Implementation is the process by which strategies and policies are put into action through the devel

1
Implementation is the process by which strategies
and policies are put into action through the
development of programs, budgets, and
procedures.

• Implementation Questions
• WHO will carry out the strategic plan?
• WHAT must be done?
• HOW is everyone going to do what is needed?

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Management Issues
Strategy Implementation
Strategy Formulation
Managing forces during the action
Positioning forces before the action
Focuses on efficiency
Focuses on effectiveness
Primarily an operational process
Primarily an intellectual process
Requires motivation and leadership skills
Requires good intuitive and analytical skills
Requires coordination among many persons
Requires coordination among a few individuals
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Management Issues Strategy Implementation
Establishing Annual Objectives
Devising Policies
Allocating Resources
Altering Existing Organizational Structure
Restructuring Reengineering
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The Stages Model of Organizational Structure

• 1. Organizations move through a predictable
  progression of structures.
• 2. Structure follows strategy.
• 3. Changes in strategy create problems that are
  addressed by new structures.

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Stage II the Functional Structure
Chief Executive Officer
ManagerR D
ManagerOperations
ManagerAccounting
ManagerHRM
ManagerMarketing
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Stage III the Divisional Structure
Chief Executive Officer
Corporate Staff
Division Manager
Division Manager
Division Manager
ManagerR D
ManagerOperations
ManagerAccounting
ManagerHRM
ManagerMarketing
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Organizational Life Cycle
Stage I Stage II Stage III1 Stage IV Stage
V Dominant Issue Birth Growth Maturity Decline Dea
th Popular Concentration Horizontal Concentric
and Profit strategy Liquidation orStrategies in
a niche and vertical conglomerate followed
by bankruptcy growth diversification retrenchmen
t Likely Entrepreneur- Functional Decentralization
Structural DismembermentStructure dominated mana
gement into profit or surgery of
structure emphasized investment centers Note
1. An organization may enter a Revival Phase
either during the Maturity or Decline Stages and
thus extend the organizations life.
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Changing Structural Characteristics of Modern
Corporation
Old Organizational Design New Organizational
Design One large corporation Mini-business units
cooperative relationships Vertical
communication Horizontal communication Centralized
top-down decision making Decentralized
participative decision making Vertical
integration Outsourcing virtual
organizations Work/quality teams Autonomous work
teams Functional work teams Cross-functional work
teams Minimal training Extensive
training Specialized job design focused on
individual Value-chain team-focused job
design Source Adapted from B. Macy and H. Izumi,
Organizational Change, Design, and Work
Innovation A Meta-Analysis of 131 North American
Field Studies19611991, Research in
Organizational Change and Development, Vol. 7,
JAI Press (1993), p. 298. Reprinted with
permission.
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The Matrix Structure
Chief Executive Officer
Corporate Staff
ManagerHRM
ManagerProjects
ManagerEngr.
ManagerOperations
ManagerMarketing
Project A
Project A
Project B
Project C
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Network Structure
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Stages of International Development

• 1. Domestic companysome exporting
• 2. Domestic companyexport division
• 3. Domestic companyinternational division
• 4. Multinational corporationmultidomestic
  emphasis
• 5. Multinational corporationglobal emphasis

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Geographic Area Structure for a Multinational
Corporation
Note Because of space limitations, product
groups for only Europe and Asia are shown here.