Functional Tactics That Implement Business Strategies

From the business strategy formulation the focus shifts to strategy implementation.  For successful implementation, managers should do the following four things well.

• To identify short term objectives;
• To initiate specific functional tactics;
• To empower people in the organization by communicating policies;
• To create a reward system.

Functional tactics are short term activities.  Grand strategy gets implemented with each functional area within the firm.  Tactics are different from strategy.

• Time: Focus must be o immediate and current activities,
• Specificity: Functional tactics are activities and how these are expected to achieve the business strategy.
• Participants: Senior managers are responsible for business strategy.  Operational managers set-up short term objectives and functional tactics that lead to success of the business.
• Empowering operational personnel: Empowerment is carried out in an organization through training, work groups, use of automation, etc.  Decision making at senior level must be consistent with the mission, strategy and tactics, while allowing a fair amount of latitude to the operational personnel.  This is possible through the use of policies by the operational personnel.

Policies help control decisions within a frame work for operational personnel to execute business activities.  This is done in various ways.

The major concern in the implementation of business strategy is to translate the strategy into action throughout the organization.  How to do this?

• Short term objectives are derived from long term objectives, which then gets translated into immediate or current actions and targets.  Naturally, these short term objectives differ in terms of time, specificity and measurement.  To be effective, these must be integrated and coordinated.  They must also be consistent, measurable and prioritized.
• Functional tactics are derived from business strategy.  They identify the immediate and specific areas that must be taken in key functional areas for implementing business strategy.
• Employees empowerment through policies help guide behavior, decisions and actions at the firm`s operational levels.  This must be consistent with its business and functional strategies.  Policies empower employees at operational level to make decisions for quick action.
• Compensation rewards  employees action and attending results.  Once the strategy objectives are formulated, there are a few bonus compensation plans that can be structured to reward the executive with an incentive to work and achieve the goals.

Functional tactics, policies, objectives and compensation take forward the implementation of the strategy.  The strategy must be institutionalized permeating the whole organization.

Questions:

• What are the four things the managers must do well for strategy implementation?
• Write a note on short term objectives?