Implementing Strategy Decisions
Some common strategy jargon that will be addressed in this article include Organisational Design, Planning and Control, Strategy Maps.
Organisational design and effectiveness
Firms need to be transformed into “built to change” companies by eliminating structures and practices that are inherently anti-change. Try to seek individuals who like change and are quick learners. Try to get all employees to comment on market trends and to identify opportunities. Annual budgets go against change because they are inflexible, so try to deploy activity based costing and profit centres.
Planning and Control
Strategy maps have helped deal with the alarming 90% failure rates in implementing new strategies. Start by mapping out the objectives, then look at the financial strategies, such as revenue or productivity. You could look at how to retain high value customers whilst convincing others to move over and capture new entrants. Also look at cross-selling and offering complimentatry goods and services.
Productivity could be tackled through addressing cost reduction and asset use (variable cost spending vs fixed cost spending). Will the business be focusing on operational excellence, product leadership or customer intimacy?
Also map out the business processes that must be sustained or developed to meet the customer requirements and determine the links between employees, corporate culture and technology that are needed to acheive the objectives.
By communicating the vision, and clearly depicting a logical path to achieving it, employees are much more likely to do those things that will help the organization execute and achieve its strategy. Strategy maps can also be useful marketing and promotional vehicles.
Integrate your policies, objectives and growth programmes. Allocate resources and anticipate the reactions internally and externally. Measure your progress and don’t be afraid to apply corrective measures.
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