MODULE 7 HANDOUTS

THE NATURE OF STRATEGY IMPLEMENTATION

The implementation of organization strategy involves the application of the management process to obtain
the desired results. Particularly, strategy implementation includes designing the organization's structure,
allocating resources, developing information and decision process, and managing human resources,
including such areas as the reward system, approacches to leadership, and staffing.

Strategy implementation is "the process of allocating resources to support the chosen strategies". This
process includes the various management activities that are necessary to put strategy in motion, institute
strategic controls that monitor progress, and ultimately achieve organizational goals.

For example, according to Steiner, "the implementation process covers the entire managerial activities
including such matters as motivation, compensation, management appraisal, and control processes".

As Higgins has pointed out, "almost all the management functions -planning, controlling, organizing,
motivating, leading, directing, integrating, communicating, and innovation -are in some degree applied in
the implementation process".

Pierce and Robinson say that "to effectively direct and control the use of the firm's resources, mechanisms
such as organizational structure, information systems, leadership styles, assignment of key managers,
budgeting, rewards, and control systems are essential strategy implementation ingredients".

Strategy formulation and strategy implementation - which is how strategy is put into action - are two side of
the coin called strategic management. No matter how creative the formulated strategy, the organization will
not benefit if it is incorrectly implemented. Moreover, organizations that formulate and implement strategies
better than competitors can expect a competitive advantages.

The purpose of implementation is ensuring that the planned results of the strategic decisions are realized.
Implementation involves several tasks - doing what must be done to make the strategy successful. These
tasks can be divide into three key aspects of the implementation phase of strategic management.

In a single word, strategy implementation means "change". Thus, its is important to analyze a proposed
strategy in terms how much the firm itself will have to change in order to implement its successfully. 

Strategy Implementation And The Strategic Management Process

The strategy implementation and strategy formulation processes are closely interrelated. Figure 1-1 illustrates this
relationship. The desired results of an organization are established during the strategy formulation process.

Implementation consists of the issues involved in putting the formulated strategy to work. It is necessary to spell out
more precisely how the strategic choice will come to be. No strategy, no matter how brilliantly formulated, will
succeed if it cannot be implemented.

The Relation Between Strategy Formulation And Strategy Implemenation

In order to achieve its objectives, an organization must not only formulate but also implement its strategies
effectively. The Figure represents the importance of both tasks in matrix form and suggests the probable outcomes
of the four possible combinations of these variables:

- Success is the most likely outcome when strategy is appropriate and implementation good.

- Roulette involves situation wherein a poor strategy is implemented well.

- Trouble is characterized by situations wherein an appropriate strategy is poorly implemented.

Diagnosing why a strategy failed in the roulette, trouble, and failure cells in order to find a remedy requires the
analysis of both formulation and implementation.

S.Certo and J. Peter proposed a five-stage model of the strategy implementation process:

determining how much the organization will have to change in order to implement the strategy under consideration,
under consideration;

analyzing the formal and informal structures of the organization;

analyzing the "culture" of the organization;

selecting an appropriate approach to implementing the strategy;

implementing the strategy and evaluating the results.

Implementation is successfully initiated in three interrelated stages:

Identification of measurable, mutually determined annual objectives.

Development of specific functional strategies.

Development and communication of concise policies to guide decisions.

Summary

Successful strategy formulation does not all guarantee successful strategy implementation. Therefore, once the
course of strategy has been charted the managerls priorities swing to converting the strategic plan into actions and
good results.

The implementation process involves an integrated set of choices and activities that are used to allocate resources,
organize, assign key managers, ser policies, and establish administrative system to reinforce, control, and evaluate a
strategy.

IMPORTANCE OF ANNUAL OBJECTIVES AND POLICIES IN STRATEGY IMPLEMENTATION

Annual Objectives

Management issues central to strategy implementation include establishing annual objectives that relate logically to
the strategy's long-term objectives. Annual objectives are essential for strategy implementation because they:

represent the basis for allocating resources,

are a primary mechanism for evaluating managers,

establish organizational, divisional and departmental priorities.

Annual objectives are specific, measurable statements of what an organization subunit is expected to achieve in
contributing to the accomplishment of the business's grand strategy.

RESOURCE ALLOCATION AND STRATEGY IMPLEMENTATION

Resource allocation is a central management activity that allows for strategy execution. The real value of any
resource-allocation program lies in the resulting accomplishment of an organization's objectives.

A number of factors prohibit effective resource allocation, including an over-protection of resources, too great an
emphasis on short-run financial criteria, organizational politics, vague strategy targets, a reluctance to take risks ,
and a lack of sufficient knowledge.

The relationship between resources and strategy is two-way. Strategy affects resources and resources affect
strategy.

Resources can be evaluated from several different perspectives:

The most prevalent way of evaluating them is by functional areas:

finance, research and development, human resources, operations, marketing.

A second way of evaluating resources is by type:

financial, physical, human, and organizational.

A third way of evaluating resources is in terms of their tangibility.

Tangible resources (e.g., a plant or the number of employees) can be observed and measured.

MANAGING CONFLICT

Importance of Conflict Management

Conflict management goes a long way in strengthening the bond among the employees and half of the
problems automatically disappear. Individuals must feel motivated at work and find every single day exciting and
challenging. Before implementing any idea, it must be discussed with everyone and no one should ever feel ignored or
left out. Conflict management avoids conflicts to a great extent and thus also reduces the stress and tensions of the
employees. No one likes to carry his tensions back home and if you fight with your colleagues and other people, you
are bound to feel uncomfortable and restless even at home.

Conflict management also plays an important role in our personal lives. Tussles and fights spoil relationships
and only increase our list of enemies. Everyone needs friends who will stand by us when we need them. Conflict must
be avoided at homes as it spoils the ambience and spreads negativity. Individuals tend to disrespect others as a result
of conflicts.

Conflict management helps to find a middle way, an alternative to any problem and successful
implementation of the idea. Problems must be addressed at the right time to prevent conflict and its adverse effects
at a later stage. Through conflict management skills, an individual explores all the possible reasons to worry which
might later lead to a big problem and tries to resolve it as soon as possible.
 Conflict Management is very important because it is always wise to prevent a fight at the first place rather
than facing its negative consequencies. Stress disappears, people feel motivated, happy and the world definitely
becomes a much better place to stay as a result of conflict management