Assignment

On
Strategy Implementation

Submitted to:
Prof. Jaideep Singh

Submitted By:
Guneet Kaur
M.B.A 2nd
Roll No. 17

Patel Institute Of Management And Technology, Rajpura

Strategy implementation
Strategy implementation is the translation of chosen strategy into organizational action so as to
achieve strategic goals and objectives. Moreover strategy implementation is a term used to
describe the activities within an organisation to manage the execution of a strategic plan.
Implementation of strategy is the process through which a chosen strategy is put into action. It
involves the design and management of systems to achieve the best integration of people,
structure, processes and resources in achieving organizational objectives.
Strategy implementation is often called the action stage of strategic management. Implementing
means mobilizing employees and managers in order to put formulated strategies into action. It is
often considered to be most difficult stage of strategic management. It requires personal
discipline, commitment and Sacrifice. Strategy formulated but not implemented serve no useful
purpose. Strategy implementation requires a firm to establish annual objectives, devise policies,
motivating employees and allocate resources so that formulated strategies can be executed.
Strategy implementation includes developing strategy supportive culture, creating an effective
organizational structure, redirecting marketing efforts, preparing budgets, developing and
utilizing information system and linking employee compensation to organizational performance.
Strategy implementation is often called the action stage of strategic management. Implementing
means mobilizing employees and managers in order to put formulated strategies into action. It is
often considered to be most difficult stage of strategic management. It requires personal
discipline, commitment and sacrifice. Strategy formulated but not implemented serve no useful
purpose.
Strategy implementation is also defined as the manner in which an organization should develop,
utilize, and amalgamate organizational structure, control systems, and culture to follow strategies
that lead to competitive advantage and a better performance. Organizational structure allocates
special value developing tasks and roles to the employees and states how these tasks and roles
can be correlated so as maximize efficiency, quality, and customer satisfaction-the pillars of

competitive advantage. But, organizational structure is not sufficient in itself to motivate the
employees.
An organizational control system is also required. This control system equips managers with
motivational incentives for employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized collection of values, attitudes,
norms and beliefs shared by organizational members and groups.
A successful implementation plan will have a very visible leader, such as the CEO, as he
communicates the vision, excitement and behaviors necessary for achievement. Everyone in the
organization should be engaged in the plan. Performance measurement tools are helpful to
provide motivation and allow for follow-up. Implementation often includes a strategic map,
which identifies and maps the key ingredients that will direct performance. Such ingredients
include finances, market, work environment, operations, people and partners.
Strategy implementation poses a threat to many managers and employees in an organization.
New power relationships are predicted and achieved. New groups (formal as well as informal)
are formed whose values, attitudes, beliefs and concerns may not be known. With the change in
power and status roles, the managers and employees may employ confrontation behaviour
Definition
The activity performed according to a plan in order to achieve an overall goal. For example,
strategic implementation within a business context might involve developing and then executing
a new marketing plan to help increase sales of the company's products to consumers.
Definition 2
A process by which strategies and policies are put into action through the development of
programs, budgets, and procedures.
Definition 3
The methods by which strategies are operationalized or executed within the organization; it
focuses on the processes through which strategies are achieved.

Features of Strategy implementation

1. Formulation
Careful consideration of the strengths and weaknesses of the organization includes a review of
the functional areas which should alert managers to potential conflicts.
2. Trade-offs
A strategy which is comprehensive should spell out certain major trade-offs.
3. Communication
Communication of the strategy is a way of giving functional areas the same information.
4. Participation
Functional managers who have some part in the process of formulating and implementing
strategy are in a better position to understand what is required of them.
5. Close lateral relations
As functional specialists have closer contact with each other, trade-offs can be better assessed.
6. Multifunctional experience
Many organizations require that managers spend part of their tenure in functions other that their
own specialty.
7. Coordination
As part of the implementation process of identifying strategic issues for each of the functional
areas, the cross-functional implications of a change in strategy should be addressed.

5 Essential Steps to Successful Strategy Implementation

Below are the 5 steps to successful strategy implementation.
1. Align your initiatives
A key road to failed implementation is when we create a new strategy but then continue to do the
same things of old. A new strategy means new priorities and new activities across the
organisation. Every activity (other than the most functional) must be reviewed against its
relevance to the new strategy.A good way of doing this is to create a strategic value measurement
tool for existing and new initiatives. Initiatives should be analysed against their strategic value
and the impact to the organisation.
Measuring your initiatives against a scorecard will help highlight the priorities and ensure the
right initiatives are adopted for delivery.
2. Align budgets & performance
Ideally your capital budgets are decentralized, so each division can both allocate and manage the
budgets to deliver the divisions strategic initiatives. Organisational performance should be
closely aligned to strategy. Performance measures should be placed against strategic goals
across the organisation and each division and staff member. All staff will have job functions that
will impact on strategy. Most staff will have impact across a series of strategic goals (eg.
financial, customer service, product). Ensure employees are aware of their role and influence on
strategy delivery and performance. This is also important to employee engagement (see below).
Likewise performance incentives should be directly linked to performance against strategy. They
should include a combination of individual, team and corporate performance measures that
ensure staff recognise their direct and indirect impact on strategy performance.

3. Structure follows strategy

A transformational strategy may require a transformation to structure. Does the structure of your
organisation allow strategy to cascade across and down the organisation in a way that
meaningfully and efficiently delivers the strategy?
Organisations that try and force a new strategy into an out-dated structure will find their strategy
implementation eventually reaches a deadlock.
4. Engaging Staff
The key reason strategy execution fails is because the organisation doesnt get behind it. If
youre staff and critical stakeholders dont understand the strategy and fail to engage, then the
strategy has failed.The importance of this step cannot be understated. If youre staff are not
delivering the strategy, then the strategy has failed.
a. Prepare: Strategy involves change. Change is difficult and human tendency is to resist
it. So not matter how enlightened and inspiring your new strategic vision, it will come up
against hurdles. Outlines four key hurdles that executives must overcome to achieve
execution. Those hurdles are cognitive, resource, motivation and political hurdles. It is
important we understand each of these hurdles and develop strategies to overcome them.
b. Include: Bring influential employees, not just executive team members into the planning
process. Not only will they contribute meaningfully to strategy, they will also be critical
in ensuring the organisation engages with the strategy. Furthermore, listen across the
organisation during strategy formulation.
c. Communicate: Ensure every staff member understands the strategic vision, the strategic
themes and what their role will be in delivering the strategic vision and enrich the
communication experience. Communicate the strategy through a combination of
presentations, workshops, meetings, newsletters, intranets and updates. Continue strategy
and performance updates throughout the year.
d. Clarify: It is important that all employees are aware of expectations. How are they
expected to change? What and how are they expected to deliver? Each individual must

understand their functions within the strategy, the expected outcomes and how they will
be measured.
5. Monitor and Adapt
A strategy must be a living, breathing document. As we all know: if theres one constant in
business these days its change. So our strategies must be adaptable and flexible so they can
respond to changes in both our internal and external environments.
Strategy meetings should be held regularly throughout the year, where initiatives and direction
are assessed for performance and strategic relevance. At least once a year we should put our
strategy under full review to check it against changes in our external and competitive
environments as well as our internal environments.

The Importance of Strategy Implementation

1. Change
The implementation of a plan brings about change meant to help improve the company or
solve a problem. The changes can occur to policies, management structures, organizational
development, budgets, processes, products or services. Since the status quo can be
detrimental to a company, change can help improve the work environment and/or the
customer experience.
2. Organizational Development
Part of good organizational development involves including all employees in implemented
changes. When a company shares its ideas and goals with workers, the workers will feel a
sense of ownership and loyalty to the company, as well as feel included in something
important that is larger than their respective job descriptions. Making workers feel valued
also helps maintain or improve employee retention. Communicating goals to employees
helps encourage participation and can give a plan a strong start.
3. Increased Cooperation
When executed properly, business implementation can increase interdepartmental
cooperation. It can be easy for a department within a business to work independently and
only rely on another department when a need arises, particularly in large company. Business
implementation helps unite departments, open the lines of communication, create a diverse
culture within the organization and increase efficiency and productivity. Successful business
implementation links performance factors with projects designed to develop and optimize
individual and departmental activities.
4. Clear Priorities
As well as communicating goals, business implementation sets clear priorities. Priorities are
generally based on due dates, client needs, financial concerns, worker needs or logistics.
Deadlines help guarantee the implementation of a plan with realistic due dates, but a
company must provide its workers with clear action steps and resources to ensure the success
of the plan. Failure to communicate priorities can cause inefficiencies, miscommunications,

worker frustration and low morale. When priorities or deadlines are realistic, employees feel
as if a company is setting them up for success.
5. Moving Forward
Business implementation is important for moving a company forward. When a business fails
to implement and execute its strategies properly, it fails to move forward and grow.
According to website Business Balls, to implement and execute a plan successfully, there
must be "motivational leadership," a plan of action and "performance management."

Annual Policies
Policies are designed to guide the behavior of managers in relation to the pursuit and
achievement of strategies and objectives. Policies are instrument for strategy implementation.
The term policy has various definitions in management literature. Some authors equate policy
with strategy. Others do this inadvertently by using "policy" as a synonym for company mission,
purpose or culture.
This thesis defines policy much more narrowly as specific guides to managerial action and
decisions in the implementation of strategy.
This definition permits a sharper distinction between the formulation and implementation of
functional strategies.
Policy refers "to specific guidelines, methods, procedures, rules, forms, and administrative
practices established to support and encourage work towards stated goals." Most authors
consider procedures and rules to be policies. Procedures can be defined as chronological steps
that must be followed to complete a particular action; rules can be defined as actions that can or
cannot be taken. Neither a procedure nor a rule provides much latitude in decision making, so
some writers do not consider either to be a policy.
Policies and procedures help enforce strategy implementation in several ways:
1. Policy institutionalizes strategy-supportive practices and operating procedures throughout
the organization.
2. Policy reduces uncertainty in repetitive and day-to-day activities in the direction of
efficient strategy execution.
3. Policy limits independent action and discretionary decision and behavior. Procedures
establish steps how things are to be handled.

4. Policy helps align actions and behaviors with strategy. This minimizes zigzag decisions
and conflicting practices and establishes consistent patterns of action in terms of how the
organization is attempting to make the strategy work.
5. Policy helps to shape the character of the working environment and to translate the
corporate philosophy into how things are done, how people are treated, and what
corporate beliefs and attitudes mean in terms of everyday activities.
6. Policy helps establish a fit between corporate culture and strategy.

Principles That Determine The Potential Effectiveness Of Policies

Koontz and O'Donnell suggest that the following principles determine the potential effectiveness
of policies in relation to strategy implementation:

Policies should reflect objectives

The existence of a policy can only be justified if it leads to the achievement of the organization's
objectives.

Policies should be consistent

Policies which conflict with each other should be avoided.

Policies should be flexible

In general policies should neither be ignored nor departed from indiscriminately.

The extent, to which a policy is mandatory, as opposed to advisory, should be clear. Policies
should be communicated, taught and understood
It is important to ensure that employees understand the existence and meaning of policies, and
appreciate why they exist.

Policies should be controlled

Stated policies can be assessed and controlled as part of any formal planning system and
strategic review. .

Advantages of Annual Policies

Policies may be written and formal or unwritten and informal. There are at least seven
advantages to formal written policies:
1. Managers are required to think through the policy's meaning, content, and intended use.
2. The policy is explicit so misunderstandings are reduced.
3. Equitable and consistent treatment of problems is more likely.
4. Unalterable transmission of policies is ensured.
5. Authorization or sanction of the policy is more clearly communicated, which can be
helpful in many cases.
6. A convenient and authoritative reference can be supplied to all concerned with the policy.
7. Indirect control and organizational coordination, key purposes of policies, are
systematically enhanced.
Policies can exist for any functional tasks undertaken by the organization. Moreover, effective
decisions cannot be made without regard to their impact on other areas of the business. For
example, policy of minimizing the inventory may come at the expense of satisfying customers.
Trade-offs are generally required in this process.
Annual Objectives
Introduction
Objectives set out what the business is trying to achieve.
Objectives can be set at two levels:
(1) Corporate level

These are objectives that concern the business or organization as a whole

Examples of corporate objectives might include:
We aim for a return on investment of at least 15%
We aim to achieve an operating profit of over 10 million on sales of at least 100 million
We aim to increase earnings per share by at least 10% every year for the foreseeable future

(2) Functional level

E.g. specific objectives for marketing activities
Examples of functional marketing objectives might include:
We aim to build customer database of at least 250,000 households within the next 12 months
We aim to achieve a market share of 10%
We aim to achieve 75% customer awareness of our brand in our target markets
Both corporate and functional objectives need to conform to the commonly used SMART
criteria.

Resource Allocation

General Meaning of Resource allocation

Resource allocation is the assignment of available resources to various uses. In the context of an
entire economy, resources can be allocated by various means, such as markets or central
planning. Resource allocation or resource management is the scheduling of activities and the
resources required by those activities while taking into consideration both the resource
availability and the project time.
Analysis of how scarce resources ('factors of production') are distributed among producers, and
how scarce goods and services are apportioned among consumers. This analysis takes into
consideration the accounting cost, economic cost, opportunity cost, and other costs of resources
and goods and services. Allocation of resources is a central theme in economics (which is
essentially a study of how resources are allocated) and is associated with economic efficiency
and maximization of utility.

Meaning related to Strategy Implementation

Resource allocation is the process of assigning and managing assets in a manner that supports an
organization's goals. 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.
In strategic planning, a resource-allocation decision is a plan for using available resources,
especially human resources especially in the near term, to achieve goals for the future. It is the
process of allocating resources among the various projects or business units.
The plan has two parts: Firstly, there is the basic allocation decision and secondly there are
contingency mechanisms. The basic allocation decision is the choice of which items to fund in
the plan, and what level of funding it should receive, and which to leave unfunded: the resources
are allocated to some items, not to others.

Resource allocation is a major management activity that allows for strategy execution. In
organizations that do not use a strategic-management approach to decision making, resource
allocation is often based on political or personal factors. Strategic management enables resources
to be allocated according to priorities established by annual objectives. Nothing could be more
detrimental to strategic management and to organizational success than for resources to be
allocated in ways not consistent with priorities indicated by approved annual objectives.
A number of factors that 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.
Resource Management system benefits all aspects of corporate business operations including
initial resource planning, resource allocation, task management, unified time management,
resource tracking and demand reporting.
Unlike typical standalone resource management tools, Resource Management software covers all
types of enterprise resources engaged in various types of collaborative work such as projects,
processes or cases.
Unique capability manages resources throughout the entire lifecycle of corporate business
operations for various types of collaborative work. The solution provides unmatched planning
accuracy, immediate resource utilization and the capability to identify future resource demands.
These results in a significantly improved resource utilization compared to a typical scenario of
standalone silo tools with separate resource planning, allocation, or resource tracking tools.

How to allocate resources effectively

Resource allocation is one of the trickier aspects of leading a high-performing project team.
From time to time that might mean that someone has to work on something that isnt their core
area of expertise, but provided they have the support required, that could be a good development
opportunity.
1. Skill
One of the best effective way of allocating resources is skill. We have to check whether the
person which is employed have the required skills; so as to carry on their activities and to
complete their activities successfully.
2. Experience
Has the resource in question done this sort of task before? If so, they will have the relevant
experience and the confidence to do it again and probably wont need much support from you.

If they havent done it before, but you believe they have the skills to do the work, then they will
need more support but could still complete the task successfully.
3. Interest
Just because someone has the skills and experience doesnt mean that they are interested enough
in the work to do the task well.
If they have done the same task a thousand times before and really want to spend some time
building their experience in other areas then you could allocate the work to them but it might
not be done to the highest standard, or in a timely fashion.
Talk to your team members before you give them work in order to assess their level of
motivation.
4. Cost
Yes, you do have to consider how much a resource costs before allocating tasks!
The person best placed to do the work may be far too expensive for your project budget, so you
may have to compromise.
Equally, it isnt worth using a highly paid programme manager to do basic admin tasks if you
have someone on the team in a project co-ordinator or PMO support role who could do those for
you.

5. Location
Where is the task going to be carried out? With a lot of project work it doesnt much matter and
your team members could work from anywhere.
But there are likely to be some tasks where location does play a part. For example, configuring
servers on site, or working at a client location for a length of time.
You want to pick someone who is the best person for the job, but if you have a choice of resource
you could find that location plays a part in the decision-making process.
Its cheaper if you dont have to pay travel expenses and its probably more convenient for the
resource concerned if the work is local to where they are normally based.
6. Availability
Finally, you should take availability into account. OK, it isnt the most important criteria when it
comes to assigning work to team members, but it does matter.

There isnt any point in assigning a task to someone who is already overloaded, while other team
members sit around waiting for work to come in.
Instead, it could be a good opportunity to improve the skills of someone else or to help others
learn something completely new, like budget management.
In short, there are lots of factors that come into play when assigning project tasks to team
members.
You probably do it unconsciously but every so often it does help to think through why you are
giving a task to someone as well as to check that they really are the most appropriate person for
the job at that time.

Difficulties in resources allocation

The budget is a crucial factor in Strategy Implementation. Automation, , information technology,

materials acquisition, personnel salaries, and public relations necessitate funding. Each of these
resources is important for any Strategy Implementation that wishes to provide excellent services
to its employees and patrons. Unfortunately because of poor resource allocation, many
business are phased out or severely cut back. A prime example is in the area of personnel
salaries.

The efficiency and cost effectiveness of new technology must also be examined. For example
one must consider automatic checkout as compared to circulation checkout. Another
consideration that affects IT technology is what operating system the server will utilize to host the

World Wide Web. Many libraries use UNIX based information systems to operate their client
server network.

Import restriction: Fortunately or Unfortunately, there is no dearth of human resources in our

country. Naturally one may feel that because of human resources available in abundance, the
strategist will have no problem as regards the issue of allocation. In fact ,This notion has no place
in practical business life . This is because, the working of any business organization does not
merely depend on the quantum of men available but their quality.