Strategy implementation is the translation or actualization of chosen strategy into organizational action so as to achieve strategic goals and objectives. It is the manner in which an organization should develop, utilize and amalgamate organizational structure, control systems, and culture to actualize strategies that lead to competitive advantage and a better performance. Implementation involves turning strategies and plans into actions in order to accomplish strategic goals and objectives.
Factors that Support Strategy Implementation
These factors are echoed by Mc Kinsey’s 7Ss Strategy’
- Strategy: A company’s plan for achieving a competitive edge and long-term growth. It must have a long-term and well-defined goal. It must point in a direction that leads to the achievement of goals. The strategy should be consistent with the company’s vision, mission, and core values.
- Style: This refers to the management or leadership style in use throughout the organization, from top management to team leaders and managers in smaller units. Participative leadership styles are promoted by strategy execution, therefore this is actually more about defining and explaining the interactions among the organization’s leaders, as well as, to some extent, how they are seen by those they lead or manage.
- Staff: Human resources are one of an organization’s most valuable assets or resources. As a result, human resource processes, including as hiring, recruitment, selection, and training, receive a lot of attention.
- Skills: Employees with no skills are a waste of money for the company. Employees must have the skills, competencies, and capacities required in the implementation of strategies in order to assist the firm in achieving its objectives.
- Shared Values:This is the core of the McKinsey 7s framework, and it refers to the standards, conventions, and generally accepted attitudes that drive employees to act or react in a certain way. These standards and norms will impact employee behavior, and their shared ideals will become one of the organization’s driving forces as it grows.
- Structure: The organizational structure must be clear, with the lines of authority and responsibility in the hierarchy or “chain of command” clearly defined and underlined. Each member of the organization must understand who he is responsible for or to, as well as who he is accountable to. The implementation process will be aided by ensuring an open and clear communication network.
- Systems: What systems, tools, and capabilities are in place to make the strategies easier to implement? What are these systems’ special functions? After implementation, how will these systems assist in the subsequent parts of the strategic management process?
Steps for effective strategy implementation
To ensure an effective and successful implementation of strategies, the following steps are advisable:
- Evaluation and communication of the Strategic Plan:
- Development of an implementation structure
- Development of implementation-support policies and programs
- Budgeting and allocation of resources
- Discharge of functions and activities
Avoiding the Implementation Pitfalls
The most common reasons strategic plans fail include:
- A lack of ownership, involvement, and participation
- A lack of or ineffective communication, particularly with the ostensible implementors
- Focusing on day-to-day firefighting at the exclusion of long-term objectives.
- If the strategy is so complex that staff are unsure where to begin.
- A sense that the strategy is pointless, especially if it is aimed at achieving personal goals.
- If it’s a yearly strategy that will only be discussed during annual weekend retreats.
- When the planning document is viewed as a goal in and of itself, little consideration is given to implementation.
- Monitoring and evaluation/progress report is poor or non-existent.
- There is no responsibility
- Lack of empowerment, accountability, and visionary leadership are among the top ten issues.
Keys to successful strategy implementation
To ensure an effective and successful implementation of strategies, it becomes necessary to set in place the following key items:
a) Set accountability plan
- Develop an accountability system
- Turn strategic priority issues into assigned, measurable action plans
- Embed departmental planning
- Negotiate individual accountabilities
b) Fixing the organization
- Change the organization structure
- Change the people fast
- Foster creative leadership and mental toughness
- Remove resistance
- Use teams appropriately
c) Enabling and aligning
- Define the future culture
- Allocate resources effectively, putting your money and people where your future is
- Align your organizations work with the plan-from top to bottom
d) Providing an environment in which people can excel
- Empower execution
- Select, train and develop for the future-now
- Fix broken core processes
- Communicate to everyone all the time
e) Judging and rewarding
- Review performance
- Reward strategic results