The most successful companies know that formulating and choosing the perfect strategy does not always guarantee success. A strategy can only be achieved if it is implemented and managed in a correct fashion. In this document the author will critically assess the strategic implementation process. The author will look in detail at the various areas requiring attention when managing strategy implementation, as well as the traps and obstacles, which so many companies seem to get stuck in. Models used for implementing change and strategies are also examined.

1. 1 Strategic Implementation
STRATEGIC
IMPLEMENTATION:
Managing Strategy
Implementation
By Olivia Moran
WWW.OLIVIAMORAN.ME

2. 2 Strategic Implementation
About The Author
Olivia Moran is a leading training specialist who specialises in E-Learning instructional design and is
a certified Moodle expert. She has been working as a trainer and course developer for 3 years
developing and delivery training courses for traditional classroom, blended learning and E-learning.
Courses Olivia Moran Has Delivered:
● MOS
● ECDL
● Internet Marketing
● Social Media
● Google [Getting Irish Businesses Online]
● Web Design [FETAC Level 5]
● Adobe Dreamweaver
● Adobe Flash
● Moodle
Specialties:
★Moodle [MCCC Moodle Certified Expert]
★ E Learning Tools/ Technologies [Commercial & Open Source]
★ Microsoft Office Specialist
★ Web Design & Online Content Writer
★ Adobe Dreamweaver, Flash & Photoshop

3. 3 Strategic Implementation
Strategy is defined by Newman and Logan (1971:7), as
“forward looking plans that anticipate change and initiate actions to take advantage of
opportunities that are integrated into the concept or mission of the company”.
Every business wants to build a profitable and sustainable position against the
competition. Controlling the market in which they operate is what it is all about. This
objective is achieved through heavy investment in time, money and effort in a bid to
formulate a winning strategy.
The most successful companies know that formulating and choosing the perfect strategy
does not always guarantee success. A strategy can only be achieved if it is implemented
and managed in a correct fashion.
Managing strategic implementation programs are critical to business success. However,
managers often fail to acknowledge its importance. Once they select the best strategy,
they fall into a false sense of security thinking they have just won the battle, when in fact
it has only just begun.
In this document the author will critically assess the strategic implementation process. The
author will look in detail at the various areas requiring attention when managing strategy
implementation, as well as the traps and obstacles, which so many companies seem to get
stuck in. Models used for implementing change and strategies are also examined.
According to Farnham (1999:31),
“Strategic implementation is concerned with the activities required for putting strategies
into practice. It requires the setting of general objectives, formulating specific plans,
providing the necessary finances and resources to carry these out, and monitoring and
controlling the system to ensure that the agreed objectives are being met”.
Implementing a strategy can be a long and hazardous road, with many obstacles along the
way. People do not like uncertainty and that is exactly what implementing a new strategy
brings to the table. Even when change is being made for a better future, its resisted. This
hesitation is a natural response.
“Routines – the old way of doing things often exert a powerful influence. And even
though there may be intellectual agreement and understanding of the need for change,
routine ways of behaving can predominate” (Bowman, 1998)
Implementing a new strategy is a huge task. The best place to start is by determining who
exactly will implement the strategy. Usually it includes several members of management
from the various levels in the organisation. These managers should involve their
subordinates. In this way everyone gets to pitch in. This usually results in increased
motivation and helps to gain employee support.

4. 4 Strategic Implementation
It is desirable that everyone affected by the change would have had some form of input in
the formulation of the strategy and comprehend its importance. However this is not
always the case. Some companies purposely exclude their staff from giving input and
simply force the strategy onto them and expect them to follow it.
Communication is the key to successful strategy implementation. Staff will be less hostile
if the implications of the change are clearly explained to them. Specific goals and
objectives should be communicated. Managers should be open and truthful about the
need for change. They should also be made aware of how exactly the change is going to
effect employees, for example, will employees have to take on new tasks and
responsibilities or will they have to undergo training?.
Support for change must be evident at all levels from top management right down to
floor staff. If change is supported its implementation will run smoother, speedier, more
efficient and effective. Involving staff that are affected by the change is a good way to
gain support. They may even come up with brilliant ideas that top management failed to
recognise.
Barber (2005:44), says that
“Managers need to learn to trust their colleagues to come up with the best way of
making a project work”.
He also suggests that people will be more willing to contribute if they understand fully the
results of their efforts. This can be demonstrated through something like a bonus or pay
increase. He sums up
“If you need people to innovate, to solve problems and to make the right judgements for
themselves, they need a good reason to make that effort. Being told what to do is not
reason enough”.
Feedback should be constant and it may not need to cost the company anything.
Sometimes it may be appropriate just to say thanks or well done. This will motivate some
employees as it may satisfy their esteem needs.
Mangers should always acknowledge an employee’s contribution. If they put forward an
idea they should be thanked. They should also be informed of whether or not their
suggestion is going to be used and if not why? This encourages them to keep giving input
even if it is not taken on board the first time.
Secondly, recruiting should be considered. Sometimes it may be necessary to recruit new
people. These people can be found internally, inside the organisation or externally,
outside the organisation. The achievement of the strategy may require skills, knowledge
or aptitudes that are not currently available. This situation results in the recruitment of
staff externally. It may be more expensive than internal but could be well worth the cost.

5. 5 Strategic Implementation
Ideal candidates will help create new ideas. It is arguably easier for externals to bring
about change. They can be more objective than an insider. Internals have already built up
relationships and do not wish to offend people.
These external recruits should preferably come from numerous backgrounds while at the
same time, share a common vision. Durk Jager, Proctor and Gambles, CEO highlights the
errors made by so many managers. He talks about the way in which they spend time going
to the bother of hiring employees from different backgrounds. Then they turn around
and send them on standardised training programs. These new recruits are insulated at the
company’s’ headquarters. After a short time they begin to sound alike, think alike and
even look alike. (Parker, 1998:1).
If the company feels that internal recruitment is the way to go, then measures should be
put in place prior to implementation. These include things such as training programs to
keep skills up to date as well as job rotation to create cross functional employees. Filling a
vacancy from within is much easier and quicker than looking for a new employee and
there are relatively no advertising costs. It may also help to reduce turnover. When
people see that hard work pays off with a promotion it will encourage them to stay with
the company and do that extra mile.
The process of selection must be fair and seen to be fair. If this is not the case conflict may
manifest itself in those mistreated.
Thirdly, the author considers consultancy. When embarking on a strategy implementation
project it may be wise to hire a consultant. This is a person who has expert knowledge in a
particular field of study i.e. change management. A consultant can provide the company
with an objective view, often turning a threatening situation into a one full of
opportunities.
Consultants can come with years of experience. They learn through a trial and error
process. According to Kent
“one thing consultants are extremely good at is learning from the experience themselves.
They will leave a programme with further insights into how companies work, and the
pros and cons of taking a certain approach to instigating change”.
While consultants can be a fountain of knowledge their use should be limited. They are
extremely expensive, charging very high prices for their service. The company must be
able to justify the cost. In order to do this they must in money terms measure the
contribution made by the consultant. A nearly impossible task as all inputs are not
necessarily tangible.
The amount of control given to the consultant should be kept to a minimum.

6. 6 Strategic Implementation
“Handing over whole-scale responsibility for a change programme to a consultancy can
be more problematic . . . this approach means the organisation losses significant control
over its own change process”,
argues Whittington, professor of strategic management at Oxford’s Business School.
At the end of the day a consultant works for him or herself and have their own interests at
heart. If hiring a consultant, choose one that you can trust. Checking all references is a
smart move. Perhaps getting an internal party to check and monitor consultants work
could increase control further.
The fourth area of concern when implementing a strategy is Training which is referred to
as
“the planned acquisition of knowledge, skills and abilities required to perform effectively
in a given role or job . . . its purpose is to improve specific skills or abilities that will result
in better work performances (Gunningle, Hearty, Morley 2000:218).
Training is a very powerful tool when it comes to implementing strategy. If employees are
trained in the skills and competencies needed to achieve the strategy, they are more likely
to be committed to it. Hopefully it will deter some from looking elsewhere for
employment.
Hunger & Wheelan (2003:140), argue that
“training is especially important for a differentiation strategy emphasizing quality or
customer service”.
They give the example of a leading mobile phone manufacturer called ‘Motorola’. Every
year the company spends $120 million on training their workforce, a huge amount.
Motorola reckon that for every $1 that is spent on training, it returns $30 in productivity
gains in 3 years.
Training is desirable for both a business and its employees. If staff are well trained it
means quicker cycle time, reduced wastage and improved customer service. It is beneficial
to staff in the sense that it should lead to higher staff morale and self-actualisation. If they
do decide to leave the company they will be considered very employable.
The fifth area of concern is organisational Culture. If the strategy being implemented
does not match the organisation’s current culture, then there is little room for success. In
1998, a strategy to merge two of the biggest car manufactures Chrysler and Daimler-Benz
was carried out. Management failed to predict the consequences of implementing a
strategy where inequalities existed in the two organisations in terms of the culture and
how exactly this would impact on the implementation process.

7. 7 Strategic Implementation
Chrysler’s staff kept everything low key. When going to meetings they would all go
together in minivans and when in the air, economy class was more than adequate. This is
in stark contrast to the top dogs at Daimler-Benz’s who had the use of chauffer driven
Sedans and always travelled first class. The merger was not the success story it was
forecasted to be. Sales dropped and both companies lost a lot of their top people.
Chrysler had to make redundant twenty five percent of their staff. This should act as a
warning to all those who think strategy and culture are two different issues to be
managed individually.
The sixth aspect to be considered is organisational structure. Farnham (1999:35) states
“Building appropriate designs and structures is an important response to strategic
implementation, if organisations are to deliver their missions and objectives effectively”.
If a business is to sustain its competitive advantage it must adapt to changes that arise. For
example, the expansion and growth of a company through new products and movement
into new markets may mean that its structure is no longer viable and has to be changed.
Hunger and Wheelan (2003:125) focus on the work of Alfred Chandler. Chandler carried
out a study of Du Pont, a large U.S company. He found that
‚in their early years Du Pont tend to have a centralised functional organisational structure
that is well suited to producing and selling a limited range of products. As they add new
product lines, purchase their won sources of supply, and create their own distribution
networks, they become too complex for highly centralised structures. To remain
successful, this type of org needs to shift to a decentralised structure with several
semiautonomous divisions”.
If a company’s structure does not suit or fit the strategy it will be nearly impossible to
achieve stated goals and objectives. Companies can change the structure, however this
causes a lot of upset and may not be a viable option. In recent years organisations have
been looking to business process reengineering as an alternative.
Lastly, the concept of Business Process Reengineering, described by Hunger & Wheelan
(2003:133) as
“ the radical redesign of business processes to achieve major gains in cost, service or time.
It looks at breaking down the business into numerous processes and trying to make them
more efficient”.

8. 8 Strategic Implementation
Managers will often attempt to implement a new strategy that does not compliment the
way the organisation does business. This can spell disaster. People should follow the
example of Ford Motor Company. Ford wished to implement a strategy to improve the
productivity of its American Accounts Payment Department and cut costs. By
reengineering their business processes Ford managed to cut 75% of their workforce while
reducing order processing and cycle time. Ford used IT to support the process and
dramatically changed the way the task was done. [See appendix 1].
There are many approaches and models that can be adopted to manage the change
process and allow for a more effective and efficient implementation of strategy. Firstly
there is Kurt Lewin’s three step model. He believed that an organisation needed to
unfreeze the status quo i.e. the way things are currently done. This involves creating an
awareness of the need for change and overcoming resistance.
Next, the organisation should move from old state to new state. This may require
managers to adjust employees’ behaviour or attitudes. When the change occurs the
organisation must refreeze the new state. This is necessary to ensure that the new state
becomes permanent. This step can be reinforced through recognition and rewards given
to employees for their co-operation.
Today businesses operate in environments that are constantly changing. Lewin’s model is
based on the assumption that organisations operate in a stable environment that does not
change. While this model may indeed work for small scale change projects it is not suited
to the more complex. It also fails to recognise power and politics that exists in firms and
its influence on the strategic implementation process.
Lewin’s model was not successful in managing change and so new models were developed
to combat this issue. Dawson and Wilson developed the Emergent Change Model. This
viewed change as a period of organisational transition characterised by disruption,
confusion, and unforeseen events that emerge over long time frames.
Burns (1996) believed this model was the way to go. He highlights the main tenets. [See
appendix 2]. These seem to be at play at Hewlett-Packard (HP). HP is an innovative
company who likes to
“encourage experimentation. They reward both success and failures. They celebrate
mistakes” (Robbins 2001:558).
This model’s success lies in the fact that it is based on the belief that organisations work in
volatile environments. Managers should aspire to this model.

9. 9 Strategic Implementation
Armstrong (1999) focuses on the work of Beer et al (1990), who prescribes ‘six steps to
effective change’ [See appendix 3]. These steps aim to
“build a self-reinforcing cycle of commitment, co-ordination, and competence”,
by emphasising the importance of
“task alignment-reorganising employees’ roles, responsibilities and relationships”.
Beer and his colleagues truly believe that this approach is
“fundamental to the effective management of change”.
Cummings and Huse (1989) have written on the activities associated with effective
strategic implementation. It divides these activities into four main areas. These include
motivating change, creating a vision, developing political support, managing the transition
and sustaining momentum. [See appendix 4].
This model offers people a way to embark on a change programme in a systematic fashion.
By following this model a manager can ensure that every aspect requiring his or her
attention is covered.
The author has concluded that managing the implementation of strategy correctly is
critical to business success. Involving employees in the decision-making process leads to
smoother implementation. It helps to build support and commitment for the change.
Managers need to be transparent about the reasons for the change. The goals and
objectives of the organisation should be communicated to everyone within it. All
employees should be informed how exactly the change will effect them if at all. Feedback
should be given regulary.
Every organisation embarking on a new strategy needs to consider recruitment. The skills,
knowledge and aptitudes needed to implement the strategy may not be currently
available. Expert knowledge may be required. Consultants can be used. They are very
expensive so consider whether or not the benefits out weigh the costs.
A highly trained workforce is usually less hostile to change. Equipping staff with the skills
and competencies needed for the change reduces uncertainty and conflict.
The organisational culture must fit in with the strategy being pursued. If there is a
mismatch the implementation will not be a success. The same can be said about
organisational design and structure.

10. 10 Strategic Implementation
There are numerous models, which can help managers to manage strategy
implementation. The emergent change model is definitely one to consider. Organisations
operate in a very dynamic environment, the model acknowledges this. Beer and his
colleagues give managers six steps that lead to effective change. Cummins and Huse offer
insights into the activities associated with effective strategic implementation.
The management of the strategy implementation process is essential. By following the
considerations outlined in this document a manager can successfully implement a strategy.

11. 11 Strategic Implementation
Bibliography
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Development.
Barber, A. (2005) Create change through internal communication. Journal of People
Management, Vol.11 No.10 :44 - 45
Bowman, C. (1998) Strategy in Practice. Europe: Prentice Hall
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and Development
Gunningle, P. & Heraty, N. & Morley, M. (2002) Human Resource Management in Ireland,
2nd ed. Dublin: Gill & Macmillan
Hunger, D. & Wheelan, T. (2003) Essentials of Strategic Management 3rd ed. New Jersey:
Pearson Education Limited
Kent, S. (2005) Outer Limits. Journal of People Management, Vol.11 No.13 :41 - 42
Newman, W. & Logan, J. (1971) Strategy, Policy and Central Management. Cincinnati:
Southwestern Publications
Parker-Pope, T. (1998) New CEO Preaches Rebellion for P & G’s Cult. Walt Street Journal,
Vol. December 11th
Robbins, S. (2001) Organizational Behaviour, 9th ed. New Jersey: Prentice Hall