Strategic Management: Formulation and Implementation

The Nature Of Strategy Implementation

The implementation of organization strategy involves the application of the management process to obtain the desired results. Particularly, strategy implementation includes designing the organization's structure, allocating resources, developing information and decision process, and managing human resources, including such areas as the reward system, approacches to leadership, and staffing.

Each of these management functions has been the subject of extensive writing and research by scholars and practitioners and has covered in management books.

Since full coverage of each management function is beyond the scope of this thesis, I shall focus only on the factors that are most critical to effective implementation strategy.

Concept Of Strategy Implementation

Strategy implementation is "the process of allocating resources to support the chosen strategies". This process includes the various management activities that are necessary to put strategy in motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals.

For example, according to Steiner, "the implementation process covers the entire managerial activities including such matters as motivation, compensation, management appraisal, and control processes".

As Higgins has pointed out, "almost all the management functions -planning, controlling, organizing, motivating, leading, directing, integrating, communicating, and innovation -are in some degree applied in the implementation process".

Pierce and Robinson say that "to effectively direct and control the use of the firm's resources, mechanisms such as organizational structure, information systems, leadership styles, assignment of key managers, budgeting, rewards, and control systems are essential strategy implementation ingredients".

The implementation activities are in fact related closely to one another, and decisions about each are usually made simultaneously. I have split these activities in the next chapters.