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Strategy Implementation. CON 547 - Strategic Planning. 1.8Basic Elements of the Strategic Management Process (Fig. 1.1)p. 9. Evaluation. Environmental. Strategy. Strategy. and. Scanning. Formulation. Implementation. Control. Basic Elements of the Strategic Planning Process.

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Strategy implementation

Strategy Implementation

CON 547 - Strategic Planning


Basic elements of the strategic planning process

1.8Basic Elements of the Strategic Management Process (Fig. 1.1)p. 9

Evaluation

Environmental

Strategy

Strategy

and

Scanning

Formulation

Implementation

Control

Basic Elements of the Strategic Planning Process

CON 547 - Strategic Planning


Strategic planning model

1.9Strategic Management Model (Fig. 1.2)p. 9

Strategic Planning Model

Environmental

Strategy

Strategy

Evaluation

Scanning

Formulation

Implementation

and Control

Mission

External

Reason for

Societal

existence

Objectives

Environment

General Forces

What results

to

Strategies

Task

accomplish

Environment

by when

Plan to

Industry Analysis

achieve the

Policies

mission &

Internal

objectives

Broad

guidelines for

Programs

Structure

Process

decision

to monitor

Chain of Command

making

Activities

performance

needed to

Budgets

Culture

and take

accomplish

corrective

Beliefs, Expectations,

a plan

Cost of the

action

Values

programs

Procedures

Resources

Sequence

Assets, Skills

of steps

Competencies,

needed to

Knowledge

Performance

do the job

Feedback/Learning

CON 547 - Strategic Planning


Strategy implementation1

Strategy Implementation

  • Sum total of the activities and choices required to execute the Strategic Plan

  • Process by which strategies and policies are put into action through the development of programs, budgets, and procedures

CON 547 - Strategic Planning


Implementation questions

8.1Implementation Questions p. 183

Implementation Questions

  • WHO will carry out the strategic plan?

  • WHAT must be done?

  • HOW is everyone going to do what is needed?

CON 547 - Strategic Planning


Who implements strategy

Who Implements Strategy?

  • Planners - small, select group

  • Implementers - everyone

  • Important to communicate plan clearly

  • Important to involve people from all organizational levels in plan formulation

CON 547 - Strategic Planning


What must be done

What Must Be Done?

  • Subordinate plans to be developed at all levels

  • Developing programs, budgets, and procedures

    • Programs to make strategy action-oriented

    • Budgets to provide and manage resources

    • Procedures detail activities to be carried out

CON 547 - Strategic Planning


How is strategy implemented

How Is Strategy Implemented?

  • Organizing Activities - Chap 8

  • Staffing Activities - Chap 9

  • Directing Activities - Chap 9

CON 547 - Strategic Planning


Structure follows strategy

8.2Structure Follows Strategyp. 187

Structure Follows Strategy

1. New strategy is created.

2. New administrative problems emerge.

3. Economic performance declines.

4. New appropriate structure is invented.

5. Profit returns to its previous level.

CON 547 - Strategic Planning


Organizational life cycle

8.4Organizational Life Cycle (Table 8.2)p. 193

Organizational Life Cycle

Stage IStage IIStage III1Stage IVStage V

Dominant IssueBirthGrowthMaturityDeclineDeath

PopularConcentrationHorizontalConcentric andProfit strategyLiquidation orStrategiesin a nicheand verticalconglomeratefollowed bybankruptcygrowthdiversificationretrenchment

LikelyEntrepreneur-FunctionalDecentralizationStructuralDismembermentStructuredominatedmanagementinto profit orsurgeryof structureemphasizedinvestment centers

Note: 1. An organization may enter a Revival Phase either during the Maturity or Decline Stages and thus extend the organiza-tion’s life.

CON 547 - Strategic Planning


Types of organizational structures

Types of Organizational Structures

  • Simple Structure

    • small, entrepreneur-dominated company

  • Functional Structure

    • medium-sized company, multiple products

  • Divisional Structure

    • large corporations, multiple products or multiple locations

  • Matrix Structure

  • Network Structure

CON 547 - Strategic Planning


Matrix structure

8.6aMatrix and Network Structure (Fig. 8.1)p. 196

Top Management

Manufacturing

Sales

Finance

Personnel

Manager:

Manufacturing

Sales

Finance

Personnel

Project

Unit

Unit

Unit

Unit

A

Manager:

Manufacturing

Sales

Finance

Personnel

Project

Unit

Unit

Unit

Unit

B

Manager:

Manufacturing

Sales

Finance

Personnel

Project

Unit

Unit

Unit

Unit

C

Manager:

Manufacturing

Sales

Finance

Personnel

Project

Unit

Unit

Unit

Unit

D

Matrix Structure

CON 547 - Strategic Planning


Strategy implementation

8.6bNetwork Structure (Fig. 8.1)p. 196

Packagers

Designers

Suppliers

Corporate

Headquarters

(Broker)

Manufacturers

Distributors

Promotion/

Advertising

Agencies

Network Structure

CON 547 - Strategic Planning


Principles for re engineering

8.7Principles for Re-engineeringp. 197

Principles for Re-engineering

  • Organize around outcomes, not tasks

  • Have those who use the output perform the process

  • Subsume information-processing work into the real work that produces the information

  • Treat geographically dispersed resources as though they were centralized

  • Link parallel activities instead of integrating their results

  • Put decision point where work is performed and build control into the process

  • Capture information once at the source

CON 547 - Strategic Planning


Job characteristics model

8.8Job Characteristics Modelp. 199

Job Characteristics Model

  • Combine tasks

  • Form natural work units

  • Vertically load the job

  • Establish client relationships

  • Vertically load the job

  • Open feedback channels

CON 547 - Strategic Planning


Staffing issues

Staffing Issues

  • Hiring new people with new skills

  • Firing people with inappropriate or substandard skills

  • Training existing employees to learn new skills

CON 547 - Strategic Planning


Staffing follows strategy

Staffing Follows Strategy

1. Hiring and training requirements change

2. Matching the manager to the strategy

3. Executive succession: insiders vs. outsiders

4. Identifying abilities and potential

CON 547 - Strategic Planning


Downsizing guidelines

9.2Downsizing Guidelinesp. 212

Downsizing Guidelines

  • Eliminate unnecessary work.

  • Contract out work that others can do cheaper.

  • Plan for long-run efficiencies.

  • Communicate the reasons for actions.

  • Invest in the remaining employees.

  • Develop value-added jobs to balance out job elimination.

CON 547 - Strategic Planning


Issues in leading

Issues in Leading

  • Directing people to use their abilities and skills most effectively and efficiently

  • Achieve organizational objectives

  • Management leadership

  • Communicating norms of behavior

  • Agreements among workers in teams

CON 547 - Strategic Planning


Assessing strategy culture compatibility

9.3Assessing Strategy-Structure Compatibility (Fig. 9.1)p. 216

Assessing Strategy—Culture Compatibility

Is the planned strategy compatible

with the current culture?

No

Yes

Can the culture be modified to

Tie changes into the culture.

make it more compatible with the

new strategy?

Yes

Is management willing and able to

make major organizational

No

changes and accept probable

delays and a likely increase in

No

Yes

Manage around the culture by

Is management still committed

establishing a new structural unit

to implementing the strategy?

to implement the new strategy.

No

Yes

Find a joint-venture partner or

Formulate a different stategy.

contract with another company

to carry out the strategy.

CON 547 - Strategic Planning


Action planning

9.5Action Planningp. 218–219

Action Planning

1. List specific actions.

2. List dates to begin and end each action.

3. Name person responsible for each action.

4. Name person responsible for monitoring timelines and effectiveness of each action.

5. Estimate expected financial and physical consequences of each action.

6. Develop contingency plans.

CON 547 - Strategic Planning


Process of managment by objectives

9.6Process of Management by Objectivesp. 220–221

3

2

Superior plans objectives for subordinates

Revise

structure

3

Subordinate proposes objectives

1

4

Formulate corporate, divisional, and functional objectives

Joint agrement on subordinate’s objectives and action plan

Feedback

and Change

7

5

Evaluate corporate, divisional, and functional performance

Review and discuss interim results

5(A)

Consider new information

6

Review and discuss overall results

5(b)

Drop inappropriate objectives

Process of Managment by Objectives

CON 547 - Strategic Planning


Objectives of total quality management tqm

9.7Objectives of Total Quality Management (TQM)p. 221

Objectives of Total Quality Management (TQM)

1. Better, less variable quality of product / service.

2. Quicker, less variable response to customers’ needs.

3. Greater flexibility in adjusting to customers’ shifting requirements.

4. Lower cost through quality improvements and elimination of nonvalue-adding work.

CON 547 - Strategic Planning


Essential ingredients of tqm

9.8Essential Ingredients of Total Quality Management (TQM)p. 221-222

Essential Ingredients of TQM

  • Intense focus on customer satisfaction

  • Internal as well as external customers

  • Accurate measurement of every critical variable in a company’s operations

  • Continuous improvement of products / services

  • New work relationships based on trust and teamwork

CON 547 - Strategic Planning


Implementation problems

Implementation Problems

1. Implementation took more time than planned

2. Unanticipated major problems arose

3. Activities were ineffectively coordinated

4. Competing activities and crises took attention away from implementation

5. The involved employees had insufficient capabilities to perform their jobs

CON 547 - Strategic Planning


Implementation problems con

Implementation Problems, con.

6. Lower-level employees were inadequately trained

7. Uncontrollable external environmental factors created problems

8. Departmental managers provided inadequate leadership and direction

9. Key implementation tasks and activities were poorly defined

10. The information system inadequately monitored activities

CON 547 - Strategic Planning


Implementation summary

Implementation Summary

  • Who?

  • What?

  • How?

    • Organizing

    • Staffing

    • Leading

CON 547 - Strategic Planning


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