Strategy Implementation - Meaning and

Steps in Implementing a Strategy

Strategy implementation is the translation of chosen strategy into organizational

action so as to achieve strategic goals and objectives. Strategy implementation is also defined
as the manner in which an organization should develop, utilize, and amalgamate organizational
structure, control systems, and culture to follow strategies that lead to competitive advantage and
a better performance. Organizational structure allocates special value developing tasks and roles
to the employees and states how these tasks and roles can be correlated so as maximize
efficiency, quality, and customer satisfaction-the pillars of competitive advantage. But,
organizational structure is not sufficient in itself to motivate the employees.

An organizational control system is also required. This control system equips managers
with motivational incentives for employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized collection of values, attitudes,
norms and beliefs shared by organizational members and groups.

Following are the main steps in implementing a strategy:

Developing an organization having potential of carrying out strategy successfully.

Disbursement of abundant resources to strategy-essential activities.
Creating strategy-encouraging policies.
Employing best policies and programs for constant improvement.
Linking reward structure to accomplishment of results.
Making use of strategic leadership.

Excellently formulated strategies will fail if they are not properly implemented. Also, it is
essential to note that strategy implementation is not possible unless there is stability between
strategy and each organizational dimension such as organizational structure, reward structure,
resource-allocation process, etc.

Strategy implementation poses a threat to many managers and employees in an

organization. New power relationships are predicted and achieved. New groups (formal as well
as informal) are formed whose values, attitudes, beliefs and concerns may not be known. With
the change in power and status roles, the managers and employees may employ confrontation
behaviour.

Strategy Formulation vs Strategy

Implementation
Following are the main differences between Strategy Formulation and Strategy Implementation-

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those
decision-making involved in developing means related to executing the strategic plans.
organization’s strategic goals and plans.
In short, Strategy Formulation is placing the In short, Strategy Implementation is managing
Forces before the action. forces during the action.
Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly an
Activity based on strategic decision-making. Administrative Task based on strategic and
operational decisions.
Strategy Formulation emphasizes on Strategy Implementation emphasizes on
effectiveness. efficiency.
Strategy Formulation is a rational process. Strategy Implementation is basically an
operational process.
Strategy Formulation requires co-ordination Strategy Implementation requires co-
among few individuals. ordination among many individuals.
Strategy Formulation requires a great deal of Strategy Implementation requires specific
initiative and logical skills. motivational and leadership traits.
Strategic Formulation precedes Strategy STrategy Implementation follows Strategy
Implementation. Formulation.

Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are a relatively small
company and hence must focus on certain kinds of services with certain kinds of users. Initially
Palms and Bonds will focus on the local market and in the market research and training fields.
The target customers will include key decision-makers in the large, medium and small-sized
organizations in a start-up and growth periods.

 We are currently building image and awareness through consistency and distinctiveness
in our service provision.
 We intend to focus on delivering quality service and end product that in turn produces
good referrals, which can then generate revenue.
 We intend to always have a relatively heavy personal selling component to our
marketing. Hence we intend to always be active in personal relationships with clients and
strategic allies keeping abreast of their needs and wants.
 We are focusing advertising on several key media.

5.1 SWOT Analysis

We are presently in a highly lucrative market in a rapidly growing economy. We foresee our
strengths as the ability to respond timeously to the market dictates and to provide custom
designed market research services to our clients. In addition through aggressive marketing and
quality management we intend to become a well respected leader in our respective industry. Our
key personnel have a wide and thorough knowledge of the local and international markets and
expertise, which will go a long towards penetrating the market. However, we acknowledge the
fact that few companies are aware of the actual importance of market research and marketing and
its contribution to the whole business strategy. Below are the summarized strengths, weaknesses,
opportunities, and threats.

5.1.1 Weaknesses

 Lack of a solid well-established network in the market research arena.

 The introduction of new organizational practices and personnel who have not previously
worked together presents a challenge to the organization.
 Establishment on the Internet will produce technological challenges.

5.1.2 Opportunities

 Specific niche. Appreciation for high quality, accurate, unbiased and relevant
information.
 The introduction of the International Financial Services Centre (IFSC) presents a vast
opportunity, as both foreign and local firms will be looking for information, which may
assist on entering their respective markets.
 Current growth of the economy in comparison to other economies presents an
opportunity for an increased number of foreign investors to invest in the markets. 
 The current drive towards localization is causing an increasing number of local
individuals to invest and start their own businesses.
  The new generation of entrepreneurs, corporations, professionals, business owners has a
far greater appreciation for the need for adequate planning and relevant information.
 Internet marketing and sales -- though still in its infancy.
 Increasing number of foreign firms, especially from South Africa looking at penetrating
the local markets.
 Financial assistance given by the government on the credibility of business plans.
However the results of the review of the FAP by the Botswana Institute of Development
Policy Analysis need to be taken into consideration as it could be scrapped or replaced by
a new scheme.
 Existence of well-established government organs that deal directly with aspiring
entrepreneurs -- local and foreign, presents us with a networking opportunity.

5.1.3 Threats

The present growth in the economy may result in increased numbers of business consultants,
leading to increased competition and confusion amongst clients. This competition could emerge
from a variety of given sources including:

 Established mass-market consultants' development of new lines and vertically integrating

so as to be totally in control of all services required by the client.
 New marketing strategies and tactics by established companies.
 Existing competition.
 The current plethora of 'fly-by-night' business consultancy firms in existence.
 Other start-up companies generated by healthy economic growth nation-wide.
 Existence of well established government organs that deal directly with aspiring
entrepreneurs, both local and foreign.

5.1.4 Strengths

 Strategic market segmentation and implementation strategies.

 Diversified market segments. Ensures the lack of dependency on one particular market.
 Combination of skills in directorship. The directors intend to jointly develop business
strategy and long-term plans, having wide experience in market and product know-how,
and strong financial management and business know-how.
 Establishment and maintenance of a well-known business name.
 An aggressive and focused marketing campaign.
 A marketing plan with clear goals and strategies.

5.2 Macro-environment

At a large scale, market research demonstrates that the business consultancy market we intend to
enter is growing and changing. Generally there is a trend toward executive turnover in medium
to large companies today. That is, corporate restructuring, privatization, and increased small
business development providing for a younger more ambitious market in the executive and small
business sector. Research indicates that this new generation of executives being more educated
and aware of the global environment assesses and implements information to a much higher
degree than past trends have indicated. This is exacerbated by the increase in competition in all
industries making it necessary for individuals to have relevant information at their fingertips.
Therefore with the emergence of this generation of individuals, the appreciation of quality
information and business solutions/ recommendations that provide for and enables the company
to grow, dictates that our service lines will be popular. 

The current drive by the government towards a more diversified economy presents an
opportunity for our business to propel and excel in our intended markets, benefiting from the
support of the concerned institutions and trade bodies. In addition with the country increasingly
becoming an economic hub we foresee the demand for high quality information to be on the rise.
Through undertaking of our business activities professionally we foresee that it should not be too
difficult to gain market acceptance provided we deliver the final product timeously and of good
quality, at competitive prices.

Furthermore Small, Medium and Micro Enterprises are well recognized as a potentially
important source of employment generation apart from the diversification that they inevitably
result in. They in turn reflect the declining importance of centralized mass production, along with
technical change, the growth of information technology and the growth of the service sector.

Employment in Botswana by the type of Employer

Government 36%
Large Employer 32%
Medium Employer 4%
Small Employer 14%
Micro Employer 14%

Source: BIDPA estimates

5.3 Competitive Edge

Our competitive edge will be our dominance of market information, customer orientation and
traditional hard work. Although there are many "supposed" business consultants we intend to
offer more than just a professional service but mesh well the various crafts together
harmoniously.

Though we shall be serving different market segments we intend to focus on the individual or
group who wants high quality information and plans customised to their needs. In the case of
marketing and business plans they should be able to work harmoniously/beautifully in the
intended environment, both on a macro and micro scale. Though our clients might range from
large corporations, small or medium businesses, institutions or resellers what is important to the
customer is total satisfaction with the end product matched to their capabilities and resources.
5.4 Sales Strategy

The sales forecast monthly summary is included in the appendix. The annual sales projections
for three years are included in the table below. It should be noted that as we become established
and known on the market we project sales to increase at a faster rate than the initial year.

Note: All displayed currency values represent Botswanan Pula (P).

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Sales Forecast
Year 1 Year 2 Year 3
Sales
All services $366,300 $612,000 $734,400
Other $0 $0 $0
Total Sales $366,300 $612,000 $734,400
Direct Cost of Sales Year 1 Year 2 Year 3
All services $79,500 $117,000 $140,400
Other $0 $0 $0
Subtotal Direct Cost of Sales $79,500 $117,000 $140,400

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5.5 Marketing Strategy

One core element of our strategy will be that of differentiation from our competitors. In terms of
marketing, we intend to sell our company as a differentiated strategic ally, not just our services.
In price, we intend to offer reasonable and competitive prices in comparison to competition and
we need to be able to sustain that. Market penetration through lower prices shall be undertaken
where need be whilst premium pricing in the case of high quality services targeted at the upper-
end of the market. Our service marketing will recognize more that our product. Service and
establishing long relationships with clients will be key to our future service marketing. We
primarily intend to sell a relationship more than services.

Our service marketing will emphasize the benefits of conducting adequate planning and the use
of quality information and identification of 'windows of opportunity'. We intend to sell access to
market knowledge and quality. This will come out in our advertising, delivery and collateral such
as sales literature and business cards. Our service marketing's most important challenge will be
the problem of being accepted and appreciated on the market as a provider of quality marketing
research services and business plans. Hence we intend to not only meet client's expectations but
to exceed them.

We intend to focus on the individual or group who wants information that may not be readily
available, specially customized to their requirements. However not wanting to limit our horizons
in the initial period we intend to serve other clients requiring services such as company
registration and trading licenses.

In all cases we intend to provide a thorough understanding and appreciation of the service to the
client as well as follow up to ensure customer satisfaction. We also intend to inform the customer
on how best to maintain and/or improve their market positions.

5.5.1 Pricing Strategy

Palms and Bonds will be competitively priced in relation to the dictates of the market. The
pricing fits with the general positioning of Palms and Bonds as providing high-level quality
expertise.

We intend our income structure to match our cost structure, so as to ensure that the
salaries/consultants fees we pay to assure good reports and service are balanced by the fee we
charge. We will make sure that we charge for the service, workmanship and any delivery with
our aim being to achieve a gross profit margin of at least 50%. Naturally services targeted at the
higher end of the market will have higher mark ups as these clients are less price sensitive. All in
all we intend our prices to be extremely competitive on the market.

Consulting will be based on Pula per hour per project in the initial year for project consulting,
market research, and retainer consulting. With time and as we become known on the market we
foresee an increase in our consultancy fee -- tempered by market dictates. Market research
reports should be competitively priced which will, of course, require that reports be very well
planned, focusing on very important topics, and well presented.

5.5.2 Promotion Strategy

Our promotion strategy will be based primarily on informing potential customers of our
existence and making the right information available to our target customer. Since we shall be
targeting different segments the promotional tools and messages may vary slightly to match the
intended market. However in all cases the marketing will convey the sense of quality and
professionalism in every picture, every promotion and every publication. In such a market we
cannot afford to appear in or produce second-rate material with poor labels that make our
services look less than they are. Hence we intend to leverage our presence using quality
brochures and other sales literature, including promotional material such as pens, complimentary
slips and stickers. We intend to spread the word about our business through the following:

 Advertising (Discussion omitted)

 Personal Selling (Discussion omitted)
 Public Relations (Discussion omitted)
 Direct Marketing (Discussion omitted)
 Internet Marketing (Discussion omitted).

5.6 Strategic Alliances

In today's volatile and competitive environment it is becoming increasingly essential for

organizations to concentrate on their core activities so as to gain and maintain a competitive
advantage. This brings out the advantage of undertaking strategic alliances with organizations
that the firm may benefit from and vice versa.

At this writing, strategic alliances with ZZZ and YYY are possibilities, given the content of
existing interest and discussions. We are also looking at establishing alliances with several
accounting and legal firms, which often come into contact with our target market. Given the
background of prospective partners, we might also be talking to United States and South African
companies in the near future.
5.0 Strategy and Implementation Summary

Calico Computer Consulting will focus on the following to establish and grow the business:

 Four main promotion strategies: networking and referrals, web based promotion,
traditional media advertising, and some non-traditional promotion methods.
 A value proposition of timely and practical solutions, at a reasonable rate, coupled with a
100% guarantee.
 A competitive edge based on cultivating existing customer relationships.
 A comprehensive and detailed marketing and sales strategy, covered in depth in a
separate marketing plan.
5.1 Strategy Pyramids

Most of the textbooks and/or experienced business people who contributed to the research for
this plan suggested some combination of the following four marketing strategies. These are
especially suited for a modern high tech business such as computer consulting.

 Strategy 1 - Networking & Referrals - Using existing contacts and clients to build a larger
network of potential clients.
 Strategy 2 - Web promotion - Using a web page to showcase the owner's skills and
knowledge, providing an "electronic brochure" as well as useful technical information
free of charge.
 Strategy 3 - Advertising - Traditional methods such as Yellow Page ads, newspaper
classified and display ads, local television cable access advertisements.
 Strategy 4 - Non-traditional - Creative and unique advertising such as door hangers,
bumper stickers, etc.

A much more comprehensive discussion of these strategies is presented in Section #.# of the
CCC Marketing Plan (written in Marketing Plan Pro).

5.2 Value Proposition

The value proposition offered by Calico Computer Consulting is quite simple: timely and
practical solutions for client's computer problems and/or upgrades, all at a very reasonable and
competitive rate. Most important, CCC offers a 100% satisfaction guarantee, thus building and
retaining the client's confidence.

5.3 Competitive Edge

CCC's competitive edge is that the owner already has a significant number of high quality
relationships with current and potential clients. In essence, CCC has already overcome the
barriers to entry in the consulting field and is simply in the process of formalizing the business.

5.4 Marketing Strategy

The topics below briefly outline the marketing strategy for Calico Computer Consulting. A much
more comprehensive discussion of these strategies is presented in Section 3.0 of the CCC
Marketing Plan (written in Marketing Plan Pro).
5.4.1 Positioning Statement

For the home business/small business owner who needs technical help with their business
computers, Calico Computer Consulting provides fast and effective response that gets the
business back up and running. Unlike [key competition], CCC offers a 100% satisfaction
guarantee.

5.4.2 Pricing Strategy

Calico Computer Consulting will adopt a price matching strategy rather than entry pricing. A
survey of local consulting businesses revealed the following:

 Hourly Rate Pricing - The average price charged was $75.00 per hour.
 Retainer Pricing - Based on the expected minimum number of hours per month, the
average was $150.
 Project Pricing - Based on a daily rate (8 hours x $75.00/hour)

5.4.3 Promotion Strategy

The primary promotion strategy for CCC will be directly in line with the strategy pyramids
mentioned previously. The lead strategy will be to focus on cultivating existing relationships,
using known networking techniques to develop referrals and new customer leads. Added to this
will be a blend of web based marketing and traditional public relations and media marketing. The
ultimate promotion strategy, however, will be in guaranteeing customer satisfaction: happy
customers will generate repeat and new business.

5.4.4 Marketing Programs

The most important marketing program for CCC is to get the word out, through a combination of
the following:

 Sending a letter of announcement and brochure to all existing contacts and customers.
 Following the well-established steps of a public relations campaign (press releases,
announcements, etc.).
 Developing and purchasing "grand opening" announcements in the local news media.

A much more comprehensive discussion of these programs is presented in Section 3.6 of the
CCC Marketing Plan (written in Marketing Plan Pro).
5.5 Sales Strategy

Sales strategy for Calico Computer Consulting is simple and straightforward: customer
satisfaction! Happy customers will be repeat customers, and they will provide referrals to new
customers.

 Sales forecast figures are based on industry figures for the typical growth of a consulting
startup and reflect repeat business generated through meeting customer needs.
 Sales programs must be based on the notion that business is driven on customer demand
when problems arise. While some business can be generated by soliciting customers to
upgrade their systems and software, by and large the bulk of the business will be
emergency technical aid.

A much more comprehensive discussion of the sales strategy is presented in Section 3.6 of the
CCC Marketing Plan (written in Marketing Plan Pro).

5.5.1 Sales Forecast

The sales figures shown below include the projection based solely on hourly rate consulting
during the first year of business. Yearly figures for subsequent years include the growth of
retainer and project consulting income as business grows.

Sales Monthly

Sales Forecast
Unit Sales 2001 2002 2003
Hourly Rate Consulting 660 1,152 1,152
Retainer Consulting 0 5 10
Project Consulting 0 6 12
Other 0 0 0
Total Unit Sales 660 1,163 1,174
 
Unit Prices 2001 2002 2003
Hourly Rate Consulting $75.00 $75.00 $75.00
Retainer Consulting $0.00 $0.00 $0.00
Project Consulting $0.00 $600.00 $600.00
Other $0.00 $0.00 $0.00
Sales
Hourly Rate Consulting $49,500 $86,400 $86,400
Retainer Consulting $0 $0 $0
Project Consulting $0 $3,600 $7,200
Other $0 $0 $0
Total Sales $49,500 $90,000 $93,600
 
Direct Unit Cost 2001 2002 2003
Hourly Rate Consulting $10.00 $10.00 $10.00
Retainer Consulting $0.00 $0.00 $0.00
Project Consulting $0.00 $79.98 $79.98
Other $0.00 $0.00 $0.00
Direct Cost of Sales 2001 2002 2003
Hourly Rate Consulting $6,598 $11,517 $11,517
Retainer Consulting $0 $0 $0
Project Consulting $0 $480 $960
Other $0 $0 $0
Subtotal Direct Cost of Sales $6,598 $11,997 $12,477

5.6 Strategic Alliances

Calico Computer Consulting will need to focus on networking with local computer stores and
local business organizations (such as Chamber of Commerce and local SBDC) to develop
strategic alliances. Such organizations, which may not be customers in themselves, will be
valuable in providing leads to new customers.

5.7 Milestones

The milestones listed in the table below outline primarily the tasks needed to develop this
business plan and get the start-up business to opening day. The milestones table in the marketing
plan will be a more comprehensive listing of the tasks involved in promoting and sustaining
CCC's business.
Milestones
Milestones Start Date End Date Budget Manager Department
Research the right business 6/20/2000 7/24/2000 $0 Owner n/a
Test assumptions 8/1/2000 9/3/2000 $0 Owner n/a
Improve business mgmt. skills 10/20/2000 11/24/2000 $0 Owner n/a
Determine the right business 12/1/2000 1/3/2001 $0 Owner n/a
Prepare personal financials 1/20/2001 2/24/2001 $0 Owner n/a
Decide on target customers 3/20/2001 4/24/2001 $0 Owner n/a
Know the industry 5/1/2001 6/3/2001 $0 Owner n/a
Decide on location 1/20/2001 2/24/2001 $0 Owner n/a
Select business name 3/20/2001 4/24/2001 $0 Owner n/a
Secure location 5/1/2001 6/3/2001 $0 Owner n/a
Establish business contacts 5/1/2001 6/3/2001 $0 Owner n/a
Expand information base 1/20/2001 2/24/2001 $0 Owner n/a
Choose business form 3/20/2001 4/24/2001 $0 Owner n/a
Establish good information flow 5/1/2001 6/3/2001 $0 Owner n/a
Check all systems 5/20/2002 6/24/2002 $0 Owner n/a
Total $0
UK: Implementing a Strategic Plan Successfully

Strategic planning is crucial to profitable business growth, but companies typically realise only
about 63% of their business strategy's potential financial value because of defects and
breakdowns in strategic planning and implementation. Put another way, the opportunity value of
getting your strategic plan execution right is huge!

Problems of strategic plan implementation

A survey of our client base found that before we started working with them, only 15% of our
clients made it a regular practice to go back and compare their business results with the
performance forecast for each of their business units in its three-to-five-year strategic plan.
Furthermore, when they did make the comparison, they found that performance rarely matched
the previous year's projections.

Implementation is the most difficult part of the strategic planning process. It involves achieving
the objectives set out in the strategic plan while remaining alert and flexible to new opportunities
as they unfold.

For successful implementation, the strategic plan has to be robust in the first place. In other
words, it must be realistic and solidly grounded in the underlying economics of the organisation's
markets. For guidance on drawing up a high quality strategic plan, see the TCii White Paper
"Strategic planning".
What is effective strategic plan implementation?

Implementation effectiveness can be measured by how well the business meets the financial
projections set out in the strategic plan.

To achieve effective implementation, a business must ensure that any changes initiated by the
strategic plan are reflected in areas such as budgeting, reward schemes and information systems.
The overall goal is to integrate the results of strategic planning with daily, weekly and monthly
routines.

The goals articulated in the strategic plan should drive marketing and sales efforts, human
resources practices and research and development. These goals become a central part of the
business by guiding daily operational activities.

Four fundamentals of strategic plan implementation

Once you have a robust strategic plan in place, the following actions are crucial to successful
implementation.

1. Avoid common implementation mistakes.

2. Reach out to stakeholders.
3. Measure progress in the strategic plan.
4. Monitor the strategic plan.

1. Avoid common strategic plan implementation mistakes

Strategic planning entails risks. The strategic planning process may expose underlying conflicts
within the organisation. It may disrupt the flow of information and the ways decisions are made.
The point is not to allow current operating problems to dictate or deter long-range strategic
planning.

Some of the commonest strategic plan implementation mistakes are outlined below.

 Just saying no. Management ends up discarding the strategic plan, choosing instead to
make intuitive decisions that clash with accepted strategic objectives. The result is
confusion throughout the ranks of employees.

 Lack of communication. The strategic plan is not communicated to front-line

employees, who are therefore working in the dark.

 Losing sight. Managers are so tied up in day-to-day operating problems that they lose
sight of the long-term strategic goals.
  "Bolt-on" syndrome. The strategic plan is treated as something separate and removed
from the daily management of the business.

 Business as usual. Once the strategic plan has been drawn up, managers simply carry on
as before.

 Wimping out. Management recoils from making the tough choices that the strategic plan
may call for.

 The wrong scoreboard. Managers measure what's easy, not what's important.

 No yardstick. The business neglects to benchmark itself against its competitors, so it

can't measure its progress against them.
 The be-all and end-all. Management sees the strategic planning document as an end in
itself.
 Confusing terminology and language. People don't understand what you want because
it isn't expressed clearly in the strategic plan.

2. Reach out to stakeholders

Channels of communication

Above all else, the business must communicate strategy clearly and regularly to employees.
When the CEO and top management demonstrate the link between business strategy and
specific business decisions, front-line staff are encouraged to think strategically too.

We suggest an informal chat between strategic planning team members and employees. Take the
written strategic plan document back to the people you influence and discuss it with them in a
conversational manner. Set up a feedback mechanism – suggestion box, one-on-one meeting,
monthly updates – so that they have a chance to respond as well.

Communicating the strategic plan facilitates employee "buy-in" and a broader understanding of
the organisation's strategic goals and objectives.

The underlying process of strategic change

Strategic change is like an iceberg: around two thirds of it is beneath the surface. In an
organisation, everyone focuses on the content of the strategic change. But the problem isn't just
to identify what needs to be done differently. You also need to think about how the strategic
change will be managed.

The question is whether you make this process work for you or against you.
If your people don't buy into the underlying process of change management, it will fail.

Opening other communication channels

Don't just reach out to your employees: share the strategic plan with other stakeholders, such as
investors, customers and alliance partners. An "open book" approach will likely generate more
helpful ideas and suggestions about the future of your business.

3. Measure progress in the strategic plan

You can measure how well strategic plan implementation is progressing through key indicators
such as revenue, gross sales and the number of new customers. The strategic planning team must
decide what measurements are most applicable to long-term strategic objectives.

If you can't measure it, you can't manage it. So what things should you be measuring? Here are a
few ideas:

 number of new customers

 total new product sales
 percentage margin
 return on assets
 return on equity
 return on investment
 market share
 employee morale
 customer satisfaction.

4. Monitor the strategic plan

Finally, to keep your strategic plan alive, you must monitor it. Here are some guidelines.

 Regular updates. Review progress on a monthly or quarterly basis, depending on the

level of activity and time frame of the strategic plan. This applies to corporate, regional
and departmental strategies. Specific tasks should be part of relevant strategic
management meetings.

 Challenge underlying assumptions. While monitoring the strategic plan's progress,

continue to examine its underlying assumptions, the continued validity of its strategic
objectives and the influence of unanticipated events.

 Create a champion for every strategy and action. The strategy champion has to be
someone other than the CEO, because the latter isn't accountable to anyone. The strategy
champion doesn't necessarily have to complete the actions, but must see that they get
done.
  Stay committed. Every strategy-related action must have a due date. As CEO you can let
the due date slip, but don't let it go away. This tells the strategy champion that you aren't
giving up on the strategy. If you keep following up, the strategy champion will see that
you're serious about the strategy and putting it into effect.

 Conduct short-term strategy reviews. We suggest scheduling team "huddles" every 90

days to keep the strategic plan reviewed, reloaded and re-energised. These huddles also
allow you to distinguish those individuals who are getting things done and those who
aren't (the "empty suits"). Alternatively, you can schedule 60-day strategy reviews by
senior management. These are an opportunity to take another look at the original plan,
determine whether strategic objectives are being met, and agree new action steps as
necessary.

 Expand skills. In the weeks and months following the strategic planning process, expand
employee skills through training, recruitment or acquisition to include new competencies
required by the strategic plan.

 Target sales. Sales and marketing tools form the link between business strategy and sales
strategy. Designed correctly, these sales tools communicate an organisation's value and
message to the marketplace, and generate positive feedback from customers and clients.

 Set strategic plan milestones. Go beyond monitoring: build into the strategic plan
milestones that must be achieved within a specific time frame. Many companies do this
on a monthly or weekly basis.

 Reward success. Find creative ways to motivate people and reward them for focusing on
the strategy and vision. We call it the "pucker factor". Establish some positive/negative
consequences for achieving/not achieving the organisation's stated strategy. These
consequences may be great or small, so long as they serve to make the strategy a priority
in people's minds.

The strategic change process: an 11-point checklist

1. Finalise a strategic plan or major change with a roll-out plan.

2. Align the budget to annual priorities and fund the strategic change.
3. Build all department, division and unit annual plans around the organisation-wide annual
priorities and goals.
4. Set up a bimonthly or quarterly strategic change leadership steering committee to manage
the strategic change process.
5. Establish key success measures and a tracking system.
6. Revise the performance management and rewards systems.
7. Examine your organisational structure and staff/succession planning to ensure that they
support the vision projected in the strategic plan.
8. Initiate staff development to build your own internal cadre of expertise with skills to
achieve your vision and core values.
 9. Draw up a game plan to ensure a critical mass for strategic change.
10. Set sponsorship teams in place for each core strategy.
11. Set a date for an annual strategic and business planning review.

What next for your strategic plan?

After considerable work and effort, a strategic plan is in place. Is the job done? The answer is a
firm NO!

Be prepared to switch strategies

Over the life of a strategic plan, a company's vision may stay the same but its strategies will
probably need to be revised. Some businesses can maintain a strategic plan for a year or longer,
while others have to respond to market changes in less time. Usually, this means refining specific
strategies and goals to meet changing circumstances each year.

A strategic plan should be "proactively reactive". Move ahead with the strategic plan as
designed, but be prepared to let go and switch strategies as necessary. In other words: "If the
horse is dead, you have to get off."

Choose your strategic approach

No one strategic planning model is right for all organisations or circumstances. Strategic
planning teams can choose from a variety of models with an even wider range of approaches.
But we believe a business that develops and executes a strategic plan well gains significantly
from the experience.

Make your strategic plan a living document

In today's business environment, everyone is short on time and money. But being "too busy" may
actually result from an unwillingness to confront certain long-term issues, such as accessibility of
resources, acquisition of new technology, co-ordination of personnel efforts, even questions
about the company's overall direction. Until such issues are finally addressed, precious time is
lost for other urgent needs.

Similarly, many organisations feel inhibited from strategic planning during periods of limited
financial resources. But by setting future business goals and objectives in place, the strategic
planning process helps to set new priorities for funds and personnel. A good strategic plan allows
a business to deal imaginatively with restricted time and budgets.

The strategic plan has to be a living document. The lifespan of a strategic plan can be anywhere
from three months to three years, but the important thing is that the strategic plan represents a
shared vision of where the business is headed and what's needed to get there in the time to come.
Strategic planning implementation: best practice examples

Here are three examples of how good implementation of strategy can deliver extraordinary
results.

1. Strategic planning to track performance

Dow Chemical's performance was in free fall. TCii developed a performance improvement
strategy to address the issue.

We devised clear performance metrics for each of Dow's 79 business units. Performance on these
units was tracked against strategic plans on a weekly basis, and the Dow leadership team
discussed any serious discrepancies first thing every Monday morning. These weekly sessions
forced everyone to live the details of strategy execution, and let the entire organisation know
how they were performing.

This simple strategy implementation step played an important role in the dramatic revival of
Dow's business.

2. Strategic planning to improve turnaround times

The performance of the Carphone Warehouse logistics centre in the UK West Midlands was
poor, with unacceptably long service and delivery times to its 610 UK stores and to individual
online purchasers.

We devised a logistics centre development strategy in close co-operation with both the
company's HQ in London and the local management of the logistics centre.

The key steps of the strategy were broken down into smaller steps and allocated to local task
force teams, who reported weekly on progress, difficulties and planned next steps.

The logistics centre general manager and the head office team reviewed progress of the strategy
every week, and agreed changes and/or corrective action. These requirements were fed back the
same day to the local teams, who then met briefly to agree individual actions for the team
members.

This process was so successful in improving turnaround times and removing bottlenecks that it
became a permanent feature of the logistics centre. Head office has now rolled out the practice to
all operations.

As a result, Carphone Warehouse now has a culture of overperformance, which has been
reflected in an improvement in the company's reputation among potential recruits and an increase
in its share value. In short, the strategy's successful implementation has created a virtuous circle
of improvement for the company.
3. Strategic planning to increase market penetration

Henkel's adhesives business in the Russian Federation had grown rapidly over a four-year
period. The company asked TCii to help develop and implement a business strategy to drive the
next phase of business expansion.

First we analysed the existing business and identified gaps and strategic opportunities. Our
research showed that the majority of goods distributed in Russia flowed via the 12 cities with a
population of 1 million or more. But within these cities, Henkel's products had an average market
penetration of only 20%.

We helped the Henkel team draw up a strategic plan to gain a significant part of that missing
80%. After making a detailed "market map" showing the key sales channels in each of the 12
cities and their surrounding areas, we overlaid it with a map of the channels in which Henkel
already had a presence.

We analysed the gaps in detail: store types, numbers, locations, relative importance, and so on.
We then drew up a prioritised target list of the potential distribution points, and a dedicated
business development team was directed to secure these.

Finally, we arranged for progress to be analysed on a weekly basis, and for experience and
learning points to be shared in the team – for example, via an online progress database and in
Monday morning review meetings.

During the next two years Henkel's market penetration increased from an average of 20% to an
average of 60%, and sales doubled. We continue to use the system today, to grow distribution
still further.

The content of this article is intended to provide a general guide to the subject matter. Specialist
advice should be sought about your specific circumstances.