STRATEGY IMPLEMENTATION AND CONTROL

Strategic Implementation

The set of activities and decisions necessary to make a strategy

effective or put it into action, so that the strategic objectives are
achieved.

Strategic implementation starts from the moment that a strategy

is chosen (and others are discarded) and the tasks of strategy
formulation (basic strategy formulation, basic strategy, functional
strategies).
Strategic implementation begins the moment a specific strategy is chosen, while other alternatives are discarded.
This marks the transition from the tasks of strategy formulation, including basic strategy formulation, the selection of a core strategy,
and the development of functional strategies, to the practical execution of the chosen approach.

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Strategic Implementation

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Why do you need to select a strategy?
During the startup or foundation phase

Why?: At the beginning, a company needs to define its purpose,

vision, and mission. This helps establish the initial strategic
direction. Deciding on a strategy early allows the company to
focus on its target market, identify competitive advantages, and
create an action plan to achieve its goals.

Example: When a tech startup launches a new product, it must

decide whether its strategy will focus on differentiation (offering
unique features) or cost (offering a more affordable solution
compared to competitors).

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Why do you need to select a strategy?
When significant changes occur in the business environment

Why?: Companies must review and adapt their strategies when

facing changes in their environment, such as the entry of new
competitors, regulatory changes, economic crises, or
technological advancements. This helps the company stay
competitive and adapt to new realities.

Example: During the COVID-19 pandemic, many restaurants and

hospitality businesses had to rethink their strategies to integrate
delivery options and adapt to social distancing measures.

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Why do you need to select a strategy?
When pursuing expansion or diversification

Why?: When planning to expand into new markets or diversify

products/services, it is essential to choose a clear strategy to
define how to enter new segments or regions.

Example: Amazon started as an online bookstore but later

adopted a diversification strategy to become a giant in
e-commerce and cloud services (AWS).

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Why do you need to select a strategy?
When experiencing a drop in performance

Why?: If a company faces declining revenues or market share, it is

time to reconsider its strategy to identify what is not working
and adjust its direction. This may involve refocusing on a new
market, optimizing internal processes, or implementing an
innovation strategy.

Example: Kodak failed to adapt in time to the shift from analog to

digital photography and, as a result, had to redefine its strategy and
find new ways to generate revenue.

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Why do you need to select a strategy?
During annual review and planning

Why?: Strategy should be reviewed regularly, typically annually,

to ensure it remains aligned with the company's vision and
market changes. This allows for necessary adjustments and helps
maintain relevance.

Example: Companies like Microsoft annually review their

strategic plans to stay competitive in the tech sector, evaluating
aspects such as innovation and penetration into emerging markets.

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Why do you need to select a strategy?
When seeking new growth opportunities

Why?: To seize emerging opportunities, such as a new market

niche, strategic partnerships, or technological innovations.
Choosing a strategy at this time allows the company to position
itself as a leader or respond effectively to demand.

Example: Tesla adopted a strategy of leadership in innovation and

sustainability by developing electric vehicles and renewable
energy technologies, positioning itself as a pioneer in the industry.

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Strategic Implementation

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 Strategic Implementation: formulations and implementations
If formulation tells us what needs to be done, implementation tells us how to act in order to achieve what
we want to do

Formulation and implementation should not be seen as separate problems.

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Strategic Implementation: formulations and implementations
Formulations and implementations´s key reasons:

Mutual Influence:

▪ A well-formulated strategy must be grounded in the realities of

implementation. For example, a brilliant strategic idea is useless if the
organization lacks the resources or capabilities to execute it. Eg: A tech
company plans to develop advanced AI software but lacks skilled engineers

▪ Similarly, lessons learned during implementation can lead to adjustments in the

formulated strategy. Eg: A retail chain expands internationally but learns
mid-implementation that local preferences are different, leading to
modifications in its product offerings.
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Strategic Implementation: formulations and implementations
Formulations and implementations´s key reasons:

Dynamic Environments:

▪ In rapidly changing industries, a rigid separation between formulation and

implementation can lead to delays or outdated strategies. Strategy should
develop dynamically as it is being implemented.

Alignment and Practicality:

▪ Strategic plans that don’t consider implementation challenges (e.g., resource

constraints, organizational culture) are likely to fail.
▪ Involving operational teams during formulation ensures the strategy is both
visionary and actionable.
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Strategic Implementation: formulations and implementations
Formulations and implementations´s key reasons:

Feedback Loop:

Implementation generates data and insights that can inform and refine the original
strategy. This iterative process strengthens overall strategic outcomes.

Collaborative Execution:

Formulation often involves top-level management, while implementation engages

mid-level managers and operational teams. Viewing them as interconnected ensures
better communication and alignment across the organization.

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 Strategic Implementation: formulations and implementations
Formulations and implementations´s key reasons:

Practical Example: Case of a Tech Startup

▪ Formulation without implementation considerations: A startup formulates an ambitious strategy to scale

its product globally within six months but doesn’t assess whether its tech infrastructure or staffing
can support this growth. During implementation, they face server crashes and employee burnout,
forcing them to abandon the strategy.
▪ Unified approach: The startup formulates a global strategy while consulting its IT and HR teams. This
collaboration ensures a phased implementation plan that aligns with its current capacity and
resources.

By integrating formulation and implementation as parts of the same strategic process, organizations can
improve adaptability, reduce friction, and achieve their goals more effectively.

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Strategic Implementation: Phases

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Strategic Implementation: Phases

The phases of strategic implementation can include the following stages, which may
vary slightly depending on the framework used.

Programming:

▪ At this stage, the formulated strategy is translated into a detailed action plan.
▪ This includes resource allocation, defining responsibilities, setting timelines, and
creating key performance indicators (KPIs).
▪ It acts as the bridge between strategy formulation and practical execution.

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Strategic Implementation: Phases
Programming tasks: "organisation" of the implementation of the various approved plans.

• Establishing operational priorities and work sequences

• Implementing the plans
• Developing schemes of Works
• Developing timetables for development
• Appointing responsible persons

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Strategic Implementation: Phases

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Strategic Implementation: Phases
Take-off:

▪ This represents the beginning of actual implementation.

▪ It includes communicating the strategy to teams, launching key initiatives, and
executing the initial steps to get the plan moving.
▪ Generating initial momentum and stakeholder commitment is critical here.
Development:

▪ The focus during this phase is on sustained execution and dynamic adjustments
to the plan.
▪ More advanced projects are implemented, and efforts are made to
continuously align operations with strategic objectives.
▪ This phase involves resolving emerging issues and adapting the strategy to
internal or external changes.
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Strategic Implementation: Phases
Monitoring:

▪ This phase emphasizes oversight, evaluation, and fine-tuning of the actions

taken.
▪ Data is collected and analyzed, performance is measured against predefined
KPIs, and progress reports are prepared.
▪ It may also involve iterative improvements to the strategic plan based on
feedback.

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Example of strategic implementation: Phases
Company: Green Future Tech's strategic implementation
Objective: Launch a new line of portable solar chargers for outdoor enthusiasts in 12
months. GROWTH STRATEGY NEW PRODUCT LAUNCHING

Programming:

▪ Develop a detailed action plan with milestones such as product design,

prototype testing, marketing campaigns, and distribution network setup.
▪ Allocate a budget of $2 million and assign a project team with defined
responsibilities.
▪ Set KPIs, e.g., completing prototypes within 3 months, reaching 10,000
pre-orders before launch.

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Example of strategic implementation: Phases
Take-off:
▪ Announce the project internally and externally to generate excitement and
align stakeholders.
▪ Launch a cross-departmental kickoff meeting to clarify objectives and timelines.
▪ Begin product design and early prototype testing.

Development:

▪ Continue refining the prototype based on feedback from early testers.

▪ Begin a marketing campaign targeting outdoor enthusiasts, highlighting the
product's eco-friendly features.
▪ Establish agreements with key retailers and e-commerce platforms for
distribution.
▪ Resolve any supply chain issues identified during initial testing. Eg: inbound
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Example of strategic implementation: Phases
Monitoring:

▪ Track progress using KPIs (e.g., prototype approval, pre-orders, marketing

reach).
▪ Evaluate the effectiveness of the marketing campaign by measuring website
traffic and customer engagement.
▪ Adjust the distribution plan if delays or demand fluctuations occur.
▪ Prepare a post-launch review to assess what worked and what could be
improved for future product launches.

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Example of strategic implementation: Phases
Strategic control

Assessment of organizational activities to ensure that the decisions made during the strategic management
process have generated effective outcomes and, if needed, establish corrective actions

Control = verification + correction

Functions of the control system:

• Measure and correct the business activity to achieve the objectives and the plans
• Change the objectives and the plans in case they do not adapt to the real business needs

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Example of strategic implementation: Phases
Types of strategic control

CLASSIC CONTROL Traditional

- Review and follow-up of the implementation process CORRECTOR CONTROL
- Focused on plan, program or budget (it does not avoid deviations)
- A posteriori control

STRATEGIC CONTROL More open

- Review and follow-up of the formulated strategy CONTINUOUS CONTROL:
- Focused on detecting mistakes during formulation Continuous observation of the
and/or changes in the conditions in validity of the strategic diagnosis
which the strategy was formulated and continuous review of the values
and premises on which the strategy
- A priori and a posteriori control
is based

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Example of strategic implementation: Phases
Strategic control

Nowadays, control is now being considered in terms of actions, so that it is not necessary to wait for
problems with results, but rather to react as soon as possible.

There is even the concept of preventive monitoring, which consists, with initial data, of making a projection
of possible results and identifying probable problems throughout the strategic process

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Example of strategic implementation: Phases

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Strategic control

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Why do you need to change your strategy?
External changes that make the strategy obsolete

Why?: Companies operate in dynamic environments where

factors like technology, economics, competition, and regulations
can rapidly change the market landscape. If a company fails to
adapt its strategy to these changes, it risks falling behind.

Example: Blockbuster failed to adapt to the rise of streaming

platforms like Netflix, as its strategy remained focused on DVD
rentals in physical stores, making it obsolete in a growing digital
market.

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Why do you need to change your strategy?

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Why do you need to change your strategy?
Lack of resources to carry out the strategy

Why?: A strategy may be excellent in theory, but without the

necessary financial, human, or material resources, it cannot be
successfully implemented.

Example: A startup planning to launch an innovative product but

lacking sufficient capital for development and production may be
forced to abandon the strategy or seek alternatives.

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Why do you need to change your strategy?
Lack of knowledge to carry out the strategy

Why?: Executing a strategy requires deep knowledge, whether

technical, market-related, or managerial. Without the necessary
expertise, the strategy risks failure.

Example: A clothing company aiming to enter the sustainable

fashion market but lacking experience or knowledge about
ethical suppliers and sustainable production processes may
struggle to implement the strategy effectively.

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Why do you need to change your strategy?
Lack of collaboration from employees

Why?: Employees are essential to implementing any strategy. If

they are not aligned with the company's vision, do not understand
the importance of the strategy, or are unmotivated, execution will
suffer.

Example: A company attempting to implement an organizational

change strategy to adopt new technologies may fail if employees
resist the change and do not collaborate.

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Why do you need to change your strategy?
Lack of expected results

Why?: If a strategy does not deliver the desired results, it is crucial

to evaluate whether adjustments or a change in approach are
needed. Not all strategic plans work as expected, and lack of
results signals that something is not working.

Example: An e-commerce company implementing a digital

marketing campaign that fails to attract the expected audience
must review and adjust its strategy to avoid continuing on an
unproductive path.

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KEY PERFORMANCE INDICATORS KPI´s

They are process indicators (not outcome indicators), they identify the "driver" points of success. They tell us
what we have to do and not what we have done as results do.

A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company achieves
its key business objectives.

They serve to:

- Know where we stand

- Drive improvement by facts and not by opinions
- Prioritise improvement actions
- They are a continuous check of the business
- They connect the customer with the process
- Connect workers with the processes

Wallapop´s KPI´s: Increase new listing ES 496K (2,0%) / IT 52K (1,2%)

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KEY PERFORMANCE INDICATORS KPI´s

The objective of a KPI can be:

- Evaluation of an action
- Diagnosis of an action
- Communication of an action
- Information about an action
- Motivation of an action
- The evolution of an action

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KEY PERFORMANCE INDICATORS KPI´s
Examples of Sales KPIs

1. Number of New Contracts Signed Per Period

2. Dollar Value for New Contracts Signed Per Period
3. Number of Engaged Qualified Leads in Sales Funnel
4. Hours of Resources Spent on Sales Follow Up
5. Average Time for Conversion
6. Net Sales – Dollar or Percentage Growth

Examples of Financial KPIs

7. Growth in Revenue
8. Net Profit Margin
9. Gross Profit Margin
10. Operational Cash Flow
11. Current Accounts Receivables
12. Inventory Turnover
13. EBITDA
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KEY PERFORMANCE INDICATORS KPI´s
Examples of Customer KPIs
14. Number of Customers Retained
15. Percentage of Market Share
16. Net Promotor Score
17. Average Ticket/Support Resolution Time
Examples of Operational KPIs
18. Order Fulfillment Time
19. Time to Market
20. Employee Satisfaction Rating
21. Employee Churn Rate
Examples of Marketing KPIs
22. Monthly Website Traffic
23. Number of Qualified Leads
24. Conversion Rate for Call-To-Action Content
25. Keywords in Top 10 Search Engine Results
26. Blog Articles Published This Month
27. E-Books Published This Month
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KEY PERFORMANCE INDICATORS KPI´s

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 Thank you!!!!!!
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