implementation processes and internal marketing: making it happen

Implementation processes and internal marketing: Making it happen

Agenda - 1

Why do we need to make an issue out of strategy implementation?

Implementation versus strategy So, what is the thing about implementation? Implementation denial So, why doesn’t it work? Building implementation strategies

Agenda - 2

Strategic internal marketing

Where does that leave us with strategy implementation?

Why do we need to make an issue out of strategy implementation?

Many company change initiatives fail

Implementation capabilities

The need for internal marketing getting employees on our side

getting managers on our side

getting collaborators on our side

changing culture

How groups can block effective change in a company

Energy

Understanding

HighLow

The“yes … but”sor maliciousobedience

Theideal

Thedangerousenthusiasts

ThedinosaursLow

High

Implementation versus strategy

Traditional approaches: organization, resources action lists, control systems

Creates a dichotomy between strategy formulation and implementation

Need better ways of integrating strategy and implementation

So, what is the thing about implementation?

Implementation failures associated with separation of planning from management hopeless optimism implementation recognized too late denial of implementation problems implementation bolted-on at the end fixation implementation is a black-box

Implementation denial

Failure to recognize the implementation problem

Need to recognize problems and prepare for change

Recognising the implementation problem and preparing for change

Perception that there is a problem

Willingnessto change

High Low

High

Low

Readyto go

Blissfulignorance

Worried stayers/frightened

rabbits

Closedminds

So, why doesn’t it work?

Strategy versus implementation skills diagnosing implementation problems means comparing

strategy (appropriate or inappropriate) with execution skills (good or bad)

Diagnosing the implementation problem

Strategy

Executionskills

Appropriate Inappropriate

Success Roulette

FailureTrouble

Good

Bad

So, why doesn’t it work?

Organizational stretch what is the relationship between the fit of the strategy with

company capabilities, systems and structures and the strategy itself (new or old)?

Matching strategy to company capabilities

Fit of strategy with companycapabilities, systems, structures

Marketstrategy

Good Poor

Synergisticstrategies

Stretchstrategies

Obsoletestrategi

es

Conventionalstrategies

New

Old

So, why doesn’t it work?

Testing out the strategy versus blaming the salesperson

Lip-service to strategy caused by management by assumption

structural contradictions

empty promises marketing

bunny marketing

Counter-implementation emerges

Testing market strategies

Test the strategy

Results Reason

Is this really a coherentand complete strategy?

Is this strategy capable ofbeing implemented by thiscompany at this time?

Have we communicated thestrategy - adapted it, wonsupport for it?

Noimplementation

This strategy doesnot tell us what to do

Noimplementation

Lip-service - we mayagree with the strategybut we cannot put it into effect

Noimplementation

We do not accept thisstrategy - let’s see whatcounter-implementationcan do!

Implementation(maybe)

Yes

Yes

Yes

No

No

No

So, why doesn’t it work?

What about execution skills and competences? interacting skills

allocating skills

monitoring skills

organizing skills

Building implementation strategies

Screen strategies for implementation problems

Isolate and evaluate priority implementation problems

Evaluate key players in implementation

Develop implementation strategies

Screening strategies for implementation problems

1. Screen strategies for implementation problems early

2. Isolate and evaluate implementation problems in detail

3. Identify and evaluate key players

4. Develop credible, costed implementation strategies- or reject the strategy

Internal and external marketing

Strategy

Plan

Externalmarketing

programmeProduct

PriceCommunications

Distribution

Internalmarketing

programmeProduct

PriceCommunications

Distribution

Targeted at keygroups in thecompany, alliancepartner companies,and other influencers

Targeted at keycustomers, segmentsand niches, and otherexternal influencers

Role of Internal Marketing

The managerial actions necessary to make all members of the organization understand & accept their role in implementation internal products-marketing strategies internal prices-changes that must be undertaken to

implement the marketing strategy internal distribution-how the strategies are communicated

internally (training) internal promotion-persuasive communications

Models of internal marketing

SOURCE: AHMED AND RAFIQ (2002) INTERNAL MARKETING BUTTERWORTH HEINEMANN CHAPTER 2

Rafiq and Ahmed meta-model of internal marketing

Servicequality

strategy

Supportivesenior

management

Pre-launch informationregarding marketing

campaigns

Applicationof marketingtechniquesinternally

Supportiverecruitmentpractices

TrainingParticipativemanagement

Employeediscretion

Jobs asproducts

Employees realise theimportance of

their role

Motivatedemployees

Customerconscious/customerorientatedemployees

Goodinteraction

Perceivedservicequality

Customersatisfaction

Increasedprofitability

Salesminded

employees

Employees’satisfaction

Attraction and retentionof customer conscious

employees

Increased salesdue to interactive

marketing

Word of mouthpromotion

Increasedloyalty

A framework for internal marketing of services

Inter-functionalCo-ordination

and Integration

Marketing-likeapproach

Employeemotivation

Customerorientation

Jobsatisfaction

Servicequality

Customer satisfaction

Empowerment

The tools of internal marketing

SOURCE: AHMED AND RAFIG

Caveats

Employees as customers products may be unwanted (e.g. new methods of

working)

employees must accept the ‘product’ or be forced into acceptance under the threat of disciplinary action or dismissal

Caveats

problem with idea of customer sovereignty

make impossible demands on organisation and its resources

In this approach employees do not know that they are customers even though they are treated as such

INTERNAL MARKETING MIX

Number of elements under the control of management are combined and integrated in order to produce the required response from the target market.

Use extended seven P’s of service marketing

Explicitly recognises inter-functional interdependence and the need for an integrated effort for effective service (or product) delivery

Major aim of an internal marketing programme

Levels of internal marketing

Organizationallevels

Criticalquestions

Internalmarketinglevels

ProcessualSurface Structural

What are the plans,systems and procedures inthis business?

Product: Plans and strategiesPrice: Opportunities given upCommunications: Information, market researchDistribution: Reports, presentations

Who runs thingshere?

Product: New strategic directionPrice: Loss of control, status, initiativeCommunications: Sponsorship,agenda-settingDistribution: Policies, participation

Who has influencehere - sets the agenda,owns key processes,is an “expert”?

Product: individual’s job, status, rolePrice: Adjustment tochange, new cultureCommunications:Persuasion, image,influence, choice of criteriaDistribution: informal communicationsnetwork,social interaction

Strategic internal marketing

Programme

Product

Price

Communications

Distribution

Contents

The strategy and the plan,including the values, attitudesand behaviours needed tomake them workWhat we are asking internalcustomers to “pay” – otherprojects abandoned, personaland psychological adjustmentto changeMedia and messages to informand persuade

Physical and social venues fordelivering the product and communications

Examples

For example, the written plan,the new company initiative

For example, stepping out ofcomfort zones for new typesof operations

For example, reports, plans,presentations, videos,roadshows

For example, meetings, work-groups,training sessions and workshops,informal meetings, social occasions

Implementing Marketing Activities

Good communication is key upward communication from the front line

allows management to understand problems & needs of the employees

Employees must understand the implementation timetable specific activities to be performed, time required, sequence, &

who is responsible

Implementing an Internal Marketing Approach

Conscientious recruitment, selection & training of employees

Top managers must be completely committed to the marketing strategy & overall plan

Employee compensation must be linked to marketing strategy implementation

Open communication must exist at all levels Organizational structure, processes & policies must

match the marketing strategy

Strategic internal marketing

Operational internal marketing service marketing and quality

brand ambassadors

internal communications

innovation management

corporate positioning

Internal markets instead of external markets

Strategic internal marketing

Strategic internal marketing internal market orientation

internal marketing strategy

the structure of SIM

Strategic internal marketing

The internal marketing programme internal market measurement

internal marketing targets

internal marketing evaluation

The hidden face of strategic internal marketing

Causes of Improper Implementation

Marketing strategy is inappropriate or unrealistic

Implementation was inappropriate for the strategy or was simply mismanaged

Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation

Where does that leave us with strategy implementation?

Execution skills versus process management in strategy implementation weak implementation

management-driven implementation

implementation-driven strategy

integrated strategy and implementation

Execution skills versus process management in marketing strategy implementation

Process management

Executionskills

LowHigh

Integratedstrategy and

implementation

Management-driven

implementation

Weakimplementatio

n

Implementation-driven

strategyWeak

Strong