1. A.N.S-
nsserwanga@yahoo.com
STR.MGT BSC ACC 1
Strategy implementation
How do we ensure arrival?

2. ABAHO ERNEST STR.MGT BSC ACC 2
Strategy implementation is the sum
total of activities and choices
required to implement a strategic
plan. This requires the development
of programs, budgets and procedures

3. ABAHO ERNEST STR.MGT BSC ACC 3
Basic issues to be addressed in
implementing strategy
 Who are the staff who will undertake the
tasks?
 What must be done to ensure congruence
between current operations and the new
strategic direction?
 How is every one going to do what is
required?

4. ABAHO ERNEST STR.MGT BSC ACC 4
Common problems encountered in
strategy implementation
 Time taken is more than that originally planned
 Un foreseen problems set in
 Ineffective coordination of activities
 Other company activities overshadowed implementation of
strategy
 Respective staff lacked required skills
 Lack of training to create required skills
 Unforeseen external factors
 Inadequate leadership from top management
 Poorly defined activities to be implemented
 Insufficient back up by ICT

5. ABAHO ERNEST STR.MGT BSC ACC 5
The strategy implementer’s task is to
convert the plan into action and
undertake what is called for by the
plan. Managing strategy
implementation is therefore more art
than science.

6. ABAHO ERNEST STR.MGT BSC ACC 6
The eight managerial components of
implementing strategy
1. Building a capable organization
2. Developing budgets and allocating ample resources to the
strategic effort
3. Establishing strategy friendly and enabling policies
4. Instituting best practices and continuous improvement
5. Providing support systems that enable staff to perform
6. Linking rewards/ incentives with achievement of strategic
targets
7. Creating corporate culture which ensures/ enhances strategy
achievement
8. Exercising strategic leadership to drive implementation

7. ABAHO ERNEST STR.MGT BSC ACC 7
Building a capable organization
 Selecting people for key positions – creating a strong
management team
 Building core competences and capabilities which are
un matched: competitive advantage.
 Employee training and retraining
 Match orgn structure to strategy: identify and build
structure around critical activities then consider
outsourcing non core activities.
 Resolving which decisions to centralize and which to
decentralize

8. ABAHO ERNEST STR.MGT BSC ACC 8
Strategic advantages and disadvantages of various
organization structures
 Functional specialization
 Geographic organization
 Decentralized biz divisions
 Strategic biz units
 Matrix structures
( students to fill in )

9. ABAHO ERNEST STR.MGT BSC ACC 9
Strategy and stage of corporate
development
Stage one
1. Major problem- survival and growth, dealing with
short term operational probs
2. Objectives- personal, subjective
3. Strategy- implicit, entrepreneur owner
4. Structure- one man show
5. Control – personal criteria, daily observation
6. Reward punishment- informal, incentives limited
and used for control/ creating allegiances.

10. ABAHO ERNEST STR.MGT BSC ACC 10
Strategy and stage of corporate
development ctnd
Stage two
1. Major problems- growth, expansion of resources
2. Objectives – SMART meeting functional
performance targets
3. Strategy – limited to exploitation of one product
4. Organization- one unit functionally specialized
5. Control – many persons and systems involved
6. Reward punishment – based on agreed policies

11. ABAHO ERNEST STR.MGT BSC ACC 11
Strategy and stage of corporate
development ctnd
Stage three
1. Major problems- agency/ trusteeship and control of
diversified resources.
2. Objectives – SMART but expanded scope to
include society and environment
3. Strategy – growth and product diversification
4. Organization- decentralized operations
5. Control – complex formal systems with divisional
managers.
6. Reward punishment – based on agreed policies

12. ABAHO ERNEST STR.MGT BSC ACC 12
Functional organization structure
Advantages:
• Centralizes control
• Good for single biz unit
• Develops functional skills
Disadvantages:
• Interfunctional rivalry
• Tall structure enters bureaucracy/ delay
• Functional myopia/ conflicts
• Limits development of staff with cross
functional skills.

13. ABAHO ERNEST STR.MGT BSC ACC 13
GEOGRAPHIC ORGN STRUCTURE
Advantages:
1. Strategy made specific to region
2. Reaps advantages of local operations/ scales
3. Improves functional coordination
Disadvantages:
• Difficult to attain uniformity across regions
• Duplication of staff to run geographic units
• Adds another layer of staff to run the geo. areas

14. ABAHO ERNEST STR.MGT BSC ACC 14
Strategic business unit orgn structure
Advantages:
• Enables decentralization/ delegation of authority
• Responsibility for each biz unit lies with it
• Profit responsibility rests on SBUs
Disadvantages:
• HQ managers may lose touch with sbu operations
• Excessive rivalry among SBUs
• HQ managemnt becomes heavily dependent on
SBUs

15. ABAHO ERNEST STR.MGT BSC ACC 15
A MATRIX ORGN
STRUCTURE HAS TWO OR
MORE CHAINS OF
COMMAND, TWO LINES OF
BUDGET AUTHORITY AND
TWO SOURCES OF
PERFORMANCE AND
REWARD

16. ABAHO ERNEST STR.MGT BSC ACC 16
MATRIX STRUCTURE CTND
Advantages
 Gives formal attention to each dimension of strategic
priority
 Creates chks and balances among competing view
points
 Encourages cooperation
Disadvantages
 Very complex to manage
 Many people involved in decision
 Promotes organization bureaucracy

17. ABAHO ERNEST STR.MGT BSC ACC 17
Supplementing the basic orgn structure
1. Special project teams
2. Cross functional task forces
3. Venture teams- manage launch of new
product
4. Self contained work teams- work on semi
permanent basis on continuous
improvement of the company
5. Process teams- functional specialists
6. Contact persons – single point/ one stop
port for all services.

18. ABAHO ERNEST STR.MGT BSC ACC 18
IMPLEMENTING STRATEGY –
BEST PRACTICES
 TQM- ENTAILS CREATING A TOTAL
QUALITY CULTURE KEEN ON
CONTINUOUS IMPROVEMENT OF EVERY
ASPECT OF PERFORMANCE. STEP BY
STEP IMPROVEMENTS.
 REENGINEERING SEEKS ONE TIME
QUANTUM IMPROVEMENT – BIG /
RADICAL DEPATURES

19. ABAHO ERNEST STR.MGT BSC ACC 19
BUILDING TOTAL QUALITY
MANAGEMENT CULTURE
 PASSION FOR TOTAL QUALITY
INCLUDING QUALITY VISION, SPECIFIC
MEASURABLE GOALS
 ENCOURAGING TQM SUPPORTIVE
BEHAVIOURS: REWARDING, Q TRAINING
USING QUALITY TEAMS
 EMPOWERING EMPLOYEES
 ICT SUPPORT
 PREACH TQM, EAT TQM

20. ABAHO ERNEST STR.MGT BSC ACC 20
STRATEGY SUPPORTIVE
REWARD SYSTEMS
CREATING EMPLOYEE COMITMENT
AND WINNING ATTITUDES IS
IMPERATIVE.

21. ABAHO ERNEST STR.MGT BSC ACC 21
WHAT IS COMMITMENT?
 COMMITMENT DETERMINES THE
RELATIONSHIP BTN EMPLOYER AND
EMPLOYEE
 BINDS EMPLOYEE TO THE
ORGANIZATION
 RESULTS IN EXTRA ROLE
CONTRIBUTIONS BY EMPLOYEES.

22. ABAHO ERNEST STR.MGT BSC ACC 22
HOW EMPLOYEES VIEW
COMMITMENT
 PERFORMANCE ON THE JOB/ OUT PUT
 VOLUNTARISM “ GOING AN EXTRA MILE”
 INVOLVEMENT
 QUALITY OF WORK
 NUMBER OF HOURS PUT IN THE JOB.

23. ABAHO ERNEST STR.MGT BSC ACC 23
NATURE OF EMPLOYEE
COMMITMENT
 COMMITMENT TO THE BOSS
 COMMITMENT TO WORKMATES
 COMITMENT TO THE ORGANIZATION
 COMMITMENT TO THE JOB
 COMMITMENT TO THE ORGANIZATION’S
POLICIES

24. ABAHO ERNEST STR.MGT BSC ACC 24
FACTORS CAUSING LOW
COMMITMENT
 LOW PAY
 DELAYS IN PAYING STAFF CLAIMS
 NATURE OF EMPLOYMENT TERMS (PART-TIME)
 LACK OF JOB SECURITY
 PREVIOUS EXPERIENCES WITH FORMER EMPLOYERS
 FAILURE TO RECOGNIZE AND REWARD EFFORT
 LACK OF EMPATHY
 LACK OF INCENTIVES
 UNFULFILLED PROMISES
 LAZINESS / WORK ETHIC

25. ABAHO ERNEST STR.MGT BSC ACC 25
Indicators of commitment
 Attendance and punctuality
 Daily performance on the job
 Ability to meet deadlines
 Willingness to market the organization /
ambassadors
 Time spent/helping developing skills of other
employees
 Willingness to voluntarily assist colleagues
and administration (without pay)

26. ABAHO ERNEST STR.MGT BSC ACC 26
Incentives for commitment
 Pay for extra work
 Housing and Transport
 Advances and loans
 Financial bonuses
 Recognition for good performance
 Medical attention for self and family
 Education subsidy for children
 Financial assistance extended to staff in problems

27. ABAHO ERNEST STR.MGT BSC ACC 27
BEST PRACTICE IN REWARDS
 LINK WORK ASSIGNMENT TO
PERFORMANCE TARGETS
 REWARD ACHIEVEMENT OF
PERFORMANCE TARGETS
 INCENTIVES SHOUL BE MORE THAN 20%
OF SALARY
 FAIRNESS IN REWARDS
 INDIVIDUALS SHD BE ABLE TO AFFECT
OUTCOME ( AVOIDS
UNCONTROLLABLES)