Lecture 21-22 Strategy Implementation.pptx - Strategy Implementation The McKinsey 7S Framework The Nature of Strategy Implementation The greatest

Lecture 21-22 Strategy Implementation.pptx - Strategy...

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Strategy Implementation The McKinsey 7S Framework
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The greatest strategy is doomed if it’s implemented badly. Successful strategy formulation does not guarantee successful strategy implementation . Less than 10% of strategies formulated are successfully implemented! The Nature of Strategy Implementation Implementation may fail due to: Paying too much for a new acquisition Not recognizing benefit of computers in managing information
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Formulation vs. Implementation Formulation focuses on effectiveness Implementation focuses on efficiency Formulation is primarily an intellectual process Implementation is primarily an operational process Formulation requires good intuitive & analytical skills Implementation requires special motivational & leadership skills Formulation requires coordination among a few individuals Implementation requires coordination among many individuals Formulation focuses on effectiveness (doing the right thing) Implementation focuses on efficiency (doing the thing right)
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Altering sales territories Adding new departments Closing facilities Hiring new employees Cost-control procedures Modifying advertising strategies Building new facilities Nature of Strategy Implementation Implementation Activities Varies among different types & sizes of organizations
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Shift in responsibility Nature of Strategy Implementation Management Perspectives Division or Functional Managers Strategists
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Management Issues Management Issues Resources Organizational structure Restructuring Annual Objectives Resistance to Change Production/Operations
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Management Issues Purpose of Annual Objectives -- Basis for resource allocation Mechanism for management (e.g. IT management) evaluation Metric for gauging progress on long-term objectives Establish priorities (organizational, division, & departmental) Resources Org structure Restructuring Resist. to Change Prod/Ops Annual Objectives Resources Organizational structure Restructuring Annual Objectives Resistance to Change Production/Operations
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Management Issues Requirements of Annual Objectives Measurable Consistent Reasonable Challenging Clear Understood Timely Resources Org structure Restructuring Resist. to Change Prod/Ops Annual Objectives
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Management Issues Annual Objectives Should State Quantity Quality Cost Time Be Verifiable Resources Org structure Restructuring Resist. to Change Prod/Ops Annual Objectives
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Management Issues Resource Allocation enables resources to be allocated according to priorities established by annual objectives. However it may cause conflict. Is this good or bad?
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  • Spring '15
  • ab bhushan
  • Management, McKinsey, annual objectives

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