MNG3702 SUMMARISED NOTES Latest Update Rated A+ 2022/2023

In strategy implementation we consider the entire organisation – not only divisional or functional segments. The approach to strategy implementation considers the impact of strategy implementation decisions for the entire organisation, at all managerial levels and across all functional areas. The organisation’s strategic plans therefore can succeed only if properly supported, coordinated and implemented by middle and lower management. Effective strategy implementation, therefore, requires consideration of all the essential components of the strategy implementation process as illustrated in Figure and discussed below. • Change Management (Unit 2) - Strategy is not about conducting business as usual, it is about managing change, and change initiatives. • Organisational Learning (Unit 3) - Organisations cannot change if they are unable to learn and adapt • Culture in strategy implementation (Unit 4) - Change is often about changing the culture of an organisation and for that reason the role of leadership. • Adapt to the selected Strategy (Unit 5) - The organisational structure of the organisation has to adapt to the selected strategy. • Strategy deployment (Unit 6) - Strategy deployment is the process of managing the strategy implementation process and the strategic initiatives that form a vital part of it through programmes and projects. • Strategic control and performance management frameworks (Unit 7) - Managers need to ensure that appropriate strategy review, evaluation and control mechanisms. The four broad approaches to or perspectives on strategy implementation are: 1. Organisational architecture. This perspective views the organisation as an interrelated set of sub-systems, which must all be aligned, in balance and consistent if a strategy is to be implemented successfully. 2. Organisational Change - there is a perspective that strategy implementation is about managing planned change. 3. Strategy deployment - Strategy implementation can be viewed as a process of that collectively contribute towards the achievement of strategic objectives. 4. The learning organisation - Strategy implementation as organisational adaptation suggests that organisations learn and adapt organically rather than as part of a formal process. H.Crassas – 2015 – MNG3702 – Strategy Implementation & Control Page 2 1.4 TRANSLATING LONG-TERM OBJECTIVES INTO ANNUAL OBJECTIVES Strategy has both long-term and short-term implications. • Long-term objectives are attained by achieving successive, year-on-year short-term objectives. • Annual objectives are derived from long-term objectives and cascaded down to middle or functional management levels, where action plans are implemented in order to achieve such objectives in the respective divisions or functional departments (finance, R&D, marketing, operations, human resources and purchasing). Short-term objectives are defined as “measurable outcomes achievable or intended to be achieved in one year or less” Formulating short-term objectives aid strategy implementation in at least three ways: 1. Operationalises long-term objectives, i.e. makes strategy part of the day-to-day jobs of everyone. 2. Motivational force and a means of avoiding conflict and disagreement. 3. Standards for measuring progress and outcomes, providing opportunity for timeous corrective action where needed and to ensure that strategy implementation stays on track. Short-term objectives in particular should comply with the SMART requirements, i.e. specific, measurable, achievable, realistic and timely. 1.5 FUNCTIONAL STRATEGIES AND TACTICS IN STRATEGY IMPLEMENTATION Functional strategies or tactics are key routine activities that need to be executed in each of an organisation’s functional Areas, defined as follows: “Detailed statements of the ‘means’ or activities that will be used by an organisation to achieve short-term objectives and establish competitive advantage” We must draw a clear distinction between business strategies and functional strategies or tactics to appreciate the importance for effective strategy implementation. Functional strategies or tactics differ from business strategies with regard to the following three dimensions: 1. Time horizon - strategies are based on a vision and mission, strategic intent and long-term objectives that extend a number of years. Functional strategies have to achieve objectives in the immediate future through short-term action plans because they: a. focus the attention of functional managers on what is critical and needs to be accomplished to ensure successful strategy implementation, and b. allow functional managers to adjust to changing conditions. 2. Specificity - Specific strategies or tactics and the related action plans for each functional area identify how managers in each of these areas can accomplish their tasks in the short term 3. Participants – Business strategies are developed by top management in conjunction with managers at all the organisational levels, but remain the ultimate responsibility and accountability of top management. Functional strategies are generally delegated by top managem