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MNG3702-detailed_summary

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Study Notes for MNG 302B – Larry Mowbray


STRATEGY IMPLEMENTATION
MNG 302B

TOPIC 1

STUDY UNIT 1.1
Chapter 10: Strategy implementation and Change Management (TB pg 260)

Introduction

Importance of Strategy Implementation

What is strategy implementation?

Strategy Implementation is defined as the process that turns the selected strategy into action to ensure that the
stated goals (aligned with the vision and mission) are accomplished. From the definition is it clear that strategic
implementation deals with translating the strategic plan into action.

The strategic implementation stage is considered the most difficult part of the strategic management process.
It is considered better to rather have a “B” Strategy with an “A” implementation than an “A” Strategy with and
“B” implementation.

For successful strategy implementation, organisations make use of various strategy implementation drivers,
namely leadership, organisational culture, reward systems, organisational structure and recourse allocation.
Strategy implementation is the communication, interpretation, adoption and enactment of strategic plans.
Implementing the strategy also means that change in the organisation will be required.

The difference between strategic planning and strategy implementation:

 Strategy formulation is the intellectual or thinking phase, while implementation is the phase in which these
thoughts are turned into operational action
 Strategy formulation is mostly a market-driven activity with an external focus, whereas strategy
implementation is an internal, operations-driven activity
 Another difference is evident in the skills required; strategy formulation requires good intuitive and
analytical skills, while implementation requires motivation and leadership skills
 Strategy implementation is also not as well structured, rational and controlled as strategy formulation
 Strategy formulation takes place mostly at top and senior manager levels
 Strategy implementation in contrast is the responsibility of all levels of management, from
supervisor level to the board of directors

Strategy implementation as a component of the strategic management process

The Strategic management process is a dynamic, interrelated process. Formulation decisions impact directly on
strategy implementation, which in turn impact directly on strategic control. Decisions about implementing the
strategy must be anticipated and incorporated into decisions concerning formulation. Strategy formulation and
implementation are interrelated and success in both phases is necessary for superior performance.
Implementing strategy requires that management must manage the change, and it must also be recognised
that a new strategy inevitably implies change.


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