Strategy Implementation

Implementation is where most strategies fail — "Strategy without execution is hallucination" (attributed to Thomas Edison, popularised in management literature). Larry Hrebiniak (Wharton School) documented that 60–70% of strategic plans fail at implementation.

5.1 Key Implementation Variables

Organisational Structure: Strategy must match structure.

• Alfred Chandler (1962): "Structure follows strategy" — as firms expand and diversify, they move from functional to divisional to matrix structures.
• Functional structure: Best for single-product firms; clear specialisation but poor cross-functional coordination
• Divisional structure: Each product/region/customer segment has its own mini-organisation; used by HUL (Home Care, Nutrition, Beauty & Personal Care divisions)
• Matrix structure: Dual reporting — functional + project/product managers; used by consulting firms (McKinsey, BCG) and ISRO (mission-based)

Resource Allocation: The annual budgeting process links strategy to resources. Zero-Based Budgeting (ZBB) — start from zero each year, justify every expense — introduced in India's Union Budget 2017-18 for select ministries.

Leadership and culture change: Transformational leaders (Burns & Bass) inspire and motivate employees to exceed expectations. Organisational culture (shared values, norms, beliefs) is an enabler or barrier to strategy — Edgar Schein's Culture Model (1985): Artifacts → Espoused Values → Basic Underlying Assumptions.

5.2 McKinsey 7S Framework (Peters & Waterman, 1982)

Seven interdependent elements that must be aligned for successful implementation:

Element	Hard/Soft	Description
Strategy	Hard	Plan to achieve goals
Structure	Hard	Organisational chart and reporting lines
Systems	Hard	Processes, IT systems, performance measurement
Shared Values	Soft	Core culture and beliefs (central element)
Style	Soft	Leadership style
Staff	Soft	People — their capabilities and motivations
Skills	Soft	Distinctive competencies of the organisation

Application: When Infosys launched its Agile@Scale transformation (2022), it had to align all 7S elements — new strategy (cloud/AI focus), restructured delivery units (structure), overhauled project management systems (systems), reskilling 330,000 employees (staff, skills), Agile mindset culture shift (shared values), servant leadership training (style).

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