resources marketing
necessary to complete the – Involve HRM
take over without • Define potential
jeopardizing our synergies
current business?
Assign
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responsibilities

* The budget can be broken into its capital and operations components as separate columns
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 Implementable recommendations Implementation plans Methodology

Methodology for making recommendations implementable

Input Output

• Client • Concrete action

data/interviews 1 2 3 4 5 6 7 plan for
• Strategic implementation
recommendation
Develop Define Assign Delegate Make Develop Measure
• 7S main activities budget respons- Schedule key per- results and
• Execution questions ibilities formance (re-)allocate
capacity of the indicators resources
organization

• Determine the • Define activities • Define • Study the • Determine the • Define the • Revisit process
main questions required by the required personnel and time required goals and make
that conveys the company resources determine who for the • Determine the adjustments as
development • Define activities has the activities and tangible results required
needs attributable required by appropriate the deadlines that would
to the strategic consultants (if skills for a • Construct a indicate
recommendation any) given task project plan satisfactory
progress or
achievement of
goals

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Implementable recommendations Implementation plans Methodology

Develop the main question

Strategic recommendations Main question

• What direction are we heading for? • How can we do it?

• What do we need to do? • What specifically needs to be
done?

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Implementable recommendations Implementation plans Methodology

Define activities

Major activities Sub-activities

• What are the main activities that • What assignments do each main
we need to perform? activity include?
• How can these be logically
grouped? • What departments have to be
• At what level should they be involved?
implemented?

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 Implementable recommendations Implementation plans Methodology

Assign resources to each activity

Preliminary Budget Confirmation of Resource Spend

Very High

Balance Allocate more Reconsider

Resources Pay High resources if resource
Against Risks Priority available spend

Develop Downsize
Disregard Disregard resource
If Resources
Are Available spend

Little Low
Few Many
Very Difficult Very Easy
How Easy Can We Implement? Resources Planned to Be Invested

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Implementable recommendations Implementation plans Methodology

Delegate responsibilities

How many managers

do we need?

Choice
What skills are
necessary?

Carry out selection

Who is available?

Should we undertake
new recruiting?

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Implementable recommendations Implementation plans Methodology

Make a time plan

Clearance
Capital Operations Headcount Timing
Main questions Activities with other Responsible
budget budget resources Start End
activities

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Implementable recommendations Implementation plans Methodology

Develop key performance indicators critical for achieving the targets set
Example

Sales performance Financial performance

• Revenues • Stock price

• Market share • Profits
• Return on sales • Cash flows
• Customer satisfaction • Earnings per share
• Share of voice • Return on assets
• Sales force efficiency • Return on capital employed
• Return on equity
Key performance
indicators help to ensure
result orientation and
progress focus
Procurement performance Employee performance

• Price per item • Problem solving

• On-time-delivery ratio • Communication
• Cost per order • Time management
• Number of orders • Contribution to firm building
• Supplier feedback meetings • Education

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Implementable recommendations Implementation plans Methodology

Measure results and reallocate resources

Key performance indicators

Result, Revision, and Action

Key performance indicator

Meetings and feedback Yes Continue
according to
Key plan
• When? performance
• Agenda indicators
achieved?

No
Corrective
Why?
actions

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Implementable recommendations Implementation plans Conclusion

Conclusion

Key points • Commitment and buy-in from the client is key to the success of the implementation process
• Schedule should be constructed with the employees who are going to “own” the project
• Each recommendation will require its own implementation plan
• The final strategy must be disaggregated into a set of recommendations each of which need to be
addressed together in one implementation plan

Strengths • Ensures a structured approach to implementation

• Ensures that complex strategies are broken down into tangible steps

Weaknesses

References

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