1. STRATEGIC MANAGEMENT AND BUSINESS POLICY THIRD EDITION
Chapter 10 Activating strategies
AZHAR KAZMI

2. Learning objectives Examine the nature of strategy implementation
Describe the barriers to strategy implementation
Discuss the interrelationship between formulation and implementation of strategies
Explain the three themes that constitute our model of strategy implementation
Review the role of project management in strategy implementation
Review the role of regulatory mechanisms in procedural implementation
Deliberate on the value of aligning resource allocation to strategy
Discuss the factors that affect resource allocation and the difficulties that arise in resource allocation
(c) Dr. Azhar Kazmi 2008

3. Characteristics of strategy implementation
Action orientation
Comprehensive in scope
Demanding varied skills
Wide-ranging involvement
Integrated process
(c) Dr. Azhar Kazmi 2008

4. Barriers to strategy implementation and overcoming them
An inability to manage change
Poor or vague strategy
Not having guidelines or a model to guide implementation efforts
Poor or inadequate information sharing
Unclear responsibility and accountability
Working against the organizational power structure
Overcoming barriers
Adopting a clear model of strategy implementation
Effective management of change in complex situations
(c) Dr. Azhar Kazmi 2008

5. Two-way linkage between formulation and implementation of strategy
STRATEGY FORMULATION
(THOUGHT)
STRATEGY IMPLEMENTATION
(ACTION)
(c) Dr. Azhar Kazmi 2008

6. Mintzberg’s conception of the type of strategies
Intended strategy
Realised strategy
Deliberate strategy
Emergent strategy
Formulated strategy
Implemented
strategy
Unrealised strategy
Based on H. Mintzberg: “Pattern in strategy formation” Management Science May 1978; 24, 9, p. 945.
(c) Dr. Azhar Kazmi 2008

7. A model of strategy implementation
ACTIVATING MANAGING ACHIEVING
STRATEGIES CHANGE EFFECTIVENESS
PROJECT IMPLEMENTATION
PROCEDURAL IMPLEMENTATION
RESOURCE ALLOCATION
STRUCTURAL IMPLEMENTATION
LEADERSHIP IMPLEMENTATION
BEHAVIOURAL IMPLEMENTATION
FUNCTIONAL IMPLEMENTATION
OPERATIONAL IMPLEMENTATION
STRATEGIC PLAN
EVALUATION & CONTROL
FEEDBACK
(c) Dr. Azhar Kazmi 2008

8. Major themes in strategy implementation
Activating strategies
Managing change
Achieving effectiveness
(c) Dr. Azhar Kazmi 2008

9. The pyramid of strategy activation
PLANS
PROGRAMMES
PROJECTS
BUDGETS
POLICIES, PROCEDURES, RULES AND REGULATIONS
(c) Dr. Azhar Kazmi 2008

10. Project implementation
A project is the basic unit of a programme. A programme is a portfolio of projects that may be interrelated and interdependent in complex ways. Several programmes are required to implement a plan. A number of plans are involved in implementing a strategy.
(c) Dr. Azhar Kazmi 2008

11. The process of project management
Initiating
Planning
Executing
Controlling
Closing
(c) Dr. Azhar Kazmi 2008

12. Strategy implementation through project management
INITIATING
CLOSING
CONTROLLING
EXECUTING
PLANNING
STRATEGY IMPLEMENTATION
STRATEGY EVALUATION AND CONTROL
STRATEGIC MANAGEMENT PROCESS
PROJECT
OBJECTIVES
CONTROL MEASURES
PROJECT MANAGEMENT PROCESS
(c) Dr. Azhar Kazmi 2008

13. Procedural implementation
Regulatory mechanisms in India
Formation of a company
Licensing procedures
Securities and Exchange Board of India (SEBI) requirements
Monopolies and Restrictive Trade Practices (MRTP) requirements
Foreign collaboration procedures
Import and export requirements
Patenting and trade marks requirements
Labour legislation requirements
Environmental protection and pollution control requirements
Consumer protection requirements
Incentives and facilities benefits
(c) Dr. Azhar Kazmi 2008

14. Procedural implementation in action
Strategists may adopt a submissive, confrontational, or collaborative stance. They can try to conform to the regulations, confront the regulations by informed criticism and lobbying and public relations or work with the government to improve the regulatory framework. At the same time they can adopt an 'existentialist' view and continually look for opportunities within the business environment as such an environment is substantially affected by government plans, priorities, policies and actions.
(c) Dr. Azhar Kazmi 2008

15. Resource allocation
Resource allocation deals with the procurement, commitment, and distribution of financial, human, informational, and physical resources to strategic tasks for the achievement of organisational objectives.
Strategic budgeting
Aligning resource allocation to strategy
Factors affecting resource allocation
Difficulties in resource allocation
(c) Dr. Azhar Kazmi 2008

16. Making of a strategic budget
(c) Dr. Azhar Kazmi 2008