Strategy Implementation Action planning Preparing for execution

A Framework for Strategic Analysis Strategy formulation Stakeholders analysis Analysis of R&C Environmental Analysis Strategy congruence Alternative Strategies Action plan Monitoring Feedback Execution Strategy implementation

Strategy Implementation: outline  Changes required to implement the new strategy  Delineating changes /interventions  Action planning  Streamlining execution  Adopt a “project management” mode  Define “project organization” structures  Use corporate plans and budgets

What changes are needed? Changes / Interventions

What changes? Using McKinsey 7-S Structure Shared values Skills Systems Staff Style Strategy

What changes? Using the 7Ss (1) ChangeImpactBarriers /difficulties Strategy Transparency Align functional strategies Align tactics Structure  New units, projects  transversal teams  delegating power  accountabilities  Basic structure, reporting Systems  IT, reward, control  operating, cost control  Quality, customer  planning  KM systems

What changes? Using the 7Ss (2) ChangesImpactBarriers /difficulties Staff  Executive changes, recruitment  Satisfaction, motivation  Retention, Productivity Skills/Competences  Skills required  Exchanges, cooperation  Training needs,transfer Style & Leadership  Directive vs Participative  Coaching  Develop leadership qualities Shared values/ culture  Signaling change  Align with strategy  Cohesiveness vs variety  Sociability /solidarity

Or, use the Value Chain Source: M.E. Porter Inbound Logistics Operations Outbound Logistics Marketing &Sales Technology Development Human Recourse Management Firm Infrastructure Primary Activities Service Support Activities Margin

Or, use Value Chain to identify actions (1) ActivityChanges Required ImpactObstacles Inbound logistics e.g. organization, efficiency and effectiveness Production / Operations e.g. efficiency and effectiveness Outbound logistics e.g. efficiency and effectiveness Marketing & Sales e.g skills, knowledge, brands, effectiveness, cross selling opportunities Service & Service Quality e.g customer satisfaction, retention, loyalty Finance e.g project financing, margin improvements

Or, use Value Chain to identify actions (2) ActivityChanges Required Management e.g changes in top management, change agents, leadership roles Human Resource Management e.g. capabilities required, training, motivation, quality and skills, relationships Technology, Innovation e.g enhance capabilities in technology,Design/Product,/Process innovation Procurement e.g. changes in sourcing, organization, procedures, relationships, technology

Or another version: a people - centered approach (Ghoshal) Strategy Systems Structure Hard Purposes Relations People Soft

Plan of Changes  Detailing changes, projects  Specify resources required  Decide on ways of implementation  Time schedule, milestones  Set priorities  Decide on cycles of change

Difficulty and time needed for changes (indicative) Time High Low Difficulty Strategy Structure Systems Culture Skills Capabilities

Time schedule and milestones Act 1 Act 2 Act 3 Act 4 Act 5 Time Milestone Changes to implement: Selected changes / interventions – per S, or in total. Put priorities. Use project management tools.

Execution: who will be involved?  Top management: necessary  New CEO?: signaling commitment to change  External consultants? : as consultants, not executives  Managers, hierarchy: necessary  Project team: rolling – up changes

Streamlining for execution  Assign responsibilities for specific changes  Allocate the changes down the hierarchy  Provide resources for implementation of changes  Incorporate the changes in the business plans and budgets  Decide if you will set up a separate project structure  To pare changes off line before commissioning into operation  For some of the changes, e.g. systems  Monitoring the execution of changes  Through reporting and hierarchy  Through steering committee and project monitoring

Organize the change project (a project structure next to the hierarchy) Project team 1Project team 2Project team 3 Project Manager Steering Committee

Use strategic change workshops …  To reconsider or modify the intended changes and their expected outcomes  Improvise in the course of action  To examine blockages to strategic changes  Lift obstacles  To promote ownership of changes  Commit more people  To monitor the progress of change projects

Using Strategy Consultants  To obtain access to know-how if needed  Get an external objective view of issues  To better organize implementation  Also for symbolic / political reasons  To symbolise the importance of the work  To cut through internal disagreements