Implementation of strategy

Implementation of strategy
See also
Nature of strategic management Tactical management Risk response plan Decision types in business Management functions Process analysis Organizational planning Strategic management model Types of planning

The implementation of the strategy (Strategy deployment) includes a series of actions and decisions related to the implementation of strategic plans in the enterprise. Although elements of the process of implementation of the strategy vary for individual companies, there are some basic actions necessary to carry out in all situations. The key to success in the implementation of the strategy is the unification of the organization around the developed strategy. After that, it is possible that any significant action and decision is carried out in a manner strictly corresponding to the strategy.

Key tasks in strategy implementation

Six key activities related to the implementation of the strategy are:

1. Design of organization capable of successful implementation of a strategy
2. Preparing budget to support the implementation of the strategy,
3. The use of support systems for management (policies, procedures, information and control systems),
4. Design of system of rewards and incentives closely related to the operational objectives and strategy
5. Adjust the organizational culture to selected strategy
6. The use of strategic leadership.

Prior to the execution of the above tasks, management should respond to the following questions:

• which activities are most important, and which can be done later,
• which actions require a lot of time and personal surveillance,
• what can be delegated to other employees.

Creating climate of support

For effective implementation of the strategy, it is necessary to create climate of support among employees. Main factors which management can affect are:

• involvement of employees,
• organizational culture,
• style of leadership.

Functions of managers

Strategy implementation phase consist of: Penc-Pietrzak, 1998 s.158 i 160):

• translating of the strategic plan into concrete action policy (marketing, financial, production, etc.),
• creating operation plans and specific tasks resulting from the strategic plan,
• assignment of specific tasks to the organizational units,
• check whether the strategic plan expenses is covered by the budget,
• identifying and acquiring the resources needed to implement the strategy,
• adapt the organizational structure to meet the needs of the new strategy,
• create an organizational culture compatible with the strategy,
• develop motivational and control systems for the implementation of the selected strategy.

Rules for implementation of the strategy

In implementing the strategy, managers should be aware of the principles which should guide the company: Walesiak, 1996 s.100-102):

• all managers should thoroughly familiarize themselves with the overall strategy of the company,
• managers should know planning considerations, assumptions and projections for the future and known conditions that will have an impact on the implementation of the plan,
• one has to make sure that the partial action plans reflect the main objectives of the company,
• strategy has to be reassess on a regular basis to see if it is still valid and relevant to the changing conditions,
• strategy should take into account the possibility of the emergence of unforeseen cases, significant and unexpected changes in the environment,
• organizational structure should be tailored to the needs of planning (with the appropriate delegation of powers and responsibilities associated with the implementation of the strategy),
• managers should emphasize the need for planning in the enterprise and focus on the implementation of the adopted strategy,
• managers should create an organizational climate conducive to the strategic planning.

References

• Guth, W. D., & MacMillan, I. C. (1986). Strategy implementation versus middle management self-interest. Strategic Management Journal, 7(4), 313-327.

Author: Krzysztof Wozniak