Implementing Strategy

Before we turn our attention to Operational Planning, we first need to understand where and how operational planning links with strategic planning. Although the lines are not solid and absolutely clear, one could broadly say that strategy is the process of compiling a vision, mission and strategic goals for the long term. These have to be broken down into annual goals and action plans, which is then the operational plan.

One can therefore say that the ‘grey area’ starts where the strategy has to be implemented. Strategy implementation can be defined as the process that turns strategic plans into a series of action tasks and ensures that these tasks are executed in such a way objective of the strategic plan are achieved. In other words, strategy implementation is the communication, interpretation, adoption and enactment of strategic plans. It is clear from this definition that strategy implementation deals with translating thoughts or the strategic plan, into action. It is the phase in which management aligns or matches leadership, organisational culture, organisational structures, reward system and resource allocation with the chosen strategy or strategies.

Strategy implementation is an essential component of the strategic management process as it deals with the strategic change required within an organisation to make the new strategy work and to achieve the desired results. It is significant that it has often been considered the most difficult part of the strategic management process. Research has indicated that it is must easier to formulate a strategic plan than to implement it and that it is at the implementation stage that strategies often fail. Research has also indicated that the real value of strategy can only be recognised through implementation and the ability to implement strategy is considerably more important than the quality of the strategy itself. Strategy implementation poses a challenge to management not only in terms of the motivation of employees but also in terms of the required discipline, commitment and sacrifice.