Strategy Implementation

Organizational Considerations

Before implementation can begin, there are certain factors within an organization that need to be analyzed to ensure that they fit with the strategy.

• Organizational structure. The structure of an organization must provide a suitable framework to plan, organize, direct and control activities. Matters for consideration include: the degree of hierarchy within the structure, the mechanisms of coordination, and the degree of decentralization and control.
• Roles and people. Once the needs of the strategy have been established, the human resource requirements, roles and responsibilities, skill requirements and training needs can be identified.
• Stakeholder relationships. An organization may have to reinforce or develop relationships with outside parties, e.g. customers, suppliers, shareholders and partners, as well as internal parties, such as employees and managers, to achieve the aims of the strategy.
• Control. Another important concern is the degree of control over the implementation process delegated to managers further down the organization. The right method of control will help senior management ensure that implementation plans are achieved.
• Communications. A communications plan should be designed so that all employees and other stakeholders understand the strategy, how it will affect them and how it will be implemented. This is vital to ensure consistency and gain the vital buy-in needed for successful implementation.

Impacts on Implementation

As well as the practical considerations above, implementation should also focus on the ‘softer’ aspects of strategic change. These should be considered before implementation, and also monitored during and after implementation as they are liable to change:

• Culture. Culture concerns the deep rooted values, beliefs and norms existing within an organization. An understanding of how culture is created and reinforced within an organization can help managers predict the human impacts of change and the consequences for strategy.
• Power. The political systems and power distributed within an organization can either work to support or oppose a strategy. By identifying who holds the power, the extent of their influence and whether power players are allies or opponents of the strategy, managers can build support, overcome resistance and achieve commitment to the strategy.
• Leadership. The role and skills of leaders are recognized as vital to any change initiative. Leaders who shape context, communicate the vision, inspire and motivate others, and have the ability to adapt their leadership style are most likely to see their strategy through to fruition.
• Performance management. Performance management systems can help ensure the skills and behaviors of individuals support the strategy. Performance objectives should be clearly aligned with the strategy and individual performance measured against these objectives.
• Emergence. Emergent strategies are those that evolve without being expressly planned or intended. They result when numerous small actions taken individually throughout an organization, over time, move in the same direction and converge into a pattern of change.[2] Such small actions can often represent new opportunities that can alter the formal strategy. Managers should be aware that emergence can occur so that they can take advantage of new opportunities when they arise, and the strategy should be flexible enough to accommodate this.

Monitoring Implementation

Once implementation plans have been put into action, the progress of the strategy should be constantly monitored. Performance measures will have been identified during implementation planning and the performance of the strategy should be measured against these on a regular basis. Depending on the results, the plan may need to be reviewed and updated. At the stage where an organization identified its strategic options, it will have also identified risks. During implementation, these risks should be monitored, and action taken to manage any that occur. The external environment should also be continuously monitored, as a strategy needs to be flexible enough to adapt to changes in the environment or to failures in implementation.

The diagram below outlines the implementation process:

Conclusion

The strategy implementation section aims to provide you with the guidance and tools you need to implement your strategy, whether at a senior or departmental level. However, strategy implementation does not occur in isolation. Impacts are far reaching in an organization, and as such it requires input from individuals with experience and skills in project management, change management, leadership and communication, amongst others.

Implementation is the focal point of strategy. Without it, formulation remains an academic exercise. Therefore, it is vital that implementation receives as much energy and commitment as strategy formulation.