While there is a familiar ring here, these are two different processes that are independent of each other even though they are, in fact, interdependent. Implementing a strategy is a much tougher process than selecting one.
Operational Issues in Strategy Implementation
Why is that so? Well first of all, the regular work and operations of the organization have to keep going on while the implementation is taking place. The traditional and significant demands on the time available to managers do not diminish and the wide variety of managerial activities and responsibilities provide ample opportunities for management distractions during the implementation.
Secondly, since structure supports strategy, implementing a new strategy almost always involves changing the systems and structures of an organization. This is a great deal of hard work that requires a motivated workforce and a motivated and hard-working group of top managers. It also requires considerable people management skills to deal with the resistance to change realities that are found in almost all of these strategic initiatives.
Thirdly, it is often necessary to change the executive compensation plan to support the new strategy. Good governance in implementing any new strategy will provide the set of mechanisms that can be used to manage the relationships among the key constituencies in the organization and control the new strategic direction with some assurances that the process will be carried out with integrity.
Lastly, depending on the size and type of the organization there can also be a host of other issues that have to be dealt with. These can be issues such as global considerations, human resource issues, staff and competency development issues, technical issues, customer relationship issues, environmental issues, and other associated management issues, all of which combine to make the strategy implementation process much more complicated and difficult than the strategy selection process.
Character and Implementation Success
The successful implementation of a strategy depends to a great deal on the level of cooperation among all of the senior managers of an organization. For example, it is not uncommon for a marketing function to be charged with the responsibility of implementing strategies that will increase sales revenue. Top executives on the financial side of the business are typically tasked with implementing strategies that will allow the organization to operate with minimum costs and the least risk exposure.
The character of the management within each of these functions as well as the level of cooperation among the members of these functions can largely determine the level of success an organization can expect to enjoy in implementing a new strategy. The quality of these lateral relations is becoming so important today that most firms are now taking a much closer look at the issues of organizational structure when implementing strategy.
Paul Larson - Paul W. Larson is the founder and President of the Myrddin Group LLC and he brings over thirty years experience as a successful operations ...
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