Strategy Implementation

Managers’ Mental Models (Beliefs & Understanding Vision and Mission Business Definition Corporate Strategy Business Strategy Functional Strategy Market Position PerformancePerformance Set Objectives ImplementationImplementation Decisions about A Framework for the Strategy Making Process Feedback

Strategic Management Model Create a Vision or Mission Set Objectives Craft a Strategy Implement the Strategy Measure and Evaluate

Strategic Management Model Create a Vision or Mission Set Objectives Craft a Strategy Implement the Strategy Measure and Evaluate (Long-term) Short-term Objectives Functional Strategy Functional Tactics

Is there a difference between strategy and tactics? if so How do we distinguish between strategy and tactics?

Each functional area will have different functional tactics What is functional strategy? What is the overall purpose of functional strategy? Business-Level Strategy Functional-Level Strategy Functional Tactics

Implementation is about action! Once the strategy has been formulated it is initiated through four interrelated steps: 1. Creation of short-term objectives 2. Development of specific functional tactics that create competitive advantage 3. Empowering operating personnel through policies that guide decisions 4. Development of effective rewards

Functional Tactics and Short-term objectives Functional Strategy Action Plans Policies and Rewards Implementation Requires Time frame Responsibility Performance

What are policies and why are they important in implementation?

What is organizational culture and why is it important to implementation?

Why are reward systems so important to strategy implementation? Which are more effective intrinsic or extrinsic? Which ones motivate you?

Strategic Management Model Create a Vision or Mission Set Objectives Craft a Strategy Implement the Strategy Measure and Evaluate (Long-term) Short-term Objectives Functional Strategy Functional Tactics

McKinsey 7-S McKinsey 7-S is a framework for understanding effective organizational change. Implementation Impacts and is Impacted by the components of McKinsey 7-S

McKinsey 7-S Structure Skills (organizational, management, employee) Staff (management and employee) Shared values (culture) Style (leadership) Systems (current) Strategy

Strategic Management Model Create a Vision or Mission Set Objectives Craft a Strategy Implement the Strategy Measure and Evaluate (Long-term) Short-term Objectives Functional Strategy Functional Tactics Control

Control (Strategic and Operational) What does control mean in an organizational context?

Strategic Control Strategic control is concerned with tracking strategy once it has been implemented, detecting changes or problems as they occur and guiding action whose result will manifest several years from the initial execution. Premise control: systematically checks whether the premises (assumptions) on which the strategy is based are still valid. Implementation control: is designed to assess whether the overall strategy should be changed in light of results associated with incremental actions.

Strategic Control continued Strategic surveillance: monitors a broad range of events inside and outside of the firm that are likely to affect the course of its strategy Special Alert Control: is a thorough and often rapt reconsideration of the firm’s strategy because of a sudden unexpected event

Operational Control Operational controls monitor performance, evaluate deviations and initiate corrective action. They are designed to monitor, guide and evaluate the firm’s progress in meeting short-term objectives. Operational controls (e.g., budgets, scheduling resources): -set standards of performance -measure actual performance -identify deviations -initiate corrective action