57  Strategy Implementation

57.1 What is Strategy Implementation?

Strategy Implementation is the action stage of the strategic-management process — translating formulated strategy into actions through resource allocation, structure, systems, people and culture. As Larry Bossidy and Ram Charan observed in Execution (2002), “strategy is only as good as its execution”. Kaplan-Norton’s Execution Premium (2008) is the modern textbook; Sumantra Ghoshal highlighted execution discipline as the differentiator.

TipWorking definitions
Author Definition
Fred R. David “Strategy implementation requires personal discipline, commitment and sacrifice; success depends on the ability of managers to motivate employees.”
Bossidy & Charan “Execution is a systematic process of rigorously discussing how and what, questioning, tenaciously following through and ensuring accountability.”
Wheelen & Hunger “Strategy implementation is the sum total of activities and choices required for the execution of a strategic plan.”
Hrebiniak “Doing what has been planned — through structure, people, processes and culture.”

57.2 Why Implementation is Hard — Hrebiniak (2005)

Lawrence Hrebiniak (Wharton, Making Strategy Work, 2005) — empirical surveys show 60-90 % of strategies fail to achieve intended results because of poor implementation, not bad strategy.

TipReasons strategies fail in implementation
  • Inability to manage change — including culture and resistance.
  • Poor or vague strategy — unclear priorities.
  • Lack of guidelines / model for execution.
  • Sharing of information — fragmented across silos.
  • Conflicting reward systems.
  • Inadequate top-management support.
  • Resource constraints — funds, talent.
  • Power and politics.
  • Time pressure.

57.3 Formulation vs Implementation

TipFormulation vs Implementation
Dimension Formulation Implementation
Focus Positioning before action Managing forces during action
Key skill Analytical, conceptual Operational, behavioural
Where conducted Top of organisation Throughout organisation
Time Less time-pressured Time-bound execution
Tools Frameworks, analysis Structure, systems, leadership
Personnel Strategic thinkers All managers and employees
Errors Cost of opportunity Cost of inefficiency

57.4 Components of Implementation

flowchart TB
  SI[Strategy<br/>Implementation]
  SI --> RA[Resource<br/>Allocation]
  SI --> ST[Structure]
  SI --> PR[Processes &<br/>Systems]
  SI --> LE[Leadership]
  SI --> CU[Culture]
  SI --> HR[People / HR]
  SI --> CO[Communication]
  SI --> CT[Control &<br/>Evaluation]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

TipEight implementation levers
  • Resource allocation — financial, physical, human, intangible.
  • Organisational structure — design and reporting.
  • Processes and systems — operating procedures, IT.
  • Leadership — vision, commitment.
  • Culture — values, climate.
  • People / HR — skills, motivation.
  • Communication — clarity, cascading.
  • Control and evaluation — feedback loops.

57.5 Structure Follows Strategy — Chandler (1962)

Alfred D. Chandler’s Strategy and Structure (1962) — studied DuPont, GM, Sears, Standard Oil and concluded: “Structure follows strategy” — new strategies create administrative problems that drive new structures. The reverse — “strategy follows structure” — is also observed (Mintzberg).

57.6 Types of Organisational Structures

TipMajor organisational structures
Structure Description Suited for
Simple / Entrepreneurial Owner-managed; flat Small firms, start-ups
Functional Grouped by function Single product / business
Divisional / M-Form Grouped by product, market, geography Multi-product / multi-market
SBU Strategic Business Units Diversified
Matrix Dual reporting (functional + project) Project-based firms, global firms
Network / Virtual Outsourced functions IT, fashion
Holding / Conglomerate Independent subsidiaries Large diversified groups
Team-based / Hollow Self-managed teams Modern agile firms
Hypercompetitive / Modular Rapid reconfiguration Tech, fast-moving sectors
NoteM-Form vs U-Form (Chandler-Williamson)
  • U-Form (Unitary) = Functional structure (CEO + functional heads).
  • M-Form (Multidivisional) = Divisional structure (CEO + division presidents); pioneered by Alfred Sloan at GM (1923-1956).
  • Oliver Williamson (Nobel 2009) showed M-Form reduces agency costs of growth and diversification.

57.6.1 Matrix Structure

TipMatrix structure — pros and cons

Pros: dual focus on function + project; resource sharing; faster decisions. Cons: dual reporting causes confusion; power struggles; slow decisions in conflict; “matrix fatigue”.

57.7 Galbraith’s Star Model

Jay Galbraith’s Star Model (1977, 1995) — five elements of organisational design that must align:

TipGalbraith’s Star Model
  • Strategy — direction and intent.
  • Structure — power and reporting.
  • Processes — flows of information.
  • Rewards — what is measured and incentivised.
  • People — capabilities and culture.

57.8 McKinsey 7S Framework

The McKinsey 7S Framework — developed by Tom Peters, Robert Waterman, Richard Pascale and Anthony Athos at McKinsey & Company (1980), presented in In Search of Excellence (1982). Seven interdependent elements must be aligned for effective implementation.

flowchart TB
  SV[Shared Values<br/>Centre]
  SV --- SR[Strategy]
  SV --- ST[Structure]
  SV --- SY[Systems]
  SV --- SK[Skills]
  SV --- SS[Style]
  SV --- SF[Staff]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

TipMcKinsey 7S — three hard + four soft
Category Element
Hard Strategy · Structure · Systems
Soft Shared Values (centre) · Skills · Style · Staff

57.9 Resource Allocation

TipResource allocation in implementation
  • Capital budgeting — funding strategic initiatives (Topic 46).
  • Operating budgets aligned with strategy.
  • Strategic budgeting — link to strategic plan.
  • HR allocation — staffing and talent.
  • IT and technology allocation.
  • Time — leadership attention.
  • R&D allocation.
  • CapEx phasing.

57.10 Leadership and Strategic Execution

Strategic Leadership = the ability to anticipate, envision, maintain flexibility, think strategically and work with others to initiate changes that create a viable future for the organisation (Hitt, Ireland, Hoskisson).

TipSix tasks of strategic leadership (Hitt-Ireland-Hoskisson)
  • Determining strategic direction.
  • Managing the resource portfolio.
  • Sustaining an effective culture.
  • Emphasising ethical practices.
  • Establishing balanced organisational controls.
  • Developing human and social capital.

57.10.1 Transactional vs Transformational Leadership

TipLeadership styles in implementation
  • Transactional — reward-and-punish, exchange-based — Bernard Bass (1985).
  • Transformational — vision, inspiration, individualised consideration, intellectual stimulation — James MacGregor Burns (1978) and Bass-Avolio.
  • Servant Leadership — Robert K. Greenleaf (1970).
  • Authentic Leadership — George (2003).
  • Adaptive Leadership — Heifetz (1994).
  • Level 5 Leadership — Jim Collins (Good to Great, 2001): humility + professional will.

57.11 Culture and Strategy — “Culture Eats Strategy”

Peter Drucker is widely (though not verifiably) quoted as saying “Culture eats strategy for breakfast.” The point: culture trumps strategy when there is misalignment.

TipCulture-strategy fit
  • Strong culture + supportive of strategy → execution accelerator.
  • Strong culture + opposed to strategy → execution killer.
  • Weak culture → strategy may slip through but uneven.
  • Need to manage cultural change alongside strategic change.

57.11.1 Approaches to Culture Change

TipCultural-change levers
  • Leadership signalling.
  • Hiring and firing for culture.
  • Reward and promotion systems.
  • Rituals and ceremonies.
  • Stories and symbols.
  • Physical layout and space.
  • Mission and values restatement.
  • Training and OD interventions.

57.12 Change Management in Implementation

Strategic implementation often requires significant change. Key models (Topic 30):

TipChange models for implementation
  • Lewin’s 3 stages (1947): Unfreeze → Change → Refreeze.
  • Kotter’s 8 steps (1996): Urgency, Coalition, Vision, Communicate, Empower, Wins, Consolidate, Anchor.
  • ADKAR (Hiatt 2003): Awareness, Desire, Knowledge, Ability, Reinforcement.
  • Bridges’ Transition Model (1991): Ending, Neutral Zone, New Beginning.
  • McKinsey Influence Model: Role-modelling, Storytelling, Reinforcement, Capability-building.

57.13 Communication of Strategy

TipStrategy communication best practices
  • Cascading from top to operating levels.
  • Townhalls and roadshows.
  • Strategy maps (Kaplan-Norton).
  • OKRs / KPIs cascade.
  • Repetition — minimum 7 exposures.
  • Multiple channels — written, oral, digital, visual.
  • Storytelling for emotional resonance.
  • Leader visibility.

57.14 Strategic Control and Evaluation

The fourth step of strategic management — measure performance, take corrective action.

TipSchreyögg-Steinmann’s four types of strategic control
Control When applied
Premise Control Test assumptions underlying strategy
Implementation Control Monitor progress of strategic action
Strategic Surveillance Broad scan for unanticipated events
Special Alert Control Reaction to unexpected events

57.14.1 Newman’s Control Tradition

William Newman classified controls as feedforward · concurrent · feedback based on timing.

57.14.2 Levels of Control

TipLevels of control
Level Focus
Strategic Long-term vision, mission, strategy fit
Tactical Mid-term plans, budgets
Operational Day-to-day standards, output

57.15 Performance Measurement Systems

57.15.1 Balanced Scorecard — Kaplan-Norton (1992)

Robert Kaplan and David Norton — measure performance across four perspectives: Financial · Customer · Internal Process · Learning & Growth (Topic 27).

57.15.2 Strategy Maps — Kaplan-Norton (2004)

Visual representation of cause-effect links across BSC perspectives — from Learning & Growth at bottom to Financial at top.

57.15.3 Six Sigma and TQM

Operational quality methods that operationalise implementation.

57.15.4 Hoshin Kanri (Policy Deployment)

Japanese system — cascade top-level policy through the organisation; PDCA at every level.

57.15.5 OKRs

Andy Grove (Intel); John Doerr (Google 1999) — cascading Objectives + Key Results system.

57.15.6 EVA / MVA

Economic Value Added (Stern Stewart 1991) as a strategic financial metric.

57.15.7 KPIs and Dashboards

Real-time, visual measurement supporting fast feedback.

57.16 Reward Systems and Strategy

TipReward-strategy alignment principles
  • Pay-for-performance — link to KPIs.
  • Equity-based — ESOPs / RSUs for long-term alignment.
  • Team-based incentives for collaboration.
  • Recognition — non-monetary.
  • Penalties for non-performance.
  • Tournament theory — promotion as incentive.
  • Long-term incentive plans (LTIPs) for executives.

57.17 Pitfalls of Implementation — Pearce-Robinson

TipCommon implementation pitfalls
  • Strategy not communicated.
  • Lack of senior commitment.
  • Misaligned structure.
  • Inadequate skills / capability gaps.
  • Culture mismatch.
  • Resource constraints.
  • Resistance to change.
  • Power struggles.
  • External shocks.
  • Poor measurement and feedback.
  • Overly complex strategy.
  • Implementation overload.

57.18 Indian Examples

TipIndian implementation cases
  • Reliance Jio (2016) — rapid 4G roll-out; price disruption.
  • Maruti’s flexible production — local supply chain.
  • Infosys’ Global Delivery Model — structure aligned with offshoring strategy.
  • HUL’s Project Shakti — distribution into rural India.
  • Aravind Eye Care — process redesign for cataract surgery (low cost + high volume).
  • ITC’s E-Choupal — disintermediation in agri-procurement.
  • Tata’s transformation under Ratan Tata post-1991.
  • Indian Railways’ modernisation under Vinod Kumar Yadav.

57.20 Practice Questions

Q 01 Chandler Easy

"Structure follows strategy" was the dictum of:

  • AAlfred Chandler
  • BMichael Porter
  • CHenry Mintzberg
  • DIgor Ansoff
View solution
Correct Option: A
Alfred D. Chandler, *Strategy and Structure* (1962).
Q 02 7S Medium

In McKinsey 7S, the centre is:

  • AStrategy
  • BStructure
  • CShared Values
  • DStyle
View solution
Correct Option: C
**Shared Values** = centre; links 3 Hard (Strategy, Structure, Systems) + 4 Soft (Skills, Style, Staff).
Q 03 7S Authors Hard

McKinsey 7S was developed by:

  • APeters, Waterman, Pascale & Athos
  • BPorter & Lawler
  • CKaplan & Norton
  • DGalbraith
View solution
Correct Option: A
Tom Peters, Robert Waterman, Richard Pascale, Anthony Athos at McKinsey (1980); *In Search of Excellence* (1982).
Q 04 M-Form Medium

The M-Form (Multidivisional structure) was pioneered at GM by:

  • AAlfred Sloan
  • BHenry Ford
  • CPierre du Pont
  • DIacocca
View solution
Correct Option: A
Alfred Sloan at GM (1923-1956); Oliver Williamson (Nobel 2009) theorised on M-Form efficiency.
Q 05 Galbraith Hard

Galbraith's Star Model has how many elements?

  • A3
  • B5
  • C7
  • D10
View solution
Correct Option: B
Five: Strategy · Structure · Processes · Rewards · People.
Q 06 Schreyögg Hard

Schreyögg-Steinmann's four types of strategic control include all EXCEPT:

  • APremise Control
  • BImplementation Control
  • CStrategic Surveillance
  • DBudgetary Control
View solution
Correct Option: D
Premise · Implementation · Strategic Surveillance · **Special Alert**. Budgetary is operational.
Q 07 Culture eats Medium

"Culture eats strategy for breakfast" is attributed to:

  • APeter Drucker
  • BMichael Porter
  • CEd Schein
  • DTom Peters
View solution
Correct Option: A
Widely attributed to Peter Drucker (citation uncertain).
Q 08 Bossidy Medium

The book *Execution: The Discipline of Getting Things Done* (2002) is by:

  • ALarry Bossidy & Ram Charan
  • BJack Welch
  • CTom Peters
  • DJim Collins
View solution
Correct Option: A
Larry Bossidy and Ram Charan (2002).
Q 09 Level 5 Hard

"Level 5 Leadership" — humility + professional will — was articulated by:

  • AJim Collins
  • BJohn Kotter
  • CStephen Covey
  • DJames Burns
View solution
Correct Option: A
Jim Collins, *Good to Great* (2001).
Q 10 Matrix Medium

Matrix structure is best suited for:

  • ASingle-product firms
  • BProject-based and complex firms with dual demands
  • CSmall start-ups
  • DHighly hierarchical bureaucracies
View solution
Correct Option: B
Dual reporting (functional + project) → suited for complex / project firms.
Q 11 BSC Easy

The Balanced Scorecard's four perspectives include all EXCEPT:

  • AFinancial
  • BCustomer
  • CCompetitor
  • DLearning & Growth
View solution
Correct Option: C
Four: Financial · Customer · Internal Process · Learning & Growth.
Q 12 Hoshin Hard

"Hoshin Kanri" is a Japanese system of:

  • AQuality circles
  • BStrategic policy deployment
  • CJust-in-time inventory
  • DTotal Productive Maintenance
View solution
Correct Option: B
Hoshin Kanri — cascade strategic policy from top to floor; PDCA loops.
Q 13 Transformational Medium

"Transformational Leadership" was originally articulated by:

  • AJames MacGregor Burns
  • BBernard Bass
  • CStephen Covey
  • DWarren Bennis
View solution
Correct Option: A
James MacGregor Burns (1978); Bass-Avolio operationalised.
Q 14 7S Hard Medium

In McKinsey 7S, the three "Hard" Ss are:

  • AStrategy, Structure, Systems
  • BStyle, Staff, Skills
  • CShared Values, Strategy, Style
  • DSkills, Strategy, Style
View solution
Correct Option: A
Hard: Strategy · Structure · Systems. Soft: Skills · Style · Staff · Shared Values.
Q 15 Network structure Medium

A "network / virtual" organisation:

  • AOwns all activities in-house
  • BOutsources many functions to specialists
  • CIs highly bureaucratic
  • DHas no employees at all
View solution
Correct Option: B
Network/Virtual — coordinate outsourced specialists; e.g., Nike, Cisco-style.
Q 16 Greenleaf Hard

"Servant Leadership" was articulated in 1970 by:

  • ARobert K. Greenleaf
  • BStephen Covey
  • CWarren Bennis
  • DPeter Drucker
View solution
Correct Option: A
Robert K. Greenleaf (1970) — *The Servant as Leader*.
Q 17 Failure rate Hard

Hrebiniak's research shows approximate rate of strategy implementation failure at:

  • A10-20 %
  • B30-40 %
  • C50 %
  • D60-90 %
View solution
Correct Option: D
60-90 % of strategies fail to achieve intended results.
Q 18 7S Soft Medium

Which of the following is a "Soft" S?

  • AStrategy
  • BStructure
  • CSystems
  • DStyle
View solution
Correct Option: D
Soft Ss: Style · Skills · Staff · Shared Values.
Q 19 OKRs Medium

OKRs were originally developed at:

  • AIntel (Andy Grove)
  • BGoogle
  • CMicrosoft
  • DAmazon
View solution
Correct Option: A
Andy Grove at Intel; John Doerr brought to Google (1999).
Q 20 Match models Hard

Match the implementation model with its author:

(i) McKinsey 7S (a) Jay Galbraith
(ii) Star Model (b) Alfred Chandler
(iii) Structure follows Strategy (c) Kaplan & Norton
(iv) Balanced Scorecard (d) Peters, Waterman et al.
  • A(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(c), (ii)-(d), (iii)-(b), (iv)-(a)
  • D(i)-(b), (ii)-(c), (iii)-(a), (iv)-(d)
View solution
Correct Option: A
McKinsey 7S — Peters/Waterman; Star — Galbraith; Structure follows Strategy — Chandler; BSC — Kaplan & Norton.

57.20.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: Structure follows strategy (Chandler 1962).
R: Strategy execution requires complementary structure, systems and culture.

  • ABoth true; R explains A
  • BBoth true; R does not explain A
  • CA true, R false
  • DA false, R true
View solution
Correct Option: A
S 1Statement-basedMedium

Implementation enablers: (i) Structure. (ii) Systems. (iii) Style. (iv) Staff.

  • AAll four (7S subset)
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i), (ii), (iii) only
View solution
Correct Option: A
S 2Statement-basedHard

Common control tools: (i) Strategic control. (ii) Operational control. (iii) Balanced Scorecard. (iv) Premise control.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(iii) only
View solution
Correct Option: A

57.21 Quick Recall

ImportantQuick recall
  • Strategy Implementation = action stage; Bossidy-Charan Execution (2002); Kaplan-Norton Execution Premium (2008).
  • Hrebiniak (2005): 60-90 % of strategies fail at implementation.
  • Reasons for failure: change-management, vague strategy, no model, info silos, conflicting rewards, top-mgmt lack, resources, politics, time.
  • Formulation vs Implementation — analytical vs operational; top vs throughout; opportunity vs efficiency cost.
  • 8 implementation levers: Resources · Structure · Processes · Leadership · Culture · People · Communication · Control.
  • Chandler (1962) — “structure follows strategy”; reverse also observed.
  • Structures: Simple · Functional · Divisional / M-Form (Sloan at GM) · SBU · Matrix · Network/Virtual · Holding · Team-based · Modular.
  • M-Form vs U-Form (Williamson Nobel 2009).
  • Galbraith Star Model (1977, 1995): Strategy · Structure · Processes · Rewards · People.
  • McKinsey 7S (1980) — Peters, Waterman, Pascale, Athos: Hard (Strategy/Structure/Systems) + Soft (Shared Values centre + Skills/Style/Staff).
  • Leadership styles: Transactional (Bass) · Transformational (Burns 1978; Bass-Avolio) · Servant (Greenleaf 1970) · Authentic (George) · Adaptive (Heifetz) · Level 5 (Collins 2001).
  • Strategic leadership tasks (Hitt-Ireland-Hoskisson 6): Direction · Resources · Culture · Ethics · Controls · Human capital.
  • “Culture eats strategy for breakfast” (Drucker).
  • Change models for implementation: Lewin (3) · Kotter (8) · ADKAR (Hiatt 2003) · Bridges · McKinsey Influence.
  • Communication: cascading, townhalls, strategy maps, OKRs, storytelling, repetition.
  • Schreyögg-Steinmann 4 strategic controls: Premise · Implementation · Strategic Surveillance · Special Alert.
  • Newman: feedforward · concurrent · feedback.
  • Performance systems: BSC (Kaplan-Norton 1992) · Strategy Maps (2004) · Six Sigma · TQM · Hoshin Kanri · OKRs (Grove/Doerr) · EVA/MVA · KPIs.
  • Reward principles: pay-for-performance · equity-based (ESOPs) · team incentives · LTIPs · tournament theory.
  • Indian implementation cases: Reliance Jio · Maruti · Infosys GDM · HUL Project Shakti · Aravind Eye · ITC E-Choupal · Tata under Ratan Tata.
  • Modern trends: Agile execution · OKRs at scale · people analytics · real-time dashboards · AI-augmented tracking · pods/squads (Spotify) · network-of-teams (McChrystal) · continuous strategy · behavioural nudges · ESG-linked KPIs · digital execution platforms.