Focus on producing and selling existing products and applications with the highest margins and introduce new products and applications. To address new business challenges and concerns, organizations must constantly monitor, evaluate and adjust their strategic initiatives. When a new strategy needs to be implemented, it is usually managers who must ensure that it is successfully implemented. Strategy maps allow managers to define and communicate the cause-and-effect relationships that generate their unit's value proposition, and the dashboard is a powerful tool for implementing and monitoring the unit's strategy.
Successfully implementing the strategy can be challenging and requires strong leadership and management skills. Once the strategic maps and scorecards of the corporate-level strategy and the five strategic themes have been completed, the cascading transfer process to local units could begin. This is an overview of implementing the strategy, as well as a step-by-step guide that you can use to achieve changes in your company more effectively. If you're a manager who wants to implement a strategic change in your organization, follow these seven steps to successfully introduce and implement a new strategy.
A system based on a comprehensive scorecard to establish strategy and measure performance, united by specific strategic issues, allows executives at corporate headquarters to communicate shared priorities and motivate people to share them even in the most complex companies. The headquarters align corporate and business unit strategies by first articulating their synergy theory and then encouraging business units to develop strategies that contribute to those objectives at the business level and, at the same time, address their local competitive situation. Each of the major geographical regions and product units created their own dashboard, highlighting their unique local strategy objectives and initiatives, but also clarifying how the five issues would be implemented at the local level. In the online course Management Essentials, David Garvin, professor at the Harvard Business School, says that implementing and executing a strategy successfully means “fulfilling what was planned or promised on time, within budget, with quality and with minimal variability, even in the face of unforeseen events and contingencies.
In the Northwest Territories, for example, the threat of terrorist activity would be low, so their strategic map does not contain objectives that support this strategic issue. For most of modern business history, companies have tried to create value by adapting their structures to their strategies. It's much less annoying to choose an organizational design that works without major conflicts and then design a customized strategic system to align that structure with the strategy. However, while TQM allowed companies to focus more effectively on process improvements, the ability to implement the strategy across organizational units remained elusive.
Whether you're an aspiring, new, or experienced manager, understanding the strategy implementation process and its relationship to organizational change is critical to ensuring that you can be effective throughout your career. EP, like many multinational and multi-product organizations, was struggling to implement a coherent strategy across its eight global product businesses, three regions and six shared services units.