22

• Strategy implementation

  Process by which an organization translates its chosen strategy into action plans and activities, steering the organization in the direction set out in the strategy to achieve its strategic objectives
• Strategic implementation plays an important role in achieving prosperity and competitiveness
• Definition of a good strategy is not easy
• Organizational life cycle

  Life cycle of an organization from creation to termination, expected sequence of advancements experienced by an organization
• Stages of Organizational Life Cycle

  • Creation
  • Growth
  • Maturity
  • Decline
  • Death
• Popular Strategies in Organizational Life Cycle

  • Concentration in a niche
  • Horizontal and vertical growth
  • Concentric and conglomerate diversification
  • Profit strategy followed by liquidation or bankruptcy
  • Retrenchment
• Likely Structure in Organizational Life Cycle

  • Entrepreneurial
  • Functional
  • Decentralization into profit centers
  • Structural surgery
  • Dismemberment of structure
• Organization may enter a Revival phase


  During the Maturity or Decline stages, extending the organization's life, especially with significant financial reserves
• Reengineering

  Radical redesign of business processes to achieve major gains in cost, service, or time
• Business process reengineering strives to break away from old rules and procedures ingrained in organizations, aiming for major improvements
• Key to reengineering is asking "If this were a new company, how would we run this place?"
• Business process re-engineering tends to be done as a one-off project, run in a silo and forced on end-users
• Few corporations will move through the five stages of the organizational life cycle in order
• Change in corporate strategy likely requires changes in organizational structure and skills needed
• Managers must closely examine the company's structure to decide on necessary changes in work accomplishment
• Before plans can lead to actual performance, a corporation should be organized to take advantage of its competitive position, programs should be adequately staffed, and activities should be directed toward achieving desired objectives
• A change in corporate strategy is likely to require changes in the way an organization is structured and in the kind of skills needed in particular positions