Meaning of Strategy Implementation
Strategy implementation is a process of translating the formulated strategies into organizational actions for achieving desired goals. It is one which is concerned with proper execution of all plans and policies that ensures accomplishment of long-term objectives. Strategic implementation is a crucial step in strategy management process that carries out all activities needed for reaching goals. It addresses who, when, where and how of attaining targets.
Strategy implementation process pays attention on whole organization which identifies strategic issues and goals, conduct SWOT analysis and environmental scanning before executing strategies. Under this process, tasks are assigned to qualified individuals along with time limits that facilitates achievement of goals by organization. Strategy implementation plan is headed by a visionary leader like CEO who communicates whole vision and directs individuals on how to perform for fulfilling such vision. Strategy implementation is a technique that enable firms in developing, utilizing and amalgamating its resources, structure, culture, people and control system for following strategies that lead to develop competitive advantage in market.
Process of Strategy Implementation
- First of all, an organization possessing capability of successfully translating strategies into actions is build.
- Organization is supplied with all required resources for carrying out all essential activities related to activities.
- Formulating such policies that encourage strategy.
- Optimum policies and programs are employed with a view of attaining consistent improvement.
- Reward structure is integrated for deriving results.
- Strategic leadership is employed.
Prerequisites of Strategy Implementation
- Strategy Institutionalization: The initial step in strategy implementation is institutionalization of strategy. One who has developed the strategy need to promote or defend it among all members of organization as there may be chance of strategy getting undermined. The formulator need to share all aspects of strategy to develop better understanding within the organization.
- Building efficient organizational climate: Organization climate is composed of internal environment components such as cooperation, degree of determination and commitment, efficiency, personnel development etc. that translates purpose into results.
- Formulation of operating plans: Operating plans refer to plan of actions, programs and decisions taking place within distinct parts of organization. These plans facilitate the achievement of desired goals of organization by focusing on all crucial factors. Operating plans are formulated for indicating proposed strategic results.
- Building optimum organizational structure: Organizational structure refers to pattern in which various organizational parts are linked with one another. This structure highlights relationship in between the different positions, designation and roles. Structure of organization is designed in accordance with the requirements of strategy.
- Reviewing strategies periodically: Strategies are reviewed periodically from time to time in order to ensure whether they are implemented in relevance to requirements of organization. Organization operate in a dynamic environment that keeps on changing which makes a review function compulsory. Review helps in ensuring that all needs of organization are timely fulfilled.
Proper implementation of formulated strategies is must for deriving better results otherwise it may lead to failure. Proper alignment in between strategy and its various elements such as organization structure, allocation of resources, culture, work climate, reward structure and process is must for effective implementation of all strategies.
Aspects of Strategy Implementation
- Building a strategic budget which provide all required resources for carrying out the key activities that determine success of business.
- Organization need to supplied with qualified and experienced personnel.
- The key functions of business are carried out by employing leading practices.
- Strategy execution is ensured by confirming that procedures and policies assist in doing so.
- A favorable work climate and culture is developed for effective strategy implementation.
- A communication and information system is set up for facilitating work in delivering their roles effectively.
Process of strategy implementation is time-consuming as here formulated strategies are translated into organizational actions for deriving desired results.