Strategy implementation is the process where strategies and methods are put into action to fulfill an organization’s objectives, goals, and mission. This step comes after the strategic planning and decision-making process.
What is a Business Strategy? What are examples of business strategy?
Strategy Implementation Models
There are many different models and frameworks that can be used to guide the process of strategy implementation. Here are a few of the most commonly used models:
- Balanced Scorecard: Developed by Robert Kaplan and David Norton, this model uses a balanced set of financial and non-financial metrics to measure performance. It considers four perspectives: financial performance, customer knowledge, internal business processes, and learning and growth.
- McKinsey 7S Framework: This model emphasizes the importance of coordinating seven key organizational elements for successful implementation: structure, strategy, systems, staff, style, skills, and shared values.
- Kotter’s 8-Step Change Model: Although not a strategy-specific implementation model, John Kotter’s model is widely used in strategic change scenarios. The eight steps include creating a sense of urgency, forming a guiding coalition, creating a vision for change, communicating the vision, removing obstacles, creating short-term wins, building on the change, and anchoring the change in corporate culture.
- OKR (Objectives and Key Results): This goal-setting framework helps organizations implement the strategy by defining objectives and tracking measurable results.
- OGSM (Objectives, Goals, Strategies, Measures): This model provides a clear and visual structure to help organizations align their strategies with operational actions and expected outcomes.
- PDCA (Plan, Do, Check, Act): This iterative four-step management method is used in businesses to control and continuously improve processes and products.
- Strategy Map: A strategy map is a visual tool designed to communicate a strategic plan and achieve high-level business goals.
The best model for any given organization will depend on the nature of the organization, the specific strategies being implemented, and the context in which they operate.
Strategy Implementation Process
The strategy implementation process is a complex process that involves turning strategic plans into actions and then measuring the effectiveness of those actions in achieving the organization’s goals. Although it can vary based on specific models and business environments, a typical strategy implementation process may include the following steps:
- Developing an Implementation Plan: The first step in the process is to develop a detailed plan for implementing the strategy. This plan should clearly outline the tasks that need to be accomplished, who is responsible for each task, when each task needs to be completed, and what resources are required.
- Resource Allocation: Resources need to be efficiently allocated to support the strategy. This could involve financial resources, human resources, materials, or time. It’s also important to ensure that the organization can implement the strategy.
- Organizational Structure Adjustments: Sometimes, the existing organizational structure may need to be modified or redesigned to support the strategic goals. This could involve changes in roles, responsibilities, reporting lines, etc.
- Strategy Communication: It’s important to communicate the strategy across the organization. All employees should understand the strategy, their role in it, and how their work contributes to strategic objectives.
- Employee Training and Development: Employees may need new skills or knowledge to carry out their roles under the new strategy. This might require training, mentoring, or hiring new staff.
- Performance Management: Set clear performance standards and Key Performance Indicators (KPIs) to monitor progress toward strategic objectives. Regularly review performance and provide feedback.
- Leadership and Management Support: Leaders and managers should commit to the strategy, set a good example, and motivate their teams.
- Review and Adjust: Strategy implementation is not a one-time activity. Regularly review progress and make necessary adjustments. This might involve changing aspects of the strategy, altering the implementation plan, or reallocating resources.
Strategy implementation can be challenging, but following a structured process can increase the chances of success. Remember that effective strategy implementation requires a long-term commitment and the ability to adapt to changing circumstances.
Strategy Implementation Example
Let’s look at an example of a company implementing a new strategy. This example is hypothetical and simplified but gives a basic idea of the process.
Company ABC, a retail business, has decided to implement a new strategy of focusing more on e-commerce sales to adapt to the increasing trend of online shopping. Here’s how they could implement this strategy:
- Develop an Implementation Plan: ABC creates a detailed plan with objectives such as developing a user-friendly online shopping platform, increasing the online product range, and implementing digital marketing campaigns.
- Resource Allocation: ABC allocates funds for website development, digital marketing, and e-commerce logistics. They also allocate personnel resources, assigning teams to manage the new online shopping platform, customer service, and digital marketing.
- Organizational Structure Adjustments: ABC modifies its organizational structure, establishing a new e-commerce department and hiring a Head of E-commerce.
- Strategy Communication: ABC’s CEO communicates the new strategy to all employees through a town hall meeting. They explain the strategic shift, its reasons, and how it affects different parts of the organization.
- Employee Training and Development: ABC arranges training programs for its customer service and sales teams to help them adapt to the new e-commerce environment. They also hire new staff with digital marketing and e-commerce experience.
- Performance Management: ABC sets KPIs related to online sales volume, website traffic, and customer satisfaction rates. They introduce a performance dashboard to track these metrics.
- Leadership and Management Support: ABC’s management team fully supports the new strategy. They lead by example, show enthusiasm and commitment, and regularly update staff on progress.
- Review and Adjust: After the first quarter, ABC reviews the results. They see an increase in online sales, but customer feedback indicates some issues with the new online platform. ABC takes this feedback and makes necessary adjustments, enhancing the website’s user interface and fixing technical bugs.
This example demonstrates the importance of planning, resource allocation, organizational adjustments, communication, and ongoing review in the strategy implementation process. It’s also worth noting that even well-planned strategies may need adjustments based on feedback and performance results.
