BtecBS Part d Strategic Implementation

8/12/2019 BtecBS Part d Strategic Implementation

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STRATEGY

IMPLEMENTATION

PART d


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Communication

Formal & Informal

Downward Communication

Upward Communication

MIS

DSS

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STRATEGIC IMPLEMENTATION


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1 IMPLEMENTING STRATEGIES

Guidelines for implementation

Envisioning; activating; supporting; installing; controlling;recognising.

Installing: develop detailed plans to enact and control thestrategy.

1. Identify consequences of the change

2. Identify the actions required to set up the change, in detail

3. Allocate responsibility for the actions to be taken

4. Establish priorities5. Provide budgets

6. Set up teams and organisation structures, allocating humanresources


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2 DEPARTMENTAL PLANS AND

OBJECTIVES

Tasks

Responsibility

charts

DEPARTMENTAL

PLANS & OBJECTIVES

MBO


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OBJECTIVES

Document

responsibilities

Prepare

responsibility chartsTasks

Prepare activity

Schedules (MBO)


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OBJECTIVES -Responsibility charts

Drawn up at all levels.

Show control points (indicate what needs tobe achieved and how to recognise when

things going wrong). Responsibility chart (four main elements for

manager).1. Major objective

2. General programme for achieving that objective

3. Sub-objectives

4. Critical assumptions


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OBJECTIVES -Marketing Director


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OBJECTIVES -Marketing Director Major objective and general programme:

to achieve a targeted level of sales by; means of selling existing well-established products, breaking into new markets, a new product launch.

Sub-objectives: details on timing; of product launch; details, promotions, advertising

campaigns etc.

Critical assumptions: market share, market size and conditions, competitors activity and so on.

Activity schedules Identifies what activities that must carry out, start up, completion dates.

This may involve network analysis or critical path analysis. Critical dates; equipment installation, product launch. (e.g. aim to gain

maximum exposure for the product (car model) at a major trade fair (motorshow) or exhibition - delay in product launch might create substantial lossof orders


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2 DEPARTMENTAL PLANS AND OBJECTIVES -MBO

Defines the objectives for each employee and

then compare and direct performance.

Achieving organisational goals through;

DirectionTargetPerformance measurement

Each manager must know what targets ofperformance are.

Co-ordination of the various functional

objectives through; vertically, horizontally and overtime


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2 DEPARTMENTAL PLANS AND OBJECTIVES -MBO

The hierarchy of objectives which emerges


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Model of the MBO Process

Step 1: Setting Goals Step 2: Developing Action Plans

Step 3:

Reviewing Progress

Corporate Strategic Goals

Departmental Goals

Individual Goals

Step 4: Appraising Overall

Performance

Appraisal of Overall Performance

Corrective Action

Review Progress

Action Plans


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Project Team

Group v/s Team

Brainstorming Team

Quality Circle Team

Forming a Team (Selection, role)

Stages in Team Development (Forming,

Storming, Norming, Performing)

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3 ALLOCATING RESOURCEScorporate level

1. Resource planning at corporate level

Degree of change. Extent of central direction. How will these resources be

allocated According to operating unitsor corporate centre.

Scarcity of key resources leads to higher central control.

Resource allocation decisions, and strategies are constrainedby the existing distribution of resources and power.

2. Four methods for allocating resources


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3 ALLOCATING RESOURCES

5. Components of the resource plan Budgets,

Plans for obtaining and using resources, components, equipment,etc.

Network analysis, indicating how resources will be deployed in aparticular sequence

6. Outsourcing; sub-contracting work to external suppliers Supplier commitment (guarantees a minimum supply quantity over

a period of time).

Resource usage (trade off, opportunity cost).

Quality assurance (standards, e.g. BS EN ISO 9000 certification).

Control

Compulsion (certain areas of the public sector are required toconsider outsourcing).

Contract compliance.

Expertise & Vulnerability (can lose expertise, competition).


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4 BUDGETS AND STRATEGIC MANAGEMENT

1. Budgetsare plans in monetary term for the future, identifyingobjectives & the actions needed to achieve them.

2. Budgetary control and strategic management Strategic d irect ion- Budgets derived from business strategies.

Resource al locat ion- Budgets directed towards achievingCSFs.

Cont inuous imp rovement- Budgets support continuous

improvement. Goal cong ruencecommon understanding of decisions on all

functions.

Add value- time spent on budgetary activities worth more thanits cost.

Cost reduc t ionsS / t target with budget as planning

mechanism. Targets and respon sibi l i t ies- Budgets set with individual

managers from various departments aware of what theirpersonal targets.


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4 BUDGETS AND STRATEGIC MANAGEMENT

3. Typical application of budgets

Capital budgets Reflect cash flows for different projects, funding methods

Working capital Stock, debtor and creditor levels

Departmental budgets

Allocation of financial resources between departments Consolidated budgets

These enable planning of resource use as a whole across thecompany

4. Problems with budgets

Traditional (Structure verse process) Incremental (plus or minus a bit)

One-year period (satisfy shareholders)


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5 CONTINGENCY PLANS

Contingencies

uncontrollable events not in the main plan.

Where contingencies are known:

Contingency plans prepared in advance to deal

with the situation Such plans might be prepared in detail, or in

outline

Depending on likelihood that the contingency will

become a reality.


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REVIEW AND MONITORING


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REVIEW AND MONITORING -Controlling performance

Control is achieved by:

setting standards and plans, monitoring actual performance,

comparing actual performance with the standards or plans,

and making any necessary adjustments to bring the twoback into line.

Control Systems Formal, target-setting, monitoring, evaluation and feedback

systems that provide managers with information aboutwhether the organizations strategy and structure areworking efficiently and effectively.

A good control system should: be flexible so managers can respond as needed.

provide accurate information about the organization.

provide information in a timely manner.


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The nature of management control

Figure 21.1


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REVIEW AND MONITORING -Controlling performance

Types of control examples: Budget control, Inventory or stock control,

Process control

Quality control

Stages for control


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Elements of an organisational

control system

Figure 21.2


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Control Process Steps


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REVIEW AND MONITORING -Performance monitoring, review

standards and indicators

Manager needs to gather information aboutperformance, for comparison with plans and budgets

by two basic ways.

Performance monitoring:

Through observation, reports, control systems, meetings, etc.,

on an ongoing basis, progress, constantly gathering

information.

Performance review:

Through results, post mortem examination, reviewing

systems and procedures carried out regularly at six monthly orannual intervals

Performance standards and indicators

Certain attributes of successful performance which can measured


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REVIEW AND MONITORING (5Es)

- Review standards and indicators

Effectiveness; Market share, quality, financial performance.

Efficiency; Materials / energy usage and wastage rates, speed ofresponse, project completion, productivity per person/hour or permachine/hour.

Economy; Cost per unit, Contribution per unit.

Elegance;Appearance, punctuality, professionalism. Ethicality; Impact of operations on the natural environment, hiring

and promotion of staff from minority groups, non-reliance on contractswith military or political connotations.

The organisations Financial performance indicators: Profitability, ROCE, ROI, EPS, dividend, etc.

Non-financial performance indicators: Maintenance of product / service quality,image, position of the organisation / products, innovation, ability to attract and retainhighly-skilled labour, etc


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3 PERFORMANCE REVIEW

Method study

System analysisPERFORMANCE

REVIEW

Value analysis


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3 PERFORMANCE REVIEW - Method study

Method study

Systematic recording and critical examination of existing and

proposed ways of doing work, as a means of developing andapplying easier and more effective methods and reducing costs

Process

Establish area for investigation Establish terms of reference(e.g. improve productivity by 10%) Investigate existing

methods (Observation, discussion, existing records

Recordthe existing methods (narrative, charts, diagrams)Analyseexisting methods (identify weaknesses / strengths, developalternative methods discussion) Develop alternative method,and recommend it for implementationIf accepted, install andlater review and develop the new method as necessary.

Ways of recording data on existing methods: Narrative notes

Flow charts


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3 PERFORMANCE REVIEW Analysing the existing system

Data will be analysed to evaluate:

How efficiently, effective the of the system is and whetherorganisational structure as a whole is an effective framework

for operations

The activities in a process can be tested by asking

five sets of questions under these headings: Purpose

Place

Person

Control Means


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3 PERFORMANCE REVIEWAnalysing theexisting system Systems analysis is the process of analysing; methods,

procedure sequences of activities, paperwork flows and theinputs required and output expected in operational orinformational processing systems which are base on computers

Purpose of systems analysis To improve existing systems

To design new systems for processing data. To selection or design of computer systems

To selection or design of appropriate applications software, orcomputer programming.

To establishing the resources required for and operate a newsystem.

Method study and sys tems analysis are pr imar i ly co ncernedwith th e eff ic iency and effect iveness of sys tems andproc edures. Resu lt ing imp rovements shou ld have the effectreducing costs or at least making the best use of them.


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4 IMPROVING PERFORMANCE

Improving

efficiency

Improving

productivity

IMPROVING

PERFORMANCE

Improving quality

5 THE IMPACT OF TECHNOLOGY


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BtecBS Part d Strategic Implementation