1 UNIT 11: IMPLEMENTATION PROCESS

2 Introduction Once strategies have been developed, they need to be implemented. A strategy may be good, but if its implementation is poor, the strategic objective for which it was intended may not be achieved. There are four possible strategy implementation outcomes as illustrated below:

Figure: Strategy Implementation Outcomes Good Imple- mentation Poor GoodPoor Strategy Formulation 3 SUCCESSROULETTE (GAMBLE) TROUBLEFAILURE

For strategy to be successfully implemented, it requires two things: –Operationalization and –Institutionalization 4

5 A.OPERATIONALIZATION OF STRATEGY Corporate or business strategy must be operationalized for implementation. Operationalization of strategy refers to developing operational plans and tactics through which an otherwise abstract strategy will be implemented. Operationalization ensures that the organization’s daily activities and work efforts directly relate to the strategy.

Operational strategy is more specific, concrete and short-term in nature. It spells out what will be done immediately or within short periods (e.g. yearly periods) by a functional unit in order to implement a given strategy. 6

B.INSTITUTIONALIZATION OF STRATEGY Institutionalizing strategy is matching strategy to the institutions of the organization. Whatever is required to implement a strategy must be built into organizational institutions such as: Structure Leadership Culture Support systems Processes and Policies 7

8 C.PROBLEMS IN STRATEGY IMPLEMENTATION Problems can arise when attempts are made to implement strategy. These problems may arise from external or internal sources. These problems may be classified into three categories:

9 1.Poor strategy Due to a number of reasons, managers may have selected an inappropriate strategy. Implementing such a strategy can become a futile exercise. 2.Poor implementation While the strategy selected may be sound, implementation procedures can be flawed. Here again, efforts to execute strategy are impaired.

10 3.Failure to couple strategy development and implementation Strategy development and implementation should be thought through together. Persons who will implement the strategic plan should be involved in its development.