What are the issues faced in Strategy Implementation?

Strategy implementation is a process through which a strategy is put into action. Strategies are only ‘means’ to an ‘end’ i.e. accomplishment of an organization’s objectives which have to be activated through implementation. This is because both the strategic formulation and strategic implementation process are intervened in real life.

Issues in Strategy Implementation

An organization is confronted with a number of issues in the process of strategy implementation. Some of the important issues are discussed as follows:

(i) Project implementation
Project is a highly specific program for which time schedule and specific cause are determined in advance. Projects create all necessary conditions and facilities required for the strategy implementation, the discipline of project management. A project basically passes through various phases which are given below before a set of task can be accomplished:

(a) Detailed planning related to different aspects of projects such as infrastructure design, schedules, budgets, etc., has to be completed.
(b) Ideas generated during the process of strategic alternatives and choice consideration form the core of the future projects that may be undertaken by the organization.
(c) After a set of projects have been identified and arranged according to the priority, they have to be subjected to preliminary project analysis pertaining to technical, financial, marketing, and economic aspects. After the screening, the viable projects are taken up and feasibility studies are conducted.
(d) Detailed engineering, awarding contracts, civil and other types of construction, etc., are to be undertaken during the implementation phase leading to the testing trail and commissioning of the plant.
(e) The final phase deals with disbanding the project.

(ii) Procedural implementation
Strategy implementation also requires executing the strategy based on the rules, regulations, and procedures formulated by the Government. Though many procedures are simplified with the liberalization, privatization, and globalization of the Indian economy, certain procedures are still applicable in the process of strategic implementation such as licensing requirements, Foreign Exchange Management Act requirements, collaboration procedures, import and export requirements, incentives, and benefits, requirements of Labour Laws and other Legislations.

(iii) Organisational Structure and Strategies
Organizational structure is a means for achieving an organization’s mission and objectives. Thus, it is an important source of strategic implementation. Organizational structure refers to the method of allocating duties and
responsibilities to individuals and the ways these individuals are grouped together into units, departments, and divisions. Companies form structures for their organizations based on their strategies. There are a number of methods in which the organizations can be structured. A simple strategy requires a simple structure whereas the growth strategies require a flexible structure and complex strategies necessarily influence to build of the matrix structures.

(iv) Resource Allocation
Resource allocation involves the process of allocating organizational resources to various divisions, departments, and strategic business units. It deals with the procurement, commitment, and financing of the physical and the human resources required to accomplish strategic tasks for the achievement of organizational objectives.

(v) Functional Policies
Functional policies describe functional guidelines to operating managers so that coordination across functional units can take place. Once the strategy of the companies is decided, modification functional policies may become necessary to meet the demands of the new business.

(vi) Communication Strategy
Communication strategy covering the mission, objectives, market scope, technology, and all the issues related to implementation, to different levels in the organization is very important for its success. This is because the strategy is implemented through people who ought to be clear about the roles they have to play in relation to each other.

(vii) Leadership
Appropriate leadership is necessary for developing effective structures and systems for the success of the strategy. Leadership is the key factor for developing and maintaining the right culture and climate in the organization.

(viii) Challenges to Change
The strategy implementation process generally involves a change. The changes can be minor or major. The process of change may cover freezing, moving, and refreezing.

(ix) Pre-implementation Evaluation Strategy
Before the implementation of the strategy, it is advisable to go for final scrutiny so as to avoid failure due to weaknesses in the analysis, if any and to ensure that the strategy decided for the organization is optimum.

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