@

Strategy Implementation
STRATEGIC MANAGEMT
Strategy Implementation
'(Planning theirWork"

"Working their Plan"

I
Strategy Formulation

Nigar Sultana

Stategt Implemenution

Faailty of Busincss Stuilies

BIIP

\tVhy is Strategy Implementation So

Diffic:.;Jt????

Strategy Implementation
Major tasks to be performed in successful implementation of strategy are as follows:

IdentiS short-term objectives

Initiate specific
functional tactics

Design effective rewards

Communicate
policies to empower
people

There are sveral reasons that strateg/ implementation is so

dillicult:

, The "Organizational Immune System ":

A change of strategies usually requires tlre organization to move

new directions and strateg/ implementation is inextricably
intertwined with organizational change.

Dillicult Paradoxes:
Ttrere a-re many elements of change that are counter-intuitive and
change requires organizations and leaders to face numerous
paradoxes.

, The number of variables involved:

Researchers have developed tlreoretical models of tlle various
elements involved in translating a planned organiz:tional change

into an action that results in desired organizational outcomes.

atanu. gupta@yahoo.com

in

The McKinsey 75 Framework

Why is Strategy Implementation So

Difficrult????
, The interconnectedness of elements affecting

a
a

change:

It is true tl:at strategic change is most difficult to address. A

change to one of its elements has a ripple effect that impacts
other parts, which in tum have their own ripple effects, and
so on.
The need to change "Everjrttring " at once: Changing only one
or two things seldom brings any sigrrificant overall
organizational change. There are no "magic bullets" t}lat
would change entire organizations. To redirectyour
organization, you must address many overlapping and related
issues, and the resulting impression of needling to change
"everything at once" can be overwhelming. This point can be
describe by using the 7-S model.

The McKins ey 73 Framework

The McKinsey 75 Framework

The Seven Elements
The McKinsey 7S model
involves seven

interdependent factors
which are categorized as
either "hard" or "soft"
elements:
:----^-7:T-:- tr *-:t*-::*:-]
SoftETtrtr
i Srrd Flrmdir
i

.iilli&ltit"x::.' j
i!E!Es.,
Istiudnc: l'StilL r: .I
Spm
;
i S,,'t"
i
lsdtr

i,-..

atanu.

.,,,i.,-,:,,:-.-]

upta@yahoo. com

Ensuring that all parts ofyour organization work in harmony.

How do you go about aralyzing how well your organization is
positioned to achieve its intended objective? This is a
question that has been asked for many yezfs, and there are
many different answers. Some approaches look at internal
factors, others look at external ones, some combine these
perspectives, and others look for congrueace between various
aspects of the organization being studied.
While some models of organizatioial effectiveness go in and
out of fashion, one that has persisted is the McKinsey 7S
framework. Developed in the early 198Os by Tom Peters and
Robert Watermal, two consultants working at the McKinsey
& Company consulting lirm, the basic premise of tJee model is
that there are seven internal aspects of an organization tJlat
need to be aligned if it is to be successful.

I
a

Let's look at each of the elements specilically:

Stratery: the plan devised to maintain ald build
competitive advantage over the competition.
Structuae: the way the organization is structured and who
reports to whom.
Systems: tlre daily activities and procedures that staff
members engage in to get the job done.
Shared Values: called "super ordinate goals" when the
model was first developed, these are the core values of the
company that are evidenced in the corporate culture and
the general work ethic.
Style: the style ofleadership adopted.
Staff: the employees and their general capabillties.
Skills: the actual skills and competencies of the employees
working for the company.

I Wfrut are Short-Term

forpose/Uses/Strength/Benefits of
The McKinsey 75 Framework

Objectives?

The 75 model can be used in a w'ide variety of situations

where an alignment perspective is useful, for example to help

you:
Diagnostic tool for understanding organ2ations that are
a

ineffective.
Guides organizational change.
Combines rational and hard elements with emotional and soft
elements.
Managers must act on all Ss in parallel and all Ss are

Role of Short-Term Objectives

1. "Operationalize" long-teru- objectives

2. Raise issues and potential conflicts requiring coordination to
avoid dysfunctional consequences
3. Identify measurable outcomes of functiona-l activities to be
used to make feedback, correction, and evaluation more
relevant and acceptable

interrelated.
The McKinsey 75 model can be applied to elements of . t"uor a project as well. The alignment issues apply, regardless of
t o*'vori a""iae to define th"e scope of tl:e ,r."" v9.i"t"-ay

Qualities of Effective Short-Term

Objectives

atan

u. g

upta@yahoo. com

in Implementing Stratery:

Creating Measurable Objectives

Value-Added Benefits of ShortTerm Objectives

What are Functional Tactics?

Give operating personnel a

better understanding of their
role in

a firm's mission

Provide basis for

accomplishing confl icting
concems

Provide basis for strategic

control

Motivation- claify
personnel and group roles
in a firm's strategies

i
i

Business Strategies and Functional

Tactics

Dif ferences Between Business

Strategies and Functional Tactics

.. are different in three ways

Time horizon

Specificity

atan u. g u pta@yahoo. com

Participants
who develop
them

What Are Policies?

Why Policies Empower People???

Establish indirect control over independent action
by clearly stating how things are to be done now
Promote uniform handling of similar activities
Ensure quicker decisions by standardizing answers
to previously answered questions
Institutionalize basic aspects of organizational
behavior
Reduce uncertainty in repetitive and day-to-day
decision making
Counteract resistance to or rejection of chosen
strategies by organization members
Offer predetermined answers to routine problems
Afford managers a mechanism for avoiding hasty
and ill-conceived decisions in changing operations

Role of Policies in Implementing Stratery:

OPreviously referred to as standard operatlng procedure1
policies increase managerial effectiveness by

.Standardizing many routine decisions

.Clariffig discretion managers and employees can

exercise in implementing functional tactics
OShould be derived from functional tactics with key purpose
of aiding strates/ execution

I Rdvantages of Formal Written Policies

I
I

atan

u.

Executive Bonus Compensation Plans

Require managers to think through policyt meaning,

content, ald intended use
Reduce misunderstanding
Make equitable and consistent treatment of problems more

likely
r Ensure unalterable transmission of policies
a

Communicate authorization or sanction of policies more

clearly
Supply a convenient and authoritative reference
Systematically enhance indirect control and organizationwide coordination of the key purpose of policies

gupta@yahoo.com

o&w
o@

atanu.

fyp"9"f n*"."ti""8o""

upta@yahoo. com