Strategy Implementation Show
Strategy is implemented through the use of projects, programs and portfolios. Portfolios structure investments in line with strategic objectives, whilst balancing, aligning and scrutinizing capacity and resources. Programs combine business-as-usual with projects and steady state activity dictated by strategic priorities. Projects are transient endeavors that bring about change and achieve planned objectives. Together, they combine to deliver the beneficial change required to implement, enable and satisfy the strategic intent of the organization. Strategy Implementation PlanningStrategy implementation is an action-oriented process for building a capable organization that can make the selected planned/formulated strategy work as intended, through execution of the initiatives in those plans to realize the actual strategy. Strategic initiatives are the means through which a company translates its goals and vision into practice. They are the specific actions or goals an organization adopts to bring its vision to life. They are the first tangible objectives of your strategy, and are crucial to the execution of the strategy and the organizations development. Strategy implementation planning is one way by which an organization's objectives, strategies, and policies are put into action through development of initiatives (programs and projects), budgets and procedures. Implementation planning involves the following:
A strategy is fully implemented, if the corporate strategy is fully implemented, i.e., the corporation has the capabilities, comparative (enterprise) advantage, and business portfolio it wants;and the business business strategy is fully implemented, i.e., the business unit has the customers, value proposition, and skills it has chosen to have. In practice a strategy is never fully implemented since the environment factors on which strategy assumptions were based are in constant flux. Technically, a strategy can never actually be fully implemented because everything that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategy call for. Closing this gap is implementation. Successful strategy implementation can be challenging, and it requires strong leadership and management skills. Effective delegation, patience, emotional intelligence, thorough organizational abilities, and communication skills are crucial. Strategic issues in strategic implementation include:
[TBD] Implementation PlanImplementation plan includes several different components that need to be coordinated and managed through the assignment and direction of personnel to carry out the plan. Implementation deals with organizational design changes and structural modifications, motivational plans, reward and punishment systems, leadership style, and control and information systems. Strategy implementation is all about “how” the activities will be carried out, “who” will perform them, “when” and "how often" will they be performed, and “where” will the activities be conducted. And it does not refer only to the installation or application of new strategies but also to existing strategies that have always worked well in the past years, and are still expected to yield excellent results in the coming periods. Reinforcing these strategies is also a part of strategy implementation. Once planning goals are set in the strategy formulation stage, managers organize the human resources and other resources that are identified as necessary by the plan to reach the planned goals. Strategy implementation means the strategic plans are carried out and translated into positive actions. These are essentially two (2) aspects/parts to implementation: There are three (3) approaches to implementation control, including authority, persuasion, and policy. Planning - The cascade of objectives - decisions and actions down through the organization; this requires that there exists an appropriate operations infrastructure.
The planning aspects of implementation revolve around decisions about managing people and processes, taking into consideration management issues central to strategy implementation. [TBD] Strategy Implementation TasksAlthough strategy implementation requires a
customized approach, the following are some general tasks that managers must perform to successfully implement the selected/chosen strategy.
These are some of the various strategy implementation tasks common to most companies that strategy implementation needs and strategy implementers need to take care of while giving careful consideration to the emerging changes that regularly take place in the organization. Strategy Implementation Component ElementsStrategy Implementation consists of all the decisions and actions, and plans required to turn strategic choices into reality. Although a manager may talk about "implementing a differentiation strategy", the real implementation of a strategy happens at the bottom of the strategy hierarchy and the organizational hierarchy, through the actions of operational employees who carry out planned tasks that add value to the company's product. Such tasks may include: research and development to add new features, monitoring production to ensure company's products meet high quality standards, and marketing the product to add brand value in the eyes of consumers. Successful implementation depends on the following organization system elements being in place:
These component elements have to be in place for competent implementation; and are generally in agreement with the key success factors or prerequisites for effective strategy implementation as identified by McKinsey 7S. [TBD] Goal Setting and Objectives A strategic objective is a business need that is defined in quantifiable and measurable terms. Strategic objectives are big-picture performance indicators (goals) for a company, and they describe what the company will do to try and fulfill its mission. The business need must be bound by both a baseline and a target (how much?), as well as time (by when?). We must know the level of improvement required and how much time we have to achieve the established targets. Corporate ObjectivesCorporate objectives are those that relate to the business as a whole. Corporate objectives tend to focus on the desired performance and results of the business. It is important that corporate objectives cover a range of key areas where the business wants to achieve results rather than focusing on a single objective. Peter Drucker suggested that corporate objectives should cover the following areas:
They are usually set by the top management of the business and they provide the focus for setting more detailed objectives for the main functional activities of the business. Corporate strategy at its core concerns itself with the entirety of a business, where decisions are made in regard to its overall growth and direction. Corporate strategy implementation entails making corporate strategy operational by translating corporate level strategy goals into programs and projects that accomplish those goals. If the corporation has the capabilities, enterprise advantage, and business portfolio it wants its corporate strategy is fully implemented. Corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the workforce to implement the proper actions to achieve customer satisfaction. When clearly defined, a corporate strategy will work to establish the overall value of a business, set strategic goals and motivate employees to achieve them. The pillars of corporate strategy include; allocation of resources, organization (structure) design, portfolio management, and strategic trade-offs. Implementing corporate strategy involves:
Corporate-level strategy is an action taken to gain a comparative advantage through the selection and management of combination of businesses competing in several industries or product markets. For multi-business firms, the resource-allocation process - how cash, staffing, equipment, and other resources are distributed - is established at the corporate level. Implementing Business StrategyBusiness level strategy at its core is concerned with the actions and decisions a company plans to take to reach its goals and objectives. Implementing business competitive strategy may involve the following:
The business strategy is fully implemented, if the business unit has the customers, value proposition and skills it has chosen to have. Implementing Operations StrategyOperations strategy refers to the methods companies use to reach their objectives. Developing operations strategies enables an organization to examine and implement effective and efficient systems for using resources, personnel and work processes. Service-oriented companies also use basic operations strategies to link long- and short-term corporate decisions and create an effective management team. There are two (2) parts to implementing (making strategy operational) a strategy; both parts require that an appropriate operations infrastructure is in place. The two (2) parts involve consideration of a number of important points relevant to strategy execution such as:
Implementation means the strategic plans are carried out and translated into positive actions. [TBD]
During implementation stage, organizations may also find that they have to perform further planning, especially in the discovery of issues that must be addressed. Implementation Decisions and TasksImplementation of planned strategies involves the process by which an organization translates its chosen strategy into action plans and activities which will steer the organization in the direction set out in the strategy, and enable the organization to achieve its strategic objectives. Translating strategy aims - goals and objectives - into actionable processes in an ordered fashion is, however, not easy. The setting of priorities and development of plans may present organizations with formidable management challenges. [TBD] [TBD] Enacting Organization System InstanceOrganizations as social systems exist in the real world through people who are members of the organization and some physical structures (such as offices and facilities). Enacting an organization involves translation from the abstract model of the formal definition to concrete system elements, such as assigning individual actors ( people) to positions in the organization structure (for example, organized around functional areas) in specific locationsand facilities. The assignment
of actors to positions is formally made through the signing of legal contracts (created and regulated through organization policies) with the actors. The signature of this contract represents a conveyance of the goals of the position to the actor(s) who are assuming that position, i.e., the goals of the position are expected to be executed by the actor(s) enacting that position. Structural decisions of operations strategy are decisions that
define the overall tangible shape and architecture (e.g., facility, capacity, technology, etc.) of the operations of an organization. The operations infrastructure consists of the following: organizational structure and the systems, human resources, culture and resources to support it. Within this framework managers have to consider:
An organizational structure divides the organization into distinct parts, and defines the relationships between those parts. The structure shows who has responsibility for what,who has authority over whom, and who reports to whom. The main options are: functional structure, product structure, hybrid structure combining the two, some time of matrix structure, or self-managed groups. Human Resources and StaffingThe human resources aspects of the organization as a system involve decisions and actions about staffing and staff levels, job responsibilities, employment conditions, motivation, etc. Organizational culture is an intangible aspect of the the organization as system. It is defined by the values and norms,
beliefs and assumptions, and influences the way people within the organization think and behave. Implementation Model The choices to pursue an implementation intentions (plans) that specify an anticipated critical situation linked to it and to an instrumental goal-directed response. Both strategy formulation and implementation intentions (goals models) are set in an act of willing. The former specifies the intentions to meet a goal or standard; the latter refers to the intention to perform a plan. Commonly, implementation
intentions are formed in the service of goal intentions, because they specify the where, when, and how of respective goal-directed responses. A plan specifies a set of goals and objectives that need to be achieved to successfully satisfy the intended goals of the plan. The goals of the plan are assigned to functional areas (that define key organizational capabilities or departments and then cascaded to the resources in key capability areas for implementation and execution. Strategic and operational planning most often use time, dollars, percentages, and numerical counts to measure strategic goals/objectives. Strategic objectives are typically a type of performance goals - for example, launch a new product, increase profitability, grow market share for the company's product, etc.Implementation planThe implementation plan is a complex mix of decisions and activities on managing people, strategy, and operations in creating "fits" between the ways things are done and what it takes for effective strategy execution to make the strategy work as intended. Action Plans The action plans are schedules for actions to be
taken, and policies and procedures that guide resource allocation and prioritization decisions. The implementation plan defines the responsibility of top, middle and lower level managers focused on the creation of new strategic assets and/or enhancement and strengthening existing strategic assets needed by the entity in order to build an organization capable of carrying out the strategy and maintaining its ability to achieve future outcomes. The basic elements of the action plan
are a list of activities needed for implementation, and time table showing when, responsibilities for each activity, time table of activities, budgeted costs, expected flow of funds, resources needed, etc.Operations Plans Resources are constraints on the course of action. It also involves budgeting - identifying the sources and levels of resources that can be committed to the courses of action. Management can select the type of budget that best suits the planning needs of the organization. Strategy Evaluation
The whole point about strategy is that the critical factors determining its quality are often not directly observable or simply measured; and by the time strategic opportunities/threats do directly affect operating results, it may well be too late for an effective response. [TBD] Who makes long range strategic decisions about products and services as well as ensures financial performance of the firm?Senior management makes long-range strategic decisions and ensures the firm's financial performance. Middle management carries out the plans of senior management and operational management monitors the firm's daily activities.
How a company produces delivers and sells its products and services in the marketplace?Business Model. A business model describes how a company produces, delivers, and sells a product or service to create wealth.
Which of the following is not a strategic business objectives of information systems?Explanation: The six important business purpose of the information system are; operational excellence, survival, new products and services, improved decision making, customer and supplier intimacy and competitive advantage. The option D. Improved employee morale is not the strategic objective of an information system.
Which term refers to all of the hardware and software that a firm needs to use to achieve its business objectives?64) Information technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives.
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