Implementing Strategies: Management &
Operations Issues
by : Dr.Yulihasri.SE.MBA
7 March 2021
Chapter Outline
The Nature of Strategy Implementation
Annual Objectives
Policies
Chapter Outline (cont’d)
Resource Allocation
Managing Conflict
Matching Structure with Strategy
Chapter Outline (cont’d)
Restructuring, Reengineering & E-Engineering
Linking Performance & Pay to Strategies
Managing Resistance to Change
Chapter Outline (cont’d)
Managing the Natural Environment
Creating a Strategy-Supportive Culture
Production/Operations Concerns When
Implementing Strategies
Chapter Outline (cont’d)
Human Resource Concerns When
Implementing Strategies
The Nature of Strategy
Implementation
-- Successful strategy formulation does not
guarantee successful strategy implementation
Nature of Strategy
Implementation
Formulation vs. Implementation
Formulation positions forces before the action
Implementation manages forces during the
action
Nature of Strategy
Implementation
Formulation vs. Implementation
Formulation focuses on effectiveness
Implementation focuses on efficiency
Nature of Strategy
Implementation
Formulation vs. Implementation
Formulation primarily an intellectual process
Implementation primarily an operational
process
Nature of Strategy
Implementation
Formulation vs. Implementation
Formulation requires good intuitive & analytical
skills
Implementation requires special motivational &
leadership skills
Nature of Strategy
Implementation
Formulation vs. Implementation
Formulation requires coordination among a
few individuals
Implementation requires coordination among
many individuals
Nature of Strategy
Implementation
Strategy Implementation
Varies among different types & sizes of
organizations
Nature of Strategy
Implementation
Management Perspectives
Shift in responsibility
Division or
Strategists Functional
Managers
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Annual Objectives --
-- Decentralized activity
-- Directly involve all managers in the
organization
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues
Policies --
-- Facilitate the solving or recurring
problems & guide implementation of
strategy
Management Issues
Policies Establish --
Boundaries
Constraints
Limits
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues
Resource Allocation
-- Central management activity that
allows for the execution of strategy
Management Issues
4 Types of Resources
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Management Issues
Managing Conflict
-- Disagreement between two more
parties on one or more issues
Management Issues
Managing Conflict
Conflict not always “bad”
No conflict may signal apathy
Can energize opposing groups to
action
May help managers identify problems
Management Issues
Conflict Management & Resolution
Avoidance
Diffusion
Confrontation
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues
Matching Structure w/ Strategy
-- Changes in strategy = Changes in
structure
Management Issues
Basic Forms of Structure
Functional Structure
Divisional Structure
Strategic Business Unit Structure (SBU)
Matrix Structure
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues
Restructuring
-- Reducing the size of the firm – # of
employees, divisions, and/or units, # of
hierarchical levels
Management Issues
Restructuring
Downsizing
Rightsizing
Delayering
Management Issues
Reengineering
-- Reconfiguring or redesigning work,
jobs, & processes to improve cost,
quality, service, & speed.
Management Issues
Reengineering
Process management
Process innovation
Process redesign
Management Issues
Annual Objectives
Policies
Resources
Management
Issues Organizational structure
Restructuring
Rewards/Incentives
Management Issues
Linking Pay/Performance to Strategies
-- Pay for performance systems
Management Issues
Linking Pay/Performance to Strategies
Dual bonus systems
Profit sharing systems
Gain Sharing systems
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Resistance to Change
-- Single greatest threat to successful
strategy implementation
Management Issues
Resistance to Change
-- Raises anxiety; fear concerning
Economic loss
Inconvenience
Uncertainty
Break in status-quo
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Natural Environment
-- Wide appreciation for firms that
“mend” rather than “harm” the
environment
Management Issues
Natural Environment – Environmental
Strategies
Develop/acquire “green” businesses
Divesting environmental-damaging
business
Low-cost producer through waste
minimization & energy conservation
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Strategy-Supportive Culture
-- Preserve, emphasize, & build upon
aspects of existing culture that support
new strategies
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Production/Operations Concerns
-- Production processes typically
constitute more than 70% of firm’s total
assets
Management Issues
Production/Operations Decisions
Plant size
Inventory/Inventory control
Quality control
Cost control
Technological innovation
Management Issues (cont’d)
Resistance to Change
Natural Environment
Supportive Culture
Management
Issues Production/Operations
Human Resources
Management Issues
Human Resource Concerns
-- HR manager position has strategic
responsibility & has changed
dramatically as companies continue to
reorganize, outsource, etc.
