Demonstrating the importance of the strategy implementation process to an entire organization

Abstract

This article argues that the essence of strategy implementation is internal alignment among several key areas. The CEO and the senior leadership team must formulate a strategy based on thorough analyses of the macro-environment, the industry structure, and the industry value chain. Once a recommended strategy is developed, the strategy needs to be evaluated in light of the firm’s structure, controls, and rewards. Equally important is to ensure that the organizational culture supports the proposed strategy and that the appropriate leadership is in place. Then, the resources and capabilities using the internal value chain analysis need to be examined to see if each element supports the strategy. Further, the strategy has to meet the test of management preferences. Finally, the senior leadership needs to assess whether the strategy provides the guidance needed for managers and employees to make decisions on a day-to-day basis.