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Strategy Implementation: Plan, Process & Examples

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  • 0:05 Strategy…
  • 0:50 Definition of Strategy
  • 1:09 Why Do We Need Strategy
  • 1:57 Implementation
  • 4:13 Real World Strategy
  • 4:59 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Francis

Jennifer has a Masters Degree in Business Administration and pursuing a Doctoral degree. She has 14 years of experience as a classroom teacher, and several years in both retail and manufacturing.

This lesson presents the steps necessary for successful implementation of organizational strategies. It will explain how companies formulate their strategic plan, how the plan is implemented, and appropriate examples for clarification.

Strategy Implementation Definition

Let's say that a local hardware store recently experienced a slump in sales and had to lay off two of its employees. The owner/manager is attempting to come up with a new business strategy to improve his situation and once again become a market leader. Strategy implementation consists of putting plans in place by formulating a strategy to achieve the organization's goals and objectives. It can also be described as the way a business might develop, use, and integrate the organizational hierarchy, systems, and culture to pursue strategies that will result in competitive advantage and improved performance. In the example, the organization's goal is increased sales and regaining its market position. The strategy will be specific actions that will realize the goals.

Definition of Strategy

In the hardware store, the overall objective is known: attract and keep customers, increase sales and improve performance. The strategy describes how these objectives can be achieved. For the hardware store it could be increasing promotional events or becoming involved in the local community through public relations.

Why Do We Need a Strategy?

As with our hardware store, organizations need strategies, which assist them with answering specific questions regarding the goals of a business. There are three main questions:

  • Who are the people that make up our target market? This could be local building contractors, handymen and homeowners, for the hardware store.
  • What is the value proposition that we will use to differentiate our products and services from our competitors? This could be the high end brands that we carry and the quality perception associated with them. Or it could be our on-time delivery systems and after-sales service.
  • What are the capabilities we have that will assist us with being the best in the market at delivering that value proposition? This could be our well-trained employees who are also experts in the construction industry.

Implementation

Even excellent strategies will fail if they are not implemented properly. The following are the steps that must be followed for successful strategy implementation:

Step 1: Organizational development (OD) with the potential of carrying out a strategy successfully; for example, training of employees who will have the capability of carrying out the required activities that will contribute to fulfilling the strategy. OD refers to the professional development of employees.

Step 2: Utilizing financial resources to engage in activities that are essential to the strategy. Each planned event and the associated expenses must be traced directly to the strategy that the organization wants to realize. So any activity that does not contribute to the strategy cannot be done.

Step 3: Formulating company policies that support the strategy. For example, if your strategy includes improving your human resources, then the company would need policies that help to identify the type of training needed by each employee, and how the training will be received.

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