Blue Minimalist Project Proposal Business Presentation

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GROUP 2

STRATEGY
IMPLEMENTATION
AND CONTROLLING
MEMBER OF THE GROUP :
1. DHEA NURMALA SARI
2. LIU LAI LING
3. NABILAH ANISA PUTRI
4. NOVITASARI
5. NUR INDAH EKA ANDAYANI
The Definition of Strategy
Implementation.
The implementation of strategy involves assigning
or reassessing tasks for company leaders, both at
the corporate level and at the business unit level,
to communicate and implement the strategy
together with employees.

Strategy implementation is the process by which


strategies and policies are put into action through
the development programs, budgets, and
procedures (Thomas L Wheelen dan J. David
Hunger, 2003)
Source : Gesah, R. (2019). Manajemen Strategi Penulis:
Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper.
Implementation of strategy
includes:

1 2 3
LEADERSHIP POLICY ORGANIZATIONAL
IMPLEMENTATION IMPLEMENTATION IMPLEMENTATION

Source : Gesah, R. (2019). Manajemen Strategi Penulis:


Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper.
Leadership Implementation

1 2 3

TRANSFORMING STRENGTHENING INVOLVING


CURRENT MANAGERS' CAREER
LEADERSHIP AT MOTIVATION DEVELOPMENT FOR
THE APPROPRIATE THROUGH THE FUTURE
LEVELS PROVISION OF STRATEGISTS
INCENTIVES

Source : Gesah, R. (2019). Manajemen Strategi Penulis:


Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper.
Policy
Implementation
Policy is a guideline for the
implementation of specific actions.
Careful selection of policies can sharpen
the meaning of strategy and guide specific
decisions in a direction that supports the
strategy.

The implementation of functional policies


involves two processes: resource
allocation and developing policies that
operationalize the strategy.

Source : Gesah, R. (2019). Manajemen Strategi Penulis:


Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper.
Implementation of Policy
Involves:

Resource Allocation Policy Development


Resource allocation involves Policy is a set of decisions that:
decisions regarding the Carefully determines how the chosen
distribution of company resources, strategy will be implemented, serving
including money, facilities, and as a guideline for specific actions or
human capital, to divisions, activities.
departments, or business units. Establishes a mechanism for follow-up
This allocation is typically carried actions to ensure that the chosen
out through a budgeting process. strategy and decided policies will be
effectively executed.
Source : Gesah, R. (2019). Manajemen Strategi Penulis:
Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper.
Organizational
Implementation
To implement a strategy, an organizational
structure that aligns with that strategy is
necessary.
An organization is the division of work among
groups or individuals, ensuring that subunits are
connected to guarantee they work together
effectively.
Organizational structures have evolved
significantly; as companies grow, the number of
employees increases, leading to a functional
organizational structure. If a company expands
into various business areas, the organizational
Source : Gesah, R. (2019). Manajemen Strategi Penulis:
Rachmad Gesah Mukti Prabowo. INA-Rxiv Paper. structure shifts towards a divisional model.
Processes and Challenges of
Strategy Implementation
Processes Strategy Implementation
This process includes various activities to ensure that the
strategy runs effectively and achieves the established
goals, namely:

Strategic Communication
Strategic communication is the process of delivering
information designed to achieve organizational goals in a
planned and directed manner.

Elements of Strategic Communication

Planning Evaluation

Message Consistency

OPENCOURSEWARE UNIVERSITAS PEMBANGUNAN JAYA


Resource Organization
Organizing Resources means identifying the necessary
resources, including human, financial, and technological
resources. It also involves assembling a team with the expertise
that aligns with the strategic needs.

Steps of Organization:

01. 02. 03.


Needs Analysis Task Assignment Monitoring and Adjustment
Determining what Allocating tasks to Monitoring the use of
resources are needed to individuals or teams resources and making
achieve the goals. based on their adjustments as
expertise. necessary to improve
efficiency.

repository.unikama.ac
Alignment of Organizational
Structure
The organizational structure must support strategy
implementation so that communication and
collaboration between departments can run smoothly.
This alignment helps reduce communication barriers
and enhances responsiveness to change.

Alignment Strategies
Team Reorganization: Forming cross-functional
teams to enhance collaboration.
Open Communication: Encouraging open
communication across management levels to
ensure all parties are involved in the decision-
making process.
Training and Development: Providing training to
employees on the new structure and how they
contribute to strategic goals.

OPENCOURSEWARE UNIVERSITAS PEMBANGUNAN JAYA


Performance
Measurement
Steps in Performance
Performance Measurement Measurement:
Methods
1. Establish Clear KPIs:
Using Key Performance Indicators (KPIs) Determine specific metrics
to assess the success of strategy
to be used for measuring
implementation. Conducting employee and
success.
customer satisfaction surveys to gather
feedback on the effectiveness of the
2. Data Collection: Collect data
strategy. regularly to evaluate
performance against the
KPIs.
3. Analyze Results: Analyze
the data to identify areas for
improvement and celebrate
achievements.

Widya Cipta: Jurnal Sekretari dan Manajemen


Challenges in
Strategy
Implementation

Common Challenges in Strategy Strategies to Overcome Challenges


Implementation

Resistance to Change Proactively Manage Change

Lack of Effective Communication Enhance Communication

Limited Resources Optimize Resources

Widya Cipta: Jurnal Sekretari dan Manajemen


Definition of Strategic Control
Hunger and Wheelen 2003 : Strategic control is the process of monitoring and
evaluating the strategy implementation to ensure that the organization's strategic
goals and objectives are being achieved.

Anthony dan Govindarajan (2007) : Strategic control is the process of evaluating


the organization's strategies to determine their effectiveness and the need for
adjustments in response to changes in the internal and external environment.

Pearce dan Robinson (2008) : Strategic control focuses on the evaluation and
correction of the performance of the strategies implemented to ensure alignment
with the intended strategic objectives.
Source :
1. Hunger, J. D., & Wheelen, T. L. (2003). Strategic Management and Business Policy.
2. Anthony, R. N., & Govindarajan, V. (2007). Management Control Systems.
3. Pearce, J. A., & Robinson, R. B. (2008). Strategic Management: Formulation, Implementation, and Control.
Strategic Control
Objectives
1. Ensure that strategy implementation goes
according to plan
2. Identify obstacles in strategy implementation
3. Ensure adaptation to environmental changes
4. Increase operational effectiveness and efficiency
5. Provide feedback for strategy improvement

Source :
1. Kaplan, R. S., & Norton, D. P. (1996). "Using the Balanced Scorecard as a Strategic Management System." Harvard Business Review.
2. Simons, R. (1994). "How new top managers use control systems as levers of strategic renewal." Strategic Management Journal.
Types of Strategic
Control

1. Feedback Control 2. Behavioral Control


Control is carried out after the implementation of Control that focuses on monitoring the activities
the strategy to evaluate performance results and or behavior of individuals in an organization to
compare them with predetermined standards or ensure that they work according to
targets. predetermined strategies.

Example: Quarterly performance evaluation based Example: Internal audit, direct supervision by
on financial reports. managers.

Source :
1. Anthony, R. N., & Govindarajan, V. (2007). "Management Control Systems."
2. Bryson, J. M. (2018). "Strategic Planning for Public and Nonprofit Organizations."
Types of Strategic
Control

3. Output Control 4. Feedforward Control


Focus on the end result of strategy This type of control is carried out before the
implementation, such as achieving financial, implementation of the strategy to prevent
production, or customer satisfaction targets. problems by preparing for and identifying
potential obstacles.
Example: Analysis of profit achievement or market
share compared to targets. Example: Project feasibility study before
implementation.

Source :
1. Kaplan, R. S., & Norton, D. P. (1996). "The Balanced Scorecard: Translating Strategy into Action."
2. Merchant, K. A., & Van der Stede, W. A. (2007). "Management Control Systems: Performance Measurement, Evaluation, and Incentives."
Strategic Control Steps
1. Set performance standards
Performance standards are determined based on formulated strategic objectives,
including key indicators (KPI) and measurable targets. This standard is a reference
for evaluating the success of strategy implementation.
2. Measuring actual performance
Collect data and information about strategy implementation periodically to find
out the results that have been achieved. This data must be relevant, accurate and
timely.
3. Comparing actual results with performance standards
Evaluation is carried out by comparing actual results with predetermined standards
or targets. The difference between the two is called the performance gap.

Source :
1. Kaplan, R. S., & Norton, D. P. (1996). "Using the Balanced Scorecard as a Strategic Management System."
2. Simons, R. (1995). "Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal."
3. Anthony, R. N., & Govindarajan, V. (2007). "Management Control Systems."
Strategic Control Steps
4. Analyze the causes of deviation
If there is a difference between actual and target results, analysis is carried out to
identify the cause. Causes can come from internal (structure, resources) or
external (market changes, regulations) factors.
5. Take corrective action
If deviations are found, corrective actions are taken to return strategy
implementation to the right track. These actions may take the form of revising
strategies, reallocating resources, or improving training.
6. Carry out continuous monitoring and evaluation
Strategic control is a continuous process. Regular evaluation and monitoring
ensures that the strategy remains relevant to the dynamics of the business
environment.
Source :
1. Bryson, J. M. (2018). "Strategic Planning for Public and Nonprofit Organizations."
2. Pearce, J. A., & Robinson, R. B. (2008). "Strategic Management: Formulation, Implementation, and Control."
Strategic Control Tools
Objective Type of Strategic Steps in Strategic
Control Tools Control
1. Ensure strategies are 1. Balanced Scorecard(BSC) 1. Define performance
executed as planned. 2. Bechmarking metrics.
2. Monitor the
2. Identify obstacles in 3. Critical Success
implementation of strategies
strategy Factors(CSF)
periodically.
implementation. 4. Key Perfomance 3. Compare actual results
3. Provide solutions for indicators(KPI) with targets.
any deviations. 5. Strategic Audit 4. Take corrective actions
for deviations.

Source :
1. Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard—Measures
That Drive Performance. Harvard Business Review.
2. Wheelen, T. L., & Hunger, J. D. (2012). Strategic Management and
Business Policy: Toward Global Sustainability. Pearson Education.
Challenges in Strategic
Control

1. Unstable Environment
2. Complexity in Organizations
3. Lack of Proper Data or Analysis
4. Resistance to Change
5. Limited Resources

Sumber : Ghosh, P. et al. (2021). Environmental Uncertainty and Strategic Decision Making.
SOLUTIONS TO STRATEGIC CONTROL CHALLENGES

1. Development of a Flexible Strategy Management System


2. Implementation of the Balanced Scorecard
3. Periodic Environmental Analysis
4. Training and Human Resources Development
5. Effective Communication

Source: Men, L. R., & Stacks, D. W. (2013). "The Impact of Leadership Style and Employee Empowerment on Employee
Outcomes in the Hospitality Industry." Journal of Human Resources in Hospitality & Tourism, 12(1), 1-20.
Strategy implementation and control are two crucial
aspects of management strategy, namely as follows:

The Importance of
The Importance of Strategic Control
Strategy Implementation 1. Ensure conformity with
1.Make it happen objectives
2. Improving 2. Adapting strategies to
Organizational environmental changes
Performance 3. Increasing
3.Optimize Resources Accountability

TamHitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). "Strategic Management: Concepts and Cases." Cengage Learning.
Buku ini membahas pentingnya implementasi dan pengendalian strategi dalam konteks manajemen strategis.
Connection of Strategy
Implementation and Control in
Strategic Management
Strategic Implementation
Process of executing strategic plans
Management of resources and team
coordination
Goal: Achieving organizational objectives

Strategic Control
Evaluation of the effectiveness of
implemented strategies
Adjustments based on results and
environmental changes
Ensuring strategies remain relevant and
successful

Interconnection
Successful Implementation requires
Source: effective control
greatnusa.com
ppmschool.ac.id
Case Study:
Implementation and
Control Strategy of
PT Indofood Sukses
Makmur Tbk
Indofood is a company operating in the first
food and beverage industry in Indonesia.
PT. Indofood was first founded in 1968 as
Lambang Insan Makmur. On July 14 1994,
the company owned by the Sudono Salim
family under the Salim Group changed its
company name to PT. Indofood Sukses
Makmur Tbk.
Source : Nisrina Jaesa (2024). Implementasi dan Pengendalian Strategi PT
Indofood CBP Sukses Makmur Tbk. Paulus Journal of Accounting
Formulation of
Company Strategy
Corporate Strategy Business Strategy
Indofood uses a Focus on product
diversification strategy to differentiation, brand
expand its product portfolio development and
and strengthen its position operational efficiency to
in the market. increase competitiveness.

Functional Strategy
Development of human
resource capabilities,
innovation and a strong
supply chain.

Source : Nisrina Jaesa (2024). Implementasi dan Pengendalian Strategi PT


Indofood CBP Sukses Makmur Tbk. Paulus Journal of Accounting
Strategy Implementation
Organizational Management Organizational
structure System culture

Adjustment of Development of an Strengthening the


organizational integrated culture of
structure to management system innovation,
support strategy to coordinate various collaboration and
implementation. business functions. customer
orientation.

Source : Nisrina Jaesa (2024). Implementasi dan Pengendalian Strategi PT


Indofood CBP Sukses Makmur Tbk. Paulus Journal of Accounting
Strategy Control
Strategic Dashboards
Use of key performance indicators
(KPI) to monitor strategy
achievement.

Strategic Audit
Periodic evaluation of strategy
implementation and necessary
adjustments.

Feedback and Improvements


Leveraging feedback from
stakeholders to refine strategy.

Source : Nisrina Jaesa (2024). Implementasi dan Pengendalian Strategi PT


Indofood CBP Sukses Makmur Tbk. Paulus Journal of Accounting
Strategy Performance
Measurement

Sales Growth, Profit Margins, Return


Financial Indicators
on Investment

Production Efficiency, Product Quality,


Operational Indicators
Customer Satisfaction

Market Share, New Product


Strategic Indicators
Development, Innovation

Source : Nisrina Jaesa (2024). Implementasi dan Pengendalian Strategi PT


Indofood CBP Sukses Makmur Tbk. Paulus Journal of Accounting
THANK YOU
THANK YOU
THANK YOU

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