Strategy Implementation
A Framework for the Strategy Making Process
Vision
and
Mission
Managers’
Mental
Models
(Beliefs &
Understanding
Corporate
Strategy
Set
Objectives
Business
Definition
Business
Strategy
Functional
Strategy
Decisions about
Feedback
I
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p
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m
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t
a
t
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n
Market
Position
P
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f
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m
a
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Strategic Management Model
Create a
Vision or
Mission
Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
Strategic Management Model
Short-term
Objectives
Create a
Vision or
Mission
Set
Objectives
Craft a
Strategy
Implement
the
Strategy
(Long-term)
Functional Strategy
Functional Tactics
Measure
and
Evaluate
Is there a difference between
strategy and tactics?
if so
How do we distinguish between
strategy and tactics?
What is functional strategy? What is the
overall purpose of functional strategy?
Business-Level
Strategy
Functional-Level
Strategy
Functional
Tactics
Each functional area will have different
functional tactics
Implementation is about action!
Once the strategy has been formulated it is initiated through
four interrelated steps:
1. Creation of short-term objectives
2. Development of specific functional tactics that create
competitive advantage
3. Empowering operating personnel through policies that
guide decisions
4. Development of effective rewards
Implementation Requires
Functional
Strategy
Functional Tactics and
Short-term
objectives
Action
Plans
Time frame
Responsibility
Performance
Policies and
Rewards
What are policies and why are they
important in implementation?
What is organizational culture and
why is it important to implementation?
Why are reward systems so important to
strategy implementation?
Which are more effective
intrinsic or extrinsic?
Which ones motivate you?
Strategic Management Model
Short-term
Objectives
Create a
Vision or
Mission
Set
Objectives
Craft a
Strategy
Implement
the
Strategy
(Long-term)
Functional Strategy
Functional Tactics
Measure
and
Evaluate
McKinsey 7-S
McKinsey 7-S is a framework for understanding
effective organizational change.
Implementation Impacts and is Impacted by the
components of McKinsey 7-S
McKinsey 7-S
Structure
Skills (organizational, management, employee)
Staff (management and employee)
Shared values (culture)
Style (leadership)
Systems
(current) Strategy
Strategic Management Model
Short-term
Objectives
Create a
Vision or
Mission
Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
(Long-term)
Functional Strategy
Functional Tactics
Control
Control (Strategic and Operational)
What does control mean in an organizational context?
Strategic Control
Strategic control is concerned with tracking strategy once it
has been implemented, detecting changes or problems as they
occur and guiding action whose result will manifest several
years from the initial execution.
Premise control: systematically checks whether the premises
(assumptions) on which the strategy is based are still valid.
Implementation control: is designed to assess whether the overall
strategy should be changed in light of results associated with
incremental actions.
Strategic Control continued
Strategic surveillance: monitors a broad range of events inside and
outside of the firm that are likely to affect the course of its strategy
Special Alert Control: is a thorough and often rapt reconsideration
of the firm’s strategy because of a sudden unexpected event
Operational Control
Operational controls monitor performance, evaluate deviations
and initiate corrective action.
They are designed to monitor, guide and evaluate the firm’s
progress in meeting short-term objectives.
Operational controls (e.g., budgets, scheduling resources):
-set standards of performance
-measure actual performance
-identify deviations
-initiate corrective action