Edinburgh Business School MBA AUC Academic Partner Strategic Planning Module 8 Implementing and Evaluating Strategy Instructor: Moataz Darwish, MBA The Model Introduction – Moataz Darwish 2 Contents 1. 2. 3. Implementing Plans 8/2 Organizational Structure 8/3 Resource Allocation 8/6 1. 2. 3. 4. 5. 6. 7. 4. Evaluation and Control 8/12 1. 2. 5. 6. 7. Management of Change 8/6 Critical Success Factors 8/7 Management Style 8/7 Budgets 8/8 Incentives and Alignment 8/9 Setting Sales Targets 8/10 Resource Planning 8/11 Monitoring Market Share 8/14 Monitoring Profitability 8/15 Feedback 8/18 The Augmented Process Model 8/19 Postscript: Strategic Planning Works 8/23 Introduction – Moataz Darwish 3 Implementing Plans Difficult to isolate implementation as an independent activity from planning in practice. Choosing strategy is not an end in itself; unless there is a mechanism for making it happen it is a somewhat pointless activity. Feedback process is of at most importance. Feedback and continuous reaction are important elements of the process model. Introduction – Moataz Darwish 4 Organizational Structure The question of: whether structure follows strategy or vice versa? Functional (U form) Divisional (M form) Holding company Matrix Networks FUNCTIONAL STRUCTURE Groups individuals according to their specialties rather than around products. DIVISIONAL STRUCTURE (products or geographical boundaries) Helps in resolving the principal/agent problem in that Divisional profitability can be more easily measured than functional returns. The extent to which divisions are independent of the corporate centre varies among companies; Differentiated product portfolio or operates in different countries Introduction – Moataz Darwish 5 Organizational Structure 2 key questions to ask: How different forms of organisation are likely to contribute to the creation of value? Is the structure likely to be consistent with, or flexible e