Date post: | 01-Jun-2018 |
Category: |
Documents |
Upload: | munshad-rana |
View: | 227 times |
Download: | 0 times |
of 25
8/9/2019 BPSM Unit IV Strategy Implementn 1
1/25
LOGO
BUSINESS POLICY
&STRATEGIC MANAGEMENT
(UNIT-IV)Dr. Saboohi Nasim([email protected])
FMS&R, AMU
Department of Business Administration
Faculty of Management Studies & Research (FMS&R)
Aligarh Muslim University, Aligarh
8/9/2019 BPSM Unit IV Strategy Implementn 1
2/25
SYLLABUS
Strategy Implementation: Nature,
Barrier, Linkages and Model1
2
3
4
Structural Implementation
Behavioral Implementation
2
Project & Procedural Implementation
8/9/2019 BPSM Unit IV Strategy Implementn 1
3/25
Strategy Implementationconcerns the managerial
exercise of putting afreshly chosen strategy
into place
(Thompson & Stickland, 2003) 3
8/9/2019 BPSM Unit IV Strategy Implementn 1
4/25
Building an organization capable of realizing its intent
Allocating resources to strategy-critical activities
Establishing strategy-support ive policies
Instituting best practices and programs forcontinuous improvement
Installing information, communication, and operatingsystems
Motivating people to pursue the target objectives
Tying rewards to achievement of resultsCreating a strategy-supportive corporate culture
Exerting the leadership necessary to drive the processforward and keep improving
What Does Strategy ImplementationInvolve?
4
8/9/2019 BPSM Unit IV Strategy Implementn 1
5/25
Action Orientation: involves putting formulated strategies into actionthru management processes.
Comprehensiveness in Scope: covers a wide range of functionsand activities
Demanding Varied Skills: requires a wide range of knowledge,skills, attitudes, and abilities
Wide Ranging Involvement : necessitates the involvement ofmanagers at all levels; especially middle managers
Integrated Process: Tasks/activity performed are related and interlinked
Nature of Strategy Implementation
5
8/9/2019 BPSM Unit IV Strategy Implementn 1
6/25
Strategy Implementation is much more difficult than Strategyformulation
Eight out of ten companies fail to deploy their strategieseffectively
Obstacles to Strategy Implementation (Hrebiniak, 2006) Inability to manage change
Poor or Vague strategy
Lack of guidelines/model for implementation
Poor or inadequate information sharing
Unclear responsibility & accountability Working against the organizational power structure
Overcoming barriers requires: Adopting a clear model of Strategy Implementation
Effective management of change in complex situations
Barriers to Strategy Implementation
6
8/9/2019 BPSM Unit IV Strategy Implementn 1
7/25
Strategy Formulation and Implementation processes are
intertwined
Two types of linkages exists between these two phases
Forward Linkages
Backward Linkages
Interrelationship of Formulation andImplementation
7
Two way linkage between Formulation and Implementation of Strategy
StrategyFormulation(Thought)
StrategyImplementation(Action)
8/9/2019 BPSM Unit IV Strategy Implementn 1
8/25
Realized
StrategyUnrealizedStrategy
Emergent
Strategy
Formulation & Implementation of strategies
operate in an iterative manner where both feed upon eachother in a two-way relationship
Formulated
Strategy
Implemented
Strategy
Mintzbergs Conception of Types of Strategy
8/9/2019 BPSM Unit IV Strategy Implementn 1
9/25
STRATEGY IMPLEMENTATIONMODEL
NIEL Case
9
8/9/2019 BPSM Unit IV Strategy Implementn 1
10/25
STRATEGY IMPLEMENTATION MODEL
Project &
Procedural
Implementation
Resource
allocation
Functional
&
Operational
Implementa
tion
Structural
Implementation
Behavioral
Implementation
LeadershipImplementation
Strategic
Plan
Evaluation
&
Control
ACTIVATING
STRATEGIES
MANAGING
CHANGEACHIEVING
EFFECTIVENESS
FEEDBACK 10
8/9/2019 BPSM Unit IV Strategy Implementn 1
11/25
12
Major Themes in Strategy Implementation
ACTIVATING STRATEGIES: prepares the ground for
managerial tasks and activities; Includes three set of activities Project implementation Procedural implementation
Resource Allocation
MANAGING CHANGE: core of Strategy implementation;Includes three set of activities
Structural implementation
Leadership implementation
Behavioral implementation
ACHIEVING EFFECTIVENESS: last theme in strategyimplementation; deals with the outcome of the process; includes functional and
operational implementation
8/9/2019 BPSM Unit IV Strategy Implementn 1
12/25
13
Major Themes in Strategy Implementation
ACTIVATING STRATEGIES: The Pyramid of Strategy Activation
Strategy
Programs
Budgets
Operating Strategies
Plans
Projects
Policies, Procedures, Rules & Regulations
8/9/2019 BPSM Unit IV Strategy Implementn 1
13/25
14
Major Themes in Strategy Implementation
MANAGING CHANGE: Strategy Implementation almost always necessitates
change; Change management an essential requirement for
successful SI
MOC requires an understanding of the process of change;
Innovation and learning part of change process Issues in MOC
Degree of Change (How much?): Radical Vs.
Incremental
Timing of Change (When?): Reactive Vs. Anticipatory
Activi ty Areas of Change (Where?): Structure,
Leadership, Behavior
8/9/2019 BPSM Unit IV Strategy Implementn 1
14/25
15
Major Themes in Strategy Implementation
ACHIEVING EFFECTIVENESS Degree to which an organization is able to
achieve its objectives
Four Models of Organizational Effectiveness
The Goal Model: profitability, growth, market share
Resource Based Model: Ability of the orgn. toobtain resources
Internal Process Model: Culture, Climate, Teamwork, Communication..
Conflicting Value Model: diverse indicators ofperformance..
8/9/2019 BPSM Unit IV Strategy Implementn 1
15/25
Strategy Implementation isinvariably
Managing ChangeLinking Strategy with People
and Operations
and
Conducting Regular Reviews
16
8/9/2019 BPSM Unit IV Strategy Implementn 1
16/25
PROJECT IMPLEMENTATION
Madura Garments Case
17
8/9/2019 BPSM Unit IV Strategy Implementn 1
17/25
A project is a basic unit of a program; atemporary endeavor to achieve a particularaim: factory expansion, product development, BPO
Projects are chosen as vehicles of SI
Project management-a key enabler of
strategy implementation
Co.s adopt a structured approach to PM in
line with its business strategies
Project Implementation
18
8/9/2019 BPSM Unit IV Strategy Implementn 1
18/25
Strategy Implementation Through Project Management
19
Initiating
Project Management Process
Strategy Evaluation & Control
Project Implementation..
Strategy Management Process
Strategy Implementation
Planning Executing Controll ing Closing
Control
Measures
Project
Objectives
8/9/2019 BPSM Unit IV Strategy Implementn 1
19/25
PROCEDURAL IMPLEMENTATION
20
8/9/2019 BPSM Unit IV Strategy Implementn 1
20/25
Formation of Company
Licensing Procedures
SEBIs Requirements
MRTP RequirementsForeign Collaboration Procedures
Import Export Requirements
Labor Legislation Requirements
Environmental control and Pollution ControlRequirements
Procedures for Availing Incentives&
Regulatory Mechanisms in India
21
8/9/2019 BPSM Unit IV Strategy Implementn 1
21/25
RESOURCE ALLOCATION
22
8/9/2019 BPSM Unit IV Strategy Implementn 1
22/25
Deals with procurement, commitment, and distribution of
financial, human, informational and physical resources tostrategic tasks for the achievement of objectives.
Budget: main instrument of RA; a common technique used
as planning, coordination and control device inmanagement
Three approaches to RA thru budgeting:
Top Down Approach: process of segregation; Entrepreneurialmode of SI
Bottom Up Approach: process of aggregation; Participative modeof SI
Strategic Budgeting: Mix of these two modes; iterative form of decision making
REOURCE ALLOCATION(RA)
23
8/9/2019 BPSM Unit IV Strategy Implementn 1
23/25
Making of a Strategic Budget
24
Levels of management
Top level
Executive level
Operating level
Budgeting Process
Corporate
Policy
Guidelines
Position papers(e.g environment,
Core competencies
Marketing,
past performance)
Desired
goals
Minimizing gaps
Tasks/Operational
Plans
Resource
AvailabilityApproval
& sanctio
StrategicBudget
Proposals
Implementation
8/9/2019 BPSM Unit IV Strategy Implementn 1
24/25
Aligning Resource Allocation to Strategy
Dangers of misallocation Involves trade-offs
Factors Affecting Resource Allocation
Objectives of the Organization
Preference of Dominant Strategists
Internal Politics
External Influences
Difficulties in Resource Allocation Scarcity of resources
Restrictions on generating Resources
Overstatement of Needs
Tendency to Imitate Competitors
Issues in REOURCE ALLOCATION
25
8/9/2019 BPSM Unit IV Strategy Implementn 1
25/25
LOGO