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Key insights from Strategy Implementation standpoint:

Implementation: The gap between formulation and performance

Unless caught in time, the endless formulation-implementation-performance cycle


leads to subsequent attempts at implementing a mistaken strategy. When this occurs,
it is hard to tell if weak performance is due to good implementation of a bad strategy,
or the result of poor implementation of a good strategy.

The six killers that can be devastating for an organisation are:

Top-down or laissez-faire senior management style


Unclear strategy and conflicting priorities
An ineffective senior management team
Poor vertical communication
Poor coordination across functions, businesses or borders
Inadequate down-the-line leadership skills and development

Eight levers of strategy implementation exist which can serve as facilitators as well as barriers in the
implementation process. Two kinds of levers could be distinguished: structural variables and
managerial skills
Structural variables (Framework or configuration):
1.
2.
3.
4.

Actionswho, what, and when of cross functional integration and company collaboration
Programsinstilling organizational learning and continuous improvement practices;
Systemsinstalling strategic support systems
Policiesestablishing strategy supportive policies

Managerial skills (Behavioural activities):


1.
2.
3.
4.

Interactingthe exercising of strategic leadership


Allocatingunderstanding when and where to allocate resources
Monitoringtying rewards to achievement
Organizingthe strategic shaping of corporate culture

The key insights related to Making Strategy Work and factors influencing Implementation are:
Factors that influence the success of strategy implementation, ranging from the people who
communicate or implement the strategy to the systems or mechanisms in place for co-ordination and
control are as follows:
Soft factors: Soft factors (or people-oriented factors) include the people or executors of the strategy,
the communication activities (incl. content and style issues) as well as the closely related
implementation tactics, the consensus about and commitment to the strategy,
Hard factors: Hard (or institutional) factors include the organizational structure, the administrative
systems
Mixed factors: Mixed factors consist of the way in which the strategy was developed and articulated
(strategy formulation) i.e. it contains hard and soft factors alike.
There are three perspectives of strategy implementation. These are:

1. Process perspective: It takes strategy implementation as a sequence of carefully planned


consecutive steps and it ensures assignments are carried out in a timely manner.
2. Behavior perspective: It is a series of decisions and resultant actions which commit
resources to achieving intended outcomes. It also calls for managerial and leadership skills
3. Hybrid perspective: Implementation is defined as the sum total of the activities and
choices required for the execution of a strategic planthe process by which strategies and
policies are put into action.
There are soft, hard and mixed factors that influence the success of strategy implementation, ranging
from the people who communicate or implement the strategy to the systems or mechanisms in place
for co-ordination and control. Soft factors are people oriented factors. Hard factors are Institutional
factors including organisation design and structure. Mixed factors contain hard and soft factors alike.
Nine different factors that affect strategy implementation:
Strategy formulation: It is clear that a poor or vague strategy can limit implementation efforts
dramatically. It also talks about concept of procedural justice.
Relationships among different units/departments and different strategy levels:
This considers synergy between various SBUs and departments.
Executors: Executors are comprised of top management, middle management, lower management
and non-management
Communication:
Organizational communication plays an important role in training, knowledge dissemination and
learning during the process of strategy implementation.
Implementation tactics:
Four types of implementation tactics used by managers in making planned changes: intervention,
participation, persuasion, and edict.
Consensus:
Consensus has four levels: strong consensus, blind devotion, informed scepticism and weak
consensus.
Commitment:
Three dimensions of commitment that emerged as central factors which directly influence strategic
outcomes: organizational commitment, strategy commitment and role commitment.
Organizational Structure:
Different strategy types have different requirements regarding an adequate organizational structure.
Administrative Systems
There are three key administrative mechanisms that firms can use to cope with uncertainty in this
context: design of organizational structure (decentralization), design of control systems
(budget evaluative style) and selection of managers (locus of control).
Also the video tells us about a checklist that needs to be made before and after strategy
implementation

Identifying primary consumer is very important and tough.


Companies should also ask uncomfortable questions like what can cause the business to fail
The speaker also states that on adding many measures to scorecard only confuses the
employees
The companies must prioritize either of the customers, shareholders or employees.

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