17773 Strategy Implementation

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The strategy of an organization consists of the moves and approachesmade by management to produce successful performance. Managementdevelops strategies to guide how anorganization conducts its business and how it will achieve its targetobjectives. Good management is exhibited by good strategy and good

implementation. The standards for judging whether an organization is wellmanaged are based on good strategy-making combined with goodstrategy execution (:haneta I.% =trategic >anageent 6r"cess, ?"&rnal "f:"!rehensive esearch% V"l&e 5% !. 1% availa*le at

htt!#//&!a!a$"c.startl"gic.c"/c"!research/!a!ers/?:11-.!$f%accesse$ 0-11-01)

The strategic management process

T" *e a*le t" i$entif' $iffic&lties in the i!leentati"n !hase it is i!"rtant t" &n$erstan$ the

entire !r"cess "f strategic anageent. cc"r$ing t" 2heelen an$ &nger (00)% fir

strateg' !asses f"&r stages# envir"nental scanning% strateg' f"r&lati"n% strateg'i!leentati"n an$ strateg' eval&ati"n. Investigating h' even the *est $esigne$ strategies

are &esti"na*le "!ens a $"&*t a*"&t inc"nsistencies *eteen f"r&lati"n an$

i!leentati"n at first an$ later inc"nsistencies *eteen strateg' i!leentati"n an$

!erf"rance eas&reent. 7"r&lati"n !hase incl&$es issi"n% g"als an$ *&siness !"lic'

$eterinati"n hile i!leentati"n incl&$es activities% *&$geting an$ !r"ce$&res.

Figure 1.:"!"nents "f =trategic >anageent 6r"cess

Components of trategic !anagement "rocess

Source: adapted according to heelen T.!." #unger $." %&&%

Aeteen these !hases eerge several c"nf&si"ns# h" carr' "&t the strategic !lan% hat &st

*e $"ne an$ h" t" "r+.

Strategy Implementation obstacles

nf"rt&natel'% "st anagers +n" "re a*"&t $evel"!ing strateg' than the' +n" a*"&t

exec&ting it. 7"r&lating strateg' is $iffic&lt. >a+ing strateg' "r+% exec&ting "r

i!leenting thr"&gh"&t the "rganiBati"n% is even "re $iffic&lt. 2ith"&t effective

i!leentati"n% n" *&siness strateg' can s&cce$ (re*inia+% 00C% !. 1).

The strateg' i!leentati"n f&ncti"n c"nsists in seeing hat it ill ta+e t" a+e the strateg'

"r+ an$ t" reach the targete$ !erf"rance. It sh"&l$ *e n"te$ that in the strategic

anangeent literat&re there are "re c"ntri*&ti"ns "n strateg' a+ing than strateg'exec&ti"n. In this cha!ter it ill *e $isc&sse$ hich are the !"tential i!leentati"n
http://jupapadoc.startlogic.com/compresearch/papers/JCR11-4.pdfhttp://jupapadoc.startlogic.com/compresearch/papers/JCR11-4.pdf


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"*stacles. &th"rs "ften in their research re!eate$ fact"rs "r call the ith $ifferent naes

*&t inten$ ver' siilar thing.

7"r exa!le% lexan$er ;. (1D85) enti"ne$ 15 !r"*les% >iller =. (1DD) enti"ne$ 10

critical fact"rs% l-


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Table 1.ighlighte$ !r"*les in strateg' i!leentati"n

Authors and wor# $chr"n"l"gical "r$er) Time %rgani&ationstructure

%rgani&ation

culture

'esources (eadership )ncontrollable

e*ternal factors

2ateran % 6eters T?% 6hilli!s ? (1D80)# =tr&ct&re Is n"t "rganiBati"n J J J

2ernha (1D8)# Ari$ging the f&l iller = (1DD)# I!leenting =trategic Lecisi"ns# 7"&r +e' =&ccess 7act"rs J J Jl-.% Fisenstat .. (000)# The silent +illers "f strateg' i!leentati"n an$learning

J J J

lli" >.G. (005)# sh"rt% !ractical g&i$e t" i!leeenting strateg' J J

re*inia+ ;.


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- T""+ "re tie than the f"r&lati"n !hase

- Inc"nsistencies in traslating l"ng range !lans int" sh"rt ter "*ectives (changes n"t intr"$&ce$ in $ail' r"&tines)%rgani&ation structure >eans i!r"!er "rganiBati"nal $esign hich incl&$es# lac+ in c"&nicati"n% c""r$inati"n% "nit"ring an$ incentive s'stes.

I!r"!er c""r$inati"n#- ctivities an$ tas+s n"t s&fficientl' $efine$ (inneficient "!erati"n !lanning)

- 6""r c""r$inati"n acr"ss f&ncti"ns "r $ivisi"ns

- Ina$e&ate alignent *eteen !r"cessO !hasesI!r"!er c"&nicati"n#

- 6""r vertical an$ h"riB"ntal c"&nicati"n (*eteen $ifferent hierarchical levels an$ f&ncti"ns)

- 6""r inf"rati"n an$ +n"le$ge transfer (>I=)

I!r"!er "nit"ring an$ incentive s'ste#- 6""r res!"nsa*ilities $eterinati"n

- Fnefficient incentive !r"gras

- ;ac+ in eas&ring !erf"rance

%rgani&ation culture - 6""r i!leente$ *eliefs an$ val&es s'ste- :"nflict ing strateg' !rinci!les

- Ina*ilit' t" "verc"e resistence t" change

'esources This categ"r' incl&$es tangi*le an$ intangi*le res"&rces. A&t "st a&th"rs relate t" h&an res"&rces#

P&antitative in$icat"rs#

- T"" fe !e"!le inv"lve$ in i!leentati"nP&alitative in$icat"rs#

- Ina$e&ate e!l"'ee s+ills an$ ca!a*ilities- Ina$eg&ate training an$ instr&cti"ns

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*el"ngs t"# !"litical% ec"n"ic% s"cial an$ techn"l"gical envir"nent

Source: author own work


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=till i!"rtant t" n"te that internal fact"rs have a $irect i!act "n strateg' i!leentati"n

hile the i!act "f envir"nental fact"rs &s&all' have a "$erating "r e$iating effect "n

strateg' !erf"rancehich i!lies the f"ll"ing h'!"thesis#

!" compre$ensive vie& of t$e impact of critical implementation factors on firm

performance must *e e+amine% from t&o aspects en%o'enous (internal) an% e+o'enous(e+ternal)

=trateg'-a+ing an$ strateg'-i!leentati"n $" n"t g&arantee s&!eri"r "rganiBati"nal

!erf"rance c"ntin&"&sl'. Fven ell anage$ "rganiBati"n can s"eties hit the s+ills f"r

sh"rt !eri"$s *eca&se "f a$verse c"n$iti"ns *e'"n$ anageent,s a*ilit' t" f"resee an$ react

t" the envir"nent changes. It is anageent,s res!"nsi*ilit' t" a$&st negative c"n$iti"ns *'

&n$erta+ing strategic $efenses an$ anagerial a!!r"aches that can "verc"e a$versit'.

"ever% the essence "f g""$ strateg'-a+ing is t" *&il$ a str"ng an$ flexi*le !"siti"n t"

!r"vi$e s&ccessf&l !erf"rance $es!ite the i!act "f &nf"reseea*le an$ &nex!ecte$ external

fact"rs. The tas+ "f strategiBing is ala's an "ng"ing exercise. MThe hatsN "f an

"rganiBati"nOs issi"n an$ l"ng-ter "*ectives% "nce ch"sen% a' reain &naltere$ f"rseveral 'ears. A&t the Mh"sN "f strateg' ev"lve c"nstantl'% !artl' in res!"nse t" an ever-

changing. =trategic anageent !r"cess $e!en$ !artl' fr" the anagers, eff"rts t" create

ne "!!"rt&nities% an$ !artl' fr" fresh i$eas a*"&t h" t" a+e the strateg' "r+ *etter

(:haneta I.% =trategic >anageent 6r"cess%?"&rnal "f :"!rehensive esearch% V"l&e 5%

!. 18-1D).

The impact of critical implementation factors on the firm performance

=trateg' eval&ati"n is the final ste! "f strateg' anageent !r"cess. The +e' strateg'

eval&ati"n activities are# a!!raising internal an$ external fact"rs that are the r""t "f !resent

strategies% eas&ring !erf"rance% an$ c"rrective acti"ns hen necessar'. Fval&ati"n a+ess&re that the "rganiBati"nal strateg' as ell as it,s i!leentati"n eets the "rganiBati"nal

"*ectives. n' s&ccessf&l eval&ati"n *egins ith $efining the !araeters that &st *e

eas&re$. These !araeters sh"&l$ atch the g"als set in the strateg' f"r&lati"n an$ the

activities in the exec&ti"n !hase. >an' researchers $isc&sse$ a*"&t the etrics c"herent ith

strateg' f"r&lati"n an$ i!leentati"n !rinci!les. 4ne "f the "st enti"ne$ c"nce!t is the

*alance$ sc"recar$ !r"!"se$ *' Ga!lan an$ H"rt"n in the 1DD0s.Fver' fir a$"!ts a s!ecific

set "f +e' !erf"race in$icat"rs. These in$icat"rs eas&re hether $riving activities le$ t"

the ex!ecte$ res&lts. 6erf"ance in$icat"rs &st f"ll" critical i!leentati"n fact"rs hat

incl&$e# 1. eas&ring necessar' tie f"r strateg' exec&ti"n% . "rganiBati"nal str&ct&re

a$e&ac'% 3. "rganiBati"nal c&lt&re a$e&ac'% . res"&rce !lanning an$ 5. lea$ershi!. 7"r

external fact"rs% it is i!"rtant t" set &! a $etaile$ assessent "f their "cc&rrence an$ i!act.

It is als" i!"rtant t" a!!l' &antitative an$ &alitative in$icat"rs. Letaile$ st&$ies "f critical

fact"rs ill res&lt in a series "f in$icat"rs i!"rtant t" "nit"r the i!r"veent "f relate$

activities% cr&cial f"r s&ccessf&l i!leentati"n.

T" $evel"! an i!leentati"n frae"r+% I !r"!"se the last t" h'!"theses.

!-" .ritical implementation factors allo& to %efine a $ypot$etical frame&ork for effective

an% efficient strate'y implementation/

!4" $ypot$etical frame&ork for strate'y implementation is important to fi+ &$o, &$at,

&$ere an% &$en un%ertake activities relate% to implementation"


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The article starte$ ith the i$entificati"n "f i!leentati"n critical fact"rs an$ en$e$ ith an

i!leentati"n frae"r+ all strateg' exec&t"rs &st &n$erstan$ an$ *e a*le t" a!!l' in

"n "r+ in "r$er t" re$&ce &nex!ecte$ an$ &nex!laine$ effects. :ritical fact"rs can *e

gr"&!e$ int" several categ"ries% an$ it is necessar' t" anal'Be the s!ecificit' "f each categ"r'

in "r$er t" $eterine hether the err"r refers t" the !lanning stage "r the i!leentati"n

!hase an$ if there are installe$ c"rrect "nit"ring echaniss.

="% next st&$ies sh"&l$ ela*"rate hat is essential in each categ"r' an$ h" t" eas&re that.

Aesi$es &antitative $ata% f"r $ee! anal'sis% it is i!"rtant t" incl&$e &alitative $ata% t"".

It is !"ssi*le t" c"ncl&$e the i!leentati"n !hase !re$icts t" anal'Be the f"ll"ing +e'

fact"rs# lea$ershi!% "rganiBati"nal str&ct&re% "rganiBati"nal c&lt&re% res"&rces% tie an$ the

i!act "f envir"nental varia*les.

Literature

Books

"ne'% :.2. (00). =trategic >anageent >eth"$"l"g'% 6raeger 6&*lishers% I=AH 1-5C0-

CD-8% 2est!"rt.

-heelen, Thomas (.; unger, /. 0aid $2234. trategic !anagement and 5usiness

"olicy: Toward 6lobal ustainability,I57 10: 218198.

Articles in journals

lexan$er ;. (1D85)# =&ccessf&ll' i!leenting strategic $ecisi"n% ;"ng ange 6lanning%

D1-D% I==H 00C301.

l-


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H"*le :.. (1DDD). The eclectic ""ts "f =trateg' I!leentati"n esearch% ?"&rnal "f

A&siness esearch 5% 11DR13% I==H I==H 018-DC3.

H"*le :.. (1DDD) A&il$ing the strateg' i!leentati"n net"r+% A&siness "riB"ns% 0-8%

I==H 000-C813.

;i .% anageent

Lecisi"n% 81 R 88% I==H 005-1.

=an$elan$s F. (1DD)# ll tal+ an$ n" acti"nK 6erish the th"&ght% >anageent Lecisi"n%

I==H 005-1.

=chi$t ?. (1DD). The case "f the sales-$riven c"!an'% ?"&rnal "f A&siness =trateg'% 1-0%

I==H 05-CCC8.

2essel ?. (1DD3)# The strategic h&an res"&rce anageent !r"cessin !ractice% 6lanning

evie% 3-38% I==H 051-3C5.

2ernha (1D8). Ari$ging the f&l

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17773 Strategy Implementation