STRATEGIC IMPLEMENTATION: MNG3702 2016
Learning Unit 1:
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 doing part where both human and non-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 (Kurt Lewin and John Kotter’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
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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
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RORA TUTORIALS MNG3702 2016 EXAM PACK Page 4
Explain how organisational culture can support and enhance strategy implementation.
Organisational culture is defined as “a pattern of shared basic assumptions learned by a group as it solved 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
an individual’s role orientation
quality assurance
common language and effective communication
-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
right time − in other words they must possess the ability to apply both transactional and transformational
leadership
- Leaders could also use the cultural web to shape or change organisational culture
Explain the importance of aligning organisational structure with strategy in strategy implementation.
Organisational structure is the formal reporting relationships, procedures, controls, and authority and
decision-making processes. The organisational structure helps the organisation to distribute resources
and to deliver its core products and services as effectively and efficiently as possible. It coordinates and
integrates the efforts of employees at all levels- corporate, business and functional- and across the
organisation for all levels to work together to successfully implement chosen strategies and achieve the
long-term goals
More specifically, strategic organisational design involves decisions about
how organisational units are composed
the reporting relationships between internal organisational units
the contractual relationships with external units (e.g. outsourcing relationships)
structural connections between unit s (e.g. key managers or inter- departmental teams)
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