THE CONCEPT OF STRATEGY IMPLEMENTATION

Strategy implementation refers to a set of decisions and actions that result in implementation of the formulated long-term plans designed to achieve organisational objectives (Pearce & Robinson, 2005:68). It involves the application of the management process that turns strategies and plans into actions to obtain the desired results, such as designing the organisation's structure, allocating resources, developing information and decision process, managing HR and rewards, approaches to leadership, and staffing (Drazin & Howard, 2004:40; Robbins 2003:204). Therefore, this study defines strategy implementation as a set of decisions and actions that result in the execution of either short- or long-term plans designed to achieve organisational objectives through incorporating adopted strategies to ensure organisational success.

Adjibolosoo (2011:92) asserts that no social, economic or political organisation can function or implement strategies effectively without a network of committed staff.

Such staff must strongly believe in and continually affirm the ideals of society.

Strategy implementation must be driven by a strategy champion, someone other

51 than the CEO (Irwin, 2011:1). Furthermore, the strategy champion does not necessarily have to implement plans, but must oversee that intended strategic plans get implemented. Sun (2005:45) is of the opinion that implemented strategic initiatives are often not integrated into the achievement of mission and vision statements, and are often not measured. However, Sun, Aryee and Law (2007:560) conceed that implemented strategic initiatives can be monitored and measured using a balanced scorecard, which is an integrated strategic performance tool that uses metrics to measure the outcomes of key performance areas.

Barnat (2005:1) urges organisations to identify action plans to achieve strategic objectives and time lines by which progress towards achieving these objectives can be measured. Duff (2013:1) suggests that management have information sessions with employees about new strategic processes and procedures to be implemented.

An obstacle is that strategies may be formulated in the strategic plan but no tactics to convert it into action have been defined (Wilkie, 2005:1). This then results in the implementation of just some plans and not all intended strategies.

According to Drazin and Howard (2004:56) strategy implementation poses a threat to many managers and employees in an organisation. New power relationships are predicted and achieved. New groups (formal as well as informal) are formed whose values, attitudes, beliefs and concerns may not be known. With the change in power and status roles, the managers and employees may employ confrontation behaviour.

This frustrates strategy implementation efforts. There is however a very clear difference between strategy formulation and strategy implementation. Several authors (Johnson & Scholes, 2006:152; Pearce & Robinson, 2005:68; Robbins, 2003:204) have distinguished between strategy formulation and strategy implementation as shown in Table 3.2.

52 Table 3.2: Differences between strategy formulation and implementation

Strategy formulation Strategy implementation Includes planning and decision-making

involved in developing organisation‟s strategic goals and plans

Is an entrepreneurial activity based on strategic decision-making

Emphasises effectiveness Is a rational process

Requires co-ordination among few individuals Requires a great deal of initiative and logical

skills

Precedes strategy implementation.

Place the forces before the action

Involves all those means related to executing the strategic plans

Is mainly an administrative task based on strategic and operational decisions

Emphasises efficiency

Is basically an operational process Requires co-ordination among many

individuals

Requires specific motivational and leadership traits

Follows strategy formulation

is managing forces during the action

Adapted from: Johnson & Scholes (2006:152); Pearce & Robinson (2005:68);

Robbins (2003:204)

As can be seen in Table 3.2, the first strategy formulation and implementation should be thought out concurrently. It involves developing a strategic vision. According to David (2007:66), this task should specify the organisation's future in terms of the product, market, customer and technology focus. The next step is to set goals or objectives. Floyd and Wooldridge (2007:522) contend that the goals and objectives set should be used as yardsticks for measuring the organisation‟s performance and progress. Table 3.2 shows that goals or objectives should be followed by formulating or devising strategies.

According to Govindarajan (2008:68), formulating or devising strategies should be geared towards achieving the set objectives and move the organisation forward along the strategic course that management has charted. The strategy chosen should be implemented or executed efficiently and effectively. Kotter and Schlesinger (2009:107) add that this task involves evaluating performance and initiating corrective adjustments in the organisation‟s long-term direction, objectives, strategy, or execution in the light of actual experience, changing conditions, new ideas, and new opportunities. All these tasks need to be performed systematically to guarantee success. Also, it is essential to note that strategy implementation is not possible unless there is stability between strategy and each organisational dimension such as organisational structure, reward structure, resource-allocation process among others.

53 various tactics that can be used for strategy implementation.

Table 3.3: Types of implementation tactics

Tactics Authors

Controlling products or services quality Extensive training of front-line personnel Producing specialty products and services Producing products or services for high price

market segments

Akan et al. (2006:54); Miller (2008:59)

Source: Own compilation

The tactics shown in Table 3.3 will now be discussed in detail.

3.5.1 Implementation tactics by Akan, Allen, Helms and Spralls

Akan et al. (2006:57) identify four types of implementation tactics used by managers in implementing strategies in an organisation. These implementation tactics are depicted in Figure 3.2.