1. SOME IMPORTANT CONSIDERATIONS AND STEPS
STRATEGY EXECUTION
SOME IMPORTANT CONSIDERATIONS
AND STEPS

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. GUIDELINES FOR STRATEGY EXECUTION

10. 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

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

12. 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

13. 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

14. 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

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

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

17. 6. CREATE SUITABLE WORK ENVIRONMENT AND CULTURE
LEADERSHIP
CULTURE