Lecture 3

DEPLOYMENT AND IMPLEMENTATION STAGE

5TH MARCH, 2018

1
 Deployment Stage of Strategic Management Model
Deployment has two phases:
1. In Phase I, the plan is completed and published;
2. In Phase II, it is formally communicated.
Following are actions that are key to successfully completing Phase I and actions
that guarantee failure.

2
 Phase 2 Communicating Strategic Plan
Following are actions that are keys for successfully
communicating the strategic plan and actions that guarantee
failure.

3
 Strategy Implementation
 Strategy implementation is the sum total of the activities and
choices required for the execution of a strategic plan. It is the
process by which objectives, strategies, and policies are put into
action through the development of programs, budgets, and
procedures.
 Although implementation is usually considered after strategy has
been formulated, implementation is a key part of strategic
management. Strategy formulation and strategy implementation
should thus be considered as two sides of the same coin.
 The goal is to unite the total organization behind the strategy.
 Ways to lead the implementation process: a) Make
decisions authoritatively OR on the basis of consensus, b)
Delegate much or little

4
Strategy implementation: Administrative activity with following tasks
 Creating a strategy-supportive organization structure and work environment.
 Developing the skills and distinctive competence upon which strategy is grounded
 Selecting people for key positions
 Motivating organizational units and individuals to accomplish strategy.
 Designing rewards and incentives that induce the desired employee performance.
 Promoting results orientation.
 Established shared values.
 Setting ethical standards.
 Prepare a comprehensive document outlining details of the programs, budget, activities,
responsibilities, time schedules etc.
 Leading the process of shaping values, molding culture and energizing strategy
accomplishment.
 Keeping the organization innovative, responsive, and opportunistic.
 Dealing with the politics of strategy, coping with power struggles, and building consensus.
 Initiating corrective actions to improve strategy execution.
 KPIs. (Organizational Vision – To be known for our superior customer service and
satisfaction. Organizational Objective – To reduce the number of dissatisfied customers by
25%., Organizational KPI – The number of customer complaints that remain unresolved at
the end of a week. Team Member's Goal – To increase the number of satisfactory
complaint resolutions by 15% this period.

5
 Conceptual structure Strategy implementation

6
 Model of Strategy Implementation

7
 The ‘Big 8’ Components of
Implementation.
Build an organization
with the competencies,
Exercise the strategic capabilities, and resource Allocating ample
leadership needed to strengths needed for resources to
drive implementation successful strategy strategy-critical
forward. execution. activities.

Shaping the work The Strategy Establish

Implementer’s
environment and strategy-supportive
Action Agenda
corporate culture policies.
• what to do now
to fit the strategy
vs. later?
•What requires much
time and personal attention?
•What can be delegated to Instituting best practices
others. and pushing for
Tying rewards and continuous improvement.
incentives to the
achievement of key
strategic targets. Installing information, operating
and operating systems that enable
company personnel to better carry
out their strategic roles proficiently.

8
 Problems in implementing strategic Change
 A survey of 500 firms revealed that more than half of the corporations
experienced the following 10 problems when they attempted to
implement a strategic change. These problems are listed in order of
frequency:
1. Implementation took more time than originally planned.
2. Unanticipated major problems arose.
3. Activities were ineffectively coordinated.
4. Competing activities and crises took attention away from
implementation.
5. The involved employees had insufficient capabilities to perform their
jobs.
6. Lower-level employees were inadequately trained.
7. Uncontrollable external environmental factors created problems.
8. Departmental managers provided inadequate leadership and direction.
9. Key implementation tasks and activities were poorly defined.
9
10. The information system inadequately monitored activities.
 Who Implements Strategy
 Depending on how a corporation is organized, those who
implement strategy will probably be a much more diverse set of
people than those who formulate it. In most large, multi-industry
corporations, the implementers are everyone in the organization.
 Vice presidents of functional areas and directors of divisions or
strategic business units (SBUs) work with their subordinates to
put together large-scale implementation plans.
 Project Directors, Plant managers, project managers, and unit
heads put together plans for their specific Programs, plants,
departments, and units. Therefore, every operational manager
down to the first-line supervisor and every employee is involved
in some way in the implementation of corporate, business, and
functional strategies.
10
 What must be done?
The managers of divisions and functional areas work with their
fellow managers to develop programs, budgets, and procedures
for the implementation of strategy. They also work to achieve
synergy among the divisions and functional areas in order to
establish and maintain a Organization’s distinctive competence.
In public Sector the implementation for the development
programs is done usually in accordance with the PC-1.

11
 Strategic Implementation plan
a) The role of the implementing agency
 The specific responsibilities of the key staff during project
implementation and monitoring are outlined.
b) Beneficiary participation
 The involvement of the beneficiaries in planning and
implementation and what is expected of them is spelt out.
c) Organizational structure and staffing
Here the following are sought:
 Project structure for purposes of management
 Qualifications and skills for the staff
 Job descriptions and specifications for the staff
 Technical assistance if needed
d) Financial management
This looks at funds management, accounting period, financial
reports and statements and how often they will be made?

12
 Strategic implementation plan (cont.)
e) Reporting system
This looks at who will be reporting to whom and how often. There is need to design standard reporting
formats.
f) Sustainability
The concept of sustainability is based on belief that project to implement the strategy should result in
benefits that have lasting effect. Project should be sustained beyond the life of funding - especially if it is a
grant. Project should not exhaust the available resources like raw materials and labor.
g) Time control and remedial action
Time taken to implement project activities is one measure of successfulness of supervision or monitoring
of project implementation. Supervisor pays particular attention to time control measures, time scheduling
and its supervision, time extension and postponement, damages for non-completion and defect or
warranty period.
h) Supervision of implementation of project schedule
This involves a set of checks and balances to ensure that the schedule is being adhered to. To ensure that the
time schedule is being adhered to, the project activity time listing can be of great importance.
I) Action Plan: Action plan states what actions are going to be taken, by whom, during what time frame,
and with what expected results

13
 Project Activity Time Listing
Activity Activity Activity Activity Activity Progress
code Description duration earliest time latest time remark

Start Finish Start Finish

14
 Budgets
Establishing a Strategy-supportive budget
Specific tasks :
1. Seeing that each organizational unit has the budget to carry out its part of
the strategic plan
2. Ensuring that resources are used efficiently to get "the biggest bang for
the buck"
Installing internal administrative support systems
 Specific tasks :
1. Establishing and administering strategy-facilitating policies and
procedures
2. Developing administrative and operating systems to give the organization
strategy-critical capabilities
3. Generating the right strategic information on a timely basis.
Procedures: SOP’s: Detail the various activities that must be
carried out to complete a corporation’s programs.
15
 Tools for Putting Strategy
Environment
into Action
Organization
Leadership
 Persuasion
 Motivation
 Culture/values

Structural Design
Human Resources
 Organization Chart
 Teams  Recruitment/selection
Strategy
 Centralization  Transfers/promotions Performance
Decentralization,  Training
 Facilities, task design  Layoffs/recalls

Information and Control Systems

 Pay, reward system
 Budget allocations
 Information systems
 Rules/procedures

16
17
 Steps: Strategy Implementation Cycle

 Approaches to Implementation
 Project Activation and Operation
 Implementation activities
 Factors Affecting Implementation
 Characteristics of a good Implementation Leader
 Process Management tools

18
 Approaches to project Strategic
implementation
Top-down approach
 Implementation mainly done by agencies from outside the
community with limited involvement by the beneficiaries.
Bottom-up approach
 Beneficiaries implement the project. Outside agencies may
provide the financial resources and technical assistance.
Collaborative participatory approach
 Both top-down and bottom-up approaches to project
implementation are applied in the process.

19
 Program/Project Strategic
Implementation phase involves:
 Activation/mobilization, and
 Operation

Activation
 This means making arrangements to have the program/project
started. It involves coordination and allocation of resources to
make it operational.
Operation
 This is practical management of the program/project to achieve
immediate Strategy objectives.

20
 Operation and Maintenance
 To attain value and maximum returns, the beneficiaries
organize for the facility to have the program/project
properly managed and maintained regularly.
 The component must be reflected in the strategy
formulation and budget allocations may be made.

21
Project Strategic Implementation activities:

 What activities can produce expected

program/project outputs?
 What is the sequence of these activities?
 What is the time frame for these activities?
 Who will be responsible for carrying out each
activity?

22
 Project Strategic Implementation
Activities (Contd)

 Implementation usually done by implementing agency

(organization) that prepared the strategy/program/project
and received funding for it.

 Other organizations that participate in the implementation of

the project
 by way of collaboration, say by according good working relationship,
extending technical advice or seconding their staff are referred to
as co-operating agencies.

23
 Implementation Activities (cont.)
 Process whereby “inputs are converted to outputs”. May be
looked at as:
 Putting in action the activities of the project.
 Putting into practice what was proposed in the strategy
(i.e. transforming of the formulated strategy into the
actual )
 Management of the implementation process.

24
 Project Strategic Implementation methods
to monitor activities (Grant Chart)
 Grant Chart can be used to monitor activities.
 The Gantt chart is also referred to as the progress chart.
 It is one of the techniques of project scheduling, which depicts
the frequency of activities and determines the period of time for
implementation.
 Time represented on the horizontal axis, and activities on the
vertical axis.
 Bars are entered to indicate the time period allocated for each
activity and the state of progress at any particular point in time.

25
 Example: Maize farming project
Activity

 Marketing

 Threshing

 Harvesting

 Weeding

 Planting

 Preparing seedbed

J F M A M J J A S O N D
Time period/ months

26
 The Simple Format

ACTIVITY STARTING ENDING COST RESPONSIBLE REMARKS

DATE DATE PERSON
- Preparing seed bed
- Planning
- Weeding
- Harvesting
- Storage
- Threshing
- Marketing

27
 Factors affecting project Strategic
implementation

 Factors that lead to  Factors and problems

success of projects
 Political Commitment
 Simplicity of Design
 Careful preparation
 Good management
 Involvement of
beneficiaries/community
that lead to failure of
projects
 Financial Problems
 Management problems
 Technical problems
 Political problems

28
 Factors affecting project Strategic implementation
 Poor scheduling of projects leading to delays in implementation.
 Misallocation of funds
 Delay and sometimes lack of counterpart funding
 Lack of accountability and transparency
 Bureaucracy in decision-making.
 Selfishness/nepotism/favoritism by some project managers.
 Weak monitoring systems
 Natural calamities like drought, earthquakes, landslides, and
hailstorms.
 Policy changes
 Migration of beneficiaries
 Lack of team work
 Lack of incentives for implementers

29
 Characteristics of a Good manager
 know the Program/project and understand its objectives
 know the systematic process for managing projects
 have working knowledge in several fields
 be able to understand general managerial problems
 have active interest in training and developing subordinates
 be able to delegate some tasks to subordinates .
 be able to answer the following questions:
 What is the project for?
 Why is it required?
 Whom does it serve?
 How is it justified?
 How is it going to be used?

30
 Process Management Tools
 The use of process management tools can improve an organization’s
strategy implementation efforts. Common process improvement tools
include:
 Best Practices - a technique for performing an activity or business process that
has been shown to consistently deliver superior results compared to other methods
 Benchmarking - a tool for improving a company’s own internal activities that is
based on learning how other companies perform them and borrowing their best
practices.
 Reengineering - involves radically redesigning and streamlining how an activity is
performed with the intent of achieving dramatic improvements in performance
 Total Quality Management - a philosophy of managing a set of business
practices that emphasizes continuously improving the performance of every task and
value chain activity
 Six Sigma Quality Programs - utilize advance statistical methods to improve
quality by reducing defects and variability in the performance of business processes
 Lean Manufacturing - a production practice that considers the expenditure of
resources for any goal other than the creation of value for the end customer to be
wasteful, and thus a target for elimination; centered on preserving value with less
work
31
 Total Quality Management
 Total Quality Management (TQ, QM or TQM) and Six
Sigma (6) are sweeping “culture change” efforts to
position a company for greater customer satisfaction,
profitability and competitiveness.
 TQ may be defined as managing the entire organization
so that it excels on all dimensions of products and
services that are important to the customer.
 We often think of features when we think of the quality
of a product or service; TQ is about conformance
quality, not features (distinction).

32
 Total Quality Is…
 Meeting Our Customer’s Requirements

 Doing Things Right the First Time; Freedom from Failure

(Defects)

 Consistency (Reduction in Variation)

 Continuous Improvement

 Quality in Everything We Do

 A belief in the employee’s ability to solve problems

 A belief that people doing the work are best able to improve it

 A belief that everyone is responsible for quality (not only QA

Dept)
33
 The Continuous Improvement Process
Measurement

Empowerment/
Shared Leadership

Measurement
Measurement

Customer
Satisfaction

Business
Results Process
Team Improvement/
Management
Problem
Solving

...
Measurement
34
 Modern History of Quality Management
 Frederick W. Taylor wrote Principles of Scientific Management in 1911 (DIVISION OF,
WORK, AUTHORITY, DISCIPLINE, UNITY OF COMMAND, UNITY OF DIRECTION,
SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS,
REMUNERATION, CENTRALIZATION, SCALAR CHAIN, ORDER, EQUITY, STABILITY
OF TENURE OF PERSONNEL, INITIATIVE, And ESPIRIT DE CORPS).
 Walter A. Shewhart used statistics in quality control and inspection, and showed that
productivity improves when variation is reduced (1924)
 W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950;
began transformation from “shoddy” to “world class” goods.
 In 1960, Dr. K. Ishikawa formalized “quality circles” - the use of small groups to eliminate
variation and improve processes.
 In the late ‘70’s and early ‘80’s:
 Deming returned from Japan to write Out of the Crisis,
Phil Crosby wrote Quality is Free
 NBC ran “If Japan can do it, why can’t we?”
 Motorola began 6 Sigma

35
 SCALAR CHAIN

36
 QUALITY CIRCLE

37
 History of Quality Management
Deming’s 14 Points
1. Create constancy of purpose for improvement
2. Adopt a new philosophy
3. Cease dependence on mass inspection
4. Do not award business on price alone
5. Work continually on the system of production and service
6. Institute modern methods of training
7. Institute modern methods of supervision of workers
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations/urgency, targets for the work force
11. Eliminate numerical quotas
12. Remove barriers preventing pride of workmanship
13. Institute a vigorous program of education and retraining
14. Take action to accomplish the transformation/change.

38
 History of Quality Management
Deming’s Concept of “Profound Knowledge”

 Understanding (and appreciation) of Systems

- optimizing sub-systems sub-optimizes the total system
- the majority of defects come from systems, the responsibility of
management (e.g., machines not in good order, defective material, etc.
 Knowledge of Statistics (variation, capability, uncertainty in data, etc.)
- to identify where problems are, and point managers and workers
toward solutions
 Knowledge of Psychology (Motivation)
- people are afraid of failing and not being recognized,
so they fear how data will be used against them
 Theory of Knowledge
- understanding that management in any form is a prediction, and is
based on assumptions

39
 History of Total Quality

According to Phil Crosby, Quality is . . .

An attitude:
- Zero Defects
- Continuous Improvement
A measurement:
- Price of Conformance, plus
- Price of Nonconformance (defects)

40
TQ: Transforming an Organization
From To

Motivation through fear and loyalty Motivation through shared vision

Attitude: “It’s their problem” Ownership of every problem

affecting the customer

Attitude: “the way we’ve always done Continuous improvement

it”

Decisions based on assumptions/ Decisions based on data and facts

judgment calls

Everything begins and ends with Everything begins and ends with
management customers

Crisis management and recovery Doing it right the first time

Choosing participative OR scientific Choosing scientific AND

management participative management

41
 What is Six Sigma?
•Six Sigma is a set of techniques and tools for process improvement.
•Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of
defects (errors) and minimizing variability in manufacturing and business processes (collection of
related, structured activities or tasks that produce a specific service or product) It uses a set of quality
management methods, mainly empirical, statistical methods, and creates a special infrastructure of
people within the organization
•A Vision and Philosophical commitment to the consumers to offer the highest quality, lowest cost
products
• A Metric that demonstrates quality levels at 99.9997% performance for products and process
• A Benchmark of our product and process capability for comparison to ‘best in class’
• A practical application of statistical Tools and Methods to help us measure, analyze, improve, and
control our process
•A comprehensive and flexible system for achieving, sustaining and maximizing business success;
uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical
analysis, and diligent attention to managing, improving and reinventing business processes

42
43
44
 Where can Six Sigma be applied?

Service
Design
Management

Purchase

Administration Six Sigma

Methods Production

IT
Quality
Depart.
HRM M&S
 Six Sigma Improvement Methods
DMAIC

Define

Measure

Analyze

Improve

Control

46
 Six Sigma DMAIC Process
Control Define: Define who your customers
are, and what their requirements are
for your products and services – Their
Improve expectations. Define your team goals,
project boundaries, what you will focus
on and what you won’t. Define the
Define process you are striving to improve by
mapping the process.
Analyze

Measure

47
 Six Sigma DMAIC Process
Measure: Eliminate guesswork and
assumptions about what customers need
Control and expect and how well processes are
working. Collect data from many sources
to determine speed in responding to
Improve customer requests, defect types and how
frequently they occur, client feedback on
how processes fit their needs, how clients
Define rate us over time, etc. The data collection
may suggest Charter revision.
Analyze

Measure

48
 Six Sigma DMAIC Process
Analyze: Grounded in the context of the
Control customer and competitive environment,
analyze is used to organize data and look
for process problems and opportunities.
Improve This step helps to identify gaps between
current and goal performance, prioritize
opportunities to improve, identify sources
Define of variation and root causes of problems
in the process.
Analyze

Measure

49
 Six Sigma DMAIC Process
Control

Improve: Generate both obvious and

Improve creative solutions to fix and prevent
problems. Finding creative solutions by
correcting root causes requires
Define innovation, technology and discipline.

Analyze

Measure

50
 Six Sigma DMAIC Process
Control: Insure that the process
Control improvements, once implemented, will
“hold the gains” rather than revert to
the same problems again. Various
Improve control tools such as statistical process
control can be used. Other tools such
as procedure documentation helps
Define
institutionalize the improvement.

Analyze

Measure

51