What is Strategy Implementation?

The strategic-management process does into end when the firm decides what strategy or strategies to pursue. There is a translation of strategic though into strategic action. This translations much easier if managers and employees of the firm understand the business, feel a part of the company, and through involvement in strategy-formulation activities have become committed to helping the organization succeed. Without
understanding and commitment, strategy-implementation efforts face major problems.

Implementing strategy affects an organization from top to bottom; it affects all the functional and divisional areas of a business. It is beyond the purpose and scope of this text to examine all of the business administration concepts and tools important in strategy implementation. This series of post focuses on management issues most central to implementing strategies in the year 2010, and upcoming posts focuses on marketing, finance/accounting, R&D, and management information system issues.

The strategy-implementation stage of strategic management is revealed. Successful strategy formulation does not guarantee successful strategy implementation. It is always more difficult to do something (Strategy implementation) than to say you are going to do it (strategy formulation)! Although inextricably linked, strategy implementation is fundamentally different from strategy formulation. Strategy formulation and implementation can be contrasted in the following ways
Ways of Strategy Formulation and Implementation

1. Strategy formulation is positioning forces before the action.
2. Strategy implementation is managing forces during the action.
3. Strategy formulation focuses on effectiveness.
4. Strategy implementation focuses on efficiency.
5. Strategy formulation is primarily an intellectual process.
6. Strategy implementation is primarily an operational process.
7. Strategy formulation requires good intuitive and analytical skills.
8. Strategy implementation requires special motivation and leadership skills.
9. Strategy formulation requires coordination among a few individuals.
10. Strategy implementation requires coordination among many individuals.

Strategy-formulation concepts and tools do into differ greatly for small, large, for-profit, or nonprofit organization. However, strategy implementation varies substantially among different types and sizes of organizations. Implementing strategies requires such actions as altering sales territories, adding new departments, closing facilities, hiring new employees, changing an organization's pricing strategy, developing financial budgets, developing new employee benefit, establishing cost-control procedures, changing advertising strategies, building new facilities, training new employees, transferring managers among divisions, and building a better management information system. Theses types of activities obviously differ greatly between manufacturing, service, and governmental organizations.