This document provides an overview of implementing organizational strategy in 4 stages:
1. State clear strategic goals that are specific, measurable, achievable, relevant and time-bound. Goals should drive priority setting and resource allocation.
2. Identify the resources needed, including human, financial, physical and technological resources. Develop a supply chain management plan to obtain the necessary resources.
3. Create an action plan with the sequence of implementation tasks, timelines and responsibilities. Break strategies into departmental actions and goals.
4. Evaluate the implementation process by assessing achievement of goals, identifying lessons learned, and using feedback to improve future strategy implementation. Evaluation methods include surveys, balanced scorecards and analyzing performance differences
This document provides an overview of implementing organizational strategy in 4 stages:
1. State clear strategic goals that are specific, measurable, achievable, relevant and time-bound. Goals should drive priority setting and resource allocation.
2. Identify the resources needed, including human, financial, physical and technological resources. Develop a supply chain management plan to obtain the necessary resources.
3. Create an action plan with the sequence of implementation tasks, timelines and responsibilities. Break strategies into departmental actions and goals.
4. Evaluate the implementation process by assessing achievement of goals, identifying lessons learned, and using feedback to improve future strategy implementation. Evaluation methods include surveys, balanced scorecards and analyzing performance differences
Original Description:
BUSINESS STRATEGY - Implementing Strategy (2)
Original Title
WEEK 8B BUSINESS STRATEGY - Implementing Strategy (1)
This document provides an overview of implementing organizational strategy in 4 stages:
1. State clear strategic goals that are specific, measurable, achievable, relevant and time-bound. Goals should drive priority setting and resource allocation.
2. Identify the resources needed, including human, financial, physical and technological resources. Develop a supply chain management plan to obtain the necessary resources.
3. Create an action plan with the sequence of implementation tasks, timelines and responsibilities. Break strategies into departmental actions and goals.
4. Evaluate the implementation process by assessing achievement of goals, identifying lessons learned, and using feedback to improve future strategy implementation. Evaluation methods include surveys, balanced scorecards and analyzing performance differences
This document provides an overview of implementing organizational strategy in 4 stages:
1. State clear strategic goals that are specific, measurable, achievable, relevant and time-bound. Goals should drive priority setting and resource allocation.
2. Identify the resources needed, including human, financial, physical and technological resources. Develop a supply chain management plan to obtain the necessary resources.
3. Create an action plan with the sequence of implementation tasks, timelines and responsibilities. Break strategies into departmental actions and goals.
4. Evaluate the implementation process by assessing achievement of goals, identifying lessons learned, and using feedback to improve future strategy implementation. Evaluation methods include surveys, balanced scorecards and analyzing performance differences
translation of chosen strategy into tactfully planned actions, assigning tangible and intangible resources within a defined timeframe, so as to achieve organisational goals and objectives. Key considerations for strategy implementation ❑Business environment factors ❑Available resources ❑Organisational structure ❑Organsational culture & policies ❑Reward structure ❑Time
Effective management of these factors can impact
on the how strategy is successfully implemented and the subsequent results. Key components to consider in strategy implementation What strategy do we This is determined when managers make ‘strategic want to implement? choices’ as discussed in week 6.
What resources do we An essential role of senior management is
need to implement our development and distribution of resources as strategy? discussed in week 5. Also includes all tangible and intangible resources such as human and machine. How do we go about This relates to planning at business-level strategy as implementing our discussed in week 4. Also involves tact and thorough strategy? consideration of stakeholders and risk factors.
How long will it take us A key ingredient of strategy is corresponding
to implement our timeframe. Managers are responsible for allocating strategy? realistic a timeframe to each action of strategy. How will we know that This relates to evaluation of implemented strategy. It we have implemented allows organisations to develop learning loops. Tools our strategy? used include surveys, feedback and Balance Score Cards. Strategy implementation plan
A four-stage strategy implementation plan
can be adopted in converting strategy into action. This involves: 1. Stating a clear and specific strategic goal 2. Listing all resources that will be required and planning a supply-chain management 3. Planning actions to be taken, when and how long each will take 4. Evaluating the strategy and its process Stage 1: Strategic Goals
▪ They are specific financial and non-
financial objectives and results an organisation aims to achieve over a specific period of time. They must be S.M.A.R.T in nature. ▪ They are usually set over the next three to five years. ...but rapidly changing factors and business environments means these goals must be reviewed as often as necessary to ensure strategic alignment. ▪ They are important because they: Drive priority setting, resource allocation, capability requirements and budgeting activities. ▪ They must be accompanied by clearly defined key success factors (key performance indices) and scope. A few areas of strategic goals
▪ Customer – e.g. ‘to grow number of clients by in 3yrs’
▪ Employees – e.g. ‘achieve employee retention score of 90% in the new financial year’ ▪ Shareholders – e.g. ‘grow revenue by 4.5% and net profit by 18% per year over the next 3 years’
In what other areas of business can
strategic goals be set? Stage 2: Available Resources
❑A key attribute of the organisation is the ability to pull
resources together in order to accomplish goals. The major resources used by organisations are: ▪ human resources – people, will, structure, engagement ▪ financial resources – cash, assets, bonds, access to funds ▪ physical resources – building, land, machine ▪ information resources – knowledge, patent, database ▪ Technological resources – equipment, software, innovation ▪ Ethical resources – culture, integrity, consumer trust, ▪ Brand resources – product quality, value, years of experience ▪ time resources – process, supply-chain, turn-around period A simple resource supply-chain set of questions • What do we need? • What do we need it for? • Exactly when do we need it? • Is it readily available or do we need to source it? • If we must source it where do we source it from? • How long will it take to source? • What will it cost? • Who do we need to speak to? • Who is our primary spokes-person? • Who will monitor that supply has arrived and quality? • What is the return policy? Stage 3: Actions & Timeframe (Action Plan)
❑Challenges to strategy implementation include
poor/no action and unrealistic timelines. In order to ensure effective action plan: ▪ Develop an overall corporate-level strategy implementation timeline – e.g. A six-month or three-year strategic goal ▪ Group the strategy into departmental or business-level strategies – e.g. Human resources, Marketing, production ▪ Break down each business-level strategy into actionable goals – e.g. improving awareness of customer needs. ▪ Create a logical flow of tasks that will lead to the achievement of each business-level goals Stage 4: Evaluation
❑The strategy evaluation process involves analysing
your implementation process and assessing how well you have done in achieving the goals in your strategy. ❑It is an internal analysis and should be part of a broader strategic analysis for the organisation when making decisions about your strategy. ❑Five key questions to ask: 1. What did we set out to achieve (key success factors)? 2. What did we achieve (actual performance)? 3. Any difference between 1 and 2 and why? 4. What lessons can we learn? 5. How do we use what is learnt in the future? ▪ This process creates organisational learning loop. Stage 4: Evaluation
❑Answers to those 5 questions can be can be realised
through various ways including: ▪ the use of questionnaires/surveys - e.g. In the case of employee development strategy such as training or reward
▪ the design of a tailored balanced scorecard system – this
often works best when clearly success factors have been defined, agreed and communicated from the onset – e.g. In the case of revenue or client growth.
Balance scorecard explained by Bernard Marr:
https://www.youtube.com/watch?v=SIPcT92E18w Summary of the ‘4-stage Implementation Plan’ Stage 1. Stage 2. Stage 3. Stage 4.
State strategic Gather Actions and Completion and
goal required corresponding evaluation resources timelines What is the the What are the What is the When is the process precise objective resources sequence of complete? When is the to be achieved? needed? implementation? end arrived at? How Needs to be a Financial, What happens will it be known? How SMART objective Physical, Human, before, during will it be measured? Technological and after the What constitutes required? process? What is success? What is What is the the pace and stakeholder supply-chain? nature of change? evaluation?
Planned Output Input Process Actual Output
A template for your Individual Reflective Report is available in the Assignment area on VLE.
This is what will guide the
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now. How are your Boardroom meeting going?
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