STRATEGIC MANAGEMENT (Module-2) Pages:31
Implementation, Evaluation and Control of Strategy
STEPS IN STRATEGY IMPLEMENTATION
To ensure an effective and successful implementation of strategies, it’s a good idea
to have a system to go about it. Take a look at the steps to ensure that happens.
Step #1: Evaluation and communication of the Strategic Plan
The strategic plan, which was developed during the Strategy Formulation stage, will
be distributed for implementation. However, there is still a need to evaluate the plan,
especially with respect to the initiatives, budgets and performance. After all, it is
possible that there are still inputs that will crop up during evaluation but were missed
during strategy formulation.
There are several sub-steps to be undertaken in this step.
1. Align the strategies with the initiatives. First things first, check that the
strategies on the plan are following the same path leading to the mission and
strategic goals of the organization.
2. Align budget to the annual goals and objectives. Financial assessments
conducted prior will provide an insight on budgetary issues. You have to
evaluate how these budgetary issues will impact the attainment of objectives,
and see to it that the budget provides sufficient support for it. In the event that
there are budgetary constraints or limitations, they must first be addressed
before launching fully into implementation mode.
3. Communicate and clarify the goals, objectives and strategies to all
members of the organization. Regardless of their position in the
organization’s hierarchy, everyone must know and understand the goals and
objectives of the organization, and the strategies that will be employed to
achieve them.
Step #2: Development of an implementation structure
,The next step is to create a vision, or a structure, that will serve as a guide or
framework for the implementation of strategies.
1. Establish a linking or coordination mechanism between and among the
various departments and their respective divisions and units. This is mainly for
purposes of facilitating the delegation of authority and responsibility.
2. Formulate the work plans and procedures to be followed in the
implementation of the tactics in the strategies.
3. Determine the key managerial tasks and responsibilities to be performed, and
the qualifications required of the person who will perform them.
4. Determine the key operational tasks and responsibilities to be performed, and
the qualifications required of the person who will perform them.
5. Assign the tasks to the appropriate departments of the organization.
6. Evaluate the current staffing structure, checking if you have enough
manpower, and if they have the necessary competencies to carry out the
tasks. This may result to some reorganization or reshuffling of people. In
some cases, it may also require additional training for current staff members,
or even hiring new employees with the required skills and competencies. This
is also where the organization will decide if it will outsource some activities
instead.
7. Communicate the details to the members of the organization. This may be in
the form of models, manuals or guidebooks.
Step #3: Development of implementation-support policies and programs
Some call them “strategy-encouraging policies” while others refer to them as
“constant improvement programs”. Nonetheless, these are policies and programs
that will be employed in aid of implementation.
1. Establish a performance tracking and monitoring system. This will be the
basis of evaluating the progress of the implementation of strategies, and
monitoring the rate of accomplishment of results, or if they were accomplished
, at all. Define the indicators for measuring the performance of every employee,
of every unit or section, of every division, and of every department.
2. Establish a performance management system. Quite possibly, the aspect
of performance management that will encourage employee involvement is a
recognition and reward structure. When creating the reward structure, make
sure that it has a clear and direct link to the accomplishment of results, which
will be indicated in the performance tracking and monitoring system.
3. Establish an information and feedback system that will gather feedback
and results data, to be used for strategy evaluation later on.
4. Again, communicate these policies and programs to the members of the
organization.
Step #4: Budgeting and allocation of resources
It is now time to equip the implementors with the tools and other capabilities to
perform their tasks and functions.
1. Allocate the resources to the various departments, depending on the results
of financial assessments as to their budgetary requirements.
2. Disburse the necessary resources to the departments, and make sure
everything is properly and accurately documented.
3. Maintain a system of checks and balances to monitor whether the
departments are operating within their budgetary limits, or they have gone
above and beyond their allocation.
Step #5: Discharge of functions and activities
It is time to operationalize the tactics and put the strategies into action, aided by
strategic leadership, utilizing participatory management and leadership styles.
Throughout this step, the organization should also ensure the following:
, Continuous engagement of personnel by providing trainings and
reorientations.
Enforce the applicable control measures in the performance of the tasks.
Evaluate performance at every level and identify performance gaps, if any, to
enable adjusting and corrective actions. It is possible that the corrective
actions may entail changes in the policies, programs and structures
established and set in earlier steps. That’s all right. Make the changes when
necessary.
Basically, the results or accomplishments in Step #5 will be the input in the next step,
which is the third stage of Strategic Management: “strategy evaluation”.
Some argue that implementation of strategies is more important than the strategies
themselves. But this is not about taking sides or weighing and making comparisons,
especially considering how these two are important stages in Strategic Management.
Thus, it is safe to say that formulating winning strategies is just half the battle, and
the other half is their implementation.
Role of Organizational Structure in Strategy Implementation
Changes in Strategy Affect Organizational Structure
There is no one optimal organizational design or structure for a given
strategy or type of organization. What is appropriate for one organization
may not be appropriate for a similar firm, although successful firms in a
given industry do tend to organize themselves in a similar way. When a
firm changes its strategy, the existing organizational structure may
become ineffective.
There are 2 major reasons why changes in strategy often require
changes in the way an organization is structured.
First, structure largely dictates how objectives and policies will be
established. Objectives and policies are stated largely in terms of products
in an organization whose structure is based on product groups. The
structural format for developing objectives and policies can significantly
impact all other strategy implementation activities.
Second, organizational structure dictates how resources will be allocated.
If an organization’s structure is based on customer groups, then resources
will be allocated in that manner. Similarly, if an organization’s structure is
Implementation, Evaluation and Control of Strategy
STEPS IN STRATEGY IMPLEMENTATION
To ensure an effective and successful implementation of strategies, it’s a good idea
to have a system to go about it. Take a look at the steps to ensure that happens.
Step #1: Evaluation and communication of the Strategic Plan
The strategic plan, which was developed during the Strategy Formulation stage, will
be distributed for implementation. However, there is still a need to evaluate the plan,
especially with respect to the initiatives, budgets and performance. After all, it is
possible that there are still inputs that will crop up during evaluation but were missed
during strategy formulation.
There are several sub-steps to be undertaken in this step.
1. Align the strategies with the initiatives. First things first, check that the
strategies on the plan are following the same path leading to the mission and
strategic goals of the organization.
2. Align budget to the annual goals and objectives. Financial assessments
conducted prior will provide an insight on budgetary issues. You have to
evaluate how these budgetary issues will impact the attainment of objectives,
and see to it that the budget provides sufficient support for it. In the event that
there are budgetary constraints or limitations, they must first be addressed
before launching fully into implementation mode.
3. Communicate and clarify the goals, objectives and strategies to all
members of the organization. Regardless of their position in the
organization’s hierarchy, everyone must know and understand the goals and
objectives of the organization, and the strategies that will be employed to
achieve them.
Step #2: Development of an implementation structure
,The next step is to create a vision, or a structure, that will serve as a guide or
framework for the implementation of strategies.
1. Establish a linking or coordination mechanism between and among the
various departments and their respective divisions and units. This is mainly for
purposes of facilitating the delegation of authority and responsibility.
2. Formulate the work plans and procedures to be followed in the
implementation of the tactics in the strategies.
3. Determine the key managerial tasks and responsibilities to be performed, and
the qualifications required of the person who will perform them.
4. Determine the key operational tasks and responsibilities to be performed, and
the qualifications required of the person who will perform them.
5. Assign the tasks to the appropriate departments of the organization.
6. Evaluate the current staffing structure, checking if you have enough
manpower, and if they have the necessary competencies to carry out the
tasks. This may result to some reorganization or reshuffling of people. In
some cases, it may also require additional training for current staff members,
or even hiring new employees with the required skills and competencies. This
is also where the organization will decide if it will outsource some activities
instead.
7. Communicate the details to the members of the organization. This may be in
the form of models, manuals or guidebooks.
Step #3: Development of implementation-support policies and programs
Some call them “strategy-encouraging policies” while others refer to them as
“constant improvement programs”. Nonetheless, these are policies and programs
that will be employed in aid of implementation.
1. Establish a performance tracking and monitoring system. This will be the
basis of evaluating the progress of the implementation of strategies, and
monitoring the rate of accomplishment of results, or if they were accomplished
, at all. Define the indicators for measuring the performance of every employee,
of every unit or section, of every division, and of every department.
2. Establish a performance management system. Quite possibly, the aspect
of performance management that will encourage employee involvement is a
recognition and reward structure. When creating the reward structure, make
sure that it has a clear and direct link to the accomplishment of results, which
will be indicated in the performance tracking and monitoring system.
3. Establish an information and feedback system that will gather feedback
and results data, to be used for strategy evaluation later on.
4. Again, communicate these policies and programs to the members of the
organization.
Step #4: Budgeting and allocation of resources
It is now time to equip the implementors with the tools and other capabilities to
perform their tasks and functions.
1. Allocate the resources to the various departments, depending on the results
of financial assessments as to their budgetary requirements.
2. Disburse the necessary resources to the departments, and make sure
everything is properly and accurately documented.
3. Maintain a system of checks and balances to monitor whether the
departments are operating within their budgetary limits, or they have gone
above and beyond their allocation.
Step #5: Discharge of functions and activities
It is time to operationalize the tactics and put the strategies into action, aided by
strategic leadership, utilizing participatory management and leadership styles.
Throughout this step, the organization should also ensure the following:
, Continuous engagement of personnel by providing trainings and
reorientations.
Enforce the applicable control measures in the performance of the tasks.
Evaluate performance at every level and identify performance gaps, if any, to
enable adjusting and corrective actions. It is possible that the corrective
actions may entail changes in the policies, programs and structures
established and set in earlier steps. That’s all right. Make the changes when
necessary.
Basically, the results or accomplishments in Step #5 will be the input in the next step,
which is the third stage of Strategic Management: “strategy evaluation”.
Some argue that implementation of strategies is more important than the strategies
themselves. But this is not about taking sides or weighing and making comparisons,
especially considering how these two are important stages in Strategic Management.
Thus, it is safe to say that formulating winning strategies is just half the battle, and
the other half is their implementation.
Role of Organizational Structure in Strategy Implementation
Changes in Strategy Affect Organizational Structure
There is no one optimal organizational design or structure for a given
strategy or type of organization. What is appropriate for one organization
may not be appropriate for a similar firm, although successful firms in a
given industry do tend to organize themselves in a similar way. When a
firm changes its strategy, the existing organizational structure may
become ineffective.
There are 2 major reasons why changes in strategy often require
changes in the way an organization is structured.
First, structure largely dictates how objectives and policies will be
established. Objectives and policies are stated largely in terms of products
in an organization whose structure is based on product groups. The
structural format for developing objectives and policies can significantly
impact all other strategy implementation activities.
Second, organizational structure dictates how resources will be allocated.
If an organization’s structure is based on customer groups, then resources
will be allocated in that manner. Similarly, if an organization’s structure is
