PRESENTATION ON

STRATEGY IMPLEMENTATION & CONTROL

PRESENTED BY: NIKITA DHIMAN PRIYA NAGPAL YOGESH BANSAL RAKESH SINGH

STRATEGY IMPLEMENTATION

TRANSLATION OF CHOSEN ACTIVITY INTO ORGANIZATIONAL ACTION. MANNER IN WHICH AN ORGANIZATION SHOULD DEVELOP, UTILIZE AND AMALGAMATE ORGANIZATIONAL STRUCTURE, CONTROL SYSTEMS AND CULTURE TO FOLLOW STRATEGIES. PROCESS THROUGH WHICH CHOSEN STRATEGY IS PUT INTO ACTION.

NATURE OF STRATEGY IMPLEMENTATION

ACTION ORIENTATION COMPREHENSIVE IN SCOPE DEMANDING VARIED SKILLS WIDE-RANGING INVOLVEMENT INTEGRATED PROCESS

BARRIERS TO STRATEGY IMPLEMENTATION

AN INABILITY TO MANAGE CHANGE POOR OR VAGUE STRATEGY POOR OR INADEQUATE INFORMATION SHARING

UNCLEAR RESPONSIBILITY AND ACCOUNTABILITY

INTERRELATIONSHIP OF FORMULATION AND IMPLEMENTATION

TWO-WAY LINKAGE BETWEEN FORMULATON AND IMPLEMENTATION OF STRATEGY

STRATEGY FORMULATION (THOUGHT)

FORWARD

STRATEGY IMPLEMENTATI ON (ACTION)

A MODEL OF STRATEGY IMPLEMENTATION

ACTIVATING STRATEGIES
PROJECT IMPLEMENTATI ON
PROCEDURAL IMPLEMENTATIO N

MANAGING CHANGE
STRUCTURAL IMPLEMENTATI ON

ACHIEVING EFFECTIVENESS

STRATEGIC PLAN

LEADERSHIP IMPLEMENTATI ON
BEHAVIOURAL IMPLEMENTATI ON

FUNCTIONAL IMPLEMENTAT ION

EVALUATION & CONTROL

OPERATIONAL IMPLEMENTAT ION

RESOURCE ALLOCATION

FEEDBACK

STEPS IN IMPLEMENTING A STRATEGY

Developing an organization having potential of carrying out strategy successfully. Disbursement of abundant resources to strategy-essential activities. Creating strategy-encouraging policies. Employing best policies and programs for constant improvement. Linking reward structure to accomplishment of results. Making use of strategic leadership.

WHY FORMULATED STRATEGIES FAIL?

FORMULATED STRATEGIES FAIL IF NOT IMPLEMENTED PROPERLY.

WHAT SHOULD BE DONE FOR PROPER IMPLEMENTATION?

CREATE STABILITY BETWEEN STRATEGY AND ORZATIONAL STRUCTURE REWARD STRUCTURE RESOURCE- ALLOCATION PROCESS

ORGANIZATIONAL STRUCTURE
SIMPLE STRUCTURE
Owner-manager makes

President

Employees

decisions. Little specialization of tasks. Few rules, little formalization. Advantages: - Provides high flexibility - Rapid product introduction - Few coordination problems

CONT..

FUNCTIONAL STRUCTURE President Legal Affairs

Accounting

HRM

Finance

Marketing

R&D

Production

CONT..
Advantages
- Centralized control of operations

- Promotes in-depth functional expertise - Enhances operating efficiency where tasks are routine

Disadvantages
- Functional coordination problems - Inter-functional rivalry - Overspecialization and narrow viewpoints - Hinders development of cross-functional experience - Slower to respond in turbulent environments

CONT..
Group of firms combine

NETWORK STRUCTURE Partner

resources to achieve together what they cant achieve alone.

- Firms emphasize their own

Advantages:

Partner

core competencies. - Rapid response time - Very flexible

Focal Firm

Disadvantages

- Asymmetric information - Trustworthiness of partners - Asset hold-up

Partner

Partner

TYING REWARDS AND INCENTIVES TO GOOD STRATEGY IMPLEMENTATION

MONETARY INCENTIVES SALARY BONUS PROFIT-SHARING PLANS

NON-MONETARY INCENTIVES REWARDS RECOGNITION DESGNATION

Allocating Resources to Support Strategy Execution

Resource allocation should fit strategy Changing strategy requires changes to resource allocation process Shifting resources downsizing some areas, upsizing others, getting rid of activities no longer needed, and funding new strategically critical activities Financial and other resources (physical and human assets)

BEHAVIOURAL IMPLEMENTATION

The behavioural of the employees affect the success of the organization. Thus, Strategic implementation requires support, discipline, motivation and hard work from all manager and employees. Relates to the behavior of strategists i.e. behavior as individuals as well as in groups. And this includes: Corporate Governance Leadership style Personal ethics Political Behaviour Social responsibility being a CEO who is committed to social ideas.

BEHAVIOURAL IMPLEMENTATION AT INFOSYS TECHNOLOGIES

INFOSYS has impeccable financial performance record, but here are several aspects of behavioural implementation that works behind the scenes, adding to its reputation as a company. INFOSYS has 9 principles of corporate governance including transparency, satisfying the spirit. INFOSYS has developed guidelines for corporate governance in terms of composition of board of directors, board meetings, board committees, management review and responsibility. Strategic leadership of infosys

BEHAVIOURAL IMPLEMENTATION AT INFOSYS TECHNOLOGIES CONT..

CULTURE AND VALUE SYSTEM AT INFOSYS. Value system is CLIFE and stands for C CUSTOMER DELIGHT L LEADERSHIP I INTEGRITY F FAIRNESS E EXCELLENCE

CORPORATE CULTURE: Flat organization culture, open

communication, information sharing and autonomy in decision-making

PERSONAL VALUES AND BUSINESS ATHICS

SOCIAL RESPONSIBILITY : Beyond Business

FUNCTIONAL IMPLEMENTATION

Organizations are COMPLEX ENTITIES. Organizations are systems having sub-systems. In the case of BUSINESS ORGANIZATIONS, these subsystems are often their functional departments such as marketing and operations. Functional Strategies: Carried out through functional and operational implementation

CONT..
FUNCTIONAL IMPLEMENTATION: Done through functional plans and policies in different functional areas. Functional areas where plans and policies are implemented: Finance Marketing Operations Personnel Information Management

FUNCTIONAL IMPLEMENTATION AT MRF LIMITED

Chennai-based MRF Ltd. Is a leading TYRE company, established in 1946. It has 7 manufacturing units. Strategies adopted by the company have been consistent over the year and are of stable expansion and minor diversifications into toys and speciality paints, making it a sharply-focussed company.

CONT..
Main features of the functional plans and policies at MRF Ltd. are : Financial Area Low equity base To the maximum extent, depends on internal funds Avoid substantial stake by financial institutions Financial systems are largerly institutionalised. High inventories act as a buffer against fluctuations in raw material, especially natural rubber prices.

CONT..
MARKETING AREA MRF believes in listening to the consumers. Understanding consumer behaviour for product designing, entering new markets and building priceinsensitive brand. Improvement in product quality through in-house as well as foreign technology. Shift in the product mix with greater emphasis on tyres for car and the two-wheeler segments. Export is a thrust area. MRF exports to 75 countries. MRF follows a policy of holding prices and discouraging discounts.

CONT..

Greater emphasis on TV advertising. The media mix has print, outdoor, internet and belowthe-line activities like mailers. Promotion is based on personal contact with truck operators and effective after-sales service along with customer counselling. Corporate mascot is a MUSCLEMAN that is designed to project strength, reliability and durability. Distribution policy is to focus on dealers as an important market linkage Vast dealer network of 2500 outlets.

CONT..
OPERATIONAL AREA Operational policy of MRF is to expand its tyre manufacturing capacity and avoid backward integration. Efficient shop floor management, advance planning for supply of raw material, economies of scale benefits through large-volume production and High emphasis on quality control. The R & D policy is aimed at modifying and adapting tyre technology to conform to the requirements of Indian road conditions.

CONT..
PERSONNEL AREA Personnel policy is development oriented. Managers down the line are provided systematic exposure to technology. Product Managers for each category of tyres. Style of management is professional and policy matte ers are decided by the top management and day-to-day affairs are left to professional managers. Cross-functional teams from different units contribute to suggestions, leading to cost efficiency and productivity improvements.

OPERATIONAL IMPLEMENTATION
Operational implementation is the approach adopted by
an organization to achieve organizational effectiveness. This is the time for action as this is the stage at which the most tangible works get done. It covers practically everything that is done in the organization. It is a major task of line managers. The success of corporate and business strategies crucially depends on how operational implementation is done and in what way operational effectiveness is achieved.

CONT..
OPERATIONAL EFFECTIVENESS: It refers to any number of practices that allows a company to better utilize its inputs. For example, reducing defects in products or developing better products faster. Four Areas or Four Ps of operational effecrtiveness: PRODUCTIVITY PROCESSES PEOPLE PACE These all are the major aspects of operational implementation.

STRATEGIC EVALUATION AND CONTROL

It is the final phase of strategic management.

Strategic evaluation operates at two-levels: Strategic level: Concerned with the consistency of strategy with the environment. Operational level: The effort is directed at assessing how well the organization is pursuing a given strategy.

Strategic control: Consists of setting standards,

measuring performance, analysing variances and taking corrective actions

CONT..

Four types of strategic control: Premise control Strategic surveillance Special alert control

Implementation control

CONT..

PREMISE CONTROL: Premise control is designed to check systematically and continuously whether the premises on which the strategy is based are still valid Environmental factors Industry factors

CONT..

STRATEGIC SURVEILLANCE: It is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy Strategic surveillance must be kept as unfocused as possible Despite its looseness, strategic surveillance provides an ongoing, broad-based vigilance in all daily operations

CONT..

SPECIAL ALERT CONTROL: It is the thorough, and often rapid, reconsideration of the firms strategy because of a sudden, unexpected event A drastic event should trigger an immediate and intense reassessment of the firms strategy and its current strategic situation Crisis teams Contingency plans

CONT..

IMPLEMENTATION CONTROL: Strategy

implementation takes place as series of steps, programs, investments, and moves that occur over an extended time Implementation control is designed to assess whether the overall strategy should be changed in light of the results associated with the incremental actions that implement the overall strategy Monitoring strategic thrusts Milestone reviews

STRATEGIC EVALUATION AND CONTROL AT THE APOLLO HOSPITALS NETWORK

Apollo Hospitals Enterprise Limited (AHEL) has the distinction of being the first and the largest corporate hospital network in INDIA. Incorporated as a public limited company in 1979. AHEL is basically a family-owned and family-managed organization with Dr. Reddy as the executive chairman and his three daughters holding the positions of managing director ad executive directors of finance and operations. Corporate strategy is of expansion through organic as well as inorganic routes, to grow through acquisitions, strategic alliances, iternationalisation and digitalisation

CONT..

Focus is created through niches such as medical tourism, offering specialised healthcare facilities for foreigners and non-resident Indians, particularly from U.S. and global nursing staffing by education and training of nurses. The Apollo network owns and manages more than 40 hospitals in India and some neighbouring countries. The business portfolio of AHEL has speciality hospitals and clinics, a chain of pharmacy retail outlets and consultancy services for commissioning and managing hospitals.

CONT..

50 clinical departments for patient care and are managed by 7000 medical professionals Introduced new services such as medical insurance, telemedicine, healthcare business process outsourcing. Strategic control appears to be centralised in the executive team led by Dr. Reddy. The performance evaluation model at AHEL, called the Apollo clinical excellence model, is based on the identification of key performance areas such as clinical professionals, support personnel, equipment, patients, and environment of care.

CONT..

Continuous improvement is reflected in: Allocation of resources Setting up of systems Formal daily meetings with managers Open door policy of communication.

Instruments used to gather feedback: Patient satisfaction surveys Well-designed brochures Interactive website Grievance handling Complaint boxes

CONT..

Customers, co-workers and senior colleagues feedback constitute an important component of Performance appraisal, done every six months. Standard operating procedures for healthcare processes Reward system consisting of Monetary incentives, recognition, staff support and counselling available. Apollo network has certain advantages such as: First-mover advantage Large size In-depth experience Brand equity Widespread geographical presence