Leading the strategy execution process involves staying on top of the situation and monitoring progress, putting constructive pressure on the organization to achieve operating excellence, and initiating corrective actions to improve the execution effort. Using your university's library resources, discuss a recent example of how a company's managers have demonstrated the kind of effective internal leadership needed for superior strategy execution.

 

The formulation of the strategy is one thing. However the application of the plan formulated is of the utmost importance in today's corporate world. In the current case, the introduction of strategy in one of the FMCG companies will be discussed.

-Painpoint: FMCG, referred to as A, was losing out to its rivals in terms of prices. The competing companies were successful in selling the commodity at a lower cost than A. The goods of company A were of a comparable or higher quality than the competitors.

-Strategy: Company A, after a comprehensive analysis, found that one of the primary explanations for the burgeoning expense is the lack of a real-time flow of information. The organization was unable to work with various departments on a single platform and this resulted in information breakdowns along with delayed decision-making, eventually increasing product development time and costs. As a result, the organization decided to focus on the integration of all departments into an ERP/MIS system to minimize the delay in details.

Strategy implementation:

Team effort is one of the main elements of effective plan implementation. The following are the steps taken to ensure successful implementation of the strategy

1- Effective articulation of the top management approach:

The plan does not only recommend a policy and sit back for results to arrive. The plan should be outlined by the top management, along with the timelines and resources required to implement the strategy.

In the case of company A the CEO communicated a comprehensive strategy plan for the deployment of the ERP system for all divisions within 2 years. While this was an ambitious goal, the CEO expressed the vision and urgency to middle management and staff, pledging full support for the execution of the same. A comprehensive schedule showing the dates and times for each department, starting with sales and finance and ending with customer service, has been created. An external contractor was also employed to oversee the entire implementation process, together with A's IT department.

2- Communication with all staff on a daily basis:

Effective implementation of the plan includes a smooth contact between staff, managers and the CEO.

In the case of company A the CEO began by explaining to all staff the need to improve the way business is conducted by introducing the ERP in all departments. Based on the targets set for each department, a weekly progress report is maintained and any issues/glitches have been resolved at lightening pace. Feedback has been constantly taken and mistakes with regard to targets have not been demonized. In reality, the lessons learned from such mistakes were shared with all workers and departments so as not to make the same mistake.

3- Managing the number of strategic initiatives;

It is necessary for any business to manage day-to-day activities. However, giving employees additional management initiatives can reduce the effectiveness of the initiative.

For Company A, strategic teams were created, consisting of individuals from all departments. They were responsible for breaking down the silos found within the company and for effectively working with the IT department for the successful implementation of the ERP within the timelines.

4- Focus on the target without creating fear for employees:

For many companies, a change in the way the business operates can give rise to fear among employees who feel that their work is under threat. This forces many of the workers not to comply with the execution teams. Such a discrepancy needs to be filled by letting workers realize that this transition is to their advantage.

In the case of company A the management of the company ensured that they shared the advantages of such transition and allayed any concerns on the part of the employees of the company by enabling them to be part of the transformation process. Positive campaigns have been set up to raise morale and preparation has been provided to staff in order to adapt them to the transition of the new organization.

5- Finance the initiative via a separate budget-linked channel:

Budget control and alignment with the plan is a key component of implementation.

In the case of company A the CEO has placed a separate budget to handle the transition. All costs related to the execution of the ERP have been included in this budget. This has resulted in smooth and synchronous communication with finance and other departments, ensuring that there are no delays.

Through all of these processes, Company A has been able to bring about change for all departments within the country within the specified period of 2 years.

Step-by-step explanation

The FMCG business lost expense to its rivals. One of the primary reasons for the burgeoning expense is the lack of a flow of knowledge in real time. The organization decided to focus on the integration of all departments into an ERP/MIS system to reduce the delay in details. Effective implementation of the plan includes a smooth contact between staff, managers and the CEO. The CEO should articulate the strategy along with the timelines and resources required to enforce the strategy. The key to successful implementation of the plan is team effort and frequent contact between the CEO, staff and managers. A comprehensive schedule showing the dates and times for each department, starting with sales and finance and ending with customer service, has been created. An external contractor was also employed to oversee the entire implementation process, collaborating with the IT department of A. The strategy was to be implemented within 2 years. Feedback has been constantly taken and mistakes with regard to targets have not been demonized. In reality, the lessons learned from such mistakes were shared with all workers and departments so as not to make the same mistake.

For many companies, a change in the way the business operates can give rise to fear among employees. Such a discrepancy needs to be filled by letting workers realize that this transition is to their advantage. Finance the initiative via a separate budget-linked channel. In the case of company A the CEO has placed a separate budget to handle the transition. All costs related to the execution of the ERP have been included in this budget. This has resulted in smooth and synchronous communication with finance and other departments, ensuring that there are no delays. Through all of these procedures, Company A was able to pull out of the transition for all departments within the country within a defined period of 2 years.