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The eight levers of Strategy Implementation
Mohnish Bhatia Viplav Gupta Dhaval Kunte
Ankit Prasad Vivek Acharya Siddharth S.
The Importance of Implementation
A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.
The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.
Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.
The Outcome
And shouts…
Wrong Way!
The six silent killers of strategy implementation
The Laissez faire senior management style
Unclear strategy or conflicting priorities
An ineffective senior management team
Poor vertical communication
Poor coordination across functions, businesses or borders
Inadequate down-the-line leadership skills and development
Managerial skillsBehavioral activities of
managers within the structures
StructuresFramework or configurations
The critical
variables
Strategic Levers - Structural
Actions
Programs
Systems
Policies
Who, what, and when of Cross functional integration
Instilling organizational learning,continuous improvement
Installing strategic support systems
Establishing strategy supportive policies
Tying rewards to achievement
Strategic levers – Managerial Skills
Interacting
Allocating
Monitoring
Organizing
The exercising of strategic leadership
Understand when and where to allocate
resources
The strategic shaping of corporate culture
An excellent example of
Perfect Implementation
Structural levers– Konkan Railway
Actions• Getting four
State governments to pledge their support
• Konkan Railways
• Contractors• Land
acquisition team
Programs• The whole
project was done in a fashion that was new to the country
• New technologies and training contractors to operate them
Systems• Fiber-optics• FAX• Computers• Dedicated
lines
Policies• Timely billing• 48 hours
decision
Managerial Skill levers – Konkan Railway
Page 23
Interacting• CMO, HODs
available to chief engineers
Allocating• Technology
made ready to contractors before work was scheduled to begin
• Fuel depots• Timely payments
and help in maintaining Cash FLow
• It helps that they had a Carte Blanche
Monitoring• Billing• Reverse Clock
Organizing• Ambitious
targets• Relentless
pursuit• Carte
blanches – extensive delegation
• Negligible conflict
Framework – Strategy Implementation
1 •Define Key Implementation Tasks
2 •Review Managerial Approaches
3 •Identify Key Skills needed
Implementation Tasks
• Creating Fit : Two major types
STRATEGY
STRATEGY
FUNCTIONAL POLICIES
ADMINISTRATIVE POLICIES
Implementation Tasks - Functional Fit
STRATEGY
Align various functions with Strategy
Implementation Tasks - Administrative Fit
Managerial systems and processes that should be aligned with strategy :
Organizational Structure Information Systems
Incentive Systems Control Systems
Implementation Situations
The Implementation Plan
Critical Issues
Set back
s
Intricacies
Problems
• Should address key HR and organizational issues
• Should contain a sequence/ timeline for action
• Plan B should be always ready
The manager has to make sure that actions are taken according to the plan
Single Product Single Business Multiple Business
Implementation Modes
Political Manager
Entrepreneurial Manager
Administrative Manager
People And Organization Shaker
Degree of Involvement
HIGH
HIGH
LOW
LOW
Political Manager
• The manager is deeply involved in and directs the implementation of plan
• Will think through the administrative implications of his plan
• Try to mitigate all the negative consequences of the plan which could slow down the implementation process
Advantage
causes little organizational disruption
Disadvantage
Time consuming
Degree of Attention
Entrepreneurial Manager
• The manager is deeply involved in and directs the implementation of plan
• Pays little attention to the administrative implications of his plan
• There are always trade-offs between strategic objectives and administrative issues
Advantage
Speed of implementation high
Disadvantage
Problems may stack up in the long term there by significantly impacting the objectives
People and Organizational Shaker
• Least focus on specifics of implementation strategy and more towards managing resources
• Right PEOPLE Right PLACE Right TIME
• Relatively little concern for the administrative constraints
Advantage
Development of a cadre of high level subordinates
Disadvantage
Reliance on key subordinates and their resentment
Administrative Manager
• Limited involvement in implementation
• Focus all his attention to processes, systems and people
• The manager makes sure that all affecting stakeholders have their voice in the planning stage
Advantage
High level of organizational commitment
Disadvantage
Slow and usually not radical
Implementation Skills
Right combinationStrategic /Technical
Interpersonal
Admin / Organizati
on
Success of strategy = f (Skills )
Alone
Team
Degree of involvement
Implementation Skills (Contd.)
Stakeholders
Winners
Losers
Timing
Organizational Limits
Application to case studies
Identification of strategies managers trying to achieve
Spell out functional and administrative fits
Develop an implementation plan
Mode required to achieve the goal