Strategy Implementation

• This unit concerns strategy implementation
• Strategy implementation is executing a company's strategic plan, turning vision into actionable steps

Key Aspects of Strategic Implementation

• Resource allocation concerns assigning financial, human, and material resources to tasks
• Organizational Structure concerns modifying the company's structure to support the strategy
• Change Management concerns managing the people's side of change and addressing resistance
• Opertational Planning involves developing detailed action plans, timelines, and performance metrics
• Monitoring and Control concerns establishing systems to track progress against objectives
• Adaption and Flexibility concerns adjusting the strategy to feedback and changes in the environment

Steps in Strategy Implementation

• Clarifying the Strategy is used to ensure everyone understands the strategy
• Resource Allocation concerns allocating resources for strategy execution
• Organizational Changes concern adjusting the organizational structure to support the strategy
• Developing Operational Plans concern creation of detailed plans to carry out objectives
• Communication Plans concern establishing clear communication channels regarding strategy
• Executing the Strategy involves implementing planned actions and initiatives
• Monitoring and Evaluating concerns tracking progress and making adjustments

Barriers in the Implementation Process

• Lack of Understanding occurs if the strategy is not communicated clearly
• Insufficient Resources occur where limited financial, human, or technological resources are available
• Poor communication concerns failure to regularly communicate strategy progress
• Resistance to Change occurs when employees might resist new changes
• Ineffective Leadership occurs in the absence of strong and committed leadership
• Misaligned Organizational Structure creates inefficiencies
• Inadequate Monitoring and Control Systems are challenging to measure success

Mintzberg’s 5 Ps of Strategy

• Mintzberg's 5 Ps of Strategy provides a framework to analyze dimensions of strategic management
• Planning involves strategic management, historical patterns, competitive positioning
• Organizational perspectives and tactical maneuvers create a holistic approach to strategy

The five Ps

• Plan refers to organizations creating a roadmap outlining objectives and goals
• Pattern refers to recognizing that strategies emerge through actions and decisions
• Position focuses on how an organization competes by establishing a unique position
• Perspective concerns the organization’s values, culture, and the worldview of leaders
• Ploy refers to tactics organizations use to gain advantage over competitors

Deliberate Strategy

• Deliberate strategy is a planned approach to achieve goals and objectives
• Involves systematic analysis, goal setting, and resource allocation to create a roadmap
• Deliberate strategies are suitable for stable environments and understood markets

Emergent Strategy

• Emergent strategy a flexible approach to strategy in complex and uncertain environments
• Emergent strategies emerge from activities and responses to changing circumstances
• This allows organizations to adapt to unforeseen challenges

McKinsey’s 7s Framework

• McKinsey’s 7s Framework is a management model used for organizational analysis and change
• It consists of seven interrelated elements to ensure a well-rounded approach to organizational effectiveness

Seven elements of the 7s Framework

• Strategy concerns the organization's plan for achieving its goals
• Structure involves the organization's framework
• Systems refer to processes and workflows the organization uses for daily operations
• Shared Values are the core beliefs that shape the organization's identity
• Skills represent competencies, expertise, and capabilities of employees
• Style pertains to the leadership and management style within the organization
• Staff refers to the organization's workforce and its demographics

Organizational structures for strategy implementation

• Functional structures involve dividing the organization into functional departments
• Divisional structures involve dividing into semi-autonomous divisions responsible for an area
• Matrix structures combine functional and divisional aspects
• Entrepreneurial structure consists of a flexible team of individuals, often in a startup environment
• Strategic Business Unit (SBU) structures are self-contained units within an organization
• Network structures rely on partnerships and external networks to complement capabilities
• Modular/Cellular structures divide the organization into cells that operate independently

Matching Strategy with Structure in Turbulent and Stable Environments

• Matching strategy with the structure is important for success
• This alignment can vary depending on whether the environment is turbulent or stable

Stable Environments

• Stable environments benefit from traditional and hierarchical structures
• Functional structures suit stable environments, promoting specialization and efficiency
• Divisional structure, where business units operate independently

Turbulent Environments

• Turbulent environments are characterized by rapid change
• They need agile and adaptive structures
• Matrix structures combine functional and divisional aspects
• Network structures may form strategic alliances and tap into external expertise
• Modular/Cellular structures divide into units, allowing customization and adaptation

Business Continuity Plan

• A Business Continuity Plan (BCP) is a document outlining how an organization will continue operations

BCP Key Components

• Business Impact Analysis (BIA) to prioritize functions for continuity
• Risk Assessment identifies risks and threats that could disrupt business
• Continuity Strategies ensure continuity of functions during and after a disruption
• Response and Recovery Plans outline steps for communication, resource allocation, and restoration of services
• Communication Plan manages internal and external communications during disruption

Changing Processes and Structure

• Changing processes and structure within an organization improves efficiency, adaptability, and overall performance

Changing Processes may involve

• Modifying the way tasks and activities are carried out
• Efficiency Improvement to increasing productivity.
• Cost Reduction to reducing resource wastage
• Quality Enhancement for better control and consistency
• Innovation to foster innovation and stay competitive
• Compliance to ensure compliance.

Changing Structure

• Altering organizational design, roles, reporting relationships, departments, and hierarchies
• Adaptation to New Strategies to support the new objectives
• Growth or Downsizing to accommodate increased complexity
• Improved Communication to enhance communication channels

Strategy Implementation and Business Process Reengineering

• Strategy implementation is the process of putting a chosen strategy into action
• Business Process Reengineering (BPR) involves improving an organization’s core business

Key Elements of Strategy Implementation

• Goal Setting to define clear objectives
• Resource Allocation of financial, human, and technological resources
• Organizational Alignment to align structure, culture, and processes
• Performance Measurement with key performance indicators (KPIs)
• Leadership and Accountability

Business Process Reengineering

• Process Analysis involves identifying and analyzing existing business processes
• Redesign involves reimagining and restructuring these processes
• Technology Integration to automate and optimize processes
• Change Management to prepare employees for the changes
• Measuring and Monitoring to track improvements in process performance

Business Process Reengineering (BPR) Principles

• BPR involves the fundamental redesign of business processes to achieve improvements
• Focus on Customer Value by reengineering from the customer’s perspective
• Simplify and Eliminate processes by eliminating non-value-added steps
• Process Integration to integrate and coordinate activities across functions
• Use Technology Wisely regarding technology to enable process improvements
• Empower and Train Employees provide skills and authority needed to make decisions
• Focus on Outcomes by managing processes based on outcomes

Corporate Culture

• Corporate culture refers to shared values, beliefs, norms, attitudes, and behaviors that shape an organization

Corporate Culture consists of

• Values and Beliefs rooted in the organization Integrity and innovation
• Norms and Behaviors that shape how employees conduct themselves
• Employee Engagement for engagement, job satisfaction, and retention
• Impact on Performance regarding performance, innovation, and change

Learning Organizations

• Learning Organizations prioritize continuous learning and adaptability as core values
• Shared Vision concerns having a clear vision that inspires and aligns employees
• Systems Thinking includes organizational interconnections and dependencies
• Personal Mastery enables individuals to improve their skills
• Mental Models allows challenging assumptions
• Team Learning promotes collaboration and dialogue amount teams

Management by Objectives

• Management by Objectives (MBO) is a framework that emphasizes establishing objectives
• Goal Setting to begin with setting clear objectives
• Participation with employees involved in setting objectives
• Monitoring Progress on progress toward objectives
• Performance Appraisal to assess whether objectives were met
• Feedback and Communication between managers and employees
• Rewards and Recognition for achieving objectives

Evaluating the Strategy can involve

• Defining Key Performance Indicators (KPIs)
• Collecting Data and Metrics
• Comparing Performance Against Objectives
• Analyzing the Gap to identify root causes
• Assessing Strategy Execution
• Reviewing External Factors
• Seeking Stakeholder Feedback
• Considering Lessons Learned
• Cost-Benefit Analysis
• Scenario Planning
• Decision Making
• Communication
• Continuous Improvement

Strategic Control

• Strategic control is monitoring and regulating an organization’s strategic plans
• Premise Control involves assessing assumptions and premises on strategic basis
• Implementation Control to monitor the execution of the strategic plan
• Strategic Surveillance involves scanning the external environment
• Special Alert Control triggers corrective actions when events occur

Operations Control

• Operations control is a management process that oversees day-to-day activities to ensure efficiency
• Operations involves:
  • Monitoring Operations
  • Resource Allocation
  • Quality Control
  • Timeliness
  • Cost Management

Symptoms of a Strategy that Malfunctions

• Declining Performance Metrics and Missed Targets and Goals suggest the strategy is not achieving its purpose
• Customer Attrition and Market Share Erosion suggest there is problems meeting customer needs
• Resource Misallocation and Budget Overruns indicate there are problems with resources
• Resistance and Disengagement, along with Stakeholder Discontent, indicate there is problems with successful execution
• Lack of Agility and Innovation Stagnation may be due to not being flexible

Balanced Scorecard

• The Balanced Scorecard is a strategic management framework that helps organizations measure performance
• Each of the Key Perspectives provides a balanced set of financial and non-financial performance indicators -Financial Perspective is Return on investment (ROI) and cash flow -Customer Perspective considers factors that make customers satisfied -Internal Process looks at internal processes and operations

Long-term success

• Learning and Growth Perspective focuses on learning, innovating, and growing
• Evaluate strategic performance with ABC Electronics
• Financial Perspective with objective increase annual Revenue. With KPIs
• Customer Satisfaction scores with objective improve customer satisfaction