PAMANTASAN NG L

UNGSOD NG MARIKINA • College of Management and Technology

Department of Business Administration, Entrepreneurship, and Accountancy
SEMESTER: AY 2024 - 2025

COURSE CODE & TITLE : STRATEGIC MANAGEMENT

PROFESSOR/ INSTRUCTOR : RHODORA G. PAGATPAT
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STRATEGY IMPLEMENTATION

Strategy Implementation is the process of putting a chosen strategy into action to achieve
organizational goals and objectives. While the strategic formulation involves planning and setting
objectives, implementation focuses on the practical aspects of achieving those goals.

Strategy implementation is very crucial in the strategic management process because it aims
to transforms strategic plans into actionable steps that enables an organization to achieve its goals and
objectives.

This process requires coordination across all levels of the organization, as well as
commitment from leadership, effective communication, resource allocation and performance
tracking.

Reasons why Proper Implementation Strategy is important:

 Realizing goals: Transforms strategic plans into actions to achieve desired

outcomes
 Coordinated effort: Ensures alignment and cooperation across the
organization, keeping everyone focused on common objectives
 Resource allocation: Helps in effective and efficient utilization of
organizational resources.
 Monitoring and Control: Enables you to track progress, identify issues and
make necessary adjustments
 Adaptability: Allows organizations to respond to changes in the environment
swiftly
 Competitive Advantage: Provides an edge over competitors through effective
execution of strategies
 Long-term survival and growth: Sets the pathway for continuous
improvement, leading to sustainable development and success
Strategy Implementation and Strategy Formation

Strategy formulation and strategy implementation are two core phases of the
Strategic Management process. While they are interrelated, they serve different
purposes and involve distinct activities.

Strategy Implementation focuses on executing the strategic plan. It’s about

making the strategy work in place

The key activities are:

 Resource allocation ( time, money, workforce)

 Establishing organizational structures and designs that align with the
strategy
 Setting up roles and responsibilities
 Developing detailed operational plans
 Monitoring and controlling the execution of the strategy
 Change management and dealing with resilience
 Communication across the organization
 Adjusting to feedback and making necessary corrections.
Primary Stages in Strategy Implementation

1. Communicate the strategy

The first stage in implementing a strategy is communication. Clear, consistent
communication ensures that everyone within the organization understands the strategy. Why
it was chosen and how their role contributes to its success. Communication the strategy
effectively helps build commitment and alignment across the organization.

Key Activities in communicating the strategy:

 Creating a communication plan: Outlining how and when the strategy will be
communicated to stakeholders
 Leadership communication: Senior leaders and managers should communicate the
strategy to their teams, explain the reason behind it and emphasize the benefits.
 Two-way communication: Encourage feedback from employees to ensure
understanding and address concerns
Example: When a large retail company decides to implement an e-commerce strategy, it
might hold town hall meetings, send emails from the CEO, and use intranet updates to
inform employees about the strategy, its purpose and their role in achieving it.

2. Aligning Organizational Structure and Resources

Once the strategy has been communicated, the next step is to align the organizational
structure and resources with the strategic goals.
This may involve restructuring teams, departments, or reporting lines to support the strategy
more effectively, as well as allocating financial, technological and human resources where
they are needed most.
Key activities in organizational alignment:
 Organization Restructuring: Adjusting roles, responsibilities, or even merging or
creating departments to support the strategy.
 Resource Allocation: Ensuring that resources such as budget, technology and human
capital are distributed to support strategic priorities.
 Talent Placement: Placing skilled individuals in critical roles or recruiting new talent
if required.
Example: A tech company adopting an innovation-focused strategy may establish a new
R&D department, reallocate budget to fund innovation initiatives and hire specialists in
emerging technologies to drive new product development

3. Developing Operational Plans and Setting Milestones

With the structures and resources aligned, the next stage involves creating operational plans
and setting milestones. Operational plans break down the strategy into actionable steps,
specifying what needs to be done, when and by whom. Milestone provide checkpoints to
assess progress and ensure that the organization stays on track.
 Key activities in developing operational plans
 Developing Action Plans: Outlining specific tasks, timelines and responsibilities.
 Setting SMART Goals: Setting goals that are specific, Measurable, Achievable,
Relevant and Time bound to provide clarity and focus
 Establishing KPIs (Key Performance Indicators): KPIs allow the organization to
measure progress and determine if the strategy is being implemented effectively
Example: An international food company expanding into a new market may set milestone
such as “launch product line by Q2”, “ reach 1,000 retail outlets by Q3” and “achieve
$5million in sales by the end of the year”

4. Developing Supportive Policies and Systems

For a strategy to be successful, policies and systems must be in place to support its
implementation. This includes updating or creating new policies, procedures and systems that
enables the organization to operate in alignment with the new strategy.

Key activities in supporting policies and systems

 Policies Updates: Revising policies to support the strategy, such as procurement, HR,
or customer service policies
 System Development: Implementing or upgrading IT system, software or platforms
that facilitate the execution of the strategy
 Process Redesign: Adjusting workflows, processes, or standard operating procedures
to improve efficiency and effectiveness
Example: A manufacturing firm adopting a cost-leadership strategy might introduce new
procurement policies focused on sourcing raw materials at the lowest possible cost while also
implementing cost – monitoring systems to track expenses.

5. Training and Developing Skills

New strategies often require employees to acquire new skills or knowledge. This stage
involves training and skills development to ensure that employees have the capabilities to
execute the strategy

Key activities in training and developing skills

 Assessing Training Needs: Identifying any skills gaps that may hinder successful
implementation
 Providing training Programs: Offering workshops courses, or on-the-job training
tEo build necessary skill
 Encouraging Continuous Learning: Promoting a culture of learning to adapt to
any evolving requirements
Example: A bank implementing a digital transformation strategy may need to train
employees on using new digital tools, understanding cybersecurity measures and managing
customer interactions through digital channels
6. Engaging and Motivating Employees
Employee engagement and motivation are crucial for successful strategy implementation.
This stage involves creating a positive environment where employees feel valued, motivated
and aligned with the organizational vision.

Key activities in engaging and motivating

 Incentivizing Performance: Offering rewards, bonuses, or other incentives for
achieving specific milestones or contributing to the strategic goals.
 Encouraging involvement; Actively involving employees in decision-making
processes to increase their buy-in
 Building a Culture Ownership: Encouraging employees to take responsibility for their
roles in the strategy emplementation.
Example: A company pursuing a customer-focused strategy might incentivize employees by
implementing a customer satisfaction bonus program, where employees receive bonuses for
meeting or exceeding customer service goals.

7. Monitoring and Tracking Progress

Monitoring progress is essential to ensure that the implementation stays on course. This
involves regularly assessing performance against set KPIs and milestones, tracking challenges
and identifying any necessary adjustments.

Key activities in monitoring and tracking

 Regular Performance Reviews: Conducting regular reviews to assess progress and
performance against the strategic plan
 Adjusting Plans as necessary: Making adjustments to address any issues or changes in
the external environment.
 Using Technology for Monitoring: Leveraging a patient-centered care strategy may
monitor metrics such as patient satisfaction scores, wait times and treatment outcomes
to ensure they align with the strategic goals.

8. Adjusting and Refining the Strategy

Strategy implementation is rarely a straightforward process; it requires flexibility and
adaptability. Based on the insights gathered from monitoring, the organization may need to
adjust and refine its strategy to respond to unforeseen challenges, changes in the
environment, or internal constraints.

Key activities in adjusting and refining strategy

 Identifying gaps and Issues: Determining areas where the strategy isn’t achieving the
desired results
 Modifying Objectives or tracks: Adjusting objectives, tactics or even the strategy
itself to improve outcomes
 Continuous Improvement: Encouraging an iterative approach where feedback and
learning contribute to ongoing improvement
 Example: If an airline’s low cost strategy faces unexpected regulatory changes, management
might need to adjust pricing or service offerings to align with the new regulations while still
maintaining cost efficiency.

9. Reviewing and Rewarding Success

The final stage is a review of the strategy implementation process to assess overall success
and recognize the efforts of those involve. This review allows the organization to reflect on
what worked well, what could be improved, and how the experience can inform future
strategic initiatives.

Key activities in reviewing and rewarding

 Conducting a Post-Implementation Review: Evaluating the overall impact and
effectiveness of the strategy
 Celebrating Milestone and Successes: Acknowledging team efforts and individual
contributions to boost morale and motivation
 Extracting Lessons Learned: Documenting insights to refine future strategy
formulation and implementation processes.
Example: After a successful product launch, a consumer goods company might conduct a
comprehensive review to understand the factor that contributed to its success. document
lessons learned and recognized the top-performing teams with awards or bonuses.

While the strategy formulation sets the direction, strategy implementation is what actually
drives the organization toward success.

Here are the key reasons why strategy implementation is important.

1. Realizing Strategic goals
Strategy implementation is the bridge between planning and action. Without effective
implementation, no matter how good the formulated strategies are it will remain
theoretical and may not yield any results.

Example: A company’s plan to expand its market share can only be achieved if
departments like marketing, sales and production are aligned and take steps to attract
and retain new customers

A healthcare provider that sets a goal to improve patient care quality must
implement specific initiatives, like staff training and introducing new health care
monitoring systems to realize this objectives, without implementation, the goal
remains a concept.

2. Enhances Organizational Alignment and Focus

Strategy implementation ensures that all departments, teams and employees are
working towards common objectives. By clearly communicating the strategy and
 aligning individuals roles with the organization;s broader goals, employees gain a
clear sense of direction, contributing to a cohesive organizational focus

Example: A retail chain planning to expand e-commerce need alignment across

department – IT must set up the platform, Marketing should develop online
campaigns and HR may need to train staff for digital operations.

Key Components for successful Strategic Implementation

Successful strategy implementation relies on several components

 Maintain clear communication

Effective communication is crucial to ensure that everyone understand the

strategy and their role in its implementation. Leaders need to clearly and
consistently communicate expectations, goals, and implementation progress.
This will help align the organization.

 Engage the Stakeholders

Stakeholder engagement involves interacting with and getting buy-in from

individuals or groups with vested interest in the strategy. This includes
employees, investors, suppliers and customers. Their support and feedback can
provide valuable insights and foster environment for strategy implementation.

 Stay Agile

An agile approach encourage adaptability and responsiveness to changes in the

business environment. An organization can adjusts its strategy and
implementation plan as necessary by staying agile. The team can then address
emerging challenges or opportunities, ensuring the relevance and effectiveness
of the strategy.

 Celebrate Quick Wins

Celebrating success no matter how small helps build momentum and motivates
the team. Acknowledging and rewarding the achievements as they contribute
toward the overall goal is essential. This helps create a positive organizational
culture and maintains enthusiasm and engagement among the team.
 Provide Training and Development

Ongoing training and development are essential for equipping employees with
the necessary ski9lls and knowledge for strategy implementation. Well-designed
training programs ensure that the team is competent and confident in executing
their tasks, in turn, contributes to the successful implementation of the strategy

Common Challenges in Strategy Implementation

Implementing a strategy successfully in any organization can be tough. Here are

some common issues in the implementation of strategy.

 Lack of Clear Understanding

If everyone involves does not clearly understand the strategy,

misalignment can occur.

Tip: Communicate the strategy at multiple levels and in different formats.

This ensures that every member of the organization understand it
significance, objectives and their role in it.
 Inadequate Resources

Lack of necessary resources such as time, staffing, finances or technology

can severely hamper the strategic implementation process. Without
appropriate resources, strategy implementation can stall.

Tip: Conduct a thorough resource assessment before beginning

implementation and allocate resources based on priority

 Resistance to Change

Employees might resist new strategic initiatives because of fear of the

unknown, loss of job security, or concern over changes in responsibilities.

Tip. Engage with employees early and involve them in the planning
phase. Provide adequate training and address concerns openly and
honestly

 Ambiguous Accountability

If roles and responsibilities aren’t clearly defined, there can be overlaps or

gaps in task completions.
 External Factors

Make shifts, regulatory changes, or unforeseen external events can impact

strategy implementation

Tip: Regularly review the external environment. Have contingency plans

in place and be ready to pivot if necessary.