BA 5302

STRATEGIC MANAGEMENT
Dr.C.THIRUMAL AZHAGAN
ASSISTANT PROFESSOR
MANAGEMENT STUDIES
ANNA UNIVERSITY BIT CAMPUS
TIRUCHIRAPPALLI
 UNIT 4
STRATEGY IMPLEMENTATION & EVALUATION

• The implementation process, resource allocation, designing

organisational structure-
• Designing strategic control systems- matching structure and
control to strategy-
• Implementing strategic change-politics-power and conflict
• Techniques of strategic evaluation & control
 STRATEGIC IMPLEMENTATION 
• Strategic Implementation is a process that puts plans and strategies into action to reach desired
goals.
•  Strategy implementation refers to the execution of the plans and strategies, so as to
accomplish the long-term goals of the organization. It converts the opted strategy into the moves
and actions of the organization to achieve the objectives.
• Strategy implementation
• Everyone is responsible
• Few guidelines
• No easy 10-step checklist to follow
• Most open-ended part of strategic management
• People implement strategies not organizations
 STRATEGIC MANAGEMENT MODEL
• Strategy Implementation
• How do we get there?
• Work action plans
• GOOMS

STRATEGY IMPLEMENTATION CONSIDERATIONS

• 7-S framework – strategic fit
• Human resources
• Patience and discipline
 HUMAN RESOURCE RULE

• Hire smart
• Train hard
• Manage easy

PATIENCE AND DISCIPLINE

It takes patience and discipline to develop and empower people; in fact, it’s like growing
bamboo. Once the seed is planted, you must water it daily for four years before the tree
breaks ground – then it grows 60 feet in 90 days!
Executives who nurture people can get similar results…how, you ask, can such rapid
growth be possible? It results from the miles of roots that develop in those first four
years. Preparing people to perform is the task of leadership.
IMPLEMENTATION STRATEGIES
• GOOMS
• Implementation Conference
• CEO Involvement
 GOOMS
• GOALS
• OUTCOMES
• OBJECTIVES
• MEASURES

• Goal : broad, general

• Outcome : desired end result and report performance
• Objective : what and when
• Measure : A quantified unit that assesses progress or achievement
 DIFFICULTIES IN STRATEGIC
IMPLEMENTATION

• There are two main reasons why any strategy is difficult to implement.
• Firstly, the existence of different departments or divisions within an organization and different
stakeholder groups associated with that organization.
• Secondly, the nature of a hierarchical organization, in which there exists different levels of
decision making and strategy making.
 PROCESS OF STRATEGY IMPLEMENTATION

• Building an organization, that possess the capability to put the strategies into action successfully.
• Supplying resources, in sufficient quantity, to strategy-essential activities.
• Developing policies which encourage strategy.
• Combining the reward structure, for achieving the results.
• Using strategic leadership.
 THE FIVE C’S AND STRATEGY
IMPLEMENTATION
• Co-ordination
• Communication
• Command
• Control
• Conflict / consensus
 STRUCTURAL IMPLEMENTATION

• Structural Implementation of strategy involves designing of organization structure and interlinking

various units and subunits of the organization created as a result of the organization structure.
• Organization structure is the pattern in which the various parts of the organization are interrelated or
interconnected.
• Two questions
1. What functions and activities should be performed for the success of the strategy?
2. Is structure adaptable to the pressure of the external environment?
 FUNCTIONAL IMPLEMENTATION

• Functional implementation deals with the development of policies and plans in different areas of
functions which an organization undertakes.
• Production/operations
• Marketing
• Finance
• Human resources
• General management
 BEHAVIOURAL IMPLEMENTATION
• Strategic leadership strategic leadership is the process of transforming an organization with the
help of its people so -as to put it in a unique position.
• Organizational culture organizational culture is another element which affects strategy
implementation as it provides a framework within, which the behavior of the members takes
place.
• Values and strategy values of individuals, particularly those of key strategists, have major impact
on strategy of the, organization.
 STRATEGIC CHANGE MANAGEMENT

 Strategic change management is the process of managing change in a structured and

thoughtful way in order to meet organizational goals, objectives and missions.

 Therefore, change management and related processes present many managerial challenges
and, consequently, requires a systematic, structured, purposeful and integrated approach.
INTEGRATED MANAGEMENT APPROACH
THE NATURE OFTHE BUSINESS ENVIRONMENT – V-U-
C-A
FORCES OF CHANGE
 AREAS/TYPES OF CHANGE: S-P-O-T-S

 Strategy

 People

 Organizational
culture

 Technology

 Structure
 CHARACTERISTICS OF CHANGE- CAPABLE/FRIENDLY
ORGANIZATIONS
 #1: Linking the present and the future

 #2: Make learning a way of life

 #3: Actively supporting and encouraging day-to-day

improvements and changes

 #4: Ensuring diverse teams

 #5: Encourage out-of-the-box thinking

 CHARACTERISTICS OF CHANGE-
CAPABLE/FRIENDLY ORGANIZATIONS

 #6: Protect and shelter breakthrough ideas

 #7: Integrate technology to implement changes

 #8: Build and deepen trust (creating an organizational

culture of management credibility and integrity)

 #9: Streamline and align processes, systems and structures

 #10: Leadership have the will and conviction to change

CHANGE MANAGEMENT SUCCESS TRACK RECORD

 The literature on “change management” is clear: over 70% of

change initiatives fail.
CHANGE TRANSITION CURVE
CHANGE TRANSITION CURVE AND APPROPRIATE
MANAGERIAL ACTIONS
 ACTIVITY

 As a manager, describe how you can accelerate and guide

employees through the change transition cycle for the most
sophisticated/mature stage, commitment.

 Present a summary
 THE ROLE OF LEADERSHIP IN CHANGE
MANAGEMENT

 “Leaders should not only administer and managing change, but pioneer, pilot
and drive change towards barrier-busting heights of performance improvement.”
(Cotter: 2005)

 Managerial Roles (refer to page 20 in the Learner Guide)

 Change Agents (internal and external)

 Building resilience and change-hardiness

 Transformational Leadership
CHARACTERISTICS OF TRANSFORMATIONAL
LEADERSHIP
 WHY PEOPLE RESIST CHANGE?

 Uncertainty (i.e. fear of the unknown)

 People’s self-interest is threatened

 A lack of trust and misunderstanding

 Belief that change is incompatible with the goals and the interest of the
organization

 A low tolerance for change is also a barrier to organizational change

 Other general reasons (e.g. include inertia where people do not want to
change the status quo, poor timing, and unexpected, extreme or sudden
change and peer pressure)
 WHY IT IS SO CHALLENGING TO REDUCE
RESISTANCE TO CHANGE?
 People and their behaviour is the most difficult to change because unlike
structure and technology, in which managers have absolute control,
managers do not have absolute control over peoples’ thinking, attitudes and
perceptions.

 “Unlike technology, structure, processes and strategy, people talk

back when confronted by uncomfortable levels of change.” (Cotter:
2014)

 People are the greatest source of resistance to change because people have
minds of their own i.e. they have personalized and subjective views
regarding change.

 Change must involve the people - change must not be imposed upon the
people
MANAGERIAL TECHNIQUES TO REDUCE RESISTANCE
TO CHANGE
LEWIN’S 3-PHASE MODEL OF CHANGE
KOTTER’S CHANGE MANAGEMENT PROCESS
 APPLYING THE 7-STEP, ORGANIZATIONAL
STRATEGIC CHANGE MANAGEMENT PROCESS

 STEP 1: Forces for change (internal and environmental forces) which affect:

 STEP 2: Performance outcomes (individual, group and organizational) which encourages

 STEP 3: Diagnosis of the problem (information, participation and change agent) which
leads to

 STEP 4: Selection of appropriate intervention (structural, behavioural and technological) as constrained

by S-P-O-T-S

 STEP 5: Limiting conditions (leadership climate, formal organization

structure and organization culture)

 STEP 6: Selection and Implementation of the method (timing, scope and

experimentation) provision for

 STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement)

 STRATEGY EVALUATION AND CONTROL

•  Strategy evaluation is that phase of the strategic management process in which top management try to
assure that the strategy formulated is being properly implemented and is meeting its objectives of the
enterprise.  
• A follow through on strategy and at implementation requires a control system and effective information
system, which provides managers with accurate and complete feedback in real-time so that they can act
on the data.
•   Control and evaluation process help strategic managers monitor the progress of a plan.  Strategy
evaluation is simply an appraisal of how well an organization has performed.  Adequate and timely
feedback is the cornerstone of effective strategy.
 MEASUREMENT / PERFORMANCE
• How do we measure our progress?
• 5 types of measures
• Input
• Output
• Outcome
• Quality
• Efficiency
KEEPING PLANS OFF THE SHELF
• All staff meeting
• Announce phases
• Review and assess plans at quarterly sessions
• Sponsors and team leads for strategic goals and strategic
objectives
• Deming philosophy – PDCA
• Work action plan
• Leadership training
  PROCESS OF STRATEGY EVALUATION OF
CONTROL

• Determine what to measure

• Establish standards of performance
• Measure actual performance
• Compare actual performance with the standard
• Take corrective action
 STRATEGIC CONTROLS

• Strategic controls are intended to steer the company towards its long-term strategic direction.
After a strategy is selected, it is implemented over time so as to guide a firm within a rapidly
changing environment. Strategies are forward-looking, and based on management assumptions
about numerous events that have not yet occurred.
 TYPES OF STRATEGIC CONTROL

• Type # 1. Premise control:

• Every strategy is founded on certain assumptions relating to environmental and organizational
forces. Certainly some of these forces or factors are very sharp and any change in them is sure to
affect the strategy to a great extent.
• Hence, premise control is a must to identify the key postulations and keep track of any change in
them in order to assess their impact on strategy and, therefore, its implementation.
• Type # 2. Implementation control:
• In order to implement a chosen strategy, there is need for preparing quite good number of plans,
programs and projects. Again resources are allocated for implementing these plans, programs and
projects. The purpose of implementation control is to evaluate as to whether these plans, programs
and projects are actually guiding the organization towards its pre-determined goals or not.
• Type # 3. Strategic surveillance:
• If premise and implementation strategic controls are more specific by nature, strategic surveillance,
is more generalised and overriding control which is designed to monitor a broad range of events
both inside and outside the organization which are likely to threaten the very course of a firm’s
strategy.
• Type # 4. Special alert control:
• This special alert control is based on a trigger mechanism for a rapid response and immediate
reassessment of a given strategy in the light of a sudden and unexpected event. Special alert
control can be exercised via the formulation of contingency strategies and assigning the
responsibility of handling unforeseen events to crisis management teams.