Structural Implementation refers to the process of organizing and aligning an organization's

resources, systems, processes, and structures to support the execution of its strategy. It is the
translation of strategic plans into actionable steps that can be realized within the organization.
This phase ensures that the organization’s structure, culture, and operations support the strategic
objectives and goals outlined in the strategic plan.

The key components of structural implementation in strategic management are the

organizational structure, resource allocation, leadership, and systems and processes. Let’s
break down each of these elements in detail:

1. Organizational Structure

The organizational structure plays a vital role in implementing strategy, as it defines how roles,
responsibilities, authority, and communication flow within the organization. Different strategic
goals might require different types of organizational structures.

• Types of Organizational Structures:

o Functional Structure: The organization is divided into departments based on
specialized functions, such as marketing, finance, operations, etc. This structure
works well when the strategy focuses on operational efficiency and internal
specialization.
o Divisional Structure: The organization is divided into divisions based on
products, services, or geographical locations. This is effective for strategies
involving diversification or geographical expansion.
o Matrix Structure: A combination of functional and divisional structures, where
employees report to both functional and divisional managers. This structure works
well for organizations implementing strategies that require flexibility, innovation,
and cross-functional collaboration.
o Flat Structure: Fewer levels of hierarchy, which helps to speed up decision-
making. This structure is typically used in organizations pursuing strategies of
agility and innovation.
• Aligning Structure with Strategy: The structure must reflect the strategic goals. For
example, if a company is pursuing a strategy of international expansion, a divisional
structure based on geographical regions would be more appropriate. Similarly, if the
strategy is to increase efficiency, a functional structure may be better.

2. Resource Allocation

Strategic goals are only achievable if the necessary resources (financial, human, technological,
etc.) are allocated appropriately.

• Human Resources: Aligning the workforce with strategic goals is crucial. This includes
hiring the right talent, training and developing employees to match the strategy, and
ensuring that leadership at various levels has the capabilities to execute the strategy.
 • Financial Resources: Adequate funding and budgeting are necessary for implementing
strategic initiatives. This may involve prioritizing spending on critical initiatives,
ensuring investment in new projects, and managing costs to avoid waste.
• Technological Resources: In today’s business world, technology plays a pivotal role in
the success of many strategies. If an organization is pursuing a digital transformation
strategy, it must allocate resources toward acquiring new technology, upgrading systems,
and training employees in the use of new tools.

3. Leadership and Culture

Effective leadership and a supportive organizational culture are essential in driving the
implementation of strategy.

• Leadership: Leaders at all levels (from top management to frontline managers) play a
crucial role in guiding and motivating employees to execute the strategy. This involves:
o Setting Clear Direction: Leaders must communicate the vision, mission, and
strategic objectives clearly to all members of the organization.
o Motivation and Accountability: Leaders need to ensure that individuals and
teams are motivated, held accountable for their performance, and aligned with the
strategic goals.
o Decision-Making and Problem-Solving: Leaders must make strategic decisions
quickly, resolve conflicts, and overcome obstacles that may arise during
implementation.
• Organizational Culture: The culture of an organization shapes how its members behave
and make decisions. For effective strategy implementation, the culture must support:
o Innovation: If the strategy involves entering new markets or launching new
products, a culture of innovation and risk-taking is essential.
o Collaboration: Many strategies require cross-functional cooperation. A culture
that fosters teamwork and collaboration will improve the chances of successful
implementation.
o Performance-Oriented Culture: A focus on results, high performance, and
accountability is critical to ensure that the strategy is effectively carried out.

4. Systems and Processes

Systems and processes define how tasks are performed within the organization. To implement a
strategy effectively, organizations need to align their processes and systems with strategic goals.

• Information Systems: Information technology and management systems must be

adapted to support the new strategy. For example, if the strategy involves data-driven
decision-making, the organization may need to invest in data analytics systems.
• Business Processes: Business processes, such as supply chain management, customer
service, and product development, must be optimized to align with the strategic goals.
For instance, a company pursuing cost leadership as a strategy will need to streamline its
production processes to reduce costs.
 • Performance Measurement and Control Systems: Effective performance measurement
systems are critical to track the progress of strategic implementation. Key Performance
Indicators (KPIs) are established to monitor the success of strategic initiatives. Regular
reviews, audits, and assessments ensure that the organization is on track.

5. Communication

Communication is a critical aspect of structural implementation. The strategy must be clearly

communicated throughout the organization so that everyone understands their role in achieving
the objectives.

• Top-Down Communication: Senior leaders must clearly communicate the strategic

goals and how they fit into the overall vision of the company. This creates alignment and
focus at all levels.
• Feedback Mechanisms: Employees at all levels should be encouraged to provide
feedback on the implementation process. This helps identify bottlenecks or resistance to
the strategy early on.

6. Change Management

Strategic change often involves significant organizational change, which can be challenging.
Managing change effectively is essential to successful structural implementation.

• Change Leadership: Leaders must guide the organization through change by being
transparent, empathetic, and proactive in addressing concerns.
• Overcoming Resistance: Employees may resist change, especially if it disrupts their
established ways of working. Change management strategies should be in place to
mitigate resistance and facilitate smoother transitions.

7. Continuous Monitoring and Adaptation

Implementation is an ongoing process that requires regular review and adjustment. Continuous
monitoring allows organizations to assess whether the strategy is being executed effectively and
whether there are any issues that need addressing.

• Strategic Control: Regular reviews of progress against KPIs, financial performance, and
customer satisfaction can provide valuable feedback.
• Adaptation: The organization should be flexible enough to adapt its strategy and
structure if necessary, responding to changes in the market or internal challenges.

Conclusion

Structural implementation in strategic management is about ensuring that the organizational

structure, resources, processes, leadership, and culture are all aligned to execute the strategic
plan effectively. It requires thoughtful planning, clear communication, and ongoing assessment
to ensure the strategy is implemented successfully and that the organization remains flexible
enough to adapt to changing circumstances.

In short, structural implementation is the process that ensures a company’s strategy isn't just a
theoretical plan but a practical reality that drives the organization towards its objectives.

Behavioral Implementation

Behavioral implementation refers to the way human behavior—such as motivation, decision-

making, communication, and leadership—affects the execution of strategic plans within an
organization. While strategic management often focuses on analyzing external and internal
factors, such as market trends or company resources, the behavioral aspect looks at how
individuals and groups within an organization contribute to or hinder the execution of a strategy.

Behavioral implementation emphasizes the human element behind successful strategy execution,
acknowledging that even the best-laid plans can fail if the behavior of employees, managers, and
leaders does not align with the strategic objectives.

Key Elements of Behavioral Implementation

1. Organizational Culture:
o Definition: Organizational culture refers to the shared values, beliefs, and norms
that influence the way employees behave and interact within the company.
o Impact on Strategy: A culture that supports change, innovation, and
collaboration is essential for strategy execution. For instance, a company with a
rigid, conservative culture may struggle to implement a growth strategy that
requires adaptability and risk-taking.
o Example: Google’s culture of innovation encourages employees to experiment,
which facilitates the company’s continuous development of new products and
services aligned with its strategic goals.
2. Leadership:
o Definition: Leadership is about influencing others to align their actions with the
organization’s vision and strategy.
o Impact on Strategy: Effective leaders communicate the strategy clearly, inspire
commitment, and foster motivation among employees. Leaders also play a key
role in addressing resistance to change.
o Example: Satya Nadella’s leadership at Microsoft, with his focus on creating a
growth mindset and empowering employees, has been central to the company’s
successful transition to cloud-based services.
3. Communication:
o Definition: Communication in strategic management refers to how information
about the strategy is shared across different levels of the organization.
o Impact on Strategy: Poor communication can result in misunderstandings, lack
of clarity, and fragmented efforts in implementing the strategy. Effective
 communication ensures that everyone is on the same page regarding strategic
objectives, roles, and responsibilities.
o Example: Apple’s internal communication strategy effectively aligns its
employees with the company’s vision of providing innovative, user-friendly
products. Regular updates from top management ensure that employees feel
connected to the strategic goals.
4. Motivation and Incentives:
o Definition: Motivation refers to the factors that drive individuals to perform at
their best, while incentives are the rewards given to encourage desired behaviors.
o Impact on Strategy: The implementation of a strategy is influenced by the
degree to which employees are motivated to achieve strategic objectives.
Motivation can be intrinsic (personal satisfaction, growth) or extrinsic (financial
rewards, promotions).
o Example: Sales-driven organizations, such as car dealerships, often use
performance-based incentives (bonuses, commissions) to motivate employees to
meet strategic sales targets.
5. Decision-Making:
o Definition: Decision-making in strategic management involves choosing the best
course of action among various alternatives to implement the strategy.
o Impact on Strategy: Behavioral biases, such as overconfidence or groupthink,
can affect decision-making and hinder effective strategy implementation.
Organizations need to foster rational decision-making processes that align with
the strategic goals.
o Example: At Intel, decision-making processes emphasize data-driven insights,
which helps the company adapt quickly and align its product development with
market needs.
6. Team Dynamics and Collaboration:
o Definition: Team dynamics refers to the way team members interact,
communicate, and collaborate to achieve common objectives.
o Impact on Strategy: Successful strategy execution often requires collaboration
across departments, functions, and hierarchical levels. Poor teamwork can result
in misalignment and inefficiency.
o Example: In large firms like IBM, cross-functional teams collaborate to ensure
that the company’s strategies around AI, cloud computing, and other
technological advancements are executed efficiently.

Challenges in Behavioral Implementation

1. Resistance to Change: One of the primary challenges in implementing a strategy is

overcoming employee resistance to change. This could stem from fear of the unknown,
comfort with the status quo, or perceived threats to job security.
o Solution: Leaders should communicate the benefits of the strategy, provide
training and support, and involve employees in the change process to reduce
resistance.
2. Conflicting Goals and Priorities: Different departments or individuals might have goals
that conflict with the overall strategy, creating friction.
 o Solution: Aligning departmental objectives with the broader strategic vision and
incentivizing cooperation across teams can help mitigate this issue.
3. Ineffective Communication: Poor communication can lead to misunderstandings about
the strategic plan, its goals, or the role of employees in executing the strategy.
o Solution: Establishing clear, consistent, and open channels of communication and
ensuring all employees understand their roles in the strategy can improve
implementation.
4. Lack of Skills or Knowledge: Employees may lack the skills or knowledge required to
effectively execute new strategies, especially if they involve new technologies or
processes.
o Solution: Providing continuous training, support, and development opportunities
can equip employees with the necessary tools to succeed.
5. Inadequate Leadership: Leadership is crucial for guiding the organization through the
strategy implementation process. Poor leadership can result in a lack of direction, low
morale, and fragmented efforts.
o Solution: Strong, visionary leadership that is committed to the strategy and can
inspire and motivate the workforce is vital.

Strategies for Successful Behavioral Implementation

1. Leadership Development: Organizations should invest in leadership programs that help

leaders understand the human aspects of strategy implementation, including motivation,
communication, and conflict resolution.
2. Employee Involvement: Actively involve employees in the process of strategy
development and execution. This helps build ownership and commitment to the strategy.
3. Creating a Supportive Culture: Foster a culture that aligns with the strategic goals. This
includes promoting behaviors that support innovation, teamwork, and accountability.
4. Continuous Monitoring and Feedback: Implement a system for monitoring progress
and gathering feedback from employees at all levels. This ensures any issues can be
addressed early and that adjustments can be made to stay on track.
5. Training and Development: Provide ongoing training to ensure employees have the
skills and knowledge necessary to support the new strategy.