Chap10_SMBP_Kazmi.ppt
Download as PPT, PDF0 likes668 views
This chapter discusses strategy implementation. It examines the nature of strategy implementation and describes barriers to implementation such as poor strategy or information sharing. The chapter presents a model of strategy implementation that includes activating strategies, managing change, and achieving effectiveness through project management, resource allocation, and other elements. It emphasizes the importance of aligning resource allocation to strategy and overcoming barriers to ensure successful strategy implementation.
Chap10_SMBP_Kazmi.ppt
- 1. STRATEGIC MANAGEMENT AND BUSINESS POLICY THIRD EDITION Chapter 10 Activating strategies AZHAR KAZMI
- 2. (c) Dr. Azhar Kazmi 2008 2 Learning objectives Examine the nature of strategy implementation Describe the barriers to strategy implementation Discuss the interrelationship between formulation and implementation of strategies Explain the three themes that constitute our model of strategy implementation Review the role of project management in strategy implementation Review the role of regulatory mechanisms in procedural implementation Deliberate on the value of aligning resource allocation to strategy Discuss the factors that affect resource allocation and the difficulties that arise in resource allocation
- 3. (c) Dr. Azhar Kazmi 2008 3 Characteristics of strategy implementation Action orientation Comprehensive in scope Demanding varied skills Wide-ranging involvement Integrated process
- 4. (c) Dr. Azhar Kazmi 2008 4 Barriers to strategy implementation and overcoming them An inability to manage change Poor or vague strategy Not having guidelines or a model to guide implementation efforts Poor or inadequate information sharing Unclear responsibility and accountability Working against the organizational power structure Overcoming barriers • Adopting a clear model of strategy implementation • Effective management of change in complex situations
- 5. (c) Dr. Azhar Kazmi 2008 5 Two-way linkage between formulation and implementation of strategy STRATEGY FORMULATION (THOUGHT) STRATEGY IMPLEMENTATION (ACTION)
- 6. (c) Dr. Azhar Kazmi 2008 6 Mintzberg’s conception of the type of strategies Intended strategy Realised strategy Deliberate strategy Emergent strategy Formulated strategy Implemented strategy Unrealised strategy Based on H. Mintzberg: “Pattern in strategy formation” Management Science May 1978; 24, 9, p. 945.
- 7. (c) Dr. Azhar Kazmi 2008 7 A model of strategy implementation PROJECT IMPLEMENTATION PROCEDURAL IMPLEMENTATION RESOURCE ALLOCATION STRUCTURAL IMPLEMENTATION LEADERSHIP IMPLEMENTATION BEHAVIOURAL IMPLEMENTATION FUNCTIONAL IMPLEMENTATION OPERATIONAL IMPLEMENTATION STRATEGIC PLAN EVALUATION & CONTROL ACTIVATING MANAGING ACHIEVING STRATEGIES CHANGE EFFECTIVENESS --------------------------------------------------------------------------------------------- FEEDBACK
- 8. (c) Dr. Azhar Kazmi 2008 8 Major themes in strategy implementation Activating strategies Managing change Achieving effectiveness
- 9. (c) Dr. Azhar Kazmi 2008 9 The pyramid of strategy activation STRATEGY PLANS PROGRAMMES PROJECTS BUDGETS POLICIES, PROCEDURES, RULES AND REGULATIONS
- 10. (c) Dr. Azhar Kazmi 2008 10 Project implementation A project is the basic unit of a programme. A programme is a portfolio of projects that may be interrelated and interdependent in complex ways. Several programmes are required to implement a plan. A number of plans are involved in implementing a strategy.
- 11. (c) Dr. Azhar Kazmi 2008 11 The process of project management Initiating Planning Executing Controlling Closing
- 12. (c) Dr. Azhar Kazmi 2008 12 Strategy implementation through project management INITIATING CLOSING CONTROLLING EXECUTING PLANNING STRATEGY IMPLEMENTATION STRATEGY EVALUATION AND CONTROL STRATEGIC MANAGEMENT PROCESS PROJECT OBJECTIVES CONTROL MEASURES PROJECT MANAGEMENT PROCESS
- 13. (c) Dr. Azhar Kazmi 2008 13 Procedural implementation Regulatory mechanisms in India Formation of a company Licensing procedures Securities and Exchange Board of India (SEBI) requirements Monopolies and Restrictive Trade Practices (MRTP) requirements Foreign collaboration procedures Import and export requirements Patenting and trade marks requirements Labour legislation requirements Environmental protection and pollution control requirements Consumer protection requirements Incentives and facilities benefits
- 14. (c) Dr. Azhar Kazmi 2008 14 Procedural implementation in action Strategists may adopt a submissive, confrontational, or collaborative stance. They can try to conform to the regulations, confront the regulations by informed criticism and lobbying and public relations or work with the government to improve the regulatory framework. At the same time they can adopt an 'existentialist' view and continually look for opportunities within the business environment as such an environment is substantially affected by government plans, priorities, policies and actions.
- 15. (c) Dr. Azhar Kazmi 2008 15 Resource allocation Resource allocation deals with the procurement, commitment, and distribution of financial, human, informational, and physical resources to strategic tasks for the achievement of organisational objectives. Strategic budgeting Aligning resource allocation to strategy Factors affecting resource allocation Difficulties in resource allocation
- 16. (c) Dr. Azhar Kazmi 2008 16 Making of a strategic budget