Strategic

Implementation
 Simply stated, strategy formulation refers
to planning of work while strategy
implementation refers to working of
plan.

According to Thompson and Strickland,

Implementing strategy entails converting
the organizations strategic plan into
action and then into results.
 Relationship

Efficient
Strategy Formulation 2.Die
1.Thrive
Slowly

3.Surviv 4.Die
Inefficient

e quickly

Effective Ineffective

Strategy Implementation
 The McKinsey 7-S Framework

- Developed in the early 1980s

- Tom Peters and Robert Waterman, two consultants

working at the McKinsey & Company consulting firm

- the basic premise of the model is that there are

seven internal aspects of an organization that need
to be aligned if it is to be successful.
- Improve the performance of a company.

- Examine the likely effects of future changes within a

company.

- Align departments and processes during a merger or

acquisition.

- Determine how best to implement a proposed

strategy.
M
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K
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F
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S
A
E
M
Ys
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R
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Strategy: the coherent set of actions selected as
a course of action

Structure: the division of tasks as shown on the

organization chart

Systems: the processes and flows that show how

an organization gets things done

Style: how management behaves

Staff: the people in the organization

Shared-values: values shared by all in the

organization

Skills: capabilities possessed by the

organization.
 Organizational structure is a system that
consists of explicit and implicit institutional
rules and policies designed to outline how
various work roles and responsibilities are
delegated, controlled and coordinated.
Organizational structure also determines how
information flows from level to level within the
company.

In a centralized structure, the top layer management has most

of the decision making power and has tight control over
departments and divisions. In a decentralized structure, the
decision making power is distributed and the departments and
divisions may have different degree of independence.
The Functional Structure
 Behavioral Issues

Corporate Culture

Strategic leadership

Organizational Politics and

Power
 1. Corporate Culture
Corporate culture refers to the beliefs and behaviors that
determine how a company's employees and management
interact and handle outside business transactions.

Often, corporate culture is implied, not expressly defined.

Reflected in its dress code, business hours, office setup, employee

benefits, turnover, hiring decisions, treatment of clients, client
satisfaction and every other aspect of operations.

Google's corporate culture has helped it to consistently earn a

high ranking on Fortune magazine's list of 100 Best Companies to
Work For.
 Corporate Culture
In an article for Entrepreneur, Robert McGarvey outlined
some warning signs of trouble with the company culture,

increased turnover;
difficulty in hiring talented people;
employees arriving at work and leaving for home right on
time;
low attendance at company events;
a lack of honest communication and understanding of the
company mission;
an "us-versus-them" mentality between employees and
management;
declining quality and customer satisfaction.
 2. Strategic leadership
Strategic leadership refers
to a managers potential to
express a strategic vision for
the organization, or a part
of the organization, and to
motivate and persuade
others to acquire that vision.

Strategic leadership can also be defined as utilizing strategy in the

management of employees.
It is the potential to influence organizational members and to
execute organizational change.
Strategic leaders create organizational structure, allocate resources
and express strategic vision.
Some examples.
In an oil refinery on the U.S. West Coast, a machine
malfunction in a treatment plant was going to cause a
three-week shutdown. Ordinarily, no one would have
questioned the decision to close, but the company had
recently instituted a policy of distributed responsibility.
One plant operator spoke up with a possible solution.
She had known for years that there was a better way to
manage the refinerys technology, but she hadnt said
anything because she had felt no ownership. The
engineers disputed her idea at first, but the operator
stood her ground. The foreman was convinced, and in
the end, the refinery did not lose a single hour of
production.
Google has made use of a number of channels to
promote innovation. A few examples: Employees can
directly email any of the leaders across the organization;
the company established Google cafs to spark
conversation by encouraging interaction among
employees and across teams; and executives hold
weekly all-hands meetings (known as TGIFs) to give
employees at every level in-person access to senior
leaders. People at Google learn to make the most of
these opportunities they know the conversations will
be tough, but that genuinely worthwhile innovative
thinking will be recognized and rewarded.
Honda is one enterprise that has taken this approach to heart.
Like several other industrial companies, the automaker has had
a dramatic, visible failure in recent years. The installation of
faulty equipment from its favored airbag supplier, Takata, has
led Honda to recall about 8.5 million vehicles to date. Although
the accountable executives were fired, the companys leaders
also explicitly stated that the airbag failure, in itself, was not the
problem that led to dismissal. The problem was the lack of
attention to the failure at an early stage, when it could have
been much more easily corrected. As one Honda executive
told Jeffrey Rothfeder, author of Driving Honda: Inside the
Worlds Most Innovative Car Company (Portfolio, 2014), We
forgot that failure is never an acceptable outcome; instead, it
is the means to acceptable outcomes.
3. Organizational Power and Politics