Slide 1

Strategic Implementation The process by which the organization's chosen strategies are put into operation. It may involve planning new activities, developing an organizational structure to undertake them and considering how to persuade stakeholders that their best interests will be served by undertaking the strategy.

As the prime aim in implementing strategy is to deliver the mission and objectives of the organisation, implications for the tasks to be undertaken by individuals and the allocation of the necessary resources. Detailed strategic plans are often developed, especially where there are elements of experimentation or uncertainty in the chosen strategies. As the strategies are implemented, they clearly need to be monitored and controlled. The way in which these activities are linked together is shown in Figure 17.1.

THE IMPLEMENTATION PROCESS

Basic elements of the implementation processImplementation issues need to address the following questions: What activities need to be undertaken in order to achieve the agreed objectives? What is the timescale for the implementation of these plans?How will progress be monitored and controlled? THE BASIC IMPLEMENTATION PROCESSTo turn general strategies into specic implementation plans involves four basic elements:Identication of general strategic objectives specifying the general results expected from the strategy initiatives; Formulation of specic plans taking the general objectives and turning them into specic tasks and deadlines (these are often cross-functional); Resource allocation and budgeting indicating how the plans are to be paid for (this quanties the plans and permits integration across functions);Monitoring and control procedures ensuring that the objectives are being met, that only the agreed resources are spent and that budgets are adhered to. The relationship between these activities is shown in Figure 17.2.

Types of basic implementation programme

Implementation programmes will vary according to the nature of the strategic problems which the organization faces. These problems will range from the extreme and urgent need for change, such as at a bankrupt to the more ongoing strategic development processes.The two essential causes of variation in implementation programmes are:1: The degree of uncertainty in predicting changes in the environment; 2: The size of the strategic change required.

In response to these issues, several types of basic implementation programme can be carried out. At one extreme, there is the comprehensive implementation programme for fundamental changes in strategic direction. At the other extreme, there is the incremental implementation programme, where implementation is characterised by small changes and short time spans within the general direction implied by the strategy.Both these approaches have their difculties, so a compromise may be chosen in practice: the selective implementation programme. Comprehensive implementation programmes are employed when the organisation has made a clear-cut, major change in strategic direction, as in the crisis faced by bankrupt etc. Other reasons might include a new competitive or new technological opportunity.

Incremental implementation programmes may be used where there are conditions of great uncertainty for example, rapidly changing markets or the unknown results of R&D. Selective implementation programmes may be used where neither of the above represents the optimal way forward. Selective programmes represent the compromise required: a major programme developed in selective areas only.

Implementation in small and medium-sized businesses

The basic elements of the implementation process the identication of general strategic objectives; the formulation of specic plans; resource allocation and budgeting; monitoring and control procedures are equally applicable to smaller organisations. All organisations need to specify the tasks to be undertaken and monitor progress. Moreover, choosing the correct type of implementation programme comprehensive, incremental or selective according to the nature of the problem and the particular environment of the organisation is also important to small and medium-sized businesses. Indeed, any small or medium-sized business that attempts to obtain nance for a new venture will be asked to supply the essential information outlined above. Banks and other lending institutions no longer rely on vague promises and good intentions.

Key strategic principles

Implementation covers the activities required for an organisation to put its strategies into practice. There are several basic elements to this process: general objectives, specic plans and the necessary nances, coupled with a monitoring and control system to ensure compliance. Within the implementation process, it is useful to draw a distinction between different types of implementation. There are three major approaches: comprehensive, incremental and selective. Implementation in small and medium-sized businesses may be less elaborate but needs to follow the same general principles.