What are the five  fundamental approaches used when implementing strategies? [Marks 5]
- COMMANDER APPROACH
- ORGANIZATIONAL CHANGE APPROACH
- COLLABORATIVE APPROACH
- CULTURAL APPROACH
- CRESCIVE APPROACH
1. COMMANDER APPROACH :
This is a very common approach which is top -down in nature. Here, the top level management formulates the strategy and pass it to the subordinates with instructions how to execute it. The CEO/top management does the thinking or planning part only. They are not involved in the doing part. Top management uses economic and competitve analysis to plan resource allocation for achieving organizational goals/objectives. It is the subordinates who are responsible for implementing the proposed strategy(doing part) formulated by the top management.
- Simple and common
- used in small companies with stable industries
- most suitable when very little change is required
- Top management/CEO focuses on formulation part only
- Subordinates are not involved in formulating strategy and it makes them demotivated.
2.ORGANIZATIONAL CHANGE APPROACH
This approach focuses on bringing about organizational change to implement a strategy. It focuses on how to get the organization to implement a strategy. It also follows the top down approach where the strategic leader considers required changes in infrastructure, compensation, control systems, personnel and inormation systems facilitate the execution of a strategy. This approach follows a lot of behavioural tools. It is called the Change approach because it usually concerns adoption of a new strategy.
- focuses on the organization
- use of behavioural tools
- focus on staffing and structure
- suitable for implementing difficult strategies.
- better than commander model
- Change can be unpredicatable
- Top down approach leads to demotivation of subordinates as they are not part of planning process.
3. COLLABORATIVE APPROACH:
As the name implies, this approach views strategy development as a collective efort of all managers by considering their view points. It concentrates on group decision making at senior levels and the strategy emerges as a negotiated outcome. However,The top management still retains control over the entire process.
- group decision making having brainstorming sessions leads to multiple ideas .
- Ensures participation of all managers and it motivates them
- increased timeliness and quality of informationc
- efective implementation because managers are involved in strategy fromulation
- Time consuming
- all managers view points may not be accepted/considered. This may demotivate them.
- A negotiated strategy need not be the best strategy. it can be a compromised strategy
- The top level retain control over the entire process
4.THE CULTURAL APPROACH:
This model allows the whole organization to participate in the strategy implementation part. Here, The CEO/leader acts as a coach in giving general direction. IT focuses on influencing the behaviour through shaping the norms,values,symbols and beliefs that managers and employess use while making day to day decisions.This model seeks to implement the strategy through the infusion of a corporate culture throughout the organization.
- Breaks down the barriers between managers and workers
- More enthusiastic implementation
- Infusion of a corporate culture throughout the organization
- workers should be informed and intelligent
- Time consuming
- Discourage change and innovation
- people at the lower level need not have the required vision or expertise to develop strategies
5. CRESCIVE APPROACH:
Crescive means increasing or growing.This is a bottom -up approach that moves upward from lower and middle level management to the top level management. Here the top level managemet do not take up the entire responsibility of developing the strategy. Instead, the lower level are empowered to develop and implement strategy.
This approach considers economic,social,political and behavioural factors.
- Ensures participation of lower and middle level
- increase employee commitment
- Increased motivation and morale of employees.
- More resources required
- strategies may not be effective since they are formulated by middle and lower level management
- lack of expertise of middle and lower level management
Role of CEOs in each approach:
- commander model: Rational actor (“How do I formulate the optimum strategy?”)
- Change model: Architect (“I have a strategy in mind. now how do i implement it?”)
- Collaborative model: Coordinator (How do I involve the top management to get commitment to strategies from the start?”)
- Cultural model: Coach (“How do I involve the whole organization in implementation?”)
- Crescive model: Premise-setter and judge (” How do I get managers to come forward as champions of sound strategies?”)