STRATEGY IMPLEMENTATION

STRATEGY IMPLEMENTATION

Is a process that puts plans and strategies into action to reach

desired goals. The strategic plan itself is a written document that details
the steps and processes needed to reach plan goals, and includes
feedback and progress reports to ensure that the plan is on track.
WHAT STRATEGIC IMPLEMENTATION ADDRESSES

Strategic implementation is critical to a company’s success,

addressing the who, where, when, and how of reaching the desired
goals and objectives. It focuses on the entire organization.
Implementation occurs after environmental scans, SWOT analyses, and
identifying strategic issues and goals. Implementation involves assigning
individuals to tasks and timelines that will help an organization reach its
goals.
BASIC FEATURES

• A successful implementation plan will have a very visible leader, such

as the CEO, as he communicates the vision, excitement and behaviors
necessary for achievement.
• Implementation often includes a strategic map, which identifies and
maps the key ingredients that will direct performance. Such
ingredients include finances, market, work environment, operations,
people and partners.
SAMPLE STRATEGIC ASSESSMENT PLANS

Several of these sample strategic plan documents allow you to

set up a system for tracking the plan and managing the system with
rewards. Typically, the plan is presented to the entire organization and
includes a schedule of meetings, annual review dates for reporting
progress and a means of modifying current assignments or adding new
assessments.
FIVE KEY COMPONENTS
NECESSARY TO SUPPORT
IMPLEMENTATION
PEOPLE

The first stage of implementing your plan is to make sure to have

the right people on board. The right people include those folks with
required competencies and skills that are needed to support the plan.
In the months following the planning process, expand employee skills
through training, recruitment, or new hires to include new competencies
required by the strategic plan.
RESOURCES

You need to have sufficient funds and enough time to support

implementation. Often, true costs are underestimated or not identified.
True costs can include a realistic time commitment from staff to achieve
a goal, a clear identification of expenses associated with a tactic, or
unexpected cost overruns by a vendor. Additionally, employees must
have enough time to implement what may be additional activities that
they aren’t currently performing.
STRUCTURE

Set your structure of management and appropriate lines of

authority, and have clear, open lines of communication with your
employees. A plan owner and regular strategy meetings are the two
easiest ways to put a structure in place. Meetings to review the
progress should be scheduled monthly or quarterly, depending on the
level of activity and time frame of the plan.
SYSTEMS

Both management and technology systems help track the

progress of the plan and make it faster to adapt to changes. As part
of the system, build milestones into the plan that must be achieved
within a specific time frame. A scorecard is one tool used by many
organizations that incorporates progress tracking and milestones.
CULTURE

Create an environment that connects employees to the

organization’s mission and that makes them feel comfortable. To
reinforce the importance of focusing on strategy and vision, reward
success. Develop some creative positive and negative consequences for
achieving or not achieving the strategy. The rewards may be big or
small, as long as they lift the strategy above the day-to-day so people
make it a priority.
STEPS FOR STRATEGY
IMPLEMENTATION
STEP 1: INSTITUTIONALIZATION OF STRATEGY

-This is the first step in implementing strategy and

involves two aspects namely;
• Communication of strategy
• Securing acceptance of strategy
STEP 2: FORMULATION OF ACTION PLANS AND
PROGRAMMES
-Once the strategy is institutionalized through communication and acceptance, the management proceeds to
formulate action plans and programmes.
Action plans has the following factors:
• The purpose of the action plan
• The activities required to execute the action plan
• The person(s) who would be performing the activities
• The resources required to perform the activities
Programmes is a single use plan designed to accomplish a specific objective. It clearly indicates the steps to be taken,
the resources to be used, and the time period within the task should to be completed.
STEP 3: TRANSLATING GENERAL OBJECTIVES INTO
SPECIFIC OBJECTIVES

-The top management frames the general objectives. To make these

objective operative, functional managers must set specific objectives within the
framework of the general objectives.
Two important criteria to translate the general objectives into specific objectives:
• The specific objectives must be realistic, achievable and time bound
• The specific objectives should contribute to the accomplishment of general
objectives
STEP 4: RESOURCE ALLOCATION

-For successful implementation of strategy, there must be proper resource

allocation to various units and activities. Resources can be broadly classified into 3
groups:
• Financial resources
• Physical resources
• Human resources
STEP 5: PROCEDURAL REQUIREMENTS

-An organization must follow various procedural requirements to

implement the strategy.
STEP 6: OTHER ACTIVITIES

-Strategy implementation requires other activities such as;

• Creating or modifying the organizational structure
• Developing or modifying leadership styles
• Building a suitable organizational climate
 FACTORS OF STRATEGY
IMPLEMENTATION PROCESS
 COMMON MISTAKES IN
STRATEGY IMPLEMENTATION
CONFUSING MARKETING WITH STRATEGY.

A value proposition isn’t the same thing as a strategy. If you’re

trying to describe a strategy, the value proposition is a natural place to
begin it’s intuitive to think of strategy in terms of the mix of benefits
aimed at meeting customers’ needs. But as important as it is to have
insight into customers’ needs, don’t confuse marketing with strategy.
CONFUSING COMPETITIVE ADVANTAGE WITH
“WHAT YOU’RE GOOD AT.”

Building on strength is a good thing, but when it comes to

strategy, companies are too often inward looking and therefore likely
to overestimate their strengths. You might perceive customer service as
a strong area. So that becomes the “strength” on which you attempt to
build a strategy. But a real strength for strategy purposes has to be
something the company can do better than any of its rivals.
PURSUING SIZE ABOVE ALL ELSE, BECAUSE IF
YOU’RE THE BIGGEST, YOU’LL BE MORE PROFITABLE.

There is at least a grain of truth in this thinking, which is precisely

what makes it so dangerous. But before you assume that bigger is
always better, it is critical to run the numbers for your business. Too
often the goal is chosen because it sounds good, whether or not the
economics of the business support the logic.
THINKING THAT “GROWTH” OR “REACHING $1
BILLION IN REVENUE” IS A STRATEGY.

-Don’t confuse strategy with actions (grow, acquire, divest, etc.) Or with
goals (reach X billion in sales, Y share of market). Porter’s definition: the set of
integrated choices that define how you will achieve superior performance in the
face of competition. It’s not the goal, nor is it a specific action. It’s the positioning
you choose that will result in achieving the goal; the actions are the path you take
to realize the positioning.
FOCUSING ON HIGH-GROWTH MARKETS, BECAUSE
THAT’S WHERE THE MONEY IS.

-Managers often mistakenly assume that a high-growth

industry will be an attractive one. Wrong. Growth is no
guarantee that the industry will be profitable.
AVOIDING THE STRATEGIC
IMPLEMENTATION PITFALLS
• LACK OF OWNERSHIP
• LACK OF COMMUNICATION
• GETTING MIRED IN THE DAY-TO-DAY
• OUT OF THE ORDINARY
• AN OVERWHELMING PLAN
• A MEANINGLESS PLAN
• ANNUAL STRATEGY
• NOT CONSIDERING IMPLEMENTATION
• NO PROGRESS REPORT
• NO ACCOUNTABILITY
• LACK OF EMPOWERMENT