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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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Strategy Implementation ­ Meaning and Steps in
Implementing a Strategy
Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. Organizational structure allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as maximize efficiency, quality, and customer satisfaction­the pillars of competitive advantage. But, organizational structure is not sufficient in itself to motivate the employees.
An organizational control system is also required. This control system equips managers with motivational incentives for employees as well as feedback on employees and organizational performance.
Organizational culture refers to the specialized collection of values, attitudes, norms and beliefs shared by organizational members and groups.
Follwoing are the main steps in implementing a strategy:
Developing an organization having potential of carrying out strategy successfully.
Disbursement of abundant resources to strategy­essential activities.
Creating strategy­encouraging policies.
Employing best policies and programs for constant improvement.
Linking reward structure to accomplishment of results.
Making use of strategic leadership.
Excellently formulated strategies will fail if they are not properly implemented. Also, it is essential to note that strategy implementation is not possible unless there is stability between strategy and each organizational dimension such as organizational structure, reward structure, resource­allocation process, etc.
Strategy implementation poses a threat to many managers and employees in an organization. New power relationships are predicted and achieved. New groups (formal as well as informal) are formed whose values, attitudes, beliefs and concerns may not be known. With the change in power and status roles, the managers and employees may employ confrontation behaviour.

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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Strategic Management ­ Introduction (strategic­management.htm)

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Strategy ­ Definition and Features (strategy­definition.htm)

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Components of a Strategy Statement (strategy­statement­components.htm)

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Vision & Mission Statements (importance­of­vision­and­mission­statements.htm)

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

Strategy Formulation vs Strategy Implementation
Following are the main differences between Strategy Formulation and Strategy Implementation­
Strategy Formulation

Strategy Implementation

Strategy Formulation includes planning and decision­ making involved in developing organization’s strategic goals and plans.

Strategy Implementation involves all those means related to executing the strategic plans.

In short, Strategy Formulation is placing the Forces before the action.

In short, Strategy Implementation is managing forces during the action.

Strategy Formulation is an Entrepreneurial Activity based on strategic decision­making.

Strategic Implementation is mainly an Administrative
Task based on strategic and operational decisions.

Strategy Formulation emphasizes on effectiveness.

Strategy Implementation emphasizes on efficiency.

Strategy Formulation is a rational process.

Strategy Implementation is basically an operational process. Strategy Formulation requires co­ordination among few individuals. Strategy Implementation requires co­ordination among many individuals.

Strategy Formulation requires a great deal of initiative and logical skills.

Strategy Implementation requires specific motivational and leadership traits.

Strategic Formulation precedes Strategy
Implementation.

STrategy Implementation follows Strategy Formulation.

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

 About the Author(s)
MSG team comprises experienced faculty and professionals who develop the content for the portal. We collectively refer to our team as ­ “MSG Experts”. To Know more, click on
About Us (/portal/about­us). Search

Strategic Management



Strategic Management ­ Introduction (strategic­management.htm)



Strategy ­ Definition and Features (strategy­definition.htm)



Components of a Strategy Statement (strategy­statement­components.htm)



Vision & Mission Statements (importance­of­vision­and­mission­statements.htm)



Strategic Management Process (strategic­management­process.htm)



Environmental Scanning (environmental­scanning.htm)



Strategy Formulation (strategy­formulation­process.htm)



Strategy Implementation (strategy­implementation.htm)



Strategy Formulation vs Implementation (strategy­formulation­vs­implementation.htm)



Strategy Evaluation (strategy­evaluation.htm)



Strategic Decisions (strategic­decisions.htm)



Benefits of Strategic Management (strategic­management­benefits.htm)



Business Policy (business­policy.htm)



BCG Matrix (bcg­matrix.htm)



SWOT Analysis (swot­analysis.htm)



SWOT Analysis of Google (swot­analysis­of­google.htm)



SWOT Analysis of Starbucks (swot­analysis­of­starbucks.htm)

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

Strategy Evaluation Process and its Significance
Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in todays dynamic world with socio­economic, political and technological innovations. Strategic Evaluation is the final phase of strategic management (strategic­ management.htm). The significance of strategy evaluation lies in its capacity to co­ordinate the task performed by managers, groups, departments etc, through control of performance. Strategic Evaluation is significant because of various factors such as ­ developing inputs for new strategic planning, the urge for feedback, appraisal and reward, development of the strategic management process, judging the validity of strategic choice etc.
The process of Strategy Evaluation consists of following steps­
1. Fixing benchmark of performance ­ While fixing the benchmark, strategists encounter questions such as
­ what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements for performing the main task. The performance indicator that best identify and express the special requirements might then be determined to be used for evaluation. The organization can use both quantitative and qualitative criteria for comprehensive assessment of performance. Quantitative criteria includes determination of net profit, ROI, earning per share, cost of production, rate of employee turnover etc. Among the Qualitative factors are subjective evaluation of factors such as ­ skills and competencies, risk taking potential, flexibility etc.
2. Measurement of performance ­ The standard performance is a bench mark with which the actual performance is to be compared. The reporting and communication system help in measuring the performance. If appropriate means are available for measuring the performance and if the standards are set in the right manner, strategy evaluation becomes easier. But various factors such as managers contribution are difficult to measure. Similarly divisional performance is sometimes difficult to measure as compared to individual performance. Thus, variable objectives must be created against which measurement of performance can be done. The measurement must be done at right time else evaluation will not meet its purpose. For measuring the performance, financial statements like ­ balance sheet, profit and loss account must be prepared on an annual basis.
3. Analyzing Variance ­ While measuring the actual performance and comparing it with standard performance there may be variances which must be analyzed. The strategists must mention the degree of tolerance limits between which the variance between actual and standard performance may be accepted. The positive deviation indicates a better performance but it is quite unusual exceeding the target always. The negative deviation is an issue of concern because it indicates a shortfall in performance. Thus in this case the strategists must discover the causes of deviation and must take corrective action to overcome it.
4. Taking Corrective Action ­ Once the deviation in performance is identified, it is essential to plan for a corrective action. If the performance is consistently less than the desired performance, the strategists must carry a detailed analysis of the factors responsible for such performance. If the strategists discover that the organizational potential does not match with the performance requirements, then the standards must be lowered. Another rare and drastic corrective action is reformulating the strategy which requires going back to the process of strategic management, reframing of plans according to new resource allocation trend and consequent means going to the beginning point of strategic management process.

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Strategy Formulation vs Implementation (strategy­formulation­vs­implementation.htm)

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 About the Author(s)
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Strategic Management

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5/14/2016

Strategy Implementation ­ Meaning and Steps in Implementing a Strategy



Strategic Management ­ Introduction (strategic­management.htm)



Strategy ­ Definition and Features (strategy­definition.htm)



Components of a Strategy Statement (strategy­statement­components.htm)



Vision & Mission Statements (importance­of­vision­and­mission­statements.htm)



Strategic Management Process (strategic­management­process.htm)



Environmental Scanning (environmental­scanning.htm)



Strategy Formulation (strategy­formulation­process.htm)



Strategy Implementation (strategy­implementation.htm)



Strategy Formulation vs Implementation (strategy­formulation­vs­implementation.htm)



Strategy Evaluation (strategy­evaluation.htm)



Strategic Decisions (strategic­decisions.htm)



Benefits of Strategic Management (strategic­management­benefits.htm)



Business Policy (business­policy.htm)



BCG Matrix (bcg­matrix.htm)



SWOT Analysis (swot­analysis.htm)



SWOT Analysis of Google (swot­analysis­of­google.htm)



SWOT Analysis of Starbucks (swot­analysis­of­starbucks.htm)

http://www.managementstudyguide.com/strategy­implementation.htm

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Strategy Implementation ­ Meaning and Steps in Implementing a Strategy

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