Strategy Implementation Process Sotiria Iman Kouvalis
1. MBA with Strategic Planning Specialism
Edinburgh Business School, Heriot-Watt University, UK
Presented by Sotiria Iman Kouvalis, Mission:Focus
International Strategy and Management Consultant
Making Strategies Work
The Process of Implementing Strategic Plans
2. Copyright for content and diagrams
are attributed to
Edinburgh Business School
Heriot-Watt University
United Kingdom
Making Strategies Work
Professor Alexander Roberts
Andrew F. MacLennan
Compiled by Sotiria Iman Kouvalis, Mission:Focus
3. The purpose of this presentation is
to give you a ‘cheat sheet’
using checklists to ensure your
strategy implementation plan is
on the right track
in being effective.
Compiled by Sotiria Iman Kouvalis, Mission:Focus
4. 80% of Strategic Plans Fail
Why can’t organizations
(who apparently have good strategic plans)
put their ideas into practice?
Approximately 80% of change efforts
fail to achieve their objectives.
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5. Typical Explanations
“No one can predict change in the external environment.”
“The organization’s culture gets in the way.”
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6. Planning vs. Implementing
Strategic Strategy
Planning Implementation
what to do how to do it
(overall) (day-to-day operations)
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8. MSW Process
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9. Mission
{
The highest level objective to be
achieved. It must be clear as it
provides guidance to those
responsible for the organization’s
achievement.
10. Mission
Questions to ask when identifying a mission:
• What is the purpose of the organization?
• Where are we trying to go?
• What kind of organization would we like to see in the future?
• What is the ultimate role of our function in the organization?
• If the department suddenly didn’t exist, what important things
would be missing or fail to achieve in the future?
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11. Mission
Checklist:
• Does the mission statement state the purpose, scope,
strategic marketing position, customers and markets served,
what it wants to achieve, timescale, competitive strategy?
• If it mentions it wants to achieve the #1 position, is it specific?
No. 1 position in what? Price? Sales? Profit maximization?
Market share?
• Does it define its terms it uses in the mission statement?
• Is it too ambiguous, lengthy, confusing or written by only a
chosen few people?
• Is the objective beyond being realistic and achievable?
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12. Environmental Analysis
{ The systematic identification of
barriers and enablers to achieving the
objectives. Normally classified into
internal and external factors.
13. Environmental Analysis
Questions to ask when identifying environmental factors:
Barriers:
• What gets in the way of achieving the mission?
• Why has the organization not already achieved the mission?
• Why can the mission not be achieved immediately?
Enablers:
• What could help achieve the mission?
• What is your department particularly good at?
• How can your department help to achieve the mission?
• How can departments work together to achieve the mission?
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14. Environmental Analysis
Checklist:
• Has a comprehensive environmental analysis been done?
• Have the following tools been used: PEST, SWOT, Porter 5
Forces, Value Chain Analysis, Competitive Analysis?
• Have you prioritized the environmental factors?
• Has scenario planning and/or contingency plans been made
for critical factors that have a high level or uncertainty/low
level of control?
• Have both internal and external factors been considered?
• Have you avoided one-word answers like “technology” or
“economy?”
• Are KEIs (Key Environmental Indicator)included?
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15. PEST (External)
Political
Economic
Social
Technology
Note: Also consider market, competition, economic, demographic, legal factors
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16. SWOT (Internal)
Strengths
Weaknesses
Opportunities
Threats
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17. Porter’s 5 Forces
threat of new
market entrants
existing
threat of
competitive
substitute
rivalry in the
products
industry
bargaining bargaining
power of the power of the
firm’s buyers firm’s suppliers
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18. Strategy
{ A high level statement of how
enablers will be utilized and the
barriers overcome in order to achieve
the mission.
19. Strategy
Questions to ask when identifying a strategy:
• Does it start with, “We must achieve the mission by…?”
• Is it a high level statement on how the environment conditions
will be overcome to achieve the mission?
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20. Strategy
Checklist:
• Does it address the barriers and enablers of the environment?
• Does it answer the HOW and not the WHAT?
• Is the statement feasible given the environmental analysis?
• Does it leave out details for now such as budgets, processes,
timescales, roles, performance indicators, structures?
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21. Critical Success Factors (CSF)
{ The limited, critical, things that must
go well in order for the strategy to
succeed. They should follow the
necessary and sufficient rules.
22. Critical Success Factors (CSF)
Questions to ask when identifying CSFs:
• What things have to happen to achieve the strategy?
• Do we have to do this to achieve the strategy?
• If we don’t do this, can we still achieve the strategy?
Note: CSFs are milestones for managers.
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23. Critical Success Factors (CSF)
Checklist:
• Do the CSFs start with, “We must…?”
• Are they action-oriented and meaningful?
• Do they include both financial and non-financial factors?
• Do they meet the “necessary rule” and “sufficient rule?”
• Are KPIs identified?
• Are the CSFs linked to the strategy?
Notes:
Necessary rule = it’s a CSF only if it is critical to meeting the strategy
Sufficient rule = full set of CSFs required but no more than that
KPI = Key Performance Indicator
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24. Critical Activities (CA)
{ The activities that must be carried out
in order to achieve the CSFs. These
should follow the necessary and
sufficient rules.
25. Critical Activities (CA)
Questions to ask when identifying CAs:
• What activities need to be carried out to achieve the CSFs?
Note: CSFs are milestones for teams and individuals.
CAs also knows as KBAs (Key Business Activities)
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26. Critical Activities (CA)
Checklist:
• CAs can be cross-functional or across departments
• Are CAs linked to specific CSFs?
• Are APIs (Activity Performance Indicator) identified?
• Are there both financial and non-financial measures?
• Are timescales identified for each CA?
• Are milestones devised to track progress?
• Are resources allocated and cost/project plans in place?
• Are reporting systems in place to monitor and control CAs?
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27. Organizational Design,
Processes and Systems
{ These should be organized in a way
that facilitates the CAs. One particular
system, the reward system, is worthy
of close inspection.
28. Organizational Design,
Processes and Systems
Checklist:
• Is a RACIS matrix completed?
• Are budgets taking CAs and CSFs into consideration?
• Are reward systems looked at carefully to avoid unintended
effects?
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29. RACIS Matrix
Responsibility • Approval • Consulted • Informed• Support
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30. Reward Systems
• Bonuses below 10% tend to not be motivational enough
• Bonuses above 15% tend to lead people to move towards
personal gains over achieving organizational objectives
• A good mix is between 10-15% bonus above base salary
• At least partially, bonuses should be linked to CAs or CSFs
• Reward systems should be perceived as equitable and apply
across the organization, not just for senior managers
• Check to ensure that current reward systems are not
producing unintended effects (notorious common error) or
personal gain over the organization’s mission
• Take into consideration both intrinsic and extrinsic rewards
• Consider giving both individual and team rewards
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31. An Extra Note About
Competitive Strategy
• Competitive strategy success lies in the organization’s
activities.
• Are you choosing different activities than your competitors or
doing them in a different way?
• Since most organizations fail at implementing their strategies,
this could be a competitive strategy itself if you implement it
more effectively, quicker and at a lower cost than your
competitor, making clear tradeoffs and marketing position
with less unintended effects
• Identify and monitor your risks and manage change effectively
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32. 80% of Strategic Plans Fail
But you can be part of the
20% who succeed
in implementing your strategic plan.
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33. What You Need
• A good Making Strategies Work facilitator
• Support from board and senior management
• The right people involved at the right stages
• A good project manager
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