MNG3702 EXAM PACK

Introduction to strategy implementation Explain what strategy implementation entails, and how it relates to the strategic management process. Strategy Implementation/Execution- Its the second phase in traditional strategic management process. It s the doi g pat hee oth hua ad o -human factors in the organisation are applied to ensure that the strategy is executed in line with the devised plans. It is about the processes and actions to ensure that all aspects of the internal environment are aligned with the chosen strategic direction and strategy. These are the key elements to be considered:  Leadership and culture- a strategic leader must ensure that the culture of the organisation is aligned with strategic choice  Managing change- requires managing change and change initiatives. Strategy is not about business as usual  Learning organisation-The organisation must be a learning organisation through its staff and be willing to share knowledge  Organisational architecture and structure- To create a cohesive strategy, the implementation components need to be integrated well and the organisation needs appropriate structure to successfully execute the strategy – structure follows strategy  Strategy deployment- is the process of managing the strategy implementation process and the strategic initiatives through programme or project management  Strategic control and risk- Controls systems are needed to ensure both strategic implementation process and the content of strategy is reviewed. Managing risk gives an organisation a better chance of implementing strategy successfully There are four perspectives or approaches on strategy implementation: 1. Strategy implementation as organisational architecture. This perspective views the organisation as an interrelated set of sub-systems, which must all aligned, in balance and consistent if a strategy is to be implemented successfully 2. Strategy implementation is about managing planned change Kut Lei ad Joh Kotte s model) 3. Strategy implementation as a process of selecting and managing strategic initiatives that contribute towards the achievement of strategic objectives (strategy deployment) 4. Strategy implementation as organisational adaptation, organisations learn and adapt organically rather than as part of formal process lOMoARcPSD| MNG3702 EXAM PACK. S Explain and demonstrate the link between short-term objectives, functional tactics and resource allocation in strategy implementation. Short-term objectives can be defined as measurable outcomes achievable or intended to be achieved in one year or less. Short term objectives are translated from long term objectives, they should comply with the SMART requirements. Short term objectives formulated at lower levels of the organisation should annually contribute to the organisation ultimately achieving its long-term, strategic objectives They aid strategic implementation by: -Operationising long term objectives -Acts as a strong motivational force and a means of avoiding conflict and disagreement with the organisation -serves a standards for measuring progress and outcomes, providing opportunity for timeous corrective action where needed Functional tactics are defined as detailed statements of the means or activities that will be used by an organisation to achieve short term objectives and establish competitive advantage. They are necessary to implement competitive business strategies, because they ensure that all department/functional areas (marketing, finance, human resource, etc) in the organisation work towards achieving the same goals in the same way. Functional tactic have three dimensions that shows the link between short term objectives  Time horizon- Functional strategies are based on and generally have to achieve annual objectives in the immediate future through short-term action plans, because they focus the attention of functional managers on what is critical and needs to be accomplished and because they allow functional managers to adjust to changing conditions  Specificity- Functional strategies based on short-term objectives are more specific that longerterm business strategies. The tactics and action plans for each functional are identity how managers in each of the areas can accomplish their tasks and achieve objectives in the short term  Who participates in developing the strategies/tactics-Top management delegates responsibility for the development and implementation of functional strategies to functional managers. Functional and operational manager will then develop short-term action plan Top management will be responsibility for resource allocation such as capital, human, physical and technological in for a successful strategy implementation. See practical example on SG p8 lOMoARcPSD| S Explain how organisational culture can support and enhance strategy implementation. O gaisatio al ultu e is defi ed as a patte of sha ed asi assuptio s lea ed a g oup as it sol ed its problems of external adaptation and internal integration, which has worked well enough to be considered as valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems Note that organisational culture serves important functions in an organisation that include serving  the vision and strategy of the organisation  the means through which to attain strategic objectives  a i di idual s ole o ietatio  quality assurance  o o laguage ad effeti e o ui atio -Strategic leadership and organisational culture are closely aligned and enhance factors that accommodate change and therefore strategy implementation. Leaders of an organistaion play a critical role at ensuring their organisation successfully adapt to dynamic and changing environments. -For that success to occur, top-level executives need to demonstrate strategic leadership, which means that they must be able to think strategically; they need to be emotionally intelligent; have a range of behaviours at their disposal and have the wisdom to apply the right combination of behaviours at the ight ti e − i othe o ds the ust possess the ailit to appl oth t asatio al a d t asfo atio al leadership - Leaders could also use the cultural web to shape or change organisational culture