SOME IMPORTANT CONSIDERATIONS AND STEPS STRATEGY EXECUTION SOME IMPORTANT CONSIDERATIONS AND STEPS

MANAGING STRATEGY WORK IS MORE DIFFICULT THAN THE TASK OF STRATEGY MAKING Careful development of execution plan is needed but may not guarantee success Full corporate support is needed Managers know little about execution

MANAGERS ARE TRAINED TO PLAN, NOT EXECUTE Mangers know more about strategy formulation than implementation. Education is focused on this. Execution is learned in the “school of hard knocks”. Execution is fraught with mistakes and frustrations

EXECUTION IS LEFT TO LOWER LEVEL Top Management feels that Execution is to be done by people below them. Doing involves less ability and intelligence than planning. Separation between doing and planning. Execution demands ownership at all levels of management

PLANNING AND EXECUTION ARE INTERDEPENDENT Those responsible for execution should also be made part of planning or formulation process. Greater interaction between doers and planner, higher the probability of execution success. Execution problems must be anticipated while formulating strategy

EXECUTION TAKES LONGER THAN FORMULATION Longer the period, more are the unforeseen Longer time frame makes it harder for managers to focus on and control the execution problem. Managers need to monitor and keep constant watch on the external shocks and changes.

EXECUTION IS A PROCESS, NOT AN ACTION OR STEP Execution involves a series of integrated decisions and actions over time. It involves a series of internally consistent, integrated activities, activity systems, or processes.

EXECUTION INVOLVES MORE PEOPLE THAN STRATEGY FORMULATION DOES More people presents additional problems. Problem of communication Problem of incentives Problem of linking strategic objectives with day today objectives Concern of people at different organization levels and locations.

GUIDELINES FOR STRATEGY EXECUTION

1. BUILD ORGANIZATIONAL CAPABILITY NEEDED TO IMPLEMENT STRATEGY HAVE A CORE TEAM TEAM BUILDING DEVELOPING CORE COMPETENCE FILL RIGHT PERSONS IN RIGHT PLACE PROPER STAFFING HAVE STAFF WHO SHARE VALUES AND VISION

1. BUILD ORGANIZATIONAL CAPABILITY NEEDED TO IMPLEMENT STRATEGY MATCH ORGANIZATION STRUCTURE TO STRATEGY DECENTRALIZATION TYPES OF ORGANIZATIONAL STRUCTURES FUNCTIONAL PROCESS GEOGRAPHIC MATRIX

2. DEVELOP BUDGETS TO MOBILISE RESOURCES NEEDED LINK BUDGETS TO STRATEGY R & D AND DIFFRENTIATION STRATEGY ADVERTISEMENT AND PUBLICITY FOR MARKET LEADERSHIP ROLE ALLOCATE ADEQUATE FUND TO STRATEGY-CRITICAL AREAS

3. CREATE STRATEGY SUPPORTIVE POLICIES AND PROCEDURES POLICIES PROVIDE GUIDANCE TO OPERATING MANAGERS ABOUT HOW CERTAIN THINGS ARE TO BE DONE AND WHAT BEHAVIOUR IS EXPECTED. POLICIES HELP TO ESTABLISH REGULARITY, STABILITY, AND DEPENDABILITY IN EXECUTING STRATEGY AND OPERATE BUSINESS ON A DAILY BASIS

3. CREATE STRATEGY SUPPORTIVE POLICIES AND PROCEDURES ASSESS EXISTING POLICIES IN LIGHT OF STRETEGY TO BE ADOPTED MAKE CHANGES AND DEVISE NEW POLICIES RECRUITMENT POLICIES RESOURCE ALLOCATION POLICIES R & D POLICIES

4. DEVELOP COMMUNICATION, INFORMATION AND OPERATING SYSTEM SHARING INFORMATION TRANSPARENCY e-STRATEGY CONTROL AND FLEXIBILITY

5. DESIGN STRATEGY- SUPPORTIVE REWARD SYSTEM ADOPT STRATEGY-SUPPORTIVE MOTIVATIONAL PRACTICES LINK REWARD TO PERFORMANCE OUTCOMES

6. CREATE SUITABLE WORK ENVIRONMENT AND CULTURE LEADERSHIP CULTURE