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Strategy implementation Functional Strategies and Policies Operationalising the Strategies Institutionalizing the strategy Matching structure and strategy Strategic leadership and organizational culture Management of Change
Strategy Implementation
Putting the formulated strategies into action through the management processes. Different aspect involved in strategy implementation cover practically everything that is included in the discipline of management studies.
Comprehensive in Scope:
Ex. A marketing manger may develop the marketing budget, allocate sales to sales territories, launch an advertising campaign etc.
Integrated Process:
The various task in strategy implementations are interrelated and therefore, strategy implementation has to act in holistic manner.
An inability to mange the change Poor or vague strategy Not having guidelines or a model to guide implementation efforts. Poor or inadequate information sharing Unclear responsibility and accountability Working against the organizational power structure
Resource Allocation
Feed Back
Project implementation Procedural implementation Resource allocation Structural Implementation Leadership implementation Behavioral implementation Functional implementation Operational implementation
Managing change.
Achieving Effectiveness
Strategy Implementation
WHY STRUCTURE ?
structure is the bones of the organization
structure has a human element in it. We all want to know our position in the structure !
Purposes of structure
Division of labor Mechanism for coordination Organizational boundaries Comparison with informal structure Political structure Legitimate basis of authority
TYPES OF STRUCTURES
linear
SBU, Functional
non-linear
Perf. Appraisal
Supervisor alone
Grades, individual performance managers Single ladder length of service
STRUCTURE VS STRATEGY
We dont always have the luxury of a new structure From the strategy set, the CEO is biased to choose the strategy that is easily adapted to existing structure Once strategy is chosen, structure must be modified to suit that strategy
Functional Strucutre
Chief Executive Officer Public Relation Legal
Finance
Marketing
HRM
Operation
Disadvantages
Excessive fragmentation Inter-functional rivalry Multi-layered decision making process Forces profit responsibility to top Functional bias Myopia works against creativity, and cross functional core comp.
Divisional Structure
Chief Executive Officer Corporate Finance Corporate Legal / PR
Divisional Structure
Advantages Good for delegation responsibility Allocates resp. For strategy to specific environment Allows each business to develop own value chain CEO to concentrate on corporate issue Puts clear profit responsibility Disadvantages Duplication of staff cost disadvantage What to decontrol, prices ? May lead to division rivalry Lack of synergy, conflicting goals Corporate management becomes heavily dependant on business unit managers Corporate level looses touch with business level problems
Division A
Division B Division C
Division A
Division B Division C
Project Manager A
Project Manager B Project Manager C Functional Specialist
Economy
Direction of vision
Understanding
Decision making
Stability
Strategic Leadership
Managers provide leadership to an organization. Organizational leaders influence the behavior of subordinates so that they willingly and enthusiastically work towards the achievement of organizational objectives. Among the strategic leaders we have managers operating at different levels of an organization: corporate level, business level, functional level, operational level.
Strategic leaders are called upon to manage effectively, the portfolio of organizational resources.
Strategic leaders emphasize on ethical practices in word and deed when the strategies are being implemented.
Strategic leaders use a combination of financial and non-financial controls to help the organisation achieve its objectives.
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To ignore corporate culture To adapt strategy implementation to suit corporate culture To change the corporate culture to suit strategic requirement To change the strategy to fit the corporate culture
Strategies operate at different levels and there has to be congruence and coordination among these strategies. Such congruence is the vertical fit. There has to be congruence and coordination among different activities taking place at the same level. This is the horizontal fit.
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the part of organisation. There is basis available for controlling activities in the different functional areas of business. The time spend by functional manager in decision-making is reduced as plans lay down clearly. Similar situation occurring in different functional areas are handled in a consistent manner. Coordination across the different functions takes place where necessary.
Operational Implementation
Operational effectiveness The areas of operational effectiveness Productivity Processes People Pace