Business

Policy and
Strategy
Assignment
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Topic- Notes on ‘STRATEGY IMPLEMENTATION’
Strategy implementation is the translation
of chosen strategy into organizational
action so as to achieve strategic goals and
objectives. Strategy implementation is also
defined as the manner in which an
organization should develop, utilize, and
amalgamate organizational structure,
control systems, and culture to follow
strategies that lead to competitive
advantage and a better performance.
Organizational structure allocates special
value developing tasks and roles to the
employees and states how these tasks and
roles can be correlated so as maximize
efficiency, quality, and customer
satisfaction-the pillars of competitive
advantage. But, organizational structure is
not sufficient in itself to motivate the
employees.
An organizational control system is also
required. This control system equips
managers with motivational incentives for
employees as well as feedback on
employees and organizational performance.
Organizational culture refers to the
specialized collection of values, attitudes,
norms and beliefs shared by organizational
members and groups.

‘Strategy Implementation
involes a broad range of efforts
aimed at transforming
strategic intentions into
actions. The resulting stream
of actions constitutes the
firm’s realized strategy.’
-Miller and Dess
RELATIONSHIP BETWEEN STRATEGY
IMPLEMENTATION AND STRATEGY
FORMULATION
BASIS FOR STRATEGY STRATEGY
COMPARISON FORMULATION IMPLEMENTATION

Meaning Strategy Formulation refers Strategy Implementation

to the preparation of a well means to bring the
thought strategy, that helps formulated strategy into
in the achievement of action.
organizational goals.

Concept Placement of forces before Managing forces at the time

action takes place. of strategy execution.

Process type Logical Operational

Emphasis on Effectiveness Efficiency

Responsibility Top Management Functional Management

Orientation Planning Execution

Activity type Entrepreneurial Administrative

 BASIS FOR STRATEGY STRATEGY
COMPARISON FORMULATION IMPLEMENTATION

Requirement of Analytical skills Leadership skills

FRAMEWORK FOR STRATEGY IMPLEMENTATION

Strategic analysis is all about analyzing the strength
of businesses’ position and understanding the
important external factors that may influence that
position.

Strategic choice involves understanding the nature

of stakeholders expectations, identifying the
strategic option and evaluating and selecting the
best/optimal choice amongst all.

Strategic implementation is the penultimate stage

of strategic management and strategic analysis and
choice are two significant constituents of that
process.
For successful implementation of strategy the
following framework should be considered:

 ANNUAL OBJECTIVES
  POLICIES
 RESOURCE ALLOCATION
 MANAGING CONFLICT
 MATCHING STRUCTURE WITH STRATEGY
 LINKING PERFORMANCE AND PAY TO
STRATEGIES
 CREATING STRATEGY SUPPORTIVE CULTURE
ISSUES IN STRATEGY IMPLEMENTATION

1) LEADERSHIP ISSUES
Leadership involves the constructive use of power
and policies, in building a consensus to support
the strategy. If leadership is not strong then
strategy implementation will not become
possible.
Approaches to Leadership
a) Transformational Leadership Approach
b) Transactional Leadership Style
 Role of Effective Leader
a) Motivating Employees
b) Guiding Employees
c) Enforcing ethical standards
d) Soliciting support of employees

2) PROJECT IMPLEMENTATION ISSUES

Project implementation issues aries when the
projects undertaken by the projects undertaken
by the company do not align with the vision and
mission of company.
Phases of Project Implementation
i) Conception Phase
ii) Project Analyis Phase
iii) Planning Phase
iv) Organising Phase
v) Implementation Phase
vi) Operation Phase
3) PROCEDURAL IMPLEMENTATION ISSUES
For implementing the strategies, the
management must have good knowledge of the
procedural framework within which the plans,
projects and programs have to be approved by
the regulatory authorities.
Procedural Requirements:
a)Formation of a Company
b) Licensing Procedures
c)FEMA Requiremets
d) Import and Exoport
e)SEBI Requirements
f) Consumer Protection
g)Pollution Control Requirements
h) Labour Legislation Requirements
i) MRTP Requirement and Competition Act, 2002
4) RESOURCE ALLOCATION ISSUES
The organisation should have sufficient funds and
enough time to support the implementation of
strategy.

5) STRUCTURAL IMPLEMENTATION ISSUES

For proper implementation of strategy, the
organisational structure should fullfill the
requirements of strategy and if it does not, then
changes should be made in it.

STRATEGY IMPLEMENTATION APPROCHES

1) The Commander Approach

The strategic leader concentrates on formulating the
strategy, applying rigorous logic and analysis. The
leader either develops the strategy himself or
supervises a team of planners charged with
determining the optimal course of action for the
organization. He typically employs such tools as
experience curves, growth/share matrices and
industry and competitive analysis.
However, three conditions must exist for the
approach to succeed:
 The leader must wield enough power
to command implementation; or, the strategy
must pose little threat to the current
management, otherwise implementation will be
resisted.
 Accurate and timely information must be
available and the environment must be
reasonably stable to allow it to be assimilated.
 The strategist (if he is not the leader) should be
insulated from personal biases and political
influences that might affect the content of the
plan.

2) The Organizational Change Approach

 This approach starts where the Commander
Approach ends: with implementation. The
organizational Change Approach addresses the
question "I Have a strategy -now how do I get my
organization to implement it?" The strategic
leader again decides major changes of strategy
and the considers the appropriate changes in
structure, personnel, and information and reward
systems if the strategy is to be implemented
effectively.

3) The Collaborative Approach

This approach extends strategic decision-making

to the organization's top management team in
answer to the question "How can I get my top
management team to help develop and commit
to a good set of golas and strategies?"
The strategic leader and his senior manager
(divisional heads, business unit general managers
or senior functional managers) meet for lengthy
 discussion with a view to formulating proposed
strategic changes.
In this approach, the leader employs group
dynamics and "brainstorming" techniques to get
managers with differing points of view to
contribute to the strategic planning process.

4) The Cultural Approach

This approach extends the Collaborative Approach

to lower levels in the organization as an answer to
the strategic management question "How can I get
my whole organization commited to our golas and
strategies?"
The strategic leader concentrates on establishing
and communicating a clear mission and purpose for
the organization and the allowing employees to
design their own work activities with this mission.
He plays the role of coach in giving general direction,
but encourages individual decision-making to
determine the operating details of executive the
plan.
The implementation tools used in building a strong
corporate culture range from such simple notions as
publishing a company creed and singing a company
song to much complex techniques.

5) The Crescive Approach

This approach addresses the question "How can I

encourage my managers to develop, champion,
and implement sound strategies?" (Crescive means
"increasing" or "growing"). The strategic leader is
not interested in strategizing alone, or even in
leading others through a protracted planning
process. He encourage subordinates to develop,
champion, and implement sound strategies on their
own.
The crescive approach differs from the others in
several ways. First, instead of strategy being
delivered downward by top management or a
planning department, it moves upward from the
"doers" (salespeople, engineers, production
workers) and lower middle-level managers. Second,
"strategy" becomes the sum of all the individual
proposals that surface throughout the year. Third,
the top management team shapes the employees'
premises -that is, their notions of what would
constitute supportable strategic projects. Fourth,
the chief executive functions more as a judge,
evaluating the proposals that reach his desk, than as
a master strategist.