strategy implementation

A crux about strategy implementation, it will help to understand

1. Presented by:- ARUN KUMAR 1700101047026 IGU Meerpur , Rewari (Haryana)

2. 1.Introduction 2.Nature 3.Strategy formulation-Implementation: Interrelationship 4.Obstacles in Strategy Implementation 5.Overcoming the Potential Challenges of Strategy Implementation 6. Managing Resistance to Change 7. There are approaches for implementing change Managing Resistance to Change 8. Matching Structure with Strategy 9.McKinsey 7 S Model 10.Conclusion 11.Questions & Quires

3. INTRODUCTION Implementation of strategy is the process through which a chosen strategy is put into action. It involves the design and management of systems to achieve the best integration of people, structure, processes and resources in achieving organizational objectives. “Successful strategy formulation does not guarantee successful strategy implementation” • “Strategies most often fail because they aren’t executed well.”

4. NATU RE OF STRATEGY IMPLEMENTATION 1.Action oriented

5. 2 .Wide ranging involvement

6. 3.Demanding varied skills

7. 4. Required leadership

8. 5.Integrated Process

9. Strategy Formulation – Implementation: Interrelationship STRATEGY FORMULATION • It is positioning forces before action. • It focuses on effectiveness. • It is an intellectual process • It requires good intuitive and analytical skills. • It requires coordination among few individuals . STRATEGY IMPLEMENTATION • It is managing forces during action. • It focuses on efficiency. • It is primarily and operational process. • It requires special motivational and leadership skills. • It requires combination of many individuals .

10. Obstacles in Strategy Implementation 1.Lack of a dynamic learning environment 2. Project-based work leaders exhibit no strategic leadership presence 3.Organizational structures and processes are inflexible 4. Resistance to Change 5 . Lack of Resources 6 . Too Distracted

11. Overcoming the Potential Challenges of Strategy Implementation 1. Managing change 2. Developing effective incentives and controls 3. Clarifying responsibilities and accountability 4. Integrating strategy and short-term objectives 5. Develop leadership and system change strategy 6. Establish performance measures; set goals 7. Define effective treatment strategies and establish procedural guidelines

12. Managing Resistance to Change  The single greatest threat to successful strategy implementation .  Resistance to change can emerge at any stage of the strategy implementation process.

13. There are approaches for implementing change: 1) A force change strategy  Giving orders and enforcing those order . 2) The educative change strategy  Presents the information to convince people of the need for change. 3) Self-Interest change strategy  Attempts to convince the individual that the change is to their personal advantage

14. Matching Structure with Strategy  The Functional Structure  The Divisional Structure  The Strategic Business Unit (SBU) Structure  The matrix Structure

15. • Mean: The most common structure found within organizations, functional structure consists of units or departmental groups identified by specialty, such as engineering, development, marketing, finance, sales or human resources that are controlled from the top level of management. • Advantages: Functional structure promotes specialization of labour , encourages efficiency, minimizes the need for an elaborate control system, and allows rapid decision making. • Disadvantages: It forces accountability at the top, minimize career development opportunities, low employee morale, line/staff conflicts, poor delegation of authority, inadequate planning for products and markets. Mostly it is abandoned in favour of decentralization and improved accountability. The Functional Structure

16. The Functional Structure

17. The Divisional Structure • When a company expands to supply goods or services to a variety of customers , offers a variety of different products or are engaged in business in several different markets, the company could adopt a divisional organizational structure. • A divisional structure groups its divisions according to the specific demands of products, markets or customers. Unlike the functional organizational structure , where the different organizational functions of the company conduct activities satisfying all customers, markets and products, the divisional structure focuses on a higher degree of specialization within a specific division, so that each division is given the resources, and autonomy, to swiftly react to changes in their specific business environment. Therefore,each division often has all the necessary resources and functions within it to satisfy the demands put on the division • Each division will likely be structured as a functional structure. A company with a divisional structure therefore has a subset of different and specialized SBU's satisfying the demands of different customers, markets or products .

18. The Divisional Structure

19. The Strategic Business Unit (SBU) Structure • Large, diversified companies organize themselves into divisions to break the management of the company into smaller, organizationally cohesive part .The company headquarters still gives the divisions strategic direction . • Strategic Business Units, or SBUs, are organizationally complete and separate units that develop their own strategic direction. They still report back to company headquarters but operate as independent businesses organized according to their target markets. They are often large enough to have their own internal organizational divisions.

20. The SBU Structure

21. The Matrix Structure • The matrix structure is an organizational design that groups employees by both function and product. The organizational structure is very flat, and the structure of the matrix is differentiated into whatever functions are needed to accomplish certain goals. Each functional worker usually reports to the functional heads, but do not normally work directly under their supervision . • Instead, the worker is controlled by the membership of a certain project, and each functional worker usually works under the supervision of a project manager . This way, each worker has two superiors, who will jointly ensure the progress of the project. The functional head may be more interested in developing the most exiting products or technologies, whereas the project manager may be more concerned with keeping deadlines and controlling product costs . • When work is accomplished, the project team may get dissolved, and workers from different functional areas may get reassigned to other projects and tasks .

22. The Matrix Structure

23. McKinsey 7 S Model • The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981 . • They had been investigating how Japanese had been so successful . • At around the same time, Tom Peters and Robert Waterman were exploring what makes a company excellent . • The 7 S model was born at a meeting of these four authors in 1978. • It was taken up as a basic tool by the global management consultancy company McKinsey.

24. McKinsey 7 S Model

25. THE HARD S-1- Strategy • Strategy: the direction and scope of the company over the long term. • Ways to achieve competitive advantage . Examples. • Low-cost strategy through economic production or delivery • Product differentiation through distinct features or innovative sales.

26. THE HARD S-2- Structure Ways in which task and people are specialized and divided, and authority is distributed. Four main structures: • Functional Structure • Divisional Structure • Matrix Structure • Network Structure

27. • Formal processes and procedures to manage the organization . Examples: • Performance Measurements • Reward Systems • Planning • Budgeting • Resource Allocation • Information System • Distribution System THE HARD S-3- Systems

28.  People, their background & competencies.  Organization’s approach to recruitment, selection, socialization, training and employee development is important for effective staffing. THE Soft S-1: Staffing

29. THE Soft S-2 Skills • Distinctive competencies in the organization. • Can be of People, Management Practices, Systems and/or Technologies.

30. • Leadership style of top management and overall operating style of organization . • Impacts norms followed by people, how they work and interact with each other and customers. THE Soft S-3 Style

31. THE Soft S-4 Shared Values • Core values shared in the organization and serve as guiding principles of what is important. • Helps focus attention and provides a broader sense of purpose.

32. In  conclusion , successful  strategy implementation  requires committed leadership , appropriate programme structure and documented programme outcomes that are brought together within an integrated programme methodology in order to achieve success .