IMPLEMENTING STRATEGIES: MANAGEMENT ISSUES
Contrasting strategy formulation and strategy implementation
Formulation is positioning forces before the action
Formulation focuses on effectiveness
Formulation is primarily an intellectual process
Formulation requires good intuitive and analytical skills
Formulation requires coordination among a few individuals
Contrasting strategy formulation and strategy implementation
Implementation focuses on efficiency
Implementation is managing forces during the action
Implementation is primarily an operational process
Implementation requires special motivation and leadership skills
Implementation requires coordination among many persons
Strategy implementation
Varies among different types and sizes of organizations
Strategy implementation Actions
Altering sales territories
Adding new departments
Closing facilities
Hiring new employees
Cost-control procedures
Changing advertising strategies
Building new facilities
Formulation to Implementation transition
Shift in responsibility
From strategists to division and functional managers
Management Issues
Annual Objectives
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Decentralized activity
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Involves all managers in the firm
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Basis for allocating resources
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Primary mechanism for evaluating managers
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Major instrument for monitoring progress toward long-term objectives
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Establish organizational, divisional, and departmental priorities
Objectives should state
Quantity
Quality
Cost
Time
Policies
Policies facilitate solving recurring problems and guide the implementation of strategy
Policies set
Boundaries
Constraints
limits
Example Issues requiring management policy
To offer extensive or limited management development workshops and seminars
To centralize or decentralize employee-training activities
To recruit through employment agencies, college campuses, and/or newspapers
To promote from within or hire from the outside
To establish a high- or low-safety stock of inventory
To buy lease, or rent new production equipment
Resource Allocation
A central management activity that allows for strategy execution
SUMMARY AND EXPLANATION :
First, organizations successful at implementing strategy develop detailed action plans sequential lists
of action steps (tactics) which add the necessary detail to their strategies. And assign responsibility to a
specific individual for accomplishing each of those action steps. Also, they set a due date and estimate
the resources and tasks required to accomplish each of their action steps. Thus they translate their
broad strategy statement into a number of specific work assignments.And they begin to think about that
necessary financial commitment early in the planning process.Monitoring and controlling the plan
includes a periodic look to see if you’re on course.Organizations successful at strategy implementation
consider the human resource, functional, division, operational and R&D factors in making strategies
happen.
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