Strategy Implementation

Managers
Mental
Models
(Beliefs &
Understanding
Vision
and
Mission
Business
Definition
Corporate
Strategy
Business
Strategy
Functional
Strategy

Market
Position
P
e
r
f
o
r
m
a
n
c
e
Set
Objectives
I
m
p
l
e
m
e
n
t
a
t
i
o
n

Decisions about
A Framework for the Strategy Making Process
Feedback
Strategic Management Model

Create a
Vision or
Mission

Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
Strategic Management Model

Create a
Vision or
Mission

Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
(Long-term)
Short-term
Objectives
Functional Strategy
Functional Tactics
Is there a difference between
strategy and tactics?

if so

How do we distinguish between
strategy and tactics?
Each functional area will have different
functional tactics
What is functional strategy? What is the
overall purpose of functional strategy?
Business-Level
Strategy
Functional-Level
Strategy
Functional
Tactics
Implementation is about action!
Once the strategy has been formulated it is initiated through
four interrelated steps:

1. Creation of short-term objectives

2. Development of specific functional tactics that create
competitive advantage

3. Empowering operating personnel through policies that
guide decisions

4. Development of effective rewards
Functional Tactics and
Short-term
objectives
Functional
Strategy
Action
Plans
Policies and
Rewards
Implementation Requires
Time frame
Responsibility
Performance

What are policies and why are they
important in implementation?
What is organizational culture and
why is it important to implementation?


Why are reward systems so important to
strategy implementation?

Which are more effective
intrinsic or extrinsic?


Which ones motivate you?
Strategic Management Model

Create a
Vision or
Mission

Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
(Long-term)
Short-term
Objectives
Functional Strategy
Functional Tactics
McKinsey 7-S
McKinsey 7-S is a framework for understanding
effective organizational change.


Implementation I mpacts and is I mpacted by the
components of McKinsey 7-S
McKinsey 7-S
Structure

Skills (organizational, management, employee)

Staff (management and employee)

Shared values (culture)

Style (leadership)

Systems

(current) Strategy
Strategic Management Model

Create a
Vision or
Mission

Set
Objectives
Craft a
Strategy
Implement
the
Strategy
Measure
and
Evaluate
(Long-term)
Short-term
Objectives
Functional Strategy
Functional Tactics
Control
Control (Strategic and Operational)
What does control mean in an organizational context?


Strategic Control
Strategic control is concerned with tracking strategy once it
has been implemented, detecting changes or problems as they
occur and guiding action whose result will manifest several
years from the initial execution.

Premise control: systematically checks whether the premises
(assumptions) on which the strategy is based are still valid.

Implementation control: is designed to assess whether the overall
strategy should be changed in light of results associated with
incremental actions.
Strategic Control continued
Strategic surveillance: monitors a broad range of events inside and
outside of the firm that are likely to affect the course of its strategy


Special Alert Control: is a thorough and often rapt reconsideration
of the firms strategy because of a sudden unexpected event
Operational Control
Operational controls monitor performance, evaluate deviations
and initiate corrective action.

They are designed to monitor, guide and evaluate the firms
progress in meeting short-term objectives.

Operational controls (e.g., budgets, scheduling resources):

-set standards of performance
-measure actual performance
-identify deviations
-initiate corrective action