Note on Implementation Strategy -A Harvard Business Review Kenneth R. Andrews

1. Note on Implementation Strategy
A Harvard Business Review
Kenneth R. Andrews
Priyank Jain(92)
Radhika Shrama(93)
Rahul Shrama(94)
Rakesh Kumar(96)

2. This Review contains….
Framework for Strategy Implementation
The Implementation
Task: Implementation Plan
Creating ‘Fits’
Reasons
Functional Administr Implementing
fit a-tive fits for Skills
Misfits

3. Framework for Strategy
Implementation
Assumptions:
 Strategy already defined
 Strategy not subject to sudden change
 Strategy Development separate from Implementation

4. Establishment of Formulation of Implementat- Strategic
strategic intent strategies ion of strategies evaluation
Strategic control

5. Strategy Implementation
Strategic Vision Concrete Do-able Steps
(Thought) (Action)
 Define Key Implementation Tasks
 Review Alternative Approaches
 Identify Key Skills

6. Nature of Strategy Implementation
 Action Oriented
 Comprehensive in scope
 Demanding varied skills
 Wide-ranging involvement
 Integrated process

7. The Implementation Task:
Creating ‘Fits’
 Strategy embodied in ALL Organizational Activities
 2 Types:
 Functional Fit:
Strategy  Functional Policy
 Administrative Fit:
Strategy  Organizational Structure/Process / System

8. FUNCTIONAL FIT
Strategic fit express the degree to which an organization is matching
its resources and capabilities with the opportunities in the external
environment.
 Adoption & Execution of
Manufacturing
Functional Policies
consistent with Strategic
Objectives
 Broad & Detailed policies Marketing FUNCTIONS Engineering
aligned to Organizational
Strategy
Finance

9. CASE-Functional Fits
Core Strength – Unique Order as per
Customer Specifications
New Strategy to make products before orders
& Reduce Delivery Cycle
Results: Costly Rework,Customer
Complaints,Missed Targets,Costly Penalities
Bonus Allusions
Loss in
Sales= to “King
Sales
Order Size Customer”

10. Administrative Fits
Major Systems to be aligned with Strategy
Organization Information Incentive
Structure Systems Systems
Strategic
Organization Control
Planning
Processes Systems
Systems
Management
Corporate Leadership
Selection &
Culture Style
Development

12. Implementation Plan
Two or Three of the most critical issues must be identified &
addressed
Develop plans for each
Address key human & Include a set of alternative
organizational issues actions
Present sequence of actions to
be taken
Determine how manager should take actions
and assure that they are taken

13. Implementation Situations
As organizations grow they usually develop through a number of distinct
stages
One model posits that corporations develop through three distinct
stages
Each of the stage requires entirely different ways of running the
company
Transitions difficult to manage

14. Three Stages of Organizational Development
Company Stage 1 Stage 2 Stage 3
Characteristics
1. Product line Single Product or Single Single Product Line or Multiple Product Lines
Line business
2. Distribution One channel or set of One set of channels Multiple channels
channels
3. Organization Little or no formal Specialization based on Specialization based on
Structure structure structure product-market
relationships
4. Product/Service - Na - Integrated pattern of Not Integrated
transactions
A B C
Market Markets
5. R&D Not institutionalized Increasingly Institutionalized search
institutionalized search for new products as well
for product or process as for improvements
improvements

15. Three Stages of Organizational Development
Company Stage 1 Stage 2 Stage 3
Characteristics
6. Performance By personal contact & Increasingly impersonal Increasingly impersonal
measurement subjective criteria using technical and/or using market criteria
cost criteria
7. Rewards Unsystematic Increasingly systematic Increasingly systematic
with emphasis on with variability related to
stability and service performance
8. Control System Personal control Personal control of Delegation of product
strategic decisions market decisions, with
indirect control based on
analysis of results
9. Strategic Choices Needs of owner vs. needs • Degree of integration • Entry and exit from
of firm • Market share industries
objective • Allocation of
• Breadth of product resources by industry
line • Rate of growth

16. Implementation Situations
 Transitions present recurring implementation problems in
strategic situations.
 Each situation presents some unique problems which
requires different skills.
 All situations however require achievement of fits.

17. IMPLEMENTATION CHOICES
 Two Broad choices available for Strategic Implementation are
Classified as:
 Degree of Involvement
 Attention to Administrative Constraints

18. Modes of Implementation
Degree of Attention to Admin Constraints
Degree of Involvement
High Low
Political Entrepreneur
High Manager Manager
Low Administrative
People &
Organisation
Manager
Shaker

19. Entrepreneurial
Political Manager
Manager
Deeply involved in Deeply involved in
implementation process. implementation process.
Also aware of Little awareness towards
administrative administrative
constraints constraints.
Administrative Organisation Shaker
Manager Manager
Little concern over
Little involvement in
implementation and
implementation process.
administrative
More concern towards
constraints.
the administrative
Just manages and adjusts
implications.
people or system.

20. Reasons for Misfits
 Misfits evolves due to rapid change of environment and
strategy.
 Some misfits are permitted deliberately but consciously.(time
and energy)
 When a need to keep the options open is their, misfits are
many times useful and a necessity.

21. Implementing Skills
• Technical Component
• Organizational
Analytical Component
• Interpersonal Component

22. • Communication
Administrative • Timing
Skill • Identify individuals who
will be affected by strategy

23. • Commitment to purpose
Leadership • Business Standards, Ethical
Skill Standards
• Trust of subordinates

24. Application to case study
Spell out all
Identify those Develop
Identify the Administrative
fits which are implementation
strategy & Functional
crucial plan
Fits

25. Guide to analysis of cases
Strategy
Administrative Functional
& leadership policies
skills
Implementation Management
mode systems
Implementati
Misfits
on Timing
Mix of TOI

26. "However beautiful the strategy, you
should look carefully at the
Implementation…..."
Winston Churchill
PM British