Strategic Implementation Process

Strategic Implementation Process

S.Certo and J. Peter proposed a five-stage model of the strategy implementation process:

a)   Determining how much the organization will have to change in order to implement the strategy under consideration, under consideration.

b)   Analyzing the formal and informal structures of the organization.

c)   Analyzing the “culture” of the organization.

d)   Selecting an appropriate approach to implementing the strategy.

e)   Implementing the strategy and evaluating the results

Galbraith suggests that several major internal aspects of the organization may need to be synchronized to put a chosen strategy into action. Major factors are technology, human resources, reward systems, decision process and structure. This factors tend to be interconnected, so a change in one may necessitate change in one or more others.

Hambrick and Cannella described five steps for effective strategy implementation:

a)   Input from a wide range of sources is required in the strategy formulation stage (i.e., the mission, environment, resources, and strategic options component).

b)   The obstacles to implementation, both those internal and external to the organization, should be carefully assessed.

c)   Strategists should be use implementation levers or management tasks to initiate this component of the strategic management process. Such levers may come from the way resources are committed, the approach used to structure the organization, the selection of managers, and the method of rewarding employees.

d)   The next step is to sell the implementation. Selling upward entails convincing boards of directors and seniors management of the merits and viability of the strategy. Selling downward involves convincing lower level management and employees of the appropriateness of the strategy. Selling across involves coordinating implementation across the various units of an organization, while selling outward entails communicating the strategy to external stakeholders.

e)   The process is on-going and a continuous fine tuning, adjusting, and responding is needed as circumstance change.