Strategic management is considered to be one of the most vital activities of any organization, since it encompasses the organization’s entire scope of strategic decision-making. Through the strategic management process, it allows the organization to formulate sets of decisions, actions and measures – collectively known as strategies – that are subsequently implemented in order to achieve organizational goals and objectives.
COMPONENTS THAT SUPPORT STRATEGY IMPLEMENTATION
Effective execution of strategies is supported by five key components or factors. All five must be present in order for the organization to be able to carry out the strategies as planned.
There are two questions that must be answered: “Do you have enough people to implement the strategies?” and “Do you have the right people in the organization to implement the strategies?”
The number of people in your workforce is an issue that is easier to address, because you can hire additional manpower. The tougher part of this is seeing to it that you have the right people, looking into whether they have the skills, knowledge, and competencies required in carrying out the tasks that will implement the strategy.
If it appears that the current employees lack the required skills and competencies, they should be made to undergo the necessary trainings, seminars and workshops so that they will be better equipped and ready when it’s time to put the strategic plan into action.
In addition, the commitment of the people is also something that must be secured by management. Since they are the implementers, they have to be fully involved and committed in the achievement of the organization’s objectives.
One of the basic activities in strategy implementation is the allocation of resources. These refer to both financial and non-financial resources that (a) are available to the organization and (b) are lacking but required for strategy implementation.
Of course, the first thing that comes to mind is the amount of funding that will support implementation, covering the costs and expenses that must be incurred in the execution of the strategies. Another important resource is time. Is there more than enough time to see the strategy throughout its implementation?
The organizational structure must be clear-cut, with the lines of authority and responsibility defined and underlined in the hierarchy or “chain of command”. Each member of the organization must know who he is accountable to, and who he is responsible for.
Management should also define the lines of communication throughout the organization. Employees, even those on the lowest tier of the organizational hierarchy, must be able to communicate with their supervisors and top management, and vice versa. Ensuring an open and clear communication network will facilitate the implementation process.
What systems, tools, and capabilities are in place to facilitate the implementation of the strategies? What are the specific functions of these systems? How will these systems aid in the succeeding steps of the strategic management process, after implementation?
This is the organizational culture, or the overall atmosphere within the company, particularly with respect to its members. The organization should make its employees feel important and comfortable in their respective roles by ensuring that they are involved in the strategic management process, and that they have a very important role. A culture of being responsible and accountable for one’s actions, with corresponding incentives and sanctions for good and poor performance, will also create an atmosphere where everyone will feel more motivated to contribute to the implementation of strategies.
WHAT CAUSES FAILURE OF STRATEGY IMPLEMENTATION?
Why do some businesses fail, even with the best-laid plans and strategies? Have you ever wondered what went wrong in the implementation of these strategies?
In one of IMG's studies in 2016, it was revealed that nine out of ten organizations are unable to fully, completely and properly implement their strategic plan, often resulting to complete business failure. We’re looking at nine out of ten organizations that just wasted their resources, opportunities, and probably even very good strategies that have been formulated in the first stage of the strategic management process.