1. Lecture 16 Implementing Strategies: Management Issues

2. Lecture Outline The nature of Strategy Implementation Annual Objectives Policies Resource Allocation

3. Lecture Outline Managing Conflict Matching Structure with Strategy Restructuring, Reengineering, and E-Engineering Linking Performance and Pay to Strategies

4. Lecture Outline Managing Resistance to Change Managing the Natural Environment Creating a Strategy-Supportive Culture

5. Lecture Outline Production/Operations Concerns When Implementing Strategies Human Resource Concerns When Implementing Strategies

6. Implementing Strategies: Management Issues Pretend that every single person you meet has a sign around his or her neck that says, “Make me feel important.” -- Mary Kay Ash, CEO of Mary Kay, Inc.

7. Contrasting strategy formulation and strategy implementation – Formulation is positioning forces before the action – Implementation is managing forces during the action Implementing Strategies: Management Issues

8. Contrasting strategy formulation and strategy implementation – Formulation focuses on effectiveness – Implementation focuses on efficiency Implementing Strategies: Management Issues

9. Contrasting strategy formulation and strategy implementation – Formulation is primarily an intellectual process – Implementation is primarily an operational process Implementing Strategies: Management Issues

10. Contrasting strategy formulation and strategy implementation – Formulation requires good intuitive and analytical skills – Implementation requires special motivation and leadership skills Implementing Strategies: Management Issues

11. Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation – Formulation requires coordination among a few individuals – Implementation requires coordination among many persons Implementing Strategies: Management Issues

12. Strategy Analysis & Choice Strategy implementation – – Varies among different types and sizes of organizations Implementing Strategies: Management Issues

13. Strategy Analysis & Choice Strategy implementation Actions – – Altering sales territories – Adding new departments – Closing facilities – Hiring new employees – Cost-control procedures – Changing advertising strategies – Building new facilities Implementing Strategies: Management Issues

14. Formulation to Implementation transition – – Shift in responsibility From strategists to division and functional managers Management Perspectives

15. Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

16. Management Issues (continued) Management Issues Supportive culture Production/operations Human resources Downsizing Resistance to Change Managers & strategy

17. Annual Objectives Decentralized activity Decentralized activity Involves all managers in the firm Involves all managers in the firm

18. Annual Objectives 1.Basis for allocating resources 2.Primary mechanism for evaluating managers 3.Major instrument for monitoring progress toward long-term objectives 4.Establish organizational, divisional, and departmental priorities

19. Annual Objectives Horizontal consistency of objectives Vertical consistency of objectives

20. Annual Objectives Objectives should state – – Quantity – Quality – Cost – Time

21. Policies Policies facilitate solving recurring problems and guide the implementation of strategy

22. Policies Policies set – – Boundaries – Constraints – limits

23. Policies Example Issues requiring management policy -- – To offer extensive or limited management development workshops and seminars – To centralize or decentralize employee-training activities – To recruit through employment agencies, college campuses, and/or newspapers – To promote from within or hire from the outside – To establish a high- or low-safety stock of inventory – To buy lease, or rent new production equipment

24. Resource Allocation Resource Allocation – A central management activity that allows for strategy execution

25. Thank You