We will study and discuss the following

Successful change of strategy

Extent of change
Force field analysis
 dealing with momentum
PRINCIPLES OF STRATEGIC IMPLEMENTATION-2
 The Need For Change can be due to :
 Performance below expectation
 Sudden drop in performance
 Competitors decision and subsequent change in his strategy
 Change in top management view point
 Change in top management personnel
 New management development program
 New capital requirements
 Takeover by another group

Judging the extent of change required:

Study the buyer needs and the change expected

 study the Rules set forth in mission statement

Study the long term goals

Study the short term objectives

The strategic changes must be in line with mission and

long term goals
Force field analysis :
Analyze the industry structure
Analyze the competitive position of the firm
Analyze the internal resources
Understand the push forces and the resist forces

PUSH FORCES RESIST FORCES Future vision

 present situation
PRINCIPLES OF STRATEGIC IMPLEMENTATION-2


Push forces resisting forces
 Customer Poor warehousing
 training
Inadequate
 re
program
documentation
New
management  shop floor attitude
Modernization
Poor relationship
Motivated
supervision between production and
others
Low quality reputation
Present
situation

Improved situation
essential features of strategic change
Determine where the change is leading the organization
Concentrate on priorities
Final authority for change determination must be with single individual
Follow intention with visible action
Involve employees at all levels
Ensure management and control system complement each other
Dealing with momentum :
Momentum means the strength derived gained due to initial effort
Organization continue in the old way even after new direction has been
driven
Revolutionary change in strategy is necessity to bring forth the
momentum
 New senior management becomes necessary to drive in the momentum
External consultants also can contribute
The structural changes become essential to bring in the momentum
 PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Establishing strategic control

 Ensures that the implementation moves in the right

direction

 Control is concerned with tracking the strategy when it is

being implemented

 It also detects deviations, problems and makes required

adjustments
PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 strategic control find answer to following :
 Does the internal strength still holds good
 Do we still have inherent weaknesses
 Have their been value addition to strengths
 Do we have other weaknesses
 Are their new opportunities available
 Do the same threats still exist
 Are our decisions consistent with organization policy
 Do we have sufficient resources to achieve the objectives
 Are we meeting our goals and targets
 Do the organization mission, vision, and objectives hold Valid in
current scenario
 PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Premise control: it means assumption on which a strategy is
based
 The control helps find out whether the assumption still
holds true
 If a premise is no longer valid, the firm may have to change
the strategy
 Environmental assumptions: inflation, technology, interest
rates, government regulations, demographic or social
changes
 Industry Factors :
competitors,suppliers,substitutes,barriers to entry
 PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 IMPLEMENTATION CONTROL :
 By Control Strategic Plans And Implementation Is Appraised
From Time To Time
 Monitoring Strategic Thrusts: is the speed and momentum
for the projects still maintained
 Strategic surveillance : monitor a broad range of events
through multiple information source
 Trade magazines, trade conferences, trade forecast, are some of
the surveillance tools

 PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Special alert control :
 Keeping the vigil for sudden events changes
 Keeping track of unforeseen events
 PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Operational control systems :
 Meant to appraise annual objectives
 Set standard of performance

 Measure actual performance

 Identify deviation from standards

 Initiate corrective action

PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Three types of operational controls:
 Budgets: revenue budget, capital budget, expenditure
budget.
 Revenue budgets: management of finance, sales budget,
sales forecast , sales revenue budgets
 Capital budget: expenditure for plants, equipment,
machinery, inventories, other capital items .cash budgets
and balance sheet budgets are the control tools
 Expenditure budget : each functional unit and sub unit .
The expenditure budget can be negative or positive
PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Schedules: allocation of time and constraints , resource constraints,
setting up the priorities, beginning and finish times of each plan.
 Key success factors for successful control:
 High employees morale
 Improved product/ service quality
 Increased earning per share
 Growth in market share
 Completion of new facilities
 Great team work
PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Reward systems :
 Compensation
Reward could be either negative
 Raises or positive
 Bonuses
 Stock options Reward should not lead to
 Incentives
conflicts
 Promotions
Rewards must be compatible
 Recognition and praise with strategy
 Criticism
 More responsibility
 Performance appraisal
 Tension and fear
PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Three decisions important for crisis strategy

 What can go wrong, how much is the probability, what can be the
impact

 How much should we invest in preventive measures to reduce or

minimize the risk

 Mechanism for contingency management

PRINCIPLES OF STRATEGIC
IMPLEMENTATION
 Steps for managing crisis:
 Identify most obvious risk
 Establish policy and procedures to avoid risk
converting to crisis
 Identify trained crisis management team
 Conduct stake holder analysis
 Formalize clear communication strategy