Makerere University Business School

Strategic Management Course

STRATEGY IMPLEMENTATIONHow do we ensure arrival?

A good strategy without proper implementation is like a poor strategy or no strategy at all

However having a good strategic plan is half the battle won, and the other half is won through effective strategy implementation

Introduction

DefinitionA rigorous process of transforming the

plan / strategy into action (from mere strategic planning to strategic management)

This transformation involves planning further( for our chosen strategy to be applied) through effectively communicating to implementers (internal buy-ins), organizing resources, leading,and controlling

Definition - Cont.• Putting our grand plan/blue print

into action to ensure that we competitively get where we want to be (strategic direction)

• Executing the chosen strategy (s) through putting its tactics(actionable steps/competitive activities) into action

Implementation stage features1. Every strategy to be

implemented has its unique strategic window

2. Its own requirements/changes3. Successful implementation is

usually spearheaded by top management applying team work/participatory styles of leadership

More features/observations4. Strategies are implemented by people, so

you need their commitment/goal contract5. Some implementation is actually out-sourced

from those with better value-adding core competences in some of our tactics/activities that make up your chosen strategy

6. Planning for strategy implementation is usually ignored due to that excitement after choosing our strategy

• You need to plan for this critical stage-

why?

• An implementation plan is very critical at

this stage

• It is in line with that strategy’s tactics and

the generic steps for effective strategy

implementing

Issues

What activities are to be done When they will be done (Timing)Who will do them (Persons

responsible)What resources will be requiredWhat will be the performance indicators

Objectively verifiable indicators (OVIs)

Means of verification/evaluation Key Result Areas (quantitive and

qualitative indicators)

Content

• Coherent and integrated Work Plans can then be developed from this Implementation Plan’s schedule of tactics/activities/actionable steps

A good strategic choice with wrong tactics/work plans is likely to fail, and vice-versa

Note

Implementation process• Communication / clarification of

the goals, objectives and strategies( at different levels of hierarchy)

• Determine the key managerial & operational tasks to be performed

• Assign tasks to the various departments and their mgrs/leaders (departmentation)

• Delegate authority with responsibility,and establish a linking/coordination mechanism

• Budget and allocate resources to the implementing divisions/departments/sections

• Formulate and state policies, work plans,procedures, and the models/manuals to guide the coherent set of tactics (activities) to be used

Process – Cont.

• Operationalize those tactics in your strategy

• Determine the necessary indicators for measuring performance (participatory styles of leadership/mgt)

• Build an information system to provide the required accurate, adequate, and timely feedback

• Establish a recognition and reward system for motivating your staff

Process – Cont.

• Develop your staff and inculcate/reinforce your firm’s corporate values

• Establish an appropriate control mechanism

• Evaluate performance, ascertain gaps, provide feedback and take corrective action where necessary

Process – Cont.

McKinsey 7-S frame work

• Strategy• Structure• Systems

• Style• Shared

values• Staff• Skills

For effective strategy implementation(key success factors/pre-requisites)

Revision Questions

1. “A good strategy with poor implementation is like a poor strategy or no strategy at all,” Discuss

2. Explain the McKinsey’s prerequisites for effective implementation of strategy

3. Alignment of your strategy to other KSFs is vital for competitive assurance of arrival to where you want to be. Discuss

• Good strategy formulation alone will not make your organization successful. There are other elements that must work and fit together with the strategy to make an organization realize its goals and objectives competitively. Discuss the above statements.

Questions – Cont.