Implementation of the strategy: development, plan, management

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

At first glance, it may seem that the implementation of the strategy is entirely or almost the same as the usual work on the implementation of the plan.

Strategic management is given an extremely fundamental role in the company's activities in the implementation of its chosen tactics, since it is at this step that conditions are formed in order to fulfill its tasks.

Concept

A company's strategy is a method of achieving its goals and objectives. This is a long-term plan without specifying the stages, methods and tactical actions. The development of a strategy is needed to adapt a business to a changing external and internal environment in market conditions.

The implementation of the strategy should be entirely focused on its content in the organization. But its successful implementation can hide the negative results of the firm.

The implementation of the strategy makes it necessary to adopt a system that is used to directly manage the entire organization as a whole.

Tasksimplementations

The task of implementing the strategy is what needs to be done to make the strategy work and meet the deadlines for its implementation. In other words, the art here lies in the ability to correctly evaluate the activity, determine the place of the strategy, its professional execution and get excellent results.

Work under the action plan to implement the strategy initially begins in the area of administrative tasks, including:

• shaping structural capabilities;
• budget management for the best distribution of funds;
• shaping company policy;
• motivating employees to perform better;
• as necessary to change the commitment of staff and the nature of the work in order to obtain a better bottom line;
• creating the right atmosphere within the company for the successful implementation of tasks;
• formation of criteria that provide the company's employees with the conditions for the daily effective implementation of their own strategic roles;
• applying best practices to continuously improve productivity;
• providing the internal leadership needed to advance the strategy and oversee its implementation.

The listed list may be supplemented depending on the type of company and the features of its functioning.

The task of managing the implementation of the strategy is to make a system for evaluating the results of implementation in such a way that work is carried out on the formation of strategic plans.

Qualitysystem design describes the quality of the strategy implementation process. More fundamental relationships are between the plan and organizational capabilities, between the plan and remuneration, between the plan and the internal policy of the company.

Compliance within the organization between the various elements allows you to perfectly implement the strategy of the company as a whole, makes it unified.

The task of implementing the organization's strategy is a more difficult and costly part of strategic management. It goes through virtually all levels of management and should be taken into account in most departments of the company. Certain implementation of the chosen strategy begins with a painstaking study of what the company must do differently and better for a successful strategy implementation plan. Every manager should think about the question: “What needs to be done in my workplace to contribute to the implementation of the overall strategy, and how can I best do this?”

Implementation activities

Necessary measures for the implementation of the strategy are the following:

1. Formation of options for action in unexpected circumstances. A strategy implementation plan is usually developed for a flawless situation, but the reality may be more or less different from it. Therefore, the fundamental point of any plan can be considered changes in the situation, if such differences become very large. This function is used when it is necessary to displayreaction to fundamental changes in the organizational environment that can practically occur. In order to effectively respond to changes in the environment, it is necessary to constantly monitor current changes and correlate them with the planned plans, for which it is also necessary to take into account the cyclical factor. Typically, these options are reviewed every year.
2. Creating an organizational structure. For the successful implementation of the adopted strategy, the organization must have a certain structure that provides the greatest opportunities for its implementation. The development of a structure within the framework of the development strategy implementation plan includes the distribution of responsibility for the formation of the intended goals and the right to make decisions in the organization. In addition, you need to decide what structure the organization should have: horizontal or vertical, centralized or decentralized.
3. Research and selection of an organization management system. This is another difficulty due to the fact that the staff determines the successful implementation of the strategy. It may be necessary to adapt the different systems that are used to manage the organization.
4. Organizational politics. More important fruits of such confrontations are the struggle and the creation of associations that play a major role in the process of strategic management. Strategic changes tend to bring this struggle to the fore.
5. The implementation of the strategy includes the choice of organizational structure and management systems. This requires concerted action and coordination between different departments of the firm. The organization must decidehow best to study the work of units and manage their actions.

Development strategy

Developing a development strategy for a company or its structures is a complex multi-stage action.

1st stage. Definition of the company's mission within the framework of the developed tactics. The mission is understood as the place and role of the company in modern society. Mission - the answer to the question "Why does society need an enterprise?". Mission example: meeting the needs of the population in one form or another of products or services.

2nd stage. The task of developing a strategy is constantly to increase the agility of the business and normalize its position in the market.

3rd stage. Tasks to be solved are the stages of movement towards the goal in the process of completing the task. They may consist of:

• shaping the style of the company in a new strategic environment;
• development of the map of the task of the system of characteristics;
• development of an action plan for the long, medium and short term;
• develop a plan for one year or less.

4th stage. Formation of the content of the strategy. It could be:

1. description of the strengths and weaknesses of the company;
2. assessment of opportunities and threats;
3. causation;
4. forming a decision map based on the beliefs of alternatives;
5. establishing a hierarchy of strategic, medium-term and operational objectives;
6. identifying characteristics that evaluate the goals of different periods;
7. description of the sequence andproblems, their solutions;
8. appointment of responsible executives.

5th stage. The work of the expert group on strategy development.

At the preparatory stage, a special group is created with the distribution of obligations, calendar dates and steps of the workflow of professionals. The algorithm is as follows:

1. A methodology is being developed for assessing the internal and external environment of the company, which allows you to associate and generalize data. All members of the expert group work according to a single template.
2. Evaluation of the company's external environment based on beliefs of opportunities and threats. Each member of the expert group works independently.
3. Collective expert assessment of strong or weak sides, opportunities and threats, company development prospects. Based on the results of the assessment, a single position and a hierarchy of threats and opportunities for the company are developed.
4. Identification of causal relationships between pairs of objects with a description of the inverse relationship.
5. Establishing cause-and-effect relationships between strengths, opportunities and possible disadvantages for the firm.
6. Creation of a template matrix for expert evaluation of scenario decisions.
7. Evaluation of changes in the internal environment of the company due to the adoption of the development scenario.
8. Making collective decisions with the introduction of brainstorming methods.
9. Determining the timing and steps for the implementation of the chosen strategy, the formation of a strategic map.

The company's strategy is considered adopted if it is enshrined in the order of the head. The method of adopting a strategy in detail depends on the size andthe company's capabilities, as well as the radical nature of predictable changes when a new development option is adopted.

Formation of the project of events

The strategy brings together the following points in the action plan process to implement the strategy:

• company mission - a set of values that an organization manages when doing its own work;
• organizational structure, which includes the division of manufactured goods or company services;
• competitive strengths - presentation of the company's strengths that can be opposed by rivals;
• products whose sale is the main profit of the company;
• resource potential - a set of resources used in the production of products.
• intangible potential is the ability of an organization to attract investment and meet current needs.

Basic rules for successful implementation

Firstly, employees should be informed about the goals, strategies and plans so that they not only understand what the company is doing, but also informally take part in the process of implementing the development strategy, including developing responsibilities for this implementation.

Secondly, management must not only ensure the flow of all resources necessary to implement the strategy on time, but also have a plan for its implementation in the form of target characteristics.

Third, the prerequisites are not implementation. They contain the following points:

• incompletecorrespondence between plan and organizational structure;
• lack of awareness of all managers involved in the implementation of plans;
• underdevelopment of the identification, provision and allocation of resources needed to implement strategies (including cash, time and personnel);
• poor productivity of ways to monitor the performance of implemented strategies and make the necessary adjustments when deviations are found;
• lack of responsibility, which is maintained throughout the entire period of its implementation (includes the responsibility of managers for their duties, the results of success or failure, the reward system, etc.);
• Unwillingness of managers to overcome resistance to change that has been associated with new strategies.

Adjustment

Produced according to the following scheme. First of all, the characteristics of control are reviewed. To do this, it turns out to what extent the chosen ones correspond to the desired ones. If a discrepancy is found, the characteristics are corrected. To this end, management compares the chosen goals with the current state of the environment in which the organization is required to operate.

It may happen that changing the criteria makes it impossible to achieve the objectives of the activities to implement the strategy. In this case, they must be adapted. However, if the environment allows the organization to continue moving towards the goals, then the adjustment process should be transferred to the level of the company's strategy. Reviewing the strategy involves clarifying whether changes in the environment have led to the fact that the implementation of the chosen strategy will become difficult in the future.

If so, then the strategy should be revised. If not, then the prerequisites for the poor performance of the organization should be sought in its structure or in the information support system, as well as in the multifunctional systems that support the organization's activities.

Perhaps in these areas, everything is fine with the company. Then the reason for the unsuccessful work of the organization should be sought at the level of certain operations and actions. In this case, the adjustment must relate to how employees perform their work, and must be focused on improving the motivation system, increasing the qualifications of employees, improving the organization of labor and interorganizational relations, etc.

Strategic control is extremely important for an organization. In addition, incorrectly organized control work can create difficulties in the work of the organization. Possible negative manifestations of management system performance include the following:

• Changing organization objectives with control parameters;
• extra control over the work of departments and employees;
• managers are overloaded with information coming from the management system.

The management of the organization must have a clear position regarding the role and place of the system of controlling activities in order to perfectly cope with the solution of tasks that correspond to the overall goals of strategic management.

Economic strategy and its implementation

Economic strategy develops rules and methods for achieving strategic goals, taking into account the strategies of competitors. The connection in time and resources of such local strategic objectives allows achieving the global goal of the financial strategy - creating and maintaining the competitive advantage of the company.

Economic strategy is a set of personal interconnected and interdependent components that have been united by a single global goal: to create and maintain a high level of competitive advantage for the company. In other words, the implementation of economic strategy is a system for ensuring the competitive advantage of the firm.

The development of a company's strategy is a single whole subject of a market economy. Since each enterprise is a complex functioning system, the strategy of the company is analyzed using multifunctional options that reflect the competitive methods of achieving the company's objectives.

Development strategy and its implementation

An important factor that deserves special attention. The strategy describes the following aspects of an organization in developing and implementing a strategy:

• work directions;
• tools for the implementation of tasks;
• outdoor and indoor positioning system;
• company mission;
• procedure of external and internal action on the company;
• social role of the company.

There are at least three prerequisites for a company's management to decide on the development and implementation of its strategy:

• Business leaders and leaders of any company should be well aware of their roles and opportunities in the long term, as well as be aware of what they have now, what they want tomorrow and how to achieve it
• goals of the owners should be stated in such a way that it is easy to assess how they are feasible;
• Business owners must agree on where and how their business will be located in the future.

Let's look at the step-by-step steps for creating a strategy:

• Analysis of the current state. It makes sense to evaluate the company's performance over a certain period of time. When analyzing, you need to take into account a number of characteristics: product sales, profit, cash potential.
• Combining a company's plans with its resources. Certain resources are needed to implement the strategy. Even if management ambitions are significant, but there are no funds to fulfill them, the plan will fail. It is necessary to find the best balance of desires and possibilities. To do this, there must be specific information about the available resources.
• Preparing for changes. As part of this approach, new positions are being formed and the personnel structure is changing.
• Exploring risks. Compensatory measures should be outlined at this step.
• Based on the data acquired during the operation of the company, the strategy is adjusted.

Social strategies and theirimplementation

In general, the implementation of a socially oriented strategy is associated with the basis and development of a program of measures to ensure the normal course of the process of reproduction of the labor force on the principle of maintaining a suitable local climate.

The implementation of such action programs helps to increase the efficiency of the workforce of the company's employees and, as a result, directly affects the course of the production process. Singling out a social strategy as an independent multifunctional element is a necessity that arises from the realities of the present day.

The main components of the Russian company's social strategy are as follows:

• Development of personnel.
• The formation of the personnel of the company, which must anticipate intensive research on the labor market in order to assess in advance the possibilities of its staffing.
• Strategy for the development of the company's personnel, which is to achieve the best possible compliance of the employee's capabilities with the requirements that are imposed on him. For this, the company's employees must be provided with suitable conditions.
• Strategies for employing and retaining staff, which should address the specific retention of employees in the organization, as well as incentivizing employee retention and increasing productivity with appropriate tools.
• Motivational mechanism. It may include the implementation of subsequent successive procedures: justification and selection of tasks for motivational work in the organization, selection of a specific modelmotivational mechanism based on the study and evaluation of internal causes of motivation and external incentives for the financial behavior of company employees.
• The company's staff reduction strategy, which involves the development of a differentiated reservation tool.

Implementation management

Strategy implementation management is the management of tactical and strategic change, which is provided if:

• There is a precise statement of tasks, when operational and strategic plans are communicated to the performers, and the latter know what needs to be done.
• An organizational structure has been formed that can successfully solve strategic tasks.
• Capacities are created to implement the strategy (external and internal preconditions).
• The right resources are concentrated in meaningful areas.
• Staff are motivated and interested in achieving their goals.
• Information is immediately brought to the attention of the performers and it is guaranteed that everything is implemented in full on the basis of periodic monitoring and control.
• An impartial assessment of the results, operational and strategic editing based on express diagnostics.

In the implementation of strategic plans, an organized monitoring and evaluation system is the essence of effective management of strategic change in a difficult economic situation.

Conclusion

Politicsstrategy implementation is very important for an organization. It is the process by which an enterprise creates value for the owners of the company, and also forms its own individual qualities that distinguish it from competitors and make it more attractive to buyers.