Strategic Planning in the Small Business

HO

1-5 (continued)

Unit 1

Chapter 1 The Strategic

Management Process 13

The

administrative aim is

to create "fits" between

the way things are done

and

what it takes

for 'ITctive strategy

execution. The

stronger the fits.

the better the

execution of strategy.

The most important

fits are between

strategy and

organiza­

tional capabilities,

between strategy

and the reward

structure, between

strategy

and internal

policies and

procedures. and

bet"een strategy

and the organization's

culture (the

latter emerges from

the values and

beliefs shared

b. organizational

members and from

management's

human relations practices).

Fitting

the ways the

organization does

things internally to

what it takes for effective

strategy execution

is what

unites the organization

firmly behind

the accomplishment

of strategy.

most complicated

and time-

The strategy-implementing

task

is easily the

consuming part

of strategic

management.

It cuts across

virtually all

facets of

managing,

and actions must

be initiated from

many points within

the organization.

The strategy-implementer's

agenda

emerges from

careful assessment

of what the

organization

must do

differently and

better to carry out

the strategic

plan profi­

has, to be

done in

ciently. Each

manager has

to think through

the answer to "What

my area of

responsibility to

carry out my piece

of the strategic

plan. and how can

I

best

get it done'?"

The amount of

internal change

needed to put the

strategy into

place

depends on

how%much strategic

change is called

for. ho\%far

out of align­

internal

practices

are with the requirements

of

strategy. and hok

well

ment

strategy and

organizational

culture are alread.

matched. Once the

needed changes

and

actions are identified.

management

must supervise

all the dotails

of implemen­

tation and

apply enough

pressure on the

organization to

convert objectives

into

results. Depending

on the amount

of internal

change involved, full

implementation

can take several

months to several

years.

Evaluating

Performance,

Reviewing

the Situation,

and Initiating

Corrective

Adjustments

None of the previous

four tasks are

one-time exercises.

Circumstances

always

crop

up and make corrective

adjustments

desirable. Long-term

direction

may

need to

be altered. the

business redefined,

and management's

vision of the

or broadened.

Performance

targets may

organization's

future course

narrowed

need raising or lowering

in light of

past experience and

future prospects.

Strategy

may

need to be modified

because of

shifts in lon;g-term

direction. becaus,

nev,

because changing

conditions

make fine-tuning

or

objectives

have been set.

or

major overhaul

necessary.

The search

for even better

strategy execution

is also continuous.

Sometimes

an aspect of implementation

does not

go as well as intended

and changes

have to

be made.

Progress in putting

strategy in place

typically occurs unevenly-faster

in

and slower in

others. Some things

get done easily: others

prove

some areas

nettlesome. Implementation

comes

through the pooling

effect of many

admin­

istrative

decisions about

how to do things

and how to create

stronger fits

between

strategy

and internal operating

practices.

Budget revisions,

policy changes. re­

organization,

personnel changes.

culture-changing

actions, and revised

compen­

sation practices

are typical ways

of trying to make

strategy work better.

88