STRATEGY IMPLEMENTATION PROCESS

Michael (2005:14) identifies five stages in the process of strategy implementation while Miller (2008:55) summarises the process of strategy implementation into three main stages. Figure 3.7 presents the five stages identified by Michael (2005:14).

62 Figure 3.7: Strategy implementation process

Annual revision

Source: Michael (2005:14)

As can be seen in Figure 3.7, there are five stages in the strategy implementation process according to Michael (2005:14). These are: refining vision, crafting individual integrating, implementation, ratification and effective implementation. The next sections highlight these stages.

3.7.1 Step 1: Refining vision and strategy

According to Michael (2005:14), good strategy implementation starts having a draft vision statement, a set of broad strategies, preliminary performance measures, preliminary resources required and expected results, critical issues, and the underlying (strategic) rationale for these decisions. However, Robinson and Ginder (2005:3) advise that employee involvement at this early stage of refining vision and strategy is a critical aspect that contributes to the success of the implementation process. Kennedy (2005:11) agrees with this view, and adds that to ensure successful employee involvement, a systematic approach must be designed, in which all steps are clearly defined and communicated to all parties in the organisation. The second step is crafting individual implementation programmes, which is highlighted and discussed next.

Refining vision and strategy

Crafting individual implementation

programs

Integrating implementation

programs

Ratification

Effective implementation

63 3.7.2 Step 2: Crafting individual implementation programmes

Michael (2005:14) explains that implementation only works when there is a clear and shared understanding of who does what, when, and at what cost. Gupta, Tewari and Sharma (2006:55) add that collaboration among strategy managers is critical, as they will often be competing for the same resources (people, money, equipment).

Programmes are often interdependent, and tradeoffs are to be expected. The third step is integrating implementation programs which is highlighted and discussed next.

3.7.3 Step 3: Integrating implementation programmes

According to Michael (2005:16), once each strategy manager has fleshed out the respective programmes, they need to ask the following questions:

Is it all feasible?

Is it affordable?

Are the original, strategic goals being observed?

Can the organisation manage the timing or sequence of activities described?

According to Kennedy (2005:9), engaging and integrating all employees in the in the implementation process yields positive results at the workplace. However, the critical issue is to find time for all the employees to get involved in the continuous team activities. Thorp (2005:102) insists that the entire strategic team must present to the board (or management decision-makers) the fruits of their efforts. The fourth step is ratifying the strategies and implementation programmes, which is highlighted and discussed next.

3.7.4 Step 4: Ratifying the strategies and implementation programmes According to Michael (2005:16) the management teams (CEOs and middle management) present their consensus results to the board or management decision-makers in a meeting which is called the „‟ratification reunion”. In this ratification reunion meeting the organisation's vision, values, and conclusions regarding strategic context may be revised, resource decisions made, plans approved or endorsed and a communication programme outlined (Venkatesh 2005:59).

According to once the organisation management and board have formally approved the implementation programmes, Thereafter the management team will integrate the

64 strategic plans into the budget, align managerial systems (including information systems, metrics, and rewards) to facilitate implementation and communicate the completed strategic plan to stakeholders (Michael 2005:16). According to Gupta et al. (2006:36), after the ratification, a concise and succinct presentation of the organisation's new vision and strategies will be conveyed to stakeholders. The fifth step is effective implementation, which is highlighted and discussed next.

3.7.5 Step 5: Effective implementation

The greatest challenge managers face when translating “strategy” into action, is communicating and monitoring implementation in terms that everyone can understand (Michael 2005:20). Kennedy (2005:16) suggests that any implementation methodology used must be flexible enough to ensure that the following key issues are adequately addressed:

ensure all senior management actually understand the strategy;

get all employees to contribute and participate in implementation efforts;

ensure that strategy integration into existing improvement initiatives of the organisation, and

develop the in-house capability to sustain the gains made by implementing the strategy.

As depicted in Figure 3.7, the senior management hopes for a smooth implementation trajectory (the “ideal” line), but progress usually tracks closer to the

“reality” line. In the long slog of phase 2, surprises, setbacks, resource constraints, and an uneven tempo buffet implementation teams. Kotter and Schlesinger (2009:77) stress that it is essential at this point to revisit the original strategies and the programmes developed, and re-tune them. Strategy implementation must be driven by a strategy champion, someone other than the CEO (Irwin, 2011:1). The strategy champion does not necessarily have to implement plans, but must oversee that intended strategic plans get implemented.The management process 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 is essential (Adjibolosoo 2011:92).

65 According to Govindarajan (2008:112) a reward and compensation system that ties individual and group rewards specifically to success in implementation, is again, one excellent method for underscoring how valuable these contributions have been.

Miller (2008:56) adds that a formal review and presentation of overall implementation results, in advance of new assignments or initiatives, can do wonders to encourage and reinforce staff morale, paving the way for future commitment.

All the above discussed steps are critical if success is to be achieved in the strategy execution. The next section discusses the various approaches to implementation of new strategies in organisations.