The eight levers of Strategy Implementation

Mohnish Bhatia Viplav Gupta Dhaval Kunte

Ankit Prasad Vivek Acharya Siddharth S.

The Importance of Implementation

A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

The Outcome

And shouts…

Wrong Way!

The six silent killers of strategy implementation

The Laissez faire senior management style

Unclear strategy or conflicting priorities

An ineffective senior management team

Poor vertical communication

Poor coordination across functions, businesses or borders

Inadequate down-the-line leadership skills and development

Managerial skillsBehavioral activities of

managers within the structures

StructuresFramework or configurations

The critical

variables

Strategic Levers - Structural

Actions

Programs

Systems

Policies

Who, what, and when of Cross functional integration

Instilling organizational learning,continuous improvement

Installing strategic support systems

Establishing strategy supportive policies

Tying rewards to achievement

Strategic levers – Managerial Skills

Interacting

Allocating

Monitoring

Organizing

The exercising of strategic leadership

Understand when and where to allocate

resources

The strategic shaping of corporate culture

An excellent example of

Perfect Implementation

Structural levers– Konkan Railway

Actions• Getting four

State governments to pledge their support

• Konkan Railways

• Contractors• Land

acquisition team

Programs• The whole

project was done in a fashion that was new to the country

• New technologies and training contractors to operate them

Systems• Fiber-optics• FAX• Computers• Dedicated

lines

Policies• Timely billing• 48 hours

decision

Managerial Skill levers – Konkan Railway

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Interacting• CMO, HODs

available to chief engineers

Allocating• Technology

made ready to contractors before work was scheduled to begin

• Fuel depots• Timely payments

and help in maintaining Cash FLow

• It helps that they had a Carte Blanche

Monitoring• Billing• Reverse Clock

Organizing• Ambitious

targets• Relentless

pursuit• Carte

blanches – extensive delegation

• Negligible conflict

Framework – Strategy Implementation

1 •Define Key Implementation Tasks

2 •Review Managerial Approaches

3 •Identify Key Skills needed

Implementation Tasks

• Creating Fit : Two major types

STRATEGY

STRATEGY

FUNCTIONAL POLICIES

ADMINISTRATIVE POLICIES

Implementation Tasks - Functional Fit

STRATEGY

Align various functions with Strategy

Implementation Tasks - Administrative Fit

Managerial systems and processes that should be aligned with strategy :

Organizational Structure Information Systems

Incentive Systems Control Systems

Implementation Situations

The Implementation Plan

Critical Issues

Set back

s

Intricacies

Problems

• Should address key HR and organizational issues

• Should contain a sequence/ timeline for action

• Plan B should be always ready

The manager has to make sure that actions are taken according to the plan

Single Product Single Business Multiple Business

Implementation Modes

Political Manager

Entrepreneurial Manager

Administrative Manager

People And Organization Shaker

Degree of Involvement

HIGH

HIGH

LOW

LOW

Political Manager

• The manager is deeply involved in and directs the implementation of plan

• Will think through the administrative implications of his plan

• Try to mitigate all the negative consequences of the plan which could slow down the implementation process

Advantage

causes little organizational disruption

Disadvantage

Time consuming

Degree of Attention

Entrepreneurial Manager

• The manager is deeply involved in and directs the implementation of plan

• Pays little attention to the administrative implications of his plan

• There are always trade-offs between strategic objectives and administrative issues

Advantage

Speed of implementation high

Disadvantage

Problems may stack up in the long term there by significantly impacting the objectives

People and Organizational Shaker

• Least focus on specifics of implementation strategy and more towards managing resources

• Right PEOPLE Right PLACE Right TIME

• Relatively little concern for the administrative constraints

Advantage

Development of a cadre of high level subordinates

Disadvantage

Reliance on key subordinates and their resentment

Administrative Manager

• Limited involvement in implementation

• Focus all his attention to processes, systems and people

• The manager makes sure that all affecting stakeholders have their voice in the planning stage

Advantage

High level of organizational commitment

Disadvantage

Slow and usually not radical

Implementation Skills

Right combinationStrategic /Technical

Interpersonal

Admin / Organizati

on

Success of strategy = f (Skills )

Alone

Team

Degree of involvement

Implementation Skills (Contd.)

Stakeholders

Winners

Losers

Timing

Organizational Limits

Application to case studies

Identification of strategies managers trying to achieve

Spell out functional and administrative fits

Develop an implementation plan

Mode required to achieve the goal