Strategy Implementation

Structure defines how activities are divided, coordinated, and controlled within an organisation. The structure must support the strategy — "structure follows strategy" (Chandler, 1962).

The McKinsey 7S model (Peters and Waterman, 1982) identifies seven interdependent elements that must be aligned for an organisation to implement strategy effectively. A change in one element requires adjustments in the others.

Three "hard" elements (tangible, easier to define and manage):

• Strategy: The plan for achieving competitive advantage — the chosen direction and positioning
• Structure: The organisational structure — how the firm is organised, reporting lines, division of responsibilities
• Systems: The processes, procedures, and systems that support daily activities — IT systems, financial reporting, HR processes, quality systems, performance management

Four "soft" elements (intangible, harder to define and change, but often more critical):

• Shared values: The core values, beliefs, and purpose of the organisation — its culture and identity. Located at the centre of the model because they influence all other elements.
• Skills: The distinctive capabilities and competences of the organisation and its people
• Staff: The people — numbers, types, development, and how they are recruited, trained, motivated, and retained
• Style: The leadership and management style — how managers behave, how decisions are made, how communication flows

Application: When implementing a new strategy, use 7S to identify which elements need to change and whether they are aligned. Misalignment (e.g., a new innovation strategy with a bureaucratic structure, risk-averse culture, and systems designed for efficiency not creativity) will lead to implementation failure. The model highlights that strategy alone is insufficient — all seven elements must support it.

Strategic change is difficult because it involves altering established patterns of behaviour, challenging the status quo, and overcoming resistance.

Lewin's Three-Stage Model of Change

Kotter's Eight Steps for Leading Change

Handy's four cultural types (Harrison/Handy):

Johnson's cultural web:

A tool for analysing the taken-for-granted assumptions (the paradigm) that shape an organisation's culture. Six elements surround the paradigm:

1. Stories: Narratives about the organisation's history — what people talk about, who are the heroes and villains, what events are celebrated or condemned
2. Symbols: Visual representations of culture — logos, offices, dress codes, language, job titles, company cars, parking spaces
3. Power structures: Who holds the real power — which groups or individuals are most influential? Their assumptions shape the paradigm.
4. Organisational structures: Formal hierarchy and informal networks — how work is organised, who reports to whom, who collaborates with whom
5. Control systems: What gets measured, monitored, and rewarded — financial controls, quality systems, performance metrics. "What gets measured gets managed."
6. Rituals and routines: The daily behaviours and practices that signal "how things are done around here" — meetings, onboarding, training, social events

The paradigm is the core set of assumptions and beliefs — the organisation's "way of seeing the world." To change strategy, the paradigm often needs to change, which requires addressing ALL six elements of the cultural web.

Leadership style affects how strategy is implemented and how change is managed. Different situations require different styles.

Situational leadership: The most effective leaders adapt their style to the situation — there is no single "best" style. The appropriate style depends on: the urgency of the situation, the experience and maturity of the team, the complexity of the task, the organisation's culture, and the nature of the change required.

Strategic initiatives are often managed as projects — temporary endeavours with defined objectives, scope, timeline, and resources.

Key elements of effective project management for strategy implementation:

• Clear objectives and scope: Define what the project will deliver, the boundaries (in scope/out of scope), and success criteria (measurable outcomes)
• Project plan: Break the project into phases, milestones, and tasks. Define dependencies, timelines, and resource requirements. Tools: Gantt charts, critical path analysis, work breakdown structures.
• Governance: Clear project sponsor (senior leader with authority and accountability), project board/steering committee (oversight and decision-making), project manager (day-to-day delivery)
• Resource allocation: Assign people, budget, and technology. Ensure resources are available when needed. Manage competing demands on shared resources.
• Risk management: Identify project risks (delays, cost overruns, scope creep, resource constraints, stakeholder resistance). Assess likelihood and impact. Develop mitigation plans.
• Communication plan: Define who needs to know what, when, and how. Regular progress reporting. Stakeholder engagement strategy.
• Monitoring and control: Track progress against the plan. Manage scope changes through a formal change control process. Address issues promptly. Use earned value analysis or other tracking methods.
• Benefits realisation: Track whether the strategic benefits are actually being achieved after implementation. The project is not complete when the system goes live — benefits often take months or years to materialise.