Implementing strategy requires managerial skills beyond just crafting strategy. There are eight key actions to effectively implement strategy: 1) build an organization with the right people and competencies, develop the appropriate structure; 2) marshal resources to areas that need them; 3) institute policies and procedures to align actions with strategy; 4) pursue best practices and continuous improvement through benchmarking and reengineering; 5) develop information and operating systems; 6) tie rewards to strategic goals and results; 7) shape a culture supportive of the strategy; and 8) provide leadership throughout implementation.

1. Implementing
Strategy
A Managerial Exercise

2. Anyone can craft strategy but
it takes real managerial skill to
implement it

3. Eight Actions of Implementing
Strategy
 Build an Organization
 Marshal resources
 Institute policies
 Pursue best practices and continuous
improvement
 Information and operating systems
 Tying rewards to strategy and goals
 Shape corporate culture
 Exert leadership

4. Building a Capable
organization
 Staffing
 Build core competencies
 Develop an appropriate organizational
structure

5. Building a Capable
organization
 Staffing
 Find the right people
 Background,
experience, values, personality
and management style
 Build core competencies
 Findout what competencies ae needed
 Develop the ability to do something
 Hone skills with experience

6. Building a Capable
organization
 Build appropriate structure
 Structure must support strategy
 What value chain activities should be performed
inside the company and which outside
 Structure internal organization around core value
chain activities.- what we do well
 How much centralization and decentralization
 Don’t build walls
 Link to suppliers and strategic allies

7. Marshal Resources
 Marshal Resources
 Move resources to areas where the
strategy requires
 Insure ther are enough resources to fund
new initiatives
 Reduce resources where not needed

8. Policies and procedures
 Provides top down guidance about how
certain things need to be done
 Helps align the action and behavior of
company personel with the requirements
for good strategy execution
 Places limits on independent action and
helps overcome resistance to change

9. Policies and procedures
 Helps enforce consistency in how
strategy-critical activities are performed
in geographically scattered organization
units.
 Promotes the creation of a work climate
that facilitates good strategy execution

10. Best Practices and Continuous
Improvement
 Bench Marking
 Find the best approach a particular task
 Collaborative effort to share information
 Reverse engineering
 Modify best practice tofit the company’s
situation
 Continue to modify as situation changes

11. Best Practices and Continuous
Improvement
 Reengineering
 Large scale changes in process, organization or
structure when current structure is not acceptable
 A large, one time move towards a new plan.
 Total Quality Management
 Continuous examination of processes, organization
and structure to get imcrementally better.
 Bottom up structure

12. Information and Control
Systems
 Operations – Control of equipment
 Information – On line data systems
 Communications – email, internet,
company intranet
 Sales and Marketing – e- commerce

13. Reward Systems
 Reward the right things
 Monetary rewards
 Non monetary rewards
 Reward employee for results not
activities

14. Guideline for a good executive
compensation
 Performance payoff must be a big part of
compensation
 Everyone should participate
 Be fair and ethical in administering rewards
 Link reward to strategy implementation
 Executive must be able to influence his
performance
 Keep time between accomplishment and
reward short
 Mix non monetary and monetary rewards
 Forget about rewarding activities instead of
results