bpsm unit iv strategy implementn 1

8/9/2019 BPSM Unit IV Strategy Implementn 1

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BUSINESS POLICY

&STRATEGIC MANAGEMENT

(UNIT-IV)Dr. Saboohi Nasim([email protected])

FMS&R, AMU

Department of Business Administration

Faculty of Management Studies & Research (FMS&R)

Aligarh Muslim University, Aligarh


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SYLLABUS

Strategy Implementation: Nature,

Barrier, Linkages and Model1

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3

4

Structural Implementation

Behavioral Implementation

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Project & Procedural Implementation


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Strategy Implementationconcerns the managerial

exercise of putting afreshly chosen strategy

into place

(Thompson & Stickland, 2003) 3


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Building an organization capable of realizing its intent

Allocating resources to strategy-critical activities

Establishing strategy-support ive policies

Instituting best practices and programs forcontinuous improvement

Installing information, communication, and operatingsystems

Motivating people to pursue the target objectives

Tying rewards to achievement of resultsCreating a strategy-supportive corporate culture

Exerting the leadership necessary to drive the processforward and keep improving

What Does Strategy ImplementationInvolve?

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Action Orientation: involves putting formulated strategies into actionthru management processes.

Comprehensiveness in Scope: covers a wide range of functionsand activities

Demanding Varied Skills: requires a wide range of knowledge,skills, attitudes, and abilities

Wide Ranging Involvement : necessitates the involvement ofmanagers at all levels; especially middle managers

Integrated Process: Tasks/activity performed are related and interlinked

Nature of Strategy Implementation

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Strategy Implementation is much more difficult than Strategyformulation

Eight out of ten companies fail to deploy their strategieseffectively

Obstacles to Strategy Implementation (Hrebiniak, 2006) Inability to manage change

Poor or Vague strategy

Lack of guidelines/model for implementation

Poor or inadequate information sharing

Unclear responsibility & accountability Working against the organizational power structure

Overcoming barriers requires: Adopting a clear model of Strategy Implementation

Effective management of change in complex situations

Barriers to Strategy Implementation

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Strategy Formulation and Implementation processes are

intertwined

Two types of linkages exists between these two phases

Forward Linkages

Backward Linkages

Interrelationship of Formulation andImplementation

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Two way linkage between Formulation and Implementation of Strategy

StrategyFormulation(Thought)

StrategyImplementation(Action)


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Realized

StrategyUnrealizedStrategy

Emergent

Strategy

Formulation & Implementation of strategies

operate in an iterative manner where both feed upon eachother in a two-way relationship

Formulated

Strategy

Implemented

Strategy

Mintzbergs Conception of Types of Strategy


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STRATEGY IMPLEMENTATIONMODEL

NIEL Case

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STRATEGY IMPLEMENTATION MODEL

Project &

Procedural

Implementation

Resource

allocation

Functional

&

Operational

Implementa

tion

Structural

Implementation

Behavioral

Implementation

LeadershipImplementation

Strategic

Plan

Evaluation

&

Control

ACTIVATING

STRATEGIES

MANAGING

CHANGEACHIEVING

EFFECTIVENESS

FEEDBACK 10


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Major Themes in Strategy Implementation

ACTIVATING STRATEGIES: prepares the ground for

managerial tasks and activities; Includes three set of activities Project implementation Procedural implementation

Resource Allocation

MANAGING CHANGE: core of Strategy implementation;Includes three set of activities

Structural implementation

Leadership implementation

Behavioral implementation

ACHIEVING EFFECTIVENESS: last theme in strategyimplementation; deals with the outcome of the process; includes functional and

operational implementation


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ACTIVATING STRATEGIES: The Pyramid of Strategy Activation

Strategy

Programs

Budgets

Operating Strategies

Plans

Projects

Policies, Procedures, Rules & Regulations


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MANAGING CHANGE: Strategy Implementation almost always necessitates

change; Change management an essential requirement for

successful SI

MOC requires an understanding of the process of change;

Innovation and learning part of change process Issues in MOC

Degree of Change (How much?): Radical Vs.

Incremental

Timing of Change (When?): Reactive Vs. Anticipatory

Activi ty Areas of Change (Where?): Structure,

Leadership, Behavior


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ACHIEVING EFFECTIVENESS Degree to which an organization is able to

achieve its objectives

Four Models of Organizational Effectiveness

The Goal Model: profitability, growth, market share

Resource Based Model: Ability of the orgn. toobtain resources

Internal Process Model: Culture, Climate, Teamwork, Communication..

Conflicting Value Model: diverse indicators ofperformance..


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Strategy Implementation isinvariably

Managing ChangeLinking Strategy with People

and Operations

and

Conducting Regular Reviews

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PROJECT IMPLEMENTATION

Madura Garments Case

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A project is a basic unit of a program; atemporary endeavor to achieve a particularaim: factory expansion, product development, BPO

Projects are chosen as vehicles of SI

Project management-a key enabler of

strategy implementation

Co.s adopt a structured approach to PM in

line with its business strategies

Project Implementation

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Strategy Implementation Through Project Management

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Initiating

Project Management Process

Strategy Evaluation & Control

Project Implementation..

Strategy Management Process

Strategy Implementation

Planning Executing Controll ing Closing

Control

Measures

Project

Objectives


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PROCEDURAL IMPLEMENTATION

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Formation of Company

Licensing Procedures

SEBIs Requirements

MRTP RequirementsForeign Collaboration Procedures

Import Export Requirements

Labor Legislation Requirements

Environmental control and Pollution ControlRequirements

Procedures for Availing Incentives&

Regulatory Mechanisms in India

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RESOURCE ALLOCATION

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Deals with procurement, commitment, and distribution of

financial, human, informational and physical resources tostrategic tasks for the achievement of objectives.

Budget: main instrument of RA; a common technique used

as planning, coordination and control device inmanagement

Three approaches to RA thru budgeting:

Top Down Approach: process of segregation; Entrepreneurialmode of SI

Bottom Up Approach: process of aggregation; Participative modeof SI

Strategic Budgeting: Mix of these two modes; iterative form of decision making

REOURCE ALLOCATION(RA)

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Making of a Strategic Budget

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Levels of management

Top level

Executive level

Operating level

Budgeting Process

Corporate

Policy

Guidelines

Position papers(e.g environment,

Core competencies

Marketing,

past performance)

Desired

goals

Minimizing gaps

Tasks/Operational

Plans

Resource

AvailabilityApproval

& sanctio

StrategicBudget

Proposals

Implementation


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Aligning Resource Allocation to Strategy

Dangers of misallocation Involves trade-offs

Factors Affecting Resource Allocation

Objectives of the Organization

Preference of Dominant Strategists

Internal Politics

External Influences

Difficulties in Resource Allocation Scarcity of resources

Restrictions on generating Resources

Overstatement of Needs

Tendency to Imitate Competitors

Issues in REOURCE ALLOCATION

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bpsm unit iv strategy implementn 1

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