Transcript CH6-Strategy Implementation

Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
– Formulation is positioning forces before the
action
– Implementation is managing forces during the
action
Overview
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Aligning People Behind Strategy
Managing Conflict
Organizational structures
Managing change
Organisational culture
Stakeholder analysis
Implementation steps
Managing Knowledge & technology
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
– Formulation focuses on effectiveness
– Implementation focuses on efficiency
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
– Formulation is primarily an intellectual process
– Implementation is primarily an operational process
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
– Formulation requires good intuitive and analytical skills
– Implementation requires special motivation and
leadership skills
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Contrasting strategy formulation and
strategy implementation
– Formulation requires coordination among a few
individuals
– Implementation requires coordination among many
persons
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Strategy implementation –
– Varies among different types and
sizes of organizations
Implementing Strategies:
Strategy
Analysis
&
Choice
Management Issues
Strategy implementation Actions –
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Altering sales territories
Adding new departments
Closing facilities
Hiring new employees
Cost-control procedures
Changing advertising strategies
Building new facilities
Management Perspectives
Formulation to Implementation
transition –
– Shift in responsibility
• From strategists to division and
functional managers
Aligning People Behind Strategy
• Strategy would be difficult to implement if
there is resistance
• Requires two area:
- Relationship Management: support change
agents & supporters; don’t alienate
gatekeepers & others
- Need key influencing skills: keep momentum
towards change & coalition building
Managing Conflict
Conflict –
Disagreement between two or more
parties on one or more issues
Managing Conflict
• Conflict is not always “bad”
• Absence of conflict
– Signal indifference or apathy
• Can energize opposing groups to
action
• May help managers identify problems
Managing Conflict
Conflict Management and Resolution
– Avoidance
– Defusion
– Confrontation
Matching Structure with Strategy
Changes in Strategy
Changes in Structure
1. Structure largely dictates how objectives
and policies will be established.
2. Structure dictates how resources will be
allocated
Basic Forms of Structure
1. Functional Structure
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Groups tasks and activities by business
function
2. Divisional Structure
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Decentralized and organized by
geography, product, customer, or process
Basic Forms of Structure
3. Strategic Business Unit Structure (SBU)
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Groups similar divisions; delegates authority
and responsibility to SBU executive
4. Matrix Structure
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Most complex of all designs. Depends upon
both vertical and horizontal flows of authority
and communication
Managing Resistance to Change
Resistance to change –
– Single greatest threat to successful
strategy implementation
Managing Resistance to Change
Change raises anxiety over fear of:
– Economic loss
– Inconvenience
– Uncertainty
– Break in status-quo
Change Strategies
• Force Change Strategy
• Educative Change Strategy
• Rational or Self-Interest Change
Strategy
Creating a Strategy-Supportive
Culture
Strategists should strive to preserve,
emphasize, and build upon aspects
of existing culture that support new
strategies.
Creating a Strategy-Supportive
Culture
Elements linking culture to strategy:
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Formal statements of philosophy, charters, etc. used for
recruitment and selection, and socialization
Designing of physical spaces, facades, buildings
Deliberate role modeling, teaching and coaching
Explicit reward and status system, promotion criteria
Stories, legends, myths about key people and events
What leaders pay attention to, measure and control
Leader reactions to critical incidents and crises
How the organization is designed and structured
Organizational systems and procedures
Criteria used for recruitment, selection, promotion, retirement
Prioritising Implementation
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Root Cause (Fishbone analysis)
From –To - Analysis
Attractiveness – Difficulty Analysis
Wishbone Analysis
Implementation Strategy
• Force-Field Analysis
• Stakeholder Analysis: Steps:
- identify key stakeholders
- evaluate whether they have high,
medium or low influence on the strategy
- evaluate whether they are for, against
or neutral
Stakeholder Analysis: Next Step
• Can new stakeholders be brought in/old
stakeholders removed to improve
support?
• Boost influence of “for” stakeholders?
• Reduce influence of “against”
stakeholders
• Coalition of “for” stakeholders possible?
Stakeholder Analysis (contd)
• Can coalition of “against” stakeholders
prevented?
• Can the project be reformulated to
make it acceptable?
• Possible to bring abroad “against”
stakeholders by including their prized
areas?
• Need to redefine project?
Planning Implementation Steps
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Establish objectives
Identify actions (steps) required
Identify & assess resources available
Allocate accountabilities/responsibilities
Plan monitoring & review activities
Resource Allocation
Resource Allocation –
A central management activity that
allows for strategy execution
Resource Allocation
Four types of resources –
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3.
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Financial resources
Physical resources
Human resources
Technological resources
Knowledge & Technology Effects
• Business strategy: creates new
opportunities, e.g., services available
over the net instead of in person
• Culture: more innovative and open
culture due to electronic info
dissemination (free-flow of info)
• Organizational structure: Flatter & fluid
Knowledge & Technology –
Effects (contd)
• Management: unstructured
management processes possible with
info on net, etc
• Work: all professional work includes IT
component
• Workplace – de-centralised; can work
from home