Implementation processes and internal marketing: Making it happen
Agenda - 1
Why do we need to make an issue out of strategy implementation?
Implementation versus strategy So, what is the thing about implementation? Implementation denial So, why doesn’t it work? Building implementation strategies
Agenda - 2
Strategic internal marketing
Where does that leave us with strategy implementation?
Why do we need to make an issue out of strategy implementation?
Many company change initiatives fail
Implementation capabilities
The need for internal marketing getting employees on our side
getting managers on our side
getting collaborators on our side
changing culture
How groups can block effective change in a company
Energy
Understanding
HighLow
The“yes … but”sor maliciousobedience
Theideal
Thedangerousenthusiasts
ThedinosaursLow
High
Implementation versus strategy
Traditional approaches: organization, resources action lists, control systems
Creates a dichotomy between strategy formulation and implementation
Need better ways of integrating strategy and implementation
So, what is the thing about implementation?
Implementation failures associated with separation of planning from management hopeless optimism implementation recognized too late denial of implementation problems implementation bolted-on at the end fixation implementation is a black-box
Implementation denial
Failure to recognize the implementation problem
Need to recognize problems and prepare for change
Recognising the implementation problem and preparing for change
Perception that there is a problem
Willingnessto change
High Low
High
Low
Readyto go
Blissfulignorance
Worried stayers/frightened
rabbits
Closedminds
So, why doesn’t it work?
Strategy versus implementation skills diagnosing implementation problems means comparing
strategy (appropriate or inappropriate) with execution skills (good or bad)
Diagnosing the implementation problem
Strategy
Executionskills
Appropriate Inappropriate
Success Roulette
FailureTrouble
Good
Bad
So, why doesn’t it work?
Organizational stretch what is the relationship between the fit of the strategy with
company capabilities, systems and structures and the strategy itself (new or old)?
Matching strategy to company capabilities
Fit of strategy with companycapabilities, systems, structures
Marketstrategy
Good Poor
Synergisticstrategies
Stretchstrategies
Obsoletestrategi
es
Conventionalstrategies
New
Old
So, why doesn’t it work?
Testing out the strategy versus blaming the salesperson
Lip-service to strategy caused by management by assumption
structural contradictions
empty promises marketing
bunny marketing
Counter-implementation emerges
Testing market strategies
Test the strategy
Results Reason
Is this really a coherentand complete strategy?
Is this strategy capable ofbeing implemented by thiscompany at this time?
Have we communicated thestrategy - adapted it, wonsupport for it?
Noimplementation
This strategy doesnot tell us what to do
Noimplementation
Lip-service - we mayagree with the strategybut we cannot put it into effect
Noimplementation
We do not accept thisstrategy - let’s see whatcounter-implementationcan do!
Implementation(maybe)
Yes
Yes
Yes
No
No
No
So, why doesn’t it work?
What about execution skills and competences? interacting skills
allocating skills
monitoring skills
organizing skills
Building implementation strategies
Screen strategies for implementation problems
Isolate and evaluate priority implementation problems
Evaluate key players in implementation
Develop implementation strategies
Screening strategies for implementation problems
1. Screen strategies for implementation problems early
2. Isolate and evaluate implementation problems in detail
3. Identify and evaluate key players
4. Develop credible, costed implementation strategies- or reject the strategy
Internal and external marketing
Strategy
Plan
Externalmarketing
programmeProduct
PriceCommunications
Distribution
Internalmarketing
programmeProduct
PriceCommunications
Distribution
Targeted at keygroups in thecompany, alliancepartner companies,and other influencers
Targeted at keycustomers, segmentsand niches, and otherexternal influencers
Role of Internal Marketing
The managerial actions necessary to make all members of the organization understand & accept their role in implementation internal products-marketing strategies internal prices-changes that must be undertaken to
implement the marketing strategy internal distribution-how the strategies are communicated
internally (training) internal promotion-persuasive communications
Models of internal marketing
SOURCE: AHMED AND RAFIQ (2002) INTERNAL MARKETING BUTTERWORTH HEINEMANN CHAPTER 2
Rafiq and Ahmed meta-model of internal marketing
Servicequality
strategy
Supportivesenior
management
Pre-launch informationregarding marketing
campaigns
Applicationof marketingtechniquesinternally
Supportiverecruitmentpractices
TrainingParticipativemanagement
Employeediscretion
Jobs asproducts
Employees realise theimportance of
their role
Motivatedemployees
Customerconscious/customerorientatedemployees
Goodinteraction
Perceivedservicequality
Customersatisfaction
Increasedprofitability
Salesminded
employees
Employees’satisfaction
Attraction and retentionof customer conscious
employees
Increased salesdue to interactive
marketing
Word of mouthpromotion
Increasedloyalty
A framework for internal marketing of services
Inter-functionalCo-ordination
and Integration
Marketing-likeapproach
Employeemotivation
Customerorientation
Jobsatisfaction
Servicequality
Customer satisfaction
Empowerment
The tools of internal marketing
SOURCE: AHMED AND RAFIG
Caveats
Employees as customers products may be unwanted (e.g. new methods of
working)
employees must accept the ‘product’ or be forced into acceptance under the threat of disciplinary action or dismissal
Caveats
problem with idea of customer sovereignty
make impossible demands on organisation and its resources
In this approach employees do not know that they are customers even though they are treated as such
INTERNAL MARKETING MIX
Number of elements under the control of management are combined and integrated in order to produce the required response from the target market.
Use extended seven P’s of service marketing
Explicitly recognises inter-functional interdependence and the need for an integrated effort for effective service (or product) delivery
Major aim of an internal marketing programme
Levels of internal marketing
Organizationallevels
Criticalquestions
Internalmarketinglevels
ProcessualSurface Structural
What are the plans,systems and procedures inthis business?
Product: Plans and strategiesPrice: Opportunities given upCommunications: Information, market researchDistribution: Reports, presentations
Who runs thingshere?
Product: New strategic directionPrice: Loss of control, status, initiativeCommunications: Sponsorship,agenda-settingDistribution: Policies, participation
Who has influencehere - sets the agenda,owns key processes,is an “expert”?
Product: individual’s job, status, rolePrice: Adjustment tochange, new cultureCommunications:Persuasion, image,influence, choice of criteriaDistribution: informal communicationsnetwork,social interaction
Strategic internal marketing
Programme
Product
Price
Communications
Distribution
Contents
The strategy and the plan,including the values, attitudesand behaviours needed tomake them workWhat we are asking internalcustomers to “pay” – otherprojects abandoned, personaland psychological adjustmentto changeMedia and messages to informand persuade
Physical and social venues fordelivering the product and communications
Examples
For example, the written plan,the new company initiative
For example, stepping out ofcomfort zones for new typesof operations
For example, reports, plans,presentations, videos,roadshows
For example, meetings, work-groups,training sessions and workshops,informal meetings, social occasions
Implementing Marketing Activities
Good communication is key upward communication from the front line
allows management to understand problems & needs of the employees
Employees must understand the implementation timetable specific activities to be performed, time required, sequence, &
who is responsible
Implementing an Internal Marketing Approach
Conscientious recruitment, selection & training of employees
Top managers must be completely committed to the marketing strategy & overall plan
Employee compensation must be linked to marketing strategy implementation
Open communication must exist at all levels Organizational structure, processes & policies must
match the marketing strategy
Strategic internal marketing
Operational internal marketing service marketing and quality
brand ambassadors
internal communications
innovation management
corporate positioning
Internal markets instead of external markets
Strategic internal marketing
Strategic internal marketing internal market orientation
internal marketing strategy
the structure of SIM
Strategic internal marketing
The internal marketing programme internal market measurement
internal marketing targets
internal marketing evaluation
The hidden face of strategic internal marketing
Causes of Improper Implementation
Marketing strategy is inappropriate or unrealistic
Implementation was inappropriate for the strategy or was simply mismanaged
Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation
Where does that leave us with strategy implementation?
Execution skills versus process management in strategy implementation weak implementation
management-driven implementation
implementation-driven strategy
integrated strategy and implementation
Execution skills versus process management in marketing strategy implementation
Process management
Executionskills
LowHigh
Integratedstrategy and
implementation
Management-driven
implementation
Weakimplementatio
n
Implementation-driven
strategyWeak
Strong