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Do you have an example when policy implementation went wrong and what would you have done differently if you were the leader of the development and implementation?
Successful implementation of policy initiatives requires early, informed and systematic consideration of implementation. Policies fail for a lot of reasons. Some had to stop it because of economic upheavals that simply did not provide any room for new businesses to try making headway in their operations. Others blame the actions of competitors, and even the business challenges that are inherent in the market. There are also those businesses that blame the lack of resources for the failure.
The essential preconditions and capabilities for successful implementation include:
Fully considering policies implementation issues at every stage of policy development is a shared responsibility in particular, it is essential that there is a clear and shared understanding of the policy objectives and intended outcomes. All entities ‘central agencies’, policy entities and implementing entities should be ever mindful of the need to identify and involve relevant parties at the earliest possible stage of developing new policy and do everything possible to ensure that this, in fact, occurs. Establishing sound relationships, and the capability to engage effectively with other entities, requires personal leadership by an entity’s senior leaders. The management can also promote a collegiate approach by setting a clear example for their staff.
Strategic management is considered to be one of the most vital activities of any organization while implementing policies, since it encompasses the organization’s entire scope of strategic decision-making. Through the strategic management process, it allows the organization to formulate sets of decisions, actions and measures collectively known as strategies that are subsequently implemented in order to achieve organizational goals and objectives.
Strategy formulation – where the organization’s mission, objectives, and strategies are defined and set is the first stage in strategic management. That is where it all begins, which means that, if the organization was unable to complete that stage with very good results, then the company’s strategy management is already a bust from the start. Many organizations fail during the first stage, in the sense that they are unable to come up with strategies that will potentially take the organization where it wants to be.
Key questions which are essential preconditions and capabilities for successful implementation
However, there are also a lot of businesses that are able to
formulate excellent and very promising strategies. And yet, the end
result is still the organization having problems and even
ultimately closing down. What could have gone wrong?
Most probably, it was because of poor implementation of the policies / strategies.
STRATEGY
IMPLEMENTATION
The second stage of strategic management, after strategy
formulation, is “strategy implementation” or, what is more familiar
to some as “strategy execution”. This is where the real action
takes place in the strategic management process, since this is
where the tactics in the strategic plan will be transformed into
actions or actual performance.
If strategy formulation tackles the “what” and “why” of the activities of the organization, strategy implementation is all about “how” the activities will be carried out, “who” will perform them, “when” and how often will they be performed, and “where” will the activities be conducted.
Needless to say, it is the most rigorous and demanding part of the entire strategic management process, and the one that will require the most input of the organization’s resources. However, if done right, it will ensure the achievement of objectives, and the success of the organization.
And it does not refer only to the installation or application of new strategies. The company may have existing strategies that have always worked well in the past years, and are still expected to yield excellent results in the coming periods. Reinforcing these strategies is also a part of strategy implementation.
Strong leadership, an inclusive approach, sound processes and the effective use of resources
On occasion, implementation will involve several entities. In these situations it is essential to establish clear governance and accountability arrangements (everyone needs to be clear as to who is ‘in charge’) underpinned by a commitment to work cooperatively. In these circumstances, there is also a requirement on senior leaders to demonstrate leadership by example, so as to promote co-operation and avoid territoriality. An increasingly common feature of service delivery is ‘collaborative’ or ‘co-production’ arrangements between government and non-government entities. These potentially complex arrangements require a leadership focus on issues of stakeholder engagement, risk management and accountability.
Good governance is an essential precondition for successful implementation.9 It focuses on two key requirements for public sector entities:
The basic activities in strategy implementation involve the following:
Strategy implementation is the stage that demands participation of the entire organization. Formulation of the strategies are mostly in the hands of the strategic management team, with the aid of senior management and key employees. When it comes to implementation, however, it is the workforce that will execute the strategic plan, with top or senior management taking the lead.
A policy initiative is more likely to achieve its intended outcomes when the question of how the policy is to be implemented has been an integral part of policy design.
FACTORS THAT SUPPORT
STRATEGY IMPLEMENTATION
Effective execution of strategies is supported by five key
components or factors. All five must be present in order for the
organization to be able to carry out the strategies as planned.
People
There are two questions that must be answered: “Do you have enough
people to implement the strategies?” and “Do you have the right
people in the organization to implement the strategies?”
The number of people in your workforce is an issue that is easier to address, because you can hire additional manpower. The tougher part of this is seeing to it that you have the right people, looking into whether they have the skills, knowledge, and competencies required in carrying out the tasks that will implement the strategy.
If it appears that the current employees lack the required skills and competencies, they should be made to undergo the necessary trainings, seminars and workshops so that they will be better equipped and ready when it’s time to put the strategic plan into action.
In addition, the commitment of the people is also something that must be secured by management. Since they are the implementers, they have to be fully involved and committed in the achievement of the organization’s objectives.
Resources
One of the basic activities in strategy implementation is the
allocation of resources. These refer to both financial and
non-financial resources that (a) are available to the organization
and (b) are lacking but required for strategy implementation.
Of course, the first thing that comes to mind is the amount of funding that will support implementation, covering the costs and expenses that must be incurred in the execution of the strategies. Another important resource is time. Is there more than enough time to see the strategy throughout its implementation?
Structure
The organizational structure must be clear-cut, with the lines of
authority and responsibility defined and underlined in the
hierarchy or “chain of command”. Each member of the organization
must know who he is accountable to, and who he is responsible
for.
Management should also define the lines of communication throughout the organization. Employees, even those on the lowest tier of the organizational hierarchy, must be able to communicate with their supervisors and top management, and vice versa. Ensuring an open and clear communication network will facilitate the implementation process.
Systems
What systems, tools, and capabilities are in place to facilitate
the implementation of the strategies? What are the specific
functions of these systems? How will these systems aid in the
succeeding steps of the strategic management process, after
implementation?
Culture
This is the organizational culture, or the overall atmosphere
within the company, particularly with respect to its members. The
organization should make its employees feel important and
comfortable in their respective roles by ensuring that they are
involved in the strategic management process, and that they have a
very important role. A culture of being responsible and accountable
for one’s actions, with corresponding incentives and sanctions for
good and poor performance, will also create an atmosphere where
everyone will feel more motivated to contribute to the
implementation of strategies.
These factors are generally in agreement with the key success factors or prerequisites for effective implementation strategy, as identified by McKinsey. These success factors are presented in the McKinsey 7s Framework, a tool made to provide answers for any question regarding organizational design.
The emphasis of the framework is “coordination over structure”, which also supports how strategy implementation is described to involve the entire organization and not just select departments or divisions.
Making implementation an important
consideration at every stage of policy design
How a policy is to be implemented should be an integral part of
policy design. This requires, among other things, a systematic
focus on implementation at the policy design stage, identifying any
risks and barriers to implementing the policy, drawing on the
practical experience of those who will have to implement the
policy, ensuring that any obstacles to delivery are understood, and
feeding the learning from implementation processes back into the
policy process.
The 7 factors are divided into two groups: the Hard S (strategy, structure and systems) and the Soft S (style, shared values, staff and skills)
Strategy
The strategy – or the plan of the business to achieve competitive
advantage and sustainable growth – must be long-term and clearly
defined. It must indicate a direction that leads to the attainment
of objectives. When you take the organization’s mission and core
values, the strategy should also be in line with them.
Structure
The organizational structure must be visible to everyone, and
clearly identify how the departments, divisions, units and sections
are organized, with the lines of authority and accountability
clearly established.
Systems
There should be a clear indication and guide on how the main
activities or operations of the business are carried out. The
processes, procedures, tasks, and flow of work make up the systems
of the organization.
Style
This addresses the management or leadership style in force within
the organization, from top management to the team leaders and
managers in the smaller units. Strategy implementation advocates
participative leadership styles, and so this is really more about
defining and describing the interactions among the leaders in the
organization and, to some extent, how they are perceived by those
that they lead or manage.
Staff
Organizations will always have to deal with matters regarding
staffing. Human resources, after all, is one of the most important
assets or resources of an organization. Thus, much attention is
given to human resource processes, specifically hiring,
recruitment, selection and training.
Skills
Employees without skills are worthless resources to the
organization. In order to aid the organization on the road towards
its goals, the employees must have the skills, competencies and
capabilities required in the implementation of strategies.
Shared Values
This is at the heart of the McKinsey 7s framework, and they refer
to the standards, norms and generally accepted attitudes that
ultimately spur members of the organization to act or react in a
certain manner. Employee behavior will be influenced by these
standards and norms, and their shared values will become one of the
driving forces of the organization as it moves forward.
Usually, organizations may take a look at each of these key success factors for individual analysis. However, the McKinsey approach takes a wider approach, assessing if they are well-aligned with the other factors or not. All seven prerequisites are interconnected, which means all seven must be present, and they must be effectively aligned with each other, in order to ensure effective strategy implementation, and overall organizational effectiveness.
Key questions: Considering implementation issues at every
stage of policy design
You need to get implementers at the table early during policy
development, in particular to consider timing and how the policy
will be implemented.
WHAT CAUSES FAILURE OF
STRATEGY IMPLEMENTATION?
Even with the best-laid plans and strategies, have you ever
wondered what went wrong in the implementation of these
strategies?
Nine out of ten organizations are unable to fully, completely and properly implement their strategic plan, often resulting to complete business failure. We’re looking at nine out of ten organizations that just wasted their resources, opportunities, and probably even very good strategies that have been formulated in the first stage of the strategic management process.
The most common reasons why implementation of the strategies are unsuccessful are:
In order to ensure the success of the strategy implementation, covering all your bases is important. The best way to go about that is by following the essential steps to executing the strategies.
STEPS IN STRATEGY
IMPLEMENTATION
To ensure an effective and successful implementation of strategies,
it’s a good idea to have a system to go about it. Take a look at
the steps to ensure that happens.
1: Evaluation and
communication of the Strategic Plan
The strategic plan, which was developed during the Strategy
Formulation stage, will be distributed for implementation. However,
there is still a need to evaluate the plan, especially with respect
to the initiatives, budgets and performance. After all, it is
possible that there are still inputs that will crop up during
evaluation but were missed during strategy formulation.
There are several sub-steps to be undertaken in this step.
2: Development of an
implementation structure
The next step is to create a vision, or a structure, that will
serve as a guide or framework for the implementation of
strategies.
3: Development of
implementation-support policies and programs
Some call them “strategy-encouraging policies” while others refer
to them as “constant improvement programs”. Nonetheless, these are
policies and programs that will be employed in aid of
implementation.
4: Budgeting and allocation
of resources
It is now time to equip the implementors with the tools and other
capabilities to perform their tasks and functions.
5: Discharge of functions
and activities
It is time to operationalize the tactics and put the strategies
into action, aided by strategic leadership, utilizing participatory
management and leadership styles.
Throughout this step, the organization should also ensure the following:
Basically, the results or accomplishments in this point will be the input in the next step, which is the third stage of Strategic Management: “strategy evaluation”.
Some argue that implementation of strategies is more important than the strategies themselves. But this is not about taking sides or weighing and making comparisons, especially considering how these two are important stages in Strategic Management. Thus, it is safe to say that formulating winning strategies is just half the battle, and the other half is their implementation.