UNIT V: STRATEGIC IMPLEMENTATION, EVALUATION, AND CONTROL

The McKinsey 7S Model is a comprehensive framework designed to enhance

organizational effectiveness by examining seven internal elements that are crucial
for successful strategy implementation. These elements are interdependent and
must align to achieve desired outcomes.
Strategy refers to the plan developed to reach long-term objectives, guiding the
organization's direction.
Structure involves the organization’s arrangement, including hierarchies, roles, and
reporting lines, which shape communication and decision-making.
Systems encompass the daily activities, procedures, and processes that employees
follow to ensure smooth operations.
Shared Values represent the core beliefs and principles that underpin the
organization’s culture and influence behavior at all levels.
Style pertains to the leadership approach adopted by top management, which
sets the tone for organizational culture and employee engagement.
Staff signifies the people within the organization and their overall capabilities,
crucial for executing strategies effectively.
Skills refer to the actual competencies and expertise possessed by employees,
which determine their ability to perform tasks.
Strategy Implementation through Organizational Structure and Human Resource
Management

The structure of an organization plays a pivotal role in the successful execution of its
strategy. An effective organizational structure not only defines how tasks and
responsibilities are allocated but also influences how resources are utilized to
achieve strategic objectives. To ensure successful strategy implementation, the
organization’s structure must be carefully designed to align with its overarching
strategy. This alignment can take various forms, whether it is a functional, divisional,
or matrix structure. Each of these structural types has its unique strengths and
weaknesses, and the choice of structure should be guided by the strategic goals of
the organization. For instance, a divisional structure may be more suitable for a
company pursuing a diversification strategy, while a functional structure may be
more effective for a firm focused on operational efficiency.

Moreover, the organizational structure must support effective communication and

coordination among its members. Clear reporting lines and well-defined roles
enhance the flow of information across different levels of the organization,
promoting accountability and transparency. When employees understand their
responsibilities and who they report to, it fosters a collaborative environment where
strategic initiatives can be discussed and acted upon promptly. Effective
communication is essential in ensuring that all members of the organization are
aware of strategic objectives and can work cohesively towards achieving them.
Management (HRM) is equally critical in aligning human capital with the strategic goals of
the organization. Effective HRM practices ensure that the workforce is equipped,
motivated, and aligned with the company’s strategic objectives. One of the key aspects of
HRM is recruitment and selection. It is vital to hire individuals whose skills and attitudes
resonate with the strategic direction of the organization. A well-designed recruitment
process that evaluates candidates not only for technical skills but also for cultural fit can
significantly enhance the likelihood of successful strategy implementation.

Training and development are other essential components of HRM that contribute to
strategy execution. Equipping employees with the necessary skills to support strategic
initiatives ensures that they are prepared to meet the challenges and demands of their
roles. Continuous professional development through training programs helps in building a
competent workforce capable of executing the organization’s strategic goals effectively.

Performance management is also a fundamental aspect of HRM that aids in aligning

individual and team objectives with the strategic goals of the organization. By
implementing robust appraisal systems, organizations can track progress, provide
feedback, and make necessary adjustments to keep employees on the right path towards
achieving strategic outcomes. Furthermore, motivation and rewards play a critical role in
this process. Incentivizing employees through compensation packages, bonuses, and
recognition programs not only boosts morale but also encourages them to strive towards
meeting strategic objectives.
Strategy Implementation through Values and Ethics
The implementation of strategies within an organization is significantly influenced by
its core values and ethical principles. These foundational elements play a crucial role in
ensuring that the strategies adopted are executed in a manner that aligns with both
societal expectations and legal standards, thereby guiding behavior throughout the
organization. When employees and management alike understand and adhere to
ethical values, they are more likely to make decisions that not only further
organizational goals but also respect the broader community and comply with
regulations. This alignment between strategy and ethics fosters a cohesive work
environment where everyone is on the same page regarding acceptable behaviors and
practices.

Moreover, strong ethical practices are instrumental in building and maintaining trust
with various stakeholders, including employees, customers, investors, and the
community. Trust is a vital component of successful strategy execution. When
stakeholders believe that an organization operates ethically, they are more inclined to
engage positively with it, whether through purchasing products, investing in the
business, or forming partnerships. This trust can lead to increased customer loyalty,
employee satisfaction, and support from investors, all of which are essential for the
successful implementation of strategic initiatives. Conversely, a lack of trust due to
unethical behavior can hinder strategy execution and damage the organization's
reputation.
Organizational Life Cycle
The concept of the organizational life cycle encompasses the various stages that a
company undergoes from its inception to its potential decline. This life cycle typically
includes four primary stages: start-up, growth, maturity, and decline. Each stage presents
unique challenges and opportunities, requiring tailored strategies and management
approaches to achieve success.

In the start-up phase, the organization primarily focuses on establishing a viable product
and carving out a market presence. During this critical time, companies must concentrate
on refining their offerings, understanding customer needs, and developing effective
marketing strategies. The emphasis is often on innovation and agility, allowing the start-
up to respond quickly to market demands and competition.

As the organization transitions into the growth stage, it experiences rapid expansion. This
period is characterized by increased market share, product development, and the
establishment of systems and processes. Companies must focus on scaling operations,
enhancing customer service, and building a strong brand. The challenge during this stage
is to maintain the entrepreneurial spirit while implementing more structured
management practices.
The maturity stage sees a slowdown in growth as the company becomes more
established and efficient. At this point, organizations must focus on optimizing
operations, improving profitability, and sustaining their competitive advantage.
Strategies may include diversification, exploring new markets, or enhancing customer
loyalty to ensure continued success.

Finally, in the decline stage, companies may experience a loss of market share and a
downturn in performance. To counteract these challenges, organizations must consider
rejuvenation strategies, which could involve innovation, restructuring, or a shift in focus
to adapt to changing market conditions. By recognizing the signs of decline early and
taking proactive measures, organizations can navigate this stage more effectively and
potentially revitalize their operations.
Strategic Information Systems (SIS): Information systems designed to support or shape a
competitive strategy, offering advantages through innovation, efficiency, and decision-
making.

Data-Driven Strategy: SIS leverages business intelligence for strategic data analysis and
insights.

Enhanced Communication: SIS facilitates coordination across departments for effective

strategic implementation.

Directing, Evaluation, and Control of Performance: This process ensures that the
strategy is properly executed, measured, and adjusted as needed.

.Directing: Leadership actions such as communicating vision, setting expectations, and

motivating employees.

Evaluation: Monitoring performance through indicators like financial metrics, market

share, and customer satisfaction.

Control: Comparing actual performance with strategic goals, identifying gaps, and
making necessary adjustments.
Strategic Information Systems (SIS)
Strategic Information Systems (SIS) are critical tools designed to support or even shape an
organization’s competitive strategy. These systems go beyond the typical functions of
operational information systems, playing a pivotal role in fostering innovation, enhancing
efficiency, and improving decision-making processes. By offering these advantages, SIS
enables companies to differentiate themselves in the marketplace.
One of the primary benefits of SIS is competitive advantage. Through the use of
innovative technologies and the strategic alignment of information systems with business
objectives, organizations can streamline processes and reduce costs, making them more
agile and responsive to market changes. For example, the ability to gather real-time data
allows businesses to quickly identify trends and respond proactively, whether that be
adjusting supply chains, marketing efforts, or customer service models.

SIS also plays a key role in data-driven strategy, utilizing business intelligence tools to
gather, analyze, and interpret large amounts of data for strategic purposes. This data-
driven approach helps leaders make informed decisions, ensuring that every strategic
move is backed by solid evidence. The result is not only more effective decision-making
but also greater adaptability in fast-changing market environments.
Furthermore, SIS improves communication and coordination within the organization. By
connecting departments through integrated platforms, these systems allow for seamless
collaboration and better alignment of strategic goals. For example, a sales team can
instantly share market feedback with the product development department, speeding up
the process of launching new or improved products to meet customer demands. In this
way, SIS ensures that all areas of the business work together toward common objectives.
Directing, Evaluation, and Control of Performance
For a strategy to be successfully implemented, an organization must ensure effective
directing, evaluation, and control of performance. This process ensures that the strategy
not only gets implemented properly but also achieves the intended outcomes.

Directing involves the leadership actions necessary to guide the organization toward its
strategic objectives. Key elements of directing include clearly communicating the vision
and strategy to all employees, setting clear expectations, and inspiring and motivating
the workforce to work toward those goals. Leadership plays a vital role in ensuring that
everyone in the organization understands their role in achieving the strategic vision, and
leaders must continuously reinforce this through communication and personal
engagement.

Evaluation is the process of monitoring and measuring the progress of the strategy’s
implementation. This typically involves using key performance indicators (KPIs) such as
financial metrics, market share, customer satisfaction, and other relevant benchmarks
that show how well the organization is progressing toward its goals. By regularly tracking
these indicators, management can quickly identify any deviations from the plan and
assess whether corrective actions are needed.
Feedback on the Overall Process
Feedback plays a vital role in ensuring continuous improvement during the
implementation of strategies. Here are key aspects of how feedback contributes to this
process:
Implementation of Corrective Measures:
Feedback mechanisms identify performance gaps, allowing organizations to take
timely corrective actions.
By addressing issues as they arise, organizations can minimize negative impacts on
overall performance and efficiency.
Facilitation of Learning and Adaptation:
Continuous feedback enables organizations to integrate lessons learned into their
strategic framework.
This process promotes adaptability, allowing organizations to refine existing
strategies based on real-time data and experiences.
Organizations can develop a culture of continuous learning, where employees are
encouraged to provide insights that can lead to innovative solutions.
Incorporation of Stakeholder Input:
Feedback loops ensure that the voices of various stakeholders—employees,
customers, suppliers, and investors—are heard and considered.
Gathering diverse perspectives helps organizations understand market demands
better and align their strategies with customer expectations.
Involving stakeholders in the feedback process enhances buy-in and commitment,
leading to improved implementation and success rates.
Alignment with Market Demands and Internal Capabilities:
Effective feedback mechanisms allow organizations to adjust their strategies to
stay relevant in a dynamic market environment.
By continuously monitoring both external market conditions and internal
operational capabilities, organizations can ensure that their strategies remain
aligned with current realities.

Continuous Improvement Cycle:

Establishing a structured feedback loop creates a cycle of ongoing evaluation and
enhancement of strategic initiatives.
Organizations can systematically measure outcomes, identify trends, and
implement changes that lead to sustained performance improvement.