Strategy Implementation
Action planning
Preparing for execution
A Framework for Strategic Analysis
Strategy formulation
Environmental
Analysis
Stakeholders
analysis
Analysis
of R&C
Strategy
congruence
Alternative
Strategies
Action plan
Execution
Strategy implementation
Monitoring
Feedback
Strategy Implementation: outline
 Changes required to implement the new
strategy
 Delineating changes /interventions
 Action planning
 Streamlining execution
 Adopt a “project management” mode
 Define “project organization” structures
 Use corporate plans and budgets
What changes are needed?
Changes / Interventions
What changes? Using McKinsey 7-S
Structure
Systems
Shared values
Strategy
Skills
Style
Staff
What changes? Using the 7Ss (1)
Change
Strategy
• Transparency
• Align functional strategies
• Align tactics
Structure
 New units, projects
 transversal teams
 delegating power
 accountabilities
 Basic structure, reporting
Systems
 IT, reward, control
 operating, cost control
 Quality , customer
 planning
 KM systems
Impact
Barriers /difficulties
What changes? Using the 7Ss (2)
Changes
Staff
Executive changes, recruitment
Satisfaction, motivation
Retention, Productivity
Skills/Competences
Skills required
Exchanges, cooperation
Training needs,transfer
Style & Leadership
 Directive vs Participative
 Coaching
 Develop leadership qualities
Shared values/ culture
Signaling change
Align with strategy
Cohesiveness vs variety
Sociability /solidarity
Impact
Barriers /difficulties
Support Activities
Or, use the Value Chain
Firm Infrastructure
Human Recourse Management
Technology Development
Outbound
Inbound
Operations
Logistics
Logistics
Primary Activities
Source: M.E. Porter
Marketing Service
&Sales
Or, use Value Chain to identify
actions (1)
Activity
Inbound logistics e.g. organization,
efficiency and effectiveness
Production / Operations e.g. efficiency
and effectiveness
Outbound logistics e.g. efficiency and
effectiveness
Marketing & Sales e.g skills, knowledge,
brands, effectiveness,
cross selling opportunities
Service & Service Quality
e.g customer satisfaction, retention, loyalty
Finance e.g project financing, margin
improvements
Changes
Required
Impact
Obstacles
Or, use Value Chain to identify
actions (2)
Activity
Management
e.g changes in top management, change agents,
leadership roles
Human Resource Management
e.g. capabilities required, training, motivation,
quality and skills, relationships
Technology, Innovation
e.g enhance capabilities in
technology,Design/Product,/Process innovation
Procurement
e.g. changes in sourcing, organization,
procedures, relationships, technology
Changes
Required
Or another version: a people centered approach (Ghoshal)
Hard
Strategy
Soft
Purposes
Systems
Structure
Relations
People
Plan of Changes
 Detailing changes, projects
 Specify resources required
 Decide on ways of implementation
 Time schedule, milestones
 Set priorities
 Decide on cycles of change
Difficulty and time needed for
changes (indicative)
High
Difficulty
Culture
Systems
Strategy
Skills
Capabilities
Low
Structure
Time
Time schedule and milestones
Act
Act
Act
Act
1
2
3
4
Act 5
Time
Milestone
Changes to implement: Selected changes / interventions – per S, or
in total. Put priorities. Use project management tools.
Execution: who will be involved?
 Top management: necessary
 New CEO?: signaling commitment to change
 External consultants? : as consultants, not
executives
 Managers, hierarchy: necessary
 Project team: rolling – up changes
Streamlining for execution
 Assign responsibilities for specific changes
 Allocate the changes down the hierarchy
 Provide resources for implementation
 Incorporate the changes in the business plans and budgets
 Decide if you will set up a separate project structure
 To prepare changes off line, before commissioning into

operation
For important /cross functional changes, e.g. new business
lines
 Monitoring the execution
 Frequent reporting and follow up
 Day to day monitoring: project manager, steering committee
Organize for change: a project mentality
(project parallelto the hierarchy)
Steering Committee
Project Manager
Project team 1
Project team 2
Project team 3
Use strategic change workshops …
 To reconsider or modify the intended changes and



their expected outcomes
 Improvise in the course of action
To examine blockages to strategic changes
 Lift obstacles
To promote ownership of changes
 Commit more people
To monitor the progress of change projects
Using Strategy Consultants
 To obtain access to know-how if needed
 Get an external objective view of issues
 To better organize implementation
 Also for symbolic / political reasons
 To symbolise the importance of the work
 To cut through internal disagreements