Untitled Quiz

• This document is for Unit 4 and discusses the implementation of strategy in an organization.

Strategy Implementation

• Strategy implementation is the execution of a company's strategic plan, turning vision and goals into actionable steps, and putting strategic initiatives into practice.
• Key aspects include resource allocation, organizational structure, change management, operational planning, monitoring, and being able to adapt.
• Strategy implementation involves an essential relation between the implementation and the chosen strategy.
• The chosen strategy has to change previous resource obligations, structures, policies, involved and system of administration
• An effective strategy should plan for potential changes to the company.

Process of Strategic Implementation

• Clarify the Strategy: Ensure everyone understands the strategy.
• Resource Allocation: Allocate the necessary resources for strategy execution.
• Making Organizational Changes: Adjust the organizational structure to support the strategy.
• Developing Operational Plans: Create detailed plans to carry out strategic objectives.
• Setting up Communication Plans: Establish clear communication channels regarding the strategy.
• Executing the Strategy: Implement the planned actions and initiatives.
• Monitoring and Evaluating: Track progress and make necessary adjustments.

Barriers in the Implementation Process

• Lack of Understanding: If the strategy is not clearly communicated, employees may not understand its objectives
• Insufficient Resources: Limited resources can hinder effective execution.
• Poor Communication: Failure to regularly communicate progress and changes can lead to disengagement.
• Resistance to Change: Employees might resist new methods, technologies, or changes in the organizational culture.
• Ineffective Leadership: Without strong, committed leadership, strategic initiatives may lack direction and momentum.
• Misaligned Organizational Structure: A structure that does not support the strategy can create inefficiencies.
• Inadequate Monitoring and Control Systems: Without proper systems to track progress, it becomes challenging to measure success.

5 P's by Mintzberg

• The 5 P's of Strategy is a comprehensive framework to analyze various dimensions of strategic management; planning, patterns, positioning, perspectives, and maneuvers.
• A holistic approach to strategy considers multiple P's, rather than relying solely on one.
• Plan: Creating a detailed plan or roadmap.
  • Strength: Clarity and structure.
  • Weakness: Inflexible.
• Pattern: Recognizing strategies that emerge over time through a series of actions and decisions.
  • Strength: Reflects how strategies evolve.
  • Weakness: Challenging to proactively shape patterns.
• Position: Establishing a unique and advantageous position within the market.
  • Strength: Helps identify a clear market niche
  • Weakness: Can lead to a focus on short-term gains.
• Perspective: Considering the organization's values, culture, and the worldview of its leaders.
  • Strength: Provides sense of purpose and direction.
  • Weakness: May limit adaptability.
• Ploy: Tactics to gain advantages over competitors.
  • Strength: Can be effective for competitive advantage in the short term.
  • Weakness: Can lead to a focus on tactical victories at the expense of a broader, cohesive strategy.

Deliberate Strategy

• Deliberate strategy is a planned and intentional road map to achieve goals.
  • Involves systematic analysis, goal setting, and resource allocation.
  • Have defined mission, vision and detailed strategic plans.
  • Approach emphasizes control and predictability
  • Suitable for well understood markets in stable environments.

Emergent Strategy

• Emergent strategy is flexible and adaptive strategies that can evolve over time in complex environments.
• Allow organizations to adapt quickly to unforeseen obstacles.
• Suited for rapidly changing markets, or experimenting and learning.

Key differences between Deliberate and Emergent strategy

• Definition
  • Emergent: Evolves
  • Deliberate: Structured plan to achieve specific goals
• Development Process
  • Emergent: Emerges organically from daily activities.
  • Deliberate: Top down decisions
• Flexibility
  • Emergent: Highly flexible and adaptable
  • Deliberate: Less flexible and may resist unexpected changes
• Control
  • Emergent: Limited control and predictability.
  • Deliberate: Greater control with defined milestones.
• Risk
  • Emergent: Higher levels of risk due to uncertainty.
  • Deliberate: Involves lower risk due to careful analysis.
• Time Horizon
  • Emergent: focuses on immediate challenges
  • Deliberate: often involving multi-year

7s Framework by McKinsey

• Developed by McKinsey & Company, is a management model used for organizational analysis and change.

Key Elements of the 7s Framework

• Strategy: Plan for achieving its goals and objectives.
• Structure: Organization's formal framework.
• Systems: Processes, procedures, and workflows.
• Shared Values: Core beliefs and principles.
• Skills: Competencies and capabilities of employees.
• Style: Leadership and management style.
• Staff: Organization's workforce, considering alignment with employee strategic objectives.

Types of Organizational Structures for Strategy Implementation

• Functional Structure
  • Divided by departments like marketing, finance, operations, and HR.
  • Suited for smaller orgs
• Divisional Structure
  • Divided into semi-autonomous divisions or business units.
  • Effective in larger organizations that have varied product lines or expand geography
• Matrix Structure
  • Combines functional and divisional aspects, allowing employees to report to multiple
  • Beneficial with cross-functional teams
• Entrepreneurial Structure
  • Small, flexible team of workers that are often a startup environment.
  • Decision making must be quick and adaptability is essential.
• Strategic Business Unit (SBU) Structure
  • Self-contained units within a organization
  • Common with conglomerates to manage unit as separate entity
• Network Structure
  • Relies on partnerships, alliances, and external networks to complement internal abilities
  • Collaboration with external entities us integral to the strategy
• Modular/Cellular Structure
  • Divides organization into units that can operate independently
  • Used with customization and flexibility

Matching Strategy with Structure in Turbulent and Stable Environments

• Organizational structure alignment depends on whether the environment is turbulent or stable.

Structure in a Stable Environment

• In a stable environment use traditional, hierarchical structure to provide stability and efficiency.
  • Functional
  • Divisional

Structure in a Turbulent Environment

• In a turbulent environment with rapid change and unpredictability, adopt more agile, responsive Structures.
  • Matrix
  • Network
  • Modular/Cellular

Business Continuity Plan

• BCP (Business Continuity Plan) is a comprehensive document that outlines continued critical operations and delivery of essential services when there are unexpected disruptions or disasters
  • Business Impact Analysis (BIA)
  • Risk Assessment
  • Continuity Strategies
  • Response and Recovery Plans
  • Communication Plan
  • Training and Testing
  • Maintenance and Updates

Business Impact Analysis

• BIA identifies critical business functions and how those functions will be prioritized for continuity.
  • Potential impact assessment like financial losses, downtime, and customer impact.

Risk Assessment

• Identifies the potential risks and the threats to operations like natural disasters, supply chains etc.
  • Likelihood and severity assessment

Continuity Strategies

• Develop strategies to continues operations that face disruptions.
  • Remote locations, remote work, securing back ups and essential resource access.

Response and Recovery Plans

• Create plans for responding to and recovering from different types of disruptions.
  • Outlining of communication, allocating resources, and restoring services.

Communication Plan

• Defining how internal and external communications will be managed through a disruption.
  • Establish a decision making chain

Training and Testing

• To conduct training and exercises to ensure that are familiar with the BCP.
  • Regularly test BCP

Maintenance and Updates

• Continous review and updating of BCP when there are chances to the organizations, technologies and external threats.
  • Ensure that all stakeholders have the latest plan version.

Changing Processes and Structure

• Changing processes and structure means improve efficiency, adaptability, and performance.

Changing Processes

• Changing processes modifies how tasks and activities are carries throughout the org.
  • Workflow, technology and process.

Organizations change processes for several reasons.

• Efficiency Improvement
• Cost Reduction
• Quality Enhancement
• Innovation
• Compliance
• Customer Satisfaction

Changing Structure

• Changing the structure of alters the organizing including; roles, departments and hierarchies.

Organizations change structure for several reasons.

• Adaptation to New Strategies
• Growth or Downsizing
• Improved Communication
• Flexibility and Agility
• Global Expansion
• Mergers and Acquisitions
• Specialization

Strategy Implementation and Business Process Reengineering (BPR)

• Strategy Execution is the process of strategy action to achieve orgs goals and objectives.
  • Translate strategic plan, resource allocation and manage effectiveness.
• Business Process Reengineering is an improved design orgs businesses processes for better efficiency and customer satisfaction.
  • Key Elements are:
  • Process Analysis
  • Redesign
  • Technology Integration
  • Change Management
  • Monitoring and Measuring

Business Process Reengineering (BPR) Principles

• Focus on Customer Value
• Simplify and Eliminate Redundant
• Process Integration
• Use Technology Wisely
• Empower and Train Employees
• Focus on Outcomes, Not Tasks
• Continuously Monitoring

Relationship between Strategy Implementation and Business Process Reengineering

• Alignment: Reengineering can align processes with strategic goals.
• Efficiency Improvement: Streamlining processes can boost efficiency
• Adaptation: Reengineering support strategic objectives when the organizational structure has changed
• Resources Allocation

Corporate Culture

• Orgs Identity which is shaped in shared values, and behavior of work force.

Corporate Culture

• Values and Beliefs: What are the org's most important Values
• Norms and Behaviors: Shaping ways employees conduct
• Employee Engagement: Promoting employee satisfaction + feeling of purpose. -Positive impacts org performance which is critical for talent/ innovation.
• Impact on Performance:

Building Learning Organizations

• Concept developed by Peter Senge and emphasized innovation with adaptability as core values of the team/employees.

Key Components of a Learning Organization

• Shared Vision
• Systems Thinking
• Personal Mastery
• Mental Models
• Team Learning

Using MBO Technique

• "Management by Objectives" is setting clear specific/ measurable objectives for employees to collaborate towards and ensure challenging, sustainable goals are met.
  • Involves feedback, performance reviews etc.
• MBO begins with a set of process called SMART:
  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time Bound

Evaluating the Strategy

• Assesses strategy effectiveness.
• Aids to learn form experiences and adapt.
• Should include key steps to follow:
  • Define Key Performance Indicators (KPIs)
  • Collect Data and Metrics
  • Compare Performance Against Objectives
  • Analyze the Gap
  • Assess Strategy Execution
  • Review External Factor
  • Seek Stakeholder Feedback
  • COnsider Lesson Learned
  • Cost-Benefit Analysis
  • Scenario Planning
  • Decision Making
  • Communication
  • Continous Improvement

Strategic Control

• Management process that involves monitoring/ aligning business plans + keeping track to assess if needed to change direction in the business
• Includes 4 Types: Premise Control: Implementation Control Strategic Surveillance Special Alert Control

Premise Control

• Assessing underlying assumptions
• Ensuring underlying assumptions/ premises are always valid
• Regular reviews

Implementation Control

• Focuses on the execution, and monitoring the strategic plan being used
• Regular reports to track against set KPIs/ goals.

Strategic Surveillance

• Constantly watching the business industry
• Monitor local economic settings, and make sure company stays up-to-date + adaptable

Special Alert Control

• Able to identify with their are sudden market disruptions
• Ex) New competitor

Operations Control

• Operations control focuses on overseeing and managing the day-to-day activities/ processes within.
• Vital for achieving short-term goals, Quality standards

Aspects of Operations Control

• Resource Allocation
• Monitoring Operations
• Quality COntrol
• Timeliness
• Cost Management
• Follow Key operations Assembly Line Quality Control Inventory management Logistics

Symptoms of Strategy that Malfunctions

• Malfunctioning strategy are symptoms that shows when the goal isnt being met or has significant challenges.
  • Recognizing symptoms helps prompts alignment w/the strategic initiatives.
• Symptoms include: Declining Performance Metrics Missed Targets and Goals Customer Attrition Market Share Erosion Resource Misallocation Budget Overruns Innovation Operational Inefficiencies Regulation/Compliance Issues Repetitive Mistakes Market Disruption Lack of Alignment

Strategy Evaluation - the concept of Balance Scorecard

• Strategic management framework that aids org to measure management and have overall performance across both finachial and non-finanicial metrics.
• Consists of 4 : Financial Perspective Customer Perspective Internal Business Process Learning and Growth Perspective

Financial Perspective

• Includes financial aspect, such as revenues, return on investment etc.

Customer Perspective

• Considers critical factors that is customer satisfaction; acquisition, retention and satisfacition

Internal Business Process

• Operations and functions that leads to organization.
• Includes: efficiency, quality

Learning and Growth Perspective

• Ability for organization to learn, grow and innovation.
• Training development, satisfaction w/ employees