Every business needs to have all the necessary components in place to move from creating a plan to executing it. Unfortunately, many companies fail due to economic instability, competitive pressures, or a lack of resources. Strategy formulation is the first stage of strategic management, and if it is not done correctly, the entire process will be a failure. The second stage is the implementation of the strategy, which is where real action takes place.
This is the most rigorous and demanding part of the process and requires input from all resources. If the formulation of the strategy addresses the “what” and the “why” of the organization's activities, the implementation of the strategy is based on “how” these activities will be carried out, “who” will carry them out, “when” and “how often” they will be carried out, and “where” they will be carried out. It also includes reinforcing existing strategies that have been successful in recent years. The implementation of the strategy requires participation from everyone in the organization. For successful strategy implementation, there are five essential factors that must be taken into account. The right people must be hired and have the necessary skills, knowledge, and competencies to carry out tasks.
The organization must also ensure that everyone is committed to achieving objectives. Resources must also be allocated, including financial and non-financial resources that are available or missing but necessary for implementation. The organizational structure must be clear with lines of authority and responsibility defined. Systems, tools, and capabilities must exist to facilitate implementation. The organizational culture must make employees feel important and comfortable in their roles.
A culture of responsibility and accountability for one's actions with corresponding incentives and penalties for good or poor performance will create an atmosphere where everyone is motivated to contribute. These factors are consistent with McKinsey's key success factors for an effective implementation strategy as presented in their 7s Framework. The strategy must be long-term and clearly defined with a direction that leads to objectives. It must also be in line with the organization's mission and core values. The organizational structure must be visible to everyone with departments, divisions, units, and sections organized with lines of authority and responsibility established.
Processes, procedures, tasks, and workflow make up the organization's systems. The current management or leadership style must also be taken into account. In conclusion, successful strategy implementation requires five essential factors: hiring the right people; ensuring commitment from all resources; allocating resources; establishing an organizational structure; and creating an organizational culture that encourages responsibility and accountability. By taking these factors into consideration when formulating a strategy, businesses can increase their chances of success.