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How to implement strategy - Coggle Diagram
How to implement strategy
Allocate clear rsposnbilities for delveriying various aspects of the plan
The number of strategies and changes being perused at any one time should be limited
Milestones or progress measurement points should be established as should measures of performance to support appropriate monitoring and control mechansims
Determining the critical activities for successful strategy implementation
To deliver a strategy, certain things have to go well - these are called critical success factors, key result areas or key success factors
An organisation needs to identify the limited number of CSFs usually no more than 8 that are essential to achieving the business strategy - may be a number of things that will contribute to a strategy's success but only a few will be critical
When implementing a strategy, an organisation needs to identify all those factors that are necessary but focus on only those few essentials to ensure that all the organisation's effort is targeted at having those in place supporting the strategy
CSFs can be identified by considering what needs to happen or what action is necessary to achieve the strategy, if the strategy can be achieved if something is not done the although it may contribute to the success of the strategy is not critical to its success and should not be included in the list of CSFs
There is no generic list of CSFs as these will be determined by the strategy itself and the context within which the strategy has been formulated including the environmental conditions which are outside of the organisations control eg to increase exports, a CSF may be low exchange rate in the exporter's jurisdiction which will make the price of goods lower than those exporters in jurisdictions which will make the price of goods lower than those exporters in jurisdictions with a higher exchange rate to that of the customer however an organisation has no control over exchange rate, therefore a CSR may be 'we must hedge against FX fluctuations to maintain competitive international pricing'
The ultimate success of the efforts expended by the organisation in achieving each CFS must be measured, these measurement factors are known as key performance indicators
To achieve a CSF, the organisation has to actually do something, the activities that are essential to achieving the CSFs are often termed critical activities - tase are specific actions which can be allocated to various departments and employees and form part of the business model components
CSFs can be developed at all levels of the organisation cascading down from the strategic CSFs but then tailored to each department and team, KPIs relevant to each department and team can then be identified and the activities critical to achieving the departmental and team CSFs can be assigned to the relevant members of the workforce
Strategy implementation and culture
A fundamental consideration when formulating and attempting to implement a strategy is whether the culture of the organisation will support the execution
Organisational culture includes the shared beliefs, norms and values held by those within an organisation
It is also unique to every organisation and cannot be copied
Strategy guides the organisation in a particular direction, but it is the values, practices and behaviours of those who tasked with implementing it that will determine whether the direction is followed
For a strategy to succeed it must be supported by the culture of the organisation
While culture can evolve spontaneously, it can also be shaped by management
When considering strategy implementation, it is essential to ensure that the culture will support it
A strategy which involves being a leading innovator is unlikely to succeed the culture is risk averse and employee behaviours are based on unquestioningly following prescribed procedures
A strategy that involves merging two organisations with cultures that are at odds with each other is certain to fail
The specific concerns for management here are to ensure that all employees have an aligned sense of purpose, understand the vision, feel involved and exhibit the behaviours necessary to execute the strategy effectively
As part of the strategy's implemntation, leaders need to either manage and work to change those aspects of the organisational culture critical to its success or adapt the strategy itself to be more aligned to the culture