Implementing Strategy

1
Implementing Strategy

• Chapter 7

2
Objectives

• Upon completion of this chapter, you should be
  able to
• Translate strategic thought to organisational
  action
• Effectively implement strategic plans
• Evaluate key strategic implementation issues
• Identify force fields analysis factors
• Appraise and execute the six factors to
  successful strategy implementation
• Review the cultural web of an organisation
• Evaluate progress using the Balance Scorecard

3
Introduction

• To ensure success, the strategy must be
  translated into carefully implemented action.
  This means
• The strategy must be translated into guidelines
  for the daily activities of the firms members
• The strategy and the firm must become one that
  is, the strategy must be reflected in the way the
  firm organises its activities and in the firms
  values, beliefs and tone.
• In implementing the strategy, the firms managers
  must direct and control actions and outcomes and
  adjust to change.

4
Translating strategic thought to organisational
action

• Once corporate and business strategies have been
  agreed upon and long-term objectives set, the
  strategic management process moves into a
  critical new phase translating strategic
  thought into organisational action.
• Managers successfully make this shift when they
  do four things well
• Identify short-term objectives
• Initiate specific functional tactics
• Communicate policies that empower people in the
  organisation
• Design effective rewards

5
Implementing Strategic Plans

• Once strategies have been agreed on, the next
  step is implementation this is where most
  failures occur.
• It is not uncommon for strategic plans to be
  drawn up annually and to have no impact on the
  organisation as a whole.
• A common method of implementation is total
  communication effort
• This can involve slogans, posters, events, memos,
  videos, websites, etc.

6

• A critical success factor is whether the entire
  senior team appears to buy into the strategy and
  models appropriate behaviours.
• Success appears to be more likely if the CEO or a
  very visible leader is also a champion of the
  strategy.
• Strategic measurement can help in implementing
  the strategic plan. Appropriate measures show
  the strategy is important to the leaders, provide
  motivation and allow for follow-through and
  sustained attention.
• By acting as operational definitions of the plan,
  measures can increase the focus of the strategy,
  aligning the workforce around specific issues.

7

• The results can include faster changes, greater
  accountability and better communication of
  responsibilities which may reduce duplication of
  effort.
• Creating a strategic map helps identify focal
  points it shows the theory of the business in
  easily understood terms, showing the cause and
  effect lingkages between key components.
• It can be a focal point for communicating the
  vision and mission and the plan for achieving
  desired goals.
• The senior team can create a strategic map by
  identifying and mapping the critical few
  ingredients that will drive overall performance.

8

• The panel does not include all of the areas
  organisations measure, rather the few that the
  top team can use to guide decisions, knowing that
  greater detail is available if they need to drill
  down for more intense examination.
• These critical few are typically within 6
  strategic performance areas
• Financial
• Customer / market
• operations
• Environment
• People
• Partners / suppliers

9

• Once the strategic map is defined, organisations
  must create measures for each focal point.
• Identify how they contribute to the overall
  measures, and then define measures of their own.
• Ideally this process cascades downward until each
  individual is linked with the strategy and
  understands the goals and outcomes they are
  responsible for and how their individual success
  will be measured and rewarded.

10

• Cascading the Plan
• Cascading is often where the implementation
  breaks down.
• Cascading is often noted as being a serious
  problem in implementing strategic measurements
  systems.
• Organisations have found it to be helpful to ask
  each functional area to identify how they
  contribute to achieving the overall strategic
  plan.
• Functional area leaders may be more successful
  using a cascade team to add input and take the
  message forward to others in the area.

11

• Developing ambassadors or process champions
  throughout the organisation to support and
  promote the plan and its implementation can also
  enhance the chance of success.
• These champions may be candidates for
  participation on the design or cascade teams and
  should be involved in the stakeholder review
  process.

12

• External Consultants
• External consultants can play an important role
  in building and implementing strategic plans if
  they are used appropriately. Rather than
  creating or guiding an organisations strategy,
  the primary role of consultant should be that of
  a facilitator, a source of outside perspective
  and perhaps as a resource for guiding the process
  itself.
• This allows each member of the internal team to
  participate fully without having to manage the
  agenda and keep the team focused on the task at
  hand.

13

• Consultants can keep the forum on track by
  directing the discussion to ensure objective,
  strategic thinking around key issues, tapping
  everyones knowledge and expertise, raising
  pertinent questions for discussion and debate,
  managing conflict and handling group-think and
  other group dynamics issues.
• Consultants can extract the best thinking from
  the group and ensure the vision and mission are
  based on a sound, critical review of the current
  state and anticipated future opportunities.
• Once this is accomplished, consultants can
  facilitate the identification of desired oucomes
  and the drivers needed to achieve them. They can
  also help to assure that a true consensus is
  actually reached, rather than an appearance of a
  consensus due to fear, conformity or other group
  effects.