Strategy Implementation

Prof.Harish K Padmanabhan
 Aspect of Strategy Implementation.
 Issues in Implementation.
Strategy Implementation
 A Strategist being his wide range of knowledge, skills,
attitudes and abilities to formulate strategy.

 The implementation task puts to test the abilities to

allocate resources, design structures and systems,
formulate functional policies, leadership styles and plan
for operational effectiveness besides dealing with various
issues.

 The strategic plan devised by the organisation proposes

the manner in which the strategies could be put into
action.
Strategy Implementation
 The strategy implementation task is meant to realize the
intent.

 The process of converting the chosen strategy into action

is known as “ Strategy Implementation”.

 Strategy Implementation involves the process of

formulating : Strategy, Plans, Programmes, Projects and
Budgeting.
Strategy Implementation : Pyramid

Strategies

Plans

Programmes

Project

Budget
Strategy Implementation : Pyramid
 Formulation of Strategy: Stability, Expansion,
Combination or Retrenchment
 Plan : It is a pre-determined course of action to be carried
out.
 Programme : It is a broad term which includes goals,
policies, procedures, rules and steps to be taken into
action. Programme is always supported by plans.
 Project : It involves defining the operation to be
performed in organisation.
 Budget: It co-relates cost ,sources of funds and allocation
of funds with strategy ,plan, programme and project.
Issues in Strategy Implementation
 Project Implementation.
 Procedural Implementation.
 Resource & Budget Allocation.
 Structural Implementation.
 Behavioural Implementation.
 Functional and Operational
Implementation.
A) Project Implementation:

 Strategist leads to plans, programmes and projects.

Knowledge related to project formulation and
implementation is covered under the discipline of
project management.
 Project Management Institute, U.S. defines Project
as , “ a one-shot, time-limited, goal-directed, major
undertaking and required commitment of various
skills and programmes”.
 Goals and objective for project is derived from the
plans and programmes.
A) Project Implementation:

 Phases of Project:

 Conception Phase : Generation of project ideas to

undertaken in organisation during the process of
strategy choice and giving priority.

 Definition Phase : It involves arranging the priorities

by examining marketing, financial, technical,
economical, personnel and environmental factors
and defining feasible project.
A) Project Implementation:

 Phases of Project:

 Planning and Organizing Phase: Detailed planning

related to project like infrastructure, designs,
engineering, schedules and budgets, finance. A
project structure deals with organizing manpower,
system and procedures to executing project.

 Implementation Phase : Detailed requirement of raw

materials, equipments, construction. This phase
involves testing, trial and commissioning of project.
A) Project Implementation:

 Phases of Project:

 Clean-up Phase: This is final phase in project

implementation deals with disbanding the project
infrastructure and handing over the plant to the
operating personnel.
 In simple words, Project Implementation is meant
for the creation of an infrastructure to enable them
to put such a plan into action.
B) Procedural Implementation:

 Any organisation which is planning to implement

strategies must be aware of the procedural framework
within which the plans, programmes and projects have to
be approved by the government at central, state and
local levels.

 The procedural framework consists of number of

legislative enactments and administrative orders besides
the policy guidelines issued by the Government of India.
B) Procedural Implementation:

 The regulatory mechanisms for trade, commerce and

industry in India span the whole range of legal structure
from the Constitution of India, Directives Principles,
Central Laws, State Laws, General Laws, Specific Sector
Laws, Specific Industry Laws and the rules and
procedures imposed by the implementing authorities at
the local level.

 The procedures laid down for project implementation

constitutes an important component of strategy
implementation.

 Procedural Implementation provides “Go-Ahead” signal

to proceed with formulated strategy.
B) Procedural Implementation:

 Regulatory Elements:
 Formation of Company : Companies Act , 1956
 Licensing Procedure.
 SEBI Rules & Regulations : SEBI Act, 1992.
 MRTP Requirements :MRTP Act, 1969.
 Foreign Collaboration Procedures : FDI, GDR,
FCCB.
 FERA / FEMA Requirement : FERA ,1973 FEMA,
2000.
 Import & Export Rules & Procedures : EXIM,
FTDRA, 1992, I & E Act, 1947.
B) Procedural Implementation:

 Regulatory Elements:
 Labour Legislation : Labour Laws – State & Central.
 Women, Children, Adolescent, specific industry, safety,
welfare, wages, T.U, I.D etc
 Patents Act : Patent, Trademark, Design etc.
 Environmental Protection & Pollution Control
Requirement : EPA 1986, WPCPA 1974,
APCPA1972.
 Consumer Protection : CPA 1986, MRTPA
 Incentives & Facilities.
C) Resource Allocation

 A strategic plan is the representation of hopes and

aspiration of strategist.

 Resource allocation deals with the procurement and

commitment of financial, physical, and human resources
to strategic task for the achievement of organizational
objective.

 Resource allocation is a continuous and on-going

process.
C) Resource Allocation
 Resource Allocation deals with:

 What are the resources required?

 How much resources is required?
 From where the resources has to be trapped?
 What the approaches for resource allocation?
 How to allocate the resources?
C) Resource Allocation
 Approaches for Resource Allocation :

 Top-Down Approach : This type describes where the

resources are distributed through the process
segregation down to operating levels.
 Bottom-Up Approach: Describes where resources
are allocated after the process of aggregation from
the operating level.
 Mix Approach : Combination of above two approach
which involves iterative
C) Resource Allocation : Budgeting
 Budgeting is a common and important technique used in
planning, co-ordinating and control device in
management. Following are the types of budgeting
considered in strategy implementation:
 Strategic Budgeting: It is an iterative process
involving a multilevel, organisation wide effort for
approval of strategy. It takes into consideration of
factors like environment change, impact of
strategies, corporate core competencies and their
probable effect on objective-achieving capability of
the organisation.
C) Resource Allocation : Budgeting

 BCG Budgeting : It identifies the cost involved for

allocation of resources for BCG Matrix.

 PLC Budgeting : It identifies the cost involved for

allocation of resources in different life cycle stage.

 Capital Budgeting: It identifies the cost involved for

allocation of resources for new projects .
C) Resource Allocation : Budgeting
 Zero-Based Budgeting: It justifies the allocation of
resources based on planning and operating budget
process for determining the cost for competing units.

 Parta System: It is an indigenous form of control

device used to exercise management control. Parta
is a control tool used for daily assessment of net
cash inflow from operations, before tax and
dividends. The budgeted parta is pre-determined
amount agreed upon between the chairperson of
company and the business unit incharge. The total
parta system is a daily budgeting and reporting
system.
D) Structural Implementation
 Structural Implementation refers to Organisation structure
chart consisting of name of position or personnel or
department in hierarchical order along with the depiction
of relationship that exists between various positions.

 Organizational structures is a way in which the tasks and

sub task required to implement a strategy are arranged.

 It is a diagrammatical presentation of role and

responsibilities.
D) Structural Implementation
 The structure is related to formulated and implemented
strategies, plans, programmes and project.

 The structure involves design and management of

system to achieve the best integration between people,
structure, processes and resources for implementation of
pre-determined strategies.

 The structure carry out the strategy, objective and

assignment of each group or person who executes the
activities.
D) Structural Implementation

 The structure should operate with strategy and provide

feed back system.

 The basic design of structure should involve division of

work, people, position, group, department and inter
connect with each other.

 The relationship between strategy and structure should

be viewed as effective way for utilization of resources to
implement strategy.
D) Structural Implementation
 The structural implementation should be mechanized by
good organizational design to answer:

 What should be the units in organisation?

 What components should be in organisation?

 What should be relationship between project,

plan, programme and strategy?
D) Structural Implementation
 There are 6 Major types of structure namely:

 Entrepreneurial Structure.
 Functional Structure.
 Divisional Structure.
 SBU Structure.
 Matrix Structure.
 Network Structure.
D) Structural Implementation

 There are 4 Minor types of structure namely:

 Product- Based Structure.

 Customer – Based Structure.
 Geographic Structure.
 Intrapreneurial Structure.
D) Structural Implementation
 In simple words, Structural implementation is a network
of durable and formally sanctioned arrangement and
relationship.

 Structural Implementation (Design) characterizes:

 Information System.
 Control System.
 Appraisal System.
 Leadership System.
 Motivational System.
 Development System.
E) Behavioural Implementation
 Corporate Culture.
 Leadership Style.
 Corporate Politics &Power.
 Social Responsibility.
 Organisation Ethics.
 Corporate Values.
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