Strategic Implementation

Learning Outcomes
Understand where strategy implementation fits into strategic process Understand the role of resource planning in strategic implementation Understand how corporate culture is important to strategy implementation Understand the link between structure and strategy Understand change management

Implementation : the Doing Strategy

3 questions :
How well is the strategy resourced? How well do the culture, structure and internal systems fit the strategy? How will the process of change be managed?

The Process
Strategic Analysis

Strategy Selection

Strategy Implementation

How well is the strategy resourced ?

Do the resources need to be increased or decreased ? Resources include :
Physical Financial Human Intellectual/intangible

Resource Audit
Used to assess resources for:
Sufficiency Adequacy Availability

Resource Planning
Hand in hand with resource audits are plans to make sure the needs of the strategy are met Includes:
Financial planning (budgeting) Human resource planning Physical resource planning Intellectual resource planning

Does the culture fit the strategy?

Assessment of the culture determines if the organization is ready to take on the strategy Use Miles and Snows culture types
Defender Prospector Analyser Reactor

Does the structure fit the strategy?

Height layers of the organization Width the extent to which power is decentralized Complexity the extent to which there is a formal hierarchy
Methods of division
Formal/informal matrix

Functional Geographic Product Customer focus/market

Product Structure

Market Structure

Geographic Structure

Implementing Strategy
Matrix structure
Value chain activities are grouped by function and by product or project Flat and decentralized Promotes innovation and speed Norms and values based on innovation and product excellence

Implementing Strategy
Product-team structure
Tasks divided along product or project lines Functional specialists are part of permanent cross-functional teams

Matrix Structure

Product-Team Structure

Implementing Strategy
Matrix and Product-team structures are useful in competing in fast-changing, high-tech environments Matrix and Product-team structures are also useful in multi-business companies

How to manage change in implementation

Often, new strategy brings change Willingness to change depends on culture, size, structure, age, product, and positioning Challenge: how to overcome inertia From physics: a body at rest tends to stay at rest Inertia may result from:
Lack of understanding Lack of trust Fear Uncertainty about the future

Lewins 3 Steps of Change

Unfreezing Moving to a new level Refreezing

Step Change Vs Incremental Change

Step change = rapid change Incremental change = small changes over time

Models for Managing Change

Managerialist approach Change agent approach

Managerialist Approach
Using a variety of managerial approaches to effect change Should include:
Education Communication Negotiation and participation Coercion (maybe)

Change Agent Approach

One individual manages the entire change process May be a key manager or an outside consultant