Monday, 14 June 2021

FACTORS THAT SUPPORT STRATEGY IMPLEMENTATION (Retail Strategy 14.06.2021)

FACTORS 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.

 

1. People

There are two questions that must be answered: “Do we have enough people to implement the strategies?” and “Do we have the right people in the organization to implement the strategies?”

 

The number of people in workforce is an issue that is easier to address, because we can hire additional manpower. The tougher part of this is seeing to it that we 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.

 

2. Resources

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?

 

3. Structure

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.

 

4. Systems

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?

 

5. Culture

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.

These factors are generally in agreement with the key success factors or prerequisites for effective implementation of strategy. These success factors are a tool made to provide answers for any question regarding organizational design.

 

The emphasis of the framework is “coordination over structure”, which also supports how strategy implementation is described to involve the entire organization and not just select departments or divisions.

 

 

No comments:

Post a Comment