Strategy Implementation and Management
|You now have a well structured and exiting business strategy.
"The proof of the pudding lies in the eating." Well
if your company is running like clockwork using quartz technology, this is
a natural result of your business engineering exercise, just like a quartz
watch starts running and keeps time accurately.
Well the analogy is clear: Old technology watches were ticking
over but the accuracy has always been doubtful. Why? It was a combination
of cogs working together but running in opposite directions. With
modern quartz technology watches everything is lined up perfectly and all
running in the same direction.
The same with company strategy: The company is going in a
direction, but not everybody is pulling in the same direction.
However, once EVERYBODY is fully aware as to what direction the company is
heading, the closer everybody in the company starts working towards that
common goal, and the better the company operates is all aspects. It is something
|So, the first step in the implementation is to define the
business. Clarify the vision, mission and purpose objectives.
Link all this to the strategic objectives of your company and draft a
broad corporate strategy. From there on, draw up departmental
strategies, all in line with the broad corporate strategy. This is
then further linked to the individual objectives of every employee in the
organization. This in turn is then linked to your reward system,
planning, resource and budgeting functions.
What is written her in two paragraphs, obviously is not done in two
minutes. Implementing strategy is much more than putting a new
procedure in place. There are four basic organizational aspects that
need to be considered very carefully during this process. Without
going into much detail, we will just mention them:
|Corporate culture - that pattern of beliefs and
expectations shared by the members of the organization. These
beliefs and expectations produce rules for behavior - norms - that
powerfully shape the behavior of individuals and groups in the
organization. This may prove a difficult nut to crack in implementing
a new strategic direction.|
|Organization Structure - which is much more than boxes
and arrows on a chart. An organization's structure must match
the firm's strategy. When properly done, changes in organization
can be a powerful tool with which to implement a new strategy.
When strategy is formulated it should consider both today's
organization structure and any future changes required to implement
the chosen strategy.|
|Human Resources - the people that make it
happen. How well an organization implements its strategy,
depends to a large extend on how much thought is given to the people
needed to make it work. This includes everybody, from the top
manager in the organization, right down to the lowest level.
Making sure that the right people are available at the right time, can
be a real challenge.|
|Management Processes - bringing it all together.
There are basically four main processes to consider, and although
there is overlap with things already discussed, there are distinct
|Planning - which in this case can be thought of as the
communication of strategies to top management. The main
objective is to make sure that the adopted strategies stay on
|Programming - the second process needed to keep the
organization moving on its chosen strategic course. This is
the process needed to make the funds and programs are allocated to
activities that drive the strategy forward.|
|Budgeting - the tool that is used to formally allocate
the resources required to fund activities or functions in future
|Measure and Reward - Aligning measurement systems with
other parts of the company's strategy and organization is a
creative process that is frequently overlooked. But it one
of the key factors to ensure that the adopted strategic path of
the organization is understood and driven throughout the
The Roles of a Consultant
These can be categorized into three main categories:
|Change Agents A consultant standing outside is
in the best position to define management's role in a process. Especially
when sensitive issues have to be discussed and decided.|
The consultant also has a very important role in training the internal
driver of the change process.
|Communicator As an independent person, a
consultant has an important role to ensure that the process of change
is fully understood and supported throughout the organization.|
|Architect In this capacity, the consultant plays
an important role in facilitating the strategy design at all the
levels of the organization.|
There is much more to be said about this topic. What appears
above is just a very brief general skin of the process of strategy
formulation and implementation. For more information, click here.