Monday 28 February 2011

Unit 6 - Strategy Implementation. Structure, systems, culture and change

Distinctive capabilities and/or market positioning usually need to be combined with operational effectiveness for success. Porter asserts that operational effectiveness and effective strategy are both needed for superior performance.

The relationship between strategy and operations is therefore key. The chosen strategy must also consider the consquences on operations of its implementation. This means understanding our structure, systems and culture, and how they might be utilised or affected.

You often hear of organisations with a clear strategy but lose their sense of direction during implementation. This gap is the difference between "intended" and "realised" strategy as discussed earlier on this blog.

For example, an intended strategy is unlikely to become realised if our systems - internal workings and processes - are undermined.

Implementing strategy is complex. And it occurs in dynamic and changing external environments.

Implementation of strategy will see the foundations for the strategy itself continuously and repeatedly tested, with forces acting for redirection or renewal of the strategy as the environment changes.

It is important to note, therefore:-

Strategy implementation is a continuous process. A chosen strategy must be revisited continuously in order to identify and deal with strategic issues as they arise.
The Continuous process of strategy implementation must always consider the inter-relationships between the strategy and structure, systems and culture. A change in one part will require changes in the other two.

It is important that strategic thinking is applied throughout the process of implementation. You will need to spend as much time implementing the strategy as you did developing it (if not more so!)

Carefully selected strategies can fail because of poor approaches to implemetation. Go ahead, with confidence, even in changing conditions.

So Unit 6 on this course teaches how to

understand the key elements that affect strategy implementation
appreciate the different types of organisation structure and their influences on strategy
recognise the systems that underlie strategy implementation
understand how the culture of an organisation impacts on strategy
appreciate the influence of internal and external change on strategy implementation

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