Presentor: Abdulkadır Warsame

Malatya İnönü üniversity

Strategy Implementation throgh Programs, policeis and organizational Procedures

Strategy İmplementation

Abdulkadir Warsame

İnönü üniversity

Strategy Implementation

Stratejik Uygulama Süreci

(uygulama planları, örgüt politikalar ve süreçler, program

bütçe, prosedüreler)

Stratejik Uygulama Strategy Implementatıon

ProgramlarBir planıbaşarmak içinihtiyaçduyulan faaliyetler

Bütçeler

Programların

maliyeti Prosedürler

Introduction Strategy Implementation

• Strategy implementation often is called the “action stage” of strategic management. Implementing strategy means mobilizing employees and managers to put formulated strategies into action.

The strategic-management process consists of three stages:

• Strategy formulation

• Strategy implementation

• And strategy evaluation.

STRATEJİK YÖNETİM MODELİ

Strategy formulation

• Strategy formulation includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue.

Strategy Implementation

• Through Organizational ProgramsI. Annual ObjectivesII. PoliciesIII. Resource AllocationIV. Managing ConflictV. Matching Structure with Strategy• Strategy Implementation through

Organizational Budget • Strategy Implementation through

organizational Procedures

Stratejik Uygulama

Programlar

Bir planıbaşarmak içinihtiyaçduyulan faaliyetler

Bütçeler

Programların

maliyeti Prosedürler

Annual Objectives

• Establishing annual objectives is a decentralized activity that directly involves all managers in an organization. Active participation in establishing annual objectives can lead to acceptance and commitment. Annual objectives are essential for strategy implementation because they

• Represent the basis for allocating resources• They are a primary mechanism for evaluating managers; • They are the major instrument for monitoring progress

toward achieving long-term objectives• And They establish organizational, divisional, and

departmental priorities.

Annual Objectives Con…

• Annual objectives serve as guidelines for action, directing and channeling efforts and activities of organization members. They provide a source of legitimacy in an enterprise by justifying activities to stakeholders. They serve as standards of performance.

Annual Objectives Con…

• Annual objectives should be measurable, consistent, reasonable, challenging, clear, communicated throughout the organization, characterized by an appropriate time dimension, and accompanied by commensurate rewards and sanctions.

Policies

• Policies facilitate solving recurring problems and guide the implementation of strategy. Broadly defined, policy refers to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals. Policies are instruments for strategy implementation.

Policies con…

• Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior; they clarify what can and cannot be done in pursuit of an organization’s objectives.

• Policies let both employees and managers know what is expected of them, thereby increasing the likelihood that strategies will be implemented successfully.

Resource Allocation

• Resource allocation is a central management activity that allows for strategy execution.

• In organizations that do not use a strategic-management approach to decision making,

• resource allocation is often based on political or personal factors. Strategic management enables resources to be allocated according to priorities established by annual objectives.

Resource Allocation Con…

• resources to be allocated in ways not consistent with priorities indicated by approved annual objectives. All organizations have at least four types of resources that can be used to achieve desired objectives: financial resources, physical resources, human resources, and technological resources.

Managing Conflict

• Interdependency of objectives and competition for limited resources often leads to conflict. Conflict can be defined as a disagreement between two or more parties on one or more issues. Establishing annual objectives can lead to conflict because individuals have different expectations and perceptions, schedules create pressure, personalities are incompatible, and misunderstandings between line managers (such as production supervisors) and staff managers (such as human resource specialists) occur.

Example

• For example, a collection manager’s objective of reducing bad debts by 50 percent in a given year may conflict with a divisional objective to increase sales by 20 percent. Establishing objectives can lead to conflict because managers and strategists must make trade-offs, such as whether to emphasize short-term profits or long-term growth, profit margin or market share, market penetration or market development, growth or stability, high risk or low risk, and social responsiveness or profit maximization.

Managing Conflict Con…

• Conflict is unavoidable in organizations, so it is important that conflict be managed and resolved before dysfunctional consequences affect organizational performance. Conflict is not always bad. An absence of conflict can signal indifference and apathy. Conflict can serve to energize opposing groups into action and may help managers identify problems

Matching Structure with Strategy

• Changes in strategy often require changes in the way an organization is structured for two major reasons. First, structure largely dictates how objectives and policies will be established. For example, objectives and policies established under a geographic organizational structure are couched in geographic terms. Objectives and policies are stated largely in terms of products in an organization whose structure is based on product groups. The structural format for developing objectives and policies can significantly impact all other strategy-implementation activities.

Matching Structure with Strategy

• The second major reason why changes in strategy often require changes in structure is that structure dictates how resources will be allocated. If an organization’s structure is based on customer groups, then resources will be allocated in that manner.

• Changes in strategy lead to changes in organizational structure. Structure should be designed to facilitate the strategic pursuit of a firm and, therefore, follow strategy. Without a strategy or reasons for being (mission), companies find it difficult to design an effective structure.

• Symptoms of an ineffective organizational structure include too many levels of management, too many meetings attended by too many people, too much attention being directed toward solving interdepartmental conflicts, too large a span of control, and too many unachieved objectives. Changes in structure can facilitate strategy-implementation efforts, but changes in structure should not be expected to make a bad strategy good, to make bad managers good, or to make bad products sell.

Strategy Implementation through Organizational Budget

• In constructing a strategic management system, the budgeting process must be linked with the business strategy. In commencing the budgeting process therefore budget targets and organizational goals are set up for the next budgeting period by the budget directors, whose main task is to produce a master budget that combines business units and functional period budgets.

• Acquiring a sufficient budget is one of the main requirements for efficient business strategy implementation. The question is where does budget and business strategy implementation interact? To attempt to discuss this, we shall look at what are a budget development, preparation, and implementation.

• However, organizational settings identifies resource acquisition (i.e. budget), cooperative interaction acquisition and organizational power acquisition as the difficult part of implementation processes. Thus inter-organizational fights for larger budgets also influence budget planning and affect strategy implementation.

Example

• For example where resources are limited and finite, strategic opportunities may be constrained.

• In conclusion, the implementation of a business strategy could be likened to a human body without a soul (budget). If there is no soul in a body, it is deemed dead; in the same vein budget is that soul (especially when implementing a new business strategy) for the implementation of a business strategy.

Strategy Implementation through organizational Procedures

• A “procedure” is a term used in a variety of organizations to define a series of steps, taken together, to achieve a desired result or to implement strategy. Procedures explain how to accomplish a task.

Organizational Procedures

• A procedure is sometimes called a work instruction If the organization is going to implement strategy, then the term procedure is used to describe a process, whereas a work instruction is used to describe something more basic like a specific step in a process. compliance procedures to be established Standard Operating Procedures (SOP).

Organizational Procedures

• for execution of tasks and who is responsible that task and also the allocation for budget. Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior; they clarify what can and cannot be done in pursuit of an organization’s objectives. the policies is implemented through procedures

References

• Doç. Dr. Mehmet Deniz Ders notlari • Strategic Management Theory, Charles W. L. Hill• Stratejik yönetim ve işletme politikası, Prof. Ömer Dinçer• Strategic Management CONCEPTS AND CASES, Fred R.

David• http://www.pim.com.pk/faq.htm Strategic management• http://bergconsulting.com.au/Berg_Consulting_Blog/5-ess

ential-steps-to-successful-strategy-implementation

• http://www.quickmba.com/strategy/strategic-planning/• http://www.ilo.org/global/about-the-ilo/how-the-ilo-works

/programme-and-budget/lang--en/index.htm