7S framework of effective Strategy Implementation (Retail Strategy 15.06.2021)

7S framework of effective Strategy Implementation

The 7 factors are divided into two groups:

The Hard S (strategy, structure and systems) and

The Soft S (style, shared values, staff and skills)

1. Strategy

The strategy – or the plan of the business to achieve competitive advantage and sustainable growth – must be long-term and clearly defined. It must indicate a direction that leads to the attainment of objectives. When you take the organization’s mission and core values, the strategy should also be in line with them.

2. Structure

The organizational structure must be visible to everyone, and clearly identify how the departments, divisions, units and sections are organized, with the lines of authority and accountability clearly established.

 

3. Systems

There should be a clear indication and guide on how the main activities or operations of the business are carried out. The processes, procedures, tasks, and flow of work make up the systems of the organization.

4. Style

This addresses the management or leadership style in force within the organization, from top management to the team leaders and managers in the smaller units. Strategy implementation advocates participative leadership styles, and so this is really more about defining and describing the interactions among the leaders in the organization and, to some extent, how they are perceived by those that they lead or manage.

 

5. Staff

Organizations will always have to deal with matters regarding staffing. Human resources, after all, is one of the most important assets or resources of an organization. Thus, much attention is given to human resource processes, specifically hiring, recruitment, selection and training.

 

6. Skills

Employees without skills are worthless resources to the organization. In order to aid the organization on the road towards its goals, the employees must have the skills, competencies and capabilities required in the implementation of strategies.

 

7. Shared Values

This refers to the standards, norms and generally accepted attitudes that ultimately spur members of the organization to act or react in a certain manner. Employee behaviour will be influenced by these standards and norms, and their shared values will become one of the driving forces of the organization as it moves forward.

 

Usually, organizations may take a look at each of these key success factors for individual analysis. All seven prerequisites are interconnected, which means all seven must be present, and they must be effectively aligned with each other, in order to ensure effective strategy implementation, and overall organizational effectiveness.

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.

 

 

The 6-Step to Strategy Implementation (Retail Strategy 12.06.2021)

The 6-Step to Strategy Implementation

There are six steps in strategy implementation that we can follow and ensure that our strategic plan evolves from just a plan, into a strategic implementation:

 

1. Define your strategy framework

2. Build your plan

3. Define KPIs

4. Establish your strategy rhythm

5. Implement strategy reporting

6. Link performance to strategy

 

Step #1: Define your strategy framework

Strategy is something that should be embedded in everything that we do. It should be in the DNA of the organization and its people. On the other-hand, if we don't make an effort to call it out explicitly, we won't get the focus or traction that we need.

 

We need to start with a simple framework that introduces a strategy dictionary that everyone can understand and get behind. When someone asks 'how are our strategic objectives going' - everyone should be on exactly the same page about what that actually means.

 

Step #2: Build your plan

The next step of strategy implementation is start creating our plan. Now that we have got our framework(s) in place, we are to move onto the actual creation of our strategic plan.

Steps to build your plan.

1. Gather the leaders of the organization (founders, CEO, directors, etc) to agree on their vision.

 

2. At the same workshop, start to write down the values that the organization holds.

 

3. Finally write down 3 or 4 focus areas that the team think need to be addressed in order to reach the vision.

4. Take a basic framework back to team(s) and start to get them to independently input ideas for strategic objectives under each of the focus areas.

 

Step #3: Define KPIs

Key performance indicators are one of the oldest management tools around - because they work. They keep us honest about our progress, and focused on our outcomes. They need to become our focus for implementing strategy.

some examples of KPIs are;

1. Keep them simple

2. Choose at least 1 KPI for each of strategic objectives

3. Don't make them too hard to measure quickly.

4. Don't make them all about the - sure, profit and revenue might be our end-game, but KPIs should be the drivers of those things - measuring the outcomes alone adds little value.

 

Step #4: Establish our strategy rhythm

Step 4 of strategy implementation is where we can start to establish our strategy rhythm. The ironic thing about strategy implementation is that even though everyone acknowledges how important it is - it's often the first thing to be forgotten about when the going gets tough.

 

People get so caught up in the day-to-day that they don't have time to focus on the big picture items that will keep the organization moving forward. This rapidly becomes a self-fulfilling cycle and is one of the most common reasons why strategies fail.

 

Step #5: Implement consistent & simple strategy reports

Step 5 of strategy implementation focuses on reporting. Now that our meetings are in place, we will want to choose a consistent way of reporting the progress of our strategy implementation. The main objectives of this report should be:

Consistency. Everyone knows what to expect and what they need to update prior to the meeting(s).

Simplicity. The report should give an at-a-glance view of how the strategy is progressing.

Accountability. Ensure that the report includes the names of the owner of each goal (accountability), as well as the names of the people actually getting things done (recognition).

Insightful. The report needs to include not only an overview of how the strategy looks now, but how it's progressing over time.

 

Step #6: Link performance reviews to strategy

The first 5 steps of strategy implementation are the absolute basics to ensure that we have success implementing and executing our strategy. But organizations who truly succeed are those who manage to weave strategy implementation into the fabric of their existence. An easy way to get started with this is to create a formal link between strategy and performance reviews. Nothing shows people how important strategy is more than when it impacts their reviews and potentially even their reward / remuneration.

How to Control Implementation of Retail Strategy Marketing and Planning (Retail Strategy 11.06.2021)

How to Control Implementation of Retail Strategy Marketing and Planning

Retail marketing strategy and planning are the procedures a retail business undertakes to sell products to its customers.

 

In developing a marketing strategy, businesses focus on the four factors of product, price, place and promotion to reach consumers. These are variable factors that can be controlled so as to optimize the financial profits made by the business.

 

Controlling the implementation of a retail marketing strategy and planning entails continuous monitoring and evaluation of the four variables in order to make changes to the main strategy when the need arises.

 

1. Identify the four variables of the marketing mix that make up your retail marketing strategy.

The product is a material good or service you are selling;

 

The price is the value of the product and the cost incurred by the customer in buying the product;

 

The place or placement is the location where customers access your product, which is a retail store in this case, and the distribution channels include online transactions (e-commerce) or physical point of sale transactions; and

 

The promotion is the communication you have with customers through sales strategies and advertisements.

 

2. Carry out a periodic audit of the products you offer to guard against offering products and services that are not needed by the target customers. Do this by observing new trends in the market that could make your product redundant and by asking customers what improvements they want on a product. Modify the product by making it healthier or withdraw the product to create a new one that will align with customer needs and market trends.

 

3. Monitor the prices of the product continuously. Take into consideration factors such as the cost of production, the value of the product and if it is worth that price, and the demand for the product. Lowering the cost of production and increasing the value of the product keep prices at levels that help the business meet its revenue targets. Aim to maximize gains or minimize losses by controlling the price mix.

 

4. Evaluate the placement of the product constantly and how accessible it is for the customer and the business. Do this by taking into consideration factors such as whether the distribution channels are efficiently delivering the products, if the customers easily access the product and whether or not the order processing and transportation logistics are favourable to the business revenue targets.

 

Change the channels of distribution, or the location if it is does not create the contact the business wants to have with its customers.

 

5. Position and reposition your product as part of controlling the promotional mix. Do this by redesigning the product by packing it in green recycled paper to promote the product as environmentally friendly.

 

Identify a marketing mix and present a modification to the sales strategy that delivers results: You can generate more sales by guaranteeing a payback on a new home appliance if the customer buys it and the appliance does not work as promised. Remember that the most effective way of controlling the promotional mix is by communicating with the customers and telling them what you have that suits their needs.

Strategy Implementation Definition & Requirements of Strategy Implementation (Retail Strategy 10.06.2021)

Strategy Implementation Definition

Strategy implementation is the process by which an organization translates its chosen strategy into action plans and activities, which will steer the organization in the direction set out in the strategy and enable the organization to achieve its strategic objectives.

Strategy Implementation

Definition: Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the long-term goals of the organization. It converts the opted strategy into the moves and actions of the organization to achieve the objectives.

 

Strategy implementation is the technique through which the firm develops, utilizes and integrates its structure, culture, resources, people and control system to follow the strategies to have the edge over other competitors in the market.

 

Strategy Implementation is the fourth stage of the Strategic Management process, the other three being a determination of

(1) strategic mission, vision and objectives,

(2) environmental and organizational analysis, and

(3) formulating the strategy.

 

Requirements of Strategy Implementation

1. Institutionalization of Strategy: First of all, the strategy is to be institutionalized, in the sense that the one who framed it should promote or defend it in front of the members, because it may be undermined (weakness).

 

2. Developing proper organizational climate: Organizational climate implies the components of the internal environment, that includes the cooperation, development of personnel, the degree of commitment and determination, efficiency, etc., which converts the purpose into results.

 

3. Formulation of operating plans: Operating plans refers to the action plans, decisions and the programs, that take place regularly, in different parts of the company. If they are framed to indicate the proposed strategic results, they assist in attaining the objectives of the organization by concentrating on the factors which are significant.

 

4. Developing proper organizational structure: Organization structure implies the way in which different parts of the organization are linked together. It highlights the relationships between various designations, positions and roles. To implement a strategy, the structure is to be designed as per the requirements of the strategy.

 

5. Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals so as to identify whether the strategy so implemented is relevant to the purpose of the organization. As the organization operates in a dynamic environment, which may change anytime, so it is essential to take a review, to know if it can fulfil the needs of the organization.

 

 

Even the best-formulated strategies fail if they are not implemented in an appropriate manner. Further, it should be kept in mind that, if there is an alignment between strategy and other elements like resource allocation, organizational structure, work climate, culture, process and reward structure, then only the effective implementation is possible.

 

Process of Strategy Implementation

1. Building an organization, that possess the capability to put the strategies into action successfully.

2. Supplying resources, in sufficient quantity, to strategy-essential activities.

3. Developing policies which encourage strategy.

4. Such policies and programs are employed which helps in continuous improvement.

5. Combining the reward structure, for achieving the results.

6. Using strategic leadership.

 

The process of strategy implementation has an important role to play in the company’s success. The process takes places after environmental scanning, SWOT analyses and ascertaining the strategic issues.

Aspects of Strategy Implementation

1. Creating budgets which provide sufficient resources to those activities which are relevant to the strategic success of the business.

 

2. Supplying the organization with skilled and experienced staff.

 

3. Conforming that the policies and procedures of the organization assist in the successful execution of the strategies.

 

4. Leading practices are to be employed for carrying out key business functions.

 

5. Setting up an information and communication system, that facilitate the workforce of the organization, to perform their roles effectively.

 

6. Developing a favourable work climate and culture, for proper implementation of the strategy.

 

Strategy implementation is the time-taking part of the overall process, as it puts the formulated plans into actions and desired results.

Strategic Planning in Retailing (Retail Strategy 09.06.2021)

Strategic Planning in Retailing

1. To show the value of strategic planning for all types of retailers 

A retail strategy is the overall plan that guides a firm. It consists of situation analysis, objectives, identification of a customer market, broad strategy, specific activities, control, and feedback. Without a well-conceived strategy, a retailer may be unable to cope with environmental factors.

 

2. To explain the steps in strategic planning for retailers

Situation analysis is the evaluation of opportunities and threats. It looks at the firm’s marketplace current position and where it should be heading. This analysis consists of defining an organizational mission, evaluating ownership and management options, and outlining the goods / service category.

 

An organizational mission is a commitment to a type of business and a place in the market. Ownership / management options include sole proprietorship, partnership, or corporation; starting a business, buying an existing one, or being a franchisee; owner management or professional management; and being centralized or decentralized. The goods/service category depends on personal abilities, finances, and time resources.

 

A firm may pursue one or more of these objectives: sales (growth, stability, and market share), profit (level, return on investment, and efficiency), satisfaction of publics (stockholders, consumers, and others), and image / positioning (customer and industry perceptions).

 

Next, consumer characteristics and needs are determined, and a target market is selected. A firm can sell to a broad spectrum of consumers (mass marketing); zero in on one customer group (concentrated marketing); or aim at two or more distinct groups of consumers (differentiated marketing), with separate retailing approaches for each.

A broad strategy is then formed. It involves controllable variables (aspects of business a firm can directly affect) and uncontrollable variables (factors a firm cannot control and to which it must adapt).

 

After a general strategy is set, a firm makes and implements short-run decisions (tactics) for each controllable part of that strategy. Tactics must be forward-looking and respond to the environment.

 

Through a control process, strategy and tactics are evaluated and revised continuously. A retail audit systematically reviews a strategy and its execution on a regular basis. Strengths are emphasized and weaknesses minimized or eliminated.

 

An alert firm seeks out signals or cues, known as feedback, that indicate the level of performance at each step in the strategy.

 

3. To examine the individual controllable and uncontrollable elements of a retail strategy, and to present strategic planning as a series of integrated steps

There are four major controllable factors in retail planning:

1. store location,

2. managing the business,

3. merchandise management and pricing, and

4. communicating with the customer.

The principal uncontrollable factors affecting retail planning are

1. consumers,

2. competition,

3. technology,

4. economic conditions,

5. seasonality, and

6. legal restrictions.

 

Each stage in the strategic planning process needs to be performed, undertaken sequentially, and coordinated in order to have a consistent, integrated, unified strategy.