3rd STAGE:

IMPLEMENTATION

Realization of Strategy
Execution of Strategies
Actions-Oriented task
Operations-driven activity
 STRATEGY IMPLEMENTATION
◂ It involves development of procedures, programs and
activities to put the strategies into practice.

◂ It is where the management will decide

which strategies to prioritize.

◂ Communication is the key word and

this must be given prime importance.
 STRATEGY IMPLEMENTATION

At this stage managerial skills are more important than

using analysis. Communication in strategy
implementation is essential as new strategies must
get support all over organization for effective
implementation
 STRATEGY IMPLEMENTATION

Goals of Strategy Execution

 Unite total organization behind strategy
 See the activities are done in a manner tightly matching
first- rate strategy execution
 Generate commitment so an enthusiastic crusade emerges
to carry out strategy
 Fit how the organization conducts its operation to the
requirements of the strategy
 STRATEGY IMPLEMENTATION

6 STEPS IN IMPLEMENTING STRATEGY:

1. Setting annual objectives;
2. Revising policies to meet the objectives;
3. Allocating resources to strategically important areas;
4. Changing organizational structure to meet new strategy;
5. Managing resistance to change;
6. Introducing new reward system for performance
results if needed.
 STRATEGY IMPLEMENTATION

Determinants to Successful Implementation of Strategy

1. Good Leadership
2. Motivating
3. Working with Others
4. Creating fits between requirements for good strategy
execution and how organization conducts
 STRATEGY IMPLEMENTATION

8 Components of Implementing and Executing

Strategy ( Thompson and Stickland(1999) )
1. Building a capable organization
2. Allocating resources to strategy-critical activities
3. Establishing strategy-supportive policies
4. Tying rewards to achievement results
 STRATEGY IMPLEMENTATION
8 Components of Implementing and Executing
Strategy ( Thompson and Stickland(1999) )
5. Creating a strategy-supportive corporate culture
6. Installing needed information,communication and
operating systems
7. Instituting best practices and programs for
continuous improvement
8. Exerting the leadership necessary to drive the
process forward and keep improving.
 STRATEGY IMPLEMENTATION

Role of Policies in Aid of Strategy Execution

 Policies an procedures are necessary as enabling
documents for the management and other parties
concerned to do their task.

 New Policies and procedures aid implementation of the

strategy as they can channel behaviors and decisions to
promote strategy execution.