Analysis of Strategy and Strategy Implementation Processes

This essay provides an overview of strategy and strategy implementation, drawing on the work of several key thinkers in the field. It begins with definitions of strategy and its implementation, highlighting the importance of successful execution. The essay explores the challenges of implementation, including leadership, communication, and the need for concrete action plans. It discusses difficulties faced by companies, especially SMEs, and the impact of factors like time delays and lack of follow-up. The essay references the views of experts like Michael Porter, Lindroos & Lohivesi, Ken Favaro, and Jack Welch, offering insights into the complexities of strategy work. The essay emphasizes the need for simplicity, clear direction, and a focus on action over excessive analysis, particularly in the context of changing market conditions. The document concludes by underscoring the critical role of implementation in achieving strategic success.

Running head: STRATEGY AND STRATEGY IMPLEMENTATION
STRATEGY AND STRATEGY IMPLEMENTATION
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1STRATEGY AND STRATEGY IMPLEMENTATION
The literature describes various definitions of the strategies along with various ways
of their implementation. According to the definition of Prof. Porter (1985: 15), A strategy is a
list of actions, which are practical in nature and required for the achievement and sustaining
of a competitive edge in the specific business line by a company. However, this particular
definition of Strategy does not differentiate the actual strategic actions from its
implementation. Lindroos & Lohivesi (2004: 47-48) provides a simple definition on the
implementation of Strategy. According to them, it implies the execution of the previously
formulated strategies successfully. Another similar definition of the implementation of
strategies was provided by Ken Favaro. According to him, the strategies are various plans of
action and decisions that are needed to be subjected to real-life operations (Favaro 2015). The
implementation of a strategy is a very important process, since an error in the implementation
process may nullify the success of a very well-formulated strategy (Gallo 2010). A clear
definition of the proposed change is always an important aspect of strategy development,
which will be introducing various behavioural changes in an organisation.
There are two principal issues associated with a successful strategy implementation,
which are, 1) the ability of Management to display proper leadership during the strategy work
(Norton & Kaplan 2007: 29) and 2) the ability of disseminating the strategy considering
the individual targets, action points and the follow-up mechanisms of each and every
employee (Salminen 2008: 81). The successful implementation of a strategy is largely
dependent on its structure since a concrete structure ensures easy implementation of the
strategy. Proper implementation of strategy makes sure to keep an opportunity open for a
quick reaction against an environmental change (Kamensky 2004: 285-295).
The definitions for both strategy and the implementation plan cover a wide region and
can be proven to be burdensome often. This leads to various difficulties in the strategy work.
The number of concepts available for this ranges from tens to hundreds (Näsi & amp; Aunola

2STRATEGY AND STRATEGY IMPLEMENTATION
2005: 13-14). There was a summary of strategy definitions provided by Näsi & amp;
Aunola’s (2005: 14-15): 1) A plan can be defined as a strategy; 2) A territory, 3) A visual
image of the world can also be defined as a strategy; 4) It can also be defined as a mode of
action in a sequence of decisions. It has been observed that in most cases the strategies do not
include down-to-earth concretism. Hence this is no surprising event that there is huge
confusion about the strategy implementation in the IT companies, which are small and
medium in size. Sometimes it is observed that there was a considerable effort put for the
formulation of a strategy but the middle management person, who is supposed to be
responsible for the implementation of the strategy, feels overwhelmed with all the daily
action plans. This can be considered as an additional reason for the failure of a well-
developed strategy, according to Allio (2005). Absence of follow up strategies, specific and
short-term targets can present with various difficulties when a successful implementation of a
strategy is attempted. The additional difficulties can be listed as the failure of the company to
report the achieved goals and to provide a proper commitment to the implementation of the
strategy. A large timespan between the strategy formulation and the implementation may also
result in failure since the occurrence of various changes within that time span might make the
strategies outdated, which is considered as an important issue in the SME IT companies
(Ailio, 2005: 12-13).
Successful conversion of the strategies into results can be considered as challenging.
Various studies state that about 60-70% of the companies face various difficulties when
implementing a strategy (Sull et al. 2015). According to an economist survey, it was found
that only 11% feels that there was a successful implementation of strategies, however, 57% of
companies felt otherwise (The Economist Intelligence Unit, 2004). According to Allio 2005:
12, the implementation of a strategy is much more difficult than the formulation of a strategy.

3STRATEGY AND STRATEGY IMPLEMENTATION
The CEO and chairman of GE, Jack Welch (2005:165-166), who is considered legendary
advice that the thinking should be done to a lesser level and work should be done to a higher
level, instead of being stuck into numbers and analysis. According to him, the complex
strategies should always be subjected to simplification: “In real life, strategy is actually very
straightforward. You pick a general direction and implement like hell”. (Welch & Welch
2005: 166). According to Welch, continuity should be maintained in the strategy work.
Strategies should always be subjected to change as per the change in the market and hence
can be considered as a vague operational process (Welch & Welch 2005: 165-167.).
To summarize, there are various definitions available for both strategy and the
implementation of strategy. However, the success of a strategy is dependent on the
implementation mostly. There should always be more work and less thinking, when
implementing a strategy into action, instead of dwelling on the numbers related to finance
and analysis.