The eight levers of Strategy Implementation Mohnish Bhatia Viplav Gupta Dhaval Kunte Ankit Prasad Vivek Acharya Siddharth S. 1

The Importance of Implementation A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

The Outcome And shouts… Wrong Way!

The six silent killers of strategy implementation The Laissez faire senior management style Unclear strategy or conflicting priorities An ineffective senior management team Poor vertical communication Poor coordination across functions, businesses or borders Inadequate down-the-line leadership skills and development

The critical variables Structures Framework or configurations Managerial skills Behavioral activities of managers within the structures

Strategic Levers - Structural Actions Who, what, and when of Cross functional integration Programs Instilling organizational learning, continuous improvement Systems Installing strategic support systems Policies Establishing strategy supportive policies

Strategic levers – Managerial Skills Interacting The exercising of strategic leadership Understand when and where to allocate resources Allocating Monitoring Tying rewards to achievement Organizing The strategic shaping of corporate culture

An excellent example of Perfect Implementation

Structural levers– Konkan Railway Actions Getting four State governments to pledge their support Konkan Railways Contractors Land acquisition team Programs The whole project was done in a fashion that was new to the country New technologies and training contractors to operate them Systems Fiber-optics FAX Computers Dedicated lines Policies Timely billing 48 hours decision

Managerial Skill levers – Konkan Railway Interacting CMO, HODs available to chief engineers Allocating Technology made ready to contractors before work was scheduled to begin Fuel depots Timely payments and help in maintaining Cash FLow It helps that they had a Carte Blanche Monitoring Billing Reverse Clock Organizing Ambitious targets Relentless pursuit Carte blanches – extensive delegation Negligible conflict Page  23

Framework – Strategy Implementation 1 Define Key Implementation Tasks 2 Review Managerial Approaches 3 Identify Key Skills needed 24

Implementation Tasks Creating Fit : Two major types STRATEGY STRATEGY FUNCTIONAL POLICIES STRATEGY ADMINISTRATIVE POLICIES 25

Implementation Tasks - Functional Fit Align various functions with Strategy STRATEGY Marketing IT Finance Operations HR 26

Implementation Tasks - Administrative Fit Managerial systems and processes that should be aligned with strategy : Organizational Structure Information Systems Incentive Systems Control Systems Strategic planning systems Management Selection and Development Corporate culture Leadership style 27

The Implementation Plan Problems Intricacies Set backs Critical Issues Should address key HR and organizational issues Should contain a sequence/ timeline for action Plan B should be always ready The manager has to make sure that actions are taken according to the plan Implementation Situations Single Product Single Business Multiple Business

Implementation Modes Entrepreneurial Manager Degree of Attention HIGH LOW Political Manager Entrepreneurial Manager Administrative Manager People And Organization Shaker Entrepreneurial Manager The manager is deeply involved in and directs the implementation of plan Pays little attention to the administrative implications of his plan There are always trade-offs between strategic objectives and administrative issues Advantage Speed of implementation high Disadvantage Problems may stack up in the long term there by significantly impacting the objectives People and Organizational Shaker Least focus on specifics of implementation strategy and more towards managing resources Right PEOPLE Right PLACE Right TIME Relatively little concern for the administrative constraints Advantage Development of a cadre of high level subordinates Disadvantage Reliance on key subordinates and their resentment Administrative Manager Limited involvement in implementation Focus all his attention to processes, systems and people The manager makes sure that all affecting stakeholders have their voice in the planning stage Advantage High level of organizational commitment Disadvantage Slow and usually not radical Political Manager The manager is deeply involved in and directs the implementation of plan Will think through the administrative implications of his plan Try to mitigate all the negative consequences of the plan which could slow down the implementation process Advantage causes little organizational disruption Disadvantage Time consuming HIGH Degree of Involvement LOW

Implementation Skills Success of strategy = f (Skills ) Strategic /Technical Interpersonal Admin / Organization Right combination Degree of involvement Alone Team

Implementation Skills (Contd.) Timing Stakeholders Organizational Limits Winners Losers

Application to case studies Identification of strategies managers trying to achieve Spell out functional and administrative fits Develop an implementation plan Mode required to achieve the goal