Implementation* Flashcards
STRATEGY IMPLEMENTATION
Sum total of activities & choices
required for strategic plan execution
STRATEGY IMPLEMENTATION, It is a process by which;
objectives + strategies + policies
are put into action through the development of;
programs + budgets + procedures
STRATEGY IMPLEMENTATION, COMMON PROBLEMS:
Took more time than planned
Unanticipated major problems
Poor coordination
Competing activities and crises created distractions
Employees with insufficient capabilities
Poor subordinate training
Uncontrollable external environmental factors
Poor departmental leadership and direction
Inadequately defined implementation tasks and activities
Inefficient information system to monitor activities
Key Implementation Questions –
Who carries out a strategic plan?
What needs doing for alignment w/ strategy?
How is work coordinated?
Who carries out a strategic plan? 1
The implementers are;
everyone in the organization
Who carries out a strategic plan? 2
Unless changes in mission, objectives, strategies and policies and their importance to the company are communicated clearly to all operational managers, there can be a lot of resistance and foot-dragging.
Who carries out a strategic plan? 3
This is the reason why involving people from all organizational levels in the formulation and implementation of strategy tends to result in better organizational performance.
WHAT MUST BE DONE?
The managers of divisions and functional areas work with their fellow managers to develop; Programs Budgets, and Procedures Achieving synergy to implement strategy
WHAT MUST BE DONE? 2
They also work to achieve synergy among the divisions and functional areas in order to establish and maintain a company’s distinctive competence
The purpose of a program is to make a strategy
Action-oriented
Budgets
Planning a budget is the last real check a corporation has on the feasibility of its selected strategy
Procedures
Detailed activities that must be carried out to complete the programs.
Synergy
exists for a divisional corporation if the return on investment is greater than what the return would be if each division were an independent business
Achieving Synergy
Shared know-how
Coordinated strategies
Shared tangible resources
Economies of scale or scope
Pooled negotiating power
New business creation
How is a strategy to be implemented?
Organizing
Staffing
Directing
Controlling
ORGANIZING
Any change in corporate strategy is very likely to require
some sort of change
in the way
an organization is structured
Authority 1
Authority: How and Why Vertical Differentiation Occurs
Authority 2
The hierarchy begins to emerge when the organization experiences problems in coordinating and motivating employees effectively
Division of labor and specialization make it hard to determine how well an individual performs
Impossible to assess individual contributions to performance when employees cooperate
To deal with coordination and motivation problems, the organization can
Increase the number of managers it uses to monitor, evaluate, and reward employees
Increase the number of levels in its managerial hierarchy
Tall organization,
Flat organization:
Tall organization: The hierarchy has many levels relative to the size of the organization
Flat organization: Has few levels in its hierarchy relative to its size
Bloated Structure
with an increasing number of managers at each level
Organizational Structure
The formal arrangement of jobs within an organization.
Organizational Design
A process involving decisions about six key elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization
Structure follows strategy
New strategy is created New administrative problems emerge Economic performance declines New appropriate structure is invented Profit returns to the previous level
