Topic 1 STRATEGIC IMPLEMENTATION

Question 1

Topic 1 Strategic Implementation - Question 1 -

Comment on the importance of strategy implementation as a component of the strategic management process. (5)

Answer 1

Keywords(align action, appropriate time,Revolution,lifecycle, manage implementation ,obsolete, new strategy =change)

• Turns the selected strategy into action, align
• Creating change that is timely and appropriate
• Change is increasingly revolutionary and disruptive
• Products have shorter life cycle
• No Use if no managed well, or not implemented timely
• Plans may be obsolete by the time a strategic plan
  implemented
• Recognised that a new strategy implies change

Question 2

Topic 1 Strategic Implementation - Question 2 -

Discuss five (5) reasons why strategy implementation in an organisation might fail.

Answer 2

(Resourceful people visualize management)

1. Vision barrier:
2. Management barrier:
3. Resource barrier.
4. People barrier:
   Other 1. Inadequate resources.
   2. Poorly communicated strategy.
   3. Implementation actions are not clearly defined.
   4. Unclear accountability
   5. organisational silos
   5a: culture that resists change.
   6. Inadequate performance targets.
   7. Inadequate rewards.
   8. Poor leadership.

Question 3

Topic 1 Strategic Implementation - Question 3 -

Differentiate between strategic planning and strategy implementation.(5)

Answer 3

(who,by,when,where,skill,drive,focus,action)

Planning VS Implementation

• Co-ordination among a few *vs Amongst many
• Top management *vs All Levels
• Thinking phase *vs Action phase
• Analytical and intuitive skills *vs Motivation and leadership skills
• Market driven activity with an external focus *vs Internal operations-driven activity
• Focuses on effectiveness *vs Focuses on efficiency
• Positioning forces before the actions *vs during action

Question 4

Topic 1 Strategic Implementation - Question 4 -

Explain the different types of strategic change and the issues involved. (10)

Answer 4

Scope can be within the current organizational setting or it could be a fundamental change.

The nature of the change could be incremental or revolutionary
Types:
a. Adaptation -incremental change in current org setting.
b. Reconstruction -sudden alteration in market therefore incremental change in current org setting
c. Evolution- fundamental change but over a period of time. (learning organisation)
d. Revolution -fundamental change, sudden and fast changing conditions
Issues: * Scope:
* Readiness:
* Time:
* Capacity:
* Diversity: homogeneity of org
* Capability:

Question 5

Topic 1 Strategic Implementation - Question 5 -

Comment on the strategic change process.(7)

Answer 5

1. Managing involves a process.
2. Clarity = starting point .
3. Such a process entails:
   a. Identifying the areas of change -
   b. Managing resistance to change -
   c. Power and influence -persuading support
   d. How to become a learning organisation

Question 6

Topic 1 Strategic Implementation - Question 6 -

Explain why corporate governance is important in strategy implementation.(5

Answer 6

• King report states..is the responsibility of the Board of Directors to define purpose and identify stakeholders of the org and then define strategy.
• King report then states board responsible to implement AND monitor implementation of strategy.

Strategy implementation must take in account issues such as

• social responsibility,
• environmental responsibility,
• stakeholder engagement,
• and sustainability.

Corporate governance helps by
Focusing on sustainability 
Ensuring adequate controls
Promoting high ethical standards 
Ensures reward systems are reasonable and beneficial to the organization 
Aims to reduce risk of failure.

Question 7

Topic 1 Strategic Implementation - Question 7 -

Discuss the “warm square” in the modified McKinsey 7-S framework.(5)

Answer 7

Refers to people in the organisation and to “soft” issues
Relates to people centred drivers: * Leadership,
* Organisational culture
* Reward systems
Four components in “warm square”:
a. Staff – the people
b. Shared values – the values the org believes in
c. Skills - the orgs core competencies and sources of competitive advantage
d. Style – leadership and management styles

Question 8

Topic 1 Strategic Implementation - Question 8 -

Describe the drivers of strategy implementation.(5)

Answer 8

Leadership 
Organizational Culture 
Reward Systems
Organizational Structure 
Resource Allocation  

1. Leadership: ability to anticipate, envision, maintain flexibility,empower and motivate others to create strategic change.
2. Organisational culture: the way an org does things. Its beliefs, behavioural norms, and shared values
3. Reward systems: monetary and non-monetary.
4. Organisational structure: framework within the strategic process to achieve the org’s goals.
5. Resource allocation: allocated in such a way that they support the organisation’s long-term goals, chosen strategy, structure and short-term goals.

Question 9

Topic 1 Strategic Implementation - Question 9 -

Discuss the concept of a learning organisation.(5)

Answer 9

1. The ability to think continually about strategy
   & to create synergy by sharing knowledge + ideas,
   & by generating actions to contribute positively
2. Easier to adapt to change if the org has ability to learn
   3.This means that the employees accept the importance of continuous learning
   4.Becoming a learning organisation may also help with the process of managing strategic change
   5.This approach to managing strategic change does not mean that a learning organisation will suddenly adopt strategic change, but that it will be amenable to gradually seeking it.