IMPLEMENTING STRATEGIES: MANAGEMENT ISSUES
Contrasting strategy formulation and strategy implementation
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Formulation is positioning forces before the action
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Formulation focuses on effectiveness
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Formulation is primarily an intellectual process
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Formulation requires good intuitive and analytical skills
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Formulation requires coordination among a few individuals
Contrasting strategy formulation and strategy implementation
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Implementation focuses on efficiency
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Implementation is managing forces during the action
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Implementation is primarily an operational process
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Implementation requires special motivation and leadership skills
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Implementation requires coordination among many persons
Strategy implementation
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Varies among different types and sizes of organizations
Strategy implementation Actions
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Altering sales territories
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Adding new departments
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Closing facilities
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Hiring new employees
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Cost-control procedures
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Changing advertising strategies
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Building new facilities
Formulation to Implementation transition
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Shift in responsibility
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From strategists to division and functional managers
Management Issues
Annual Objectives
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Decentralized activity
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Involves all managers in the firm
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Basis for allocating resources
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Primary mechanism for evaluating managers
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Major instrument for monitoring progress toward long-term objectives
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Establish organizational, divisional, and departmental priorities
Objectives should state
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Quantity
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Quality
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Cost
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Time
Policies
Policies facilitate solving recurring problems and guide the implementation of strategy
Policies set
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Boundaries
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Constraints
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limits
Example Issues requiring management policy
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To offer extensive or limited management development workshops and seminars
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To centralize or decentralize employee-training activities
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To recruit through employment agencies, college campuses, and/or newspapers
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To promote from within or hire from the outside
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To establish a high- or low-safety stock of inventory
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To buy lease, or rent new production equipment
Resource Allocation
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A central management activity that allows for strategy execution
SUMMARY AND EXPLANATION :
First, organizations successful at implementing strategy develop detailed action plans sequential lists
of action steps (tactics) which add the necessary detail to their strategies. And assign responsibility to a
specific individual for accomplishing each of those action steps. Also, they set a due date and estimate
the resources and tasks required to accomplish each of their action steps. Thus they translate their
broad strategy statement into a number of specific work assignments.And they begin to think about that
necessary financial commitment early in the planning process.Monitoring and controlling the plan
includes a periodic look to see if you’re on course.Organizations successful at strategy implementation
consider the human resource, functional, division, operational and R&D factors in making strategies
happen.