The successful strategy formulation does not guarantee successful strategy implementation. It is always more difficult to do something, i.e., strategy implementation, than to say you are going to do it, i.e., “Strategy Formulation”. Although inextricably linked, strategy implementation differs from the strategy formulation.
Strategy formulation and implementation can be contrasted in the following ways:
Strategy formulation concepts and tools do not differ greatly for small, large, for-profit and nonprofit organizations. However, strategy implementation varies substantially among different types and sizes of organizations. Implementing strategies requires such actions as:
- Altering sales territories;
- Adding new departments;
- Closing facilities;
- Hiring new employees;
- Changing an organization’s pricing strategy;
- Developing financial budgets;
- Developing new employee benefits;
- Establishing cost-control procedures;
- Changing advertising strategies;
- Building new facilities;
- Training new employees;
- Transferring managers among divisions, and
- Building better management information systems.
These types of activities obviously differ greatly between manufacturing, service, and governmental organizations. However, the most common issues and barriers in the strategy implementation of the strategy are as discussed in the following section.
