edf40wrjww2CF_PaperMaster:Desc
Strategy Implementation
Strategy implementation is the sum total of the activities and choices required for the execution of strategic plan. It is the process by which strategies and policies are put into action through the development of programs, budgets and procedures.
Less than 10% of strategies formulated are successfully implemented. There are many reasons for this low success rate, including failing to segment markets appropriately, paying too much for a new acquisition, falling behind competitors in R&D etc. For example, studies show that half of all acquisitions fail to achieve what was expected of them, and 1 out of 4 international ventures do not succeed. A study by KPMG of the 700 largest mergers from 1996 to 1998 found that 83% of the mergers failed to increase the acquirer’s shareholder value within a year of completing the merger.
Strategy implementation is directly related to the work of plant managers, division managers, department managers, sales managers, product managers, project managers, personnel managers, staff managers, supervisors and all employees.
To begin the implementation process, strategy makers must consider these questions:
- Who are the people who will carry out the strategic plan?
- What must be done to align the company’s operations in the new intended direction?
- How is everyone going to work together to do what is needed?
A survey of 93 Fortune 500 U.S firms revealed that over half of the corporations experienced the following 10 problems when they attempted to implement a strategic change. These problems are listed in order of frequency.
1. &n ...