HOW TO IMPLEMENT A NEW STRATEGY WITHOUT DISRUPTING YOUR ORGANIZATION

SUMMARY It's far less disruptive to choose an organizational design that works without major conflicts and then design a customized strategic system to align that structure to the strategy. A management system based on the Balanced Scorecard framework is the best way to align strategy and structure, the authors suggest In this article, the originators of the Balanced Scorecard describe how two hugely different organizations--DuPont and the Royal Canadian Mounted Police--used corporate scorecards and strategy maps organized around strategic themes to realize the enormous value that their portfolios of assets, people, and skills represented. As a result, they did not have to endure a painful series of changes that simply replaced one rigid structure with another. Essentially, a well thought-out and executed implementation plan helps reduce resistance to the changes, according to Kaplan and Norton in a Harvard Business School study. Break the new strategy into smaller phases. For example, instead of implementing a new companywide software platform to the entire company at once, start with smaller departments, maintaining a dual platform as employees transition into the new program. Communicate to employees the map of change, which explains the various segments and where each segment falls into the overall objective of new strategy implementation. Consider training, integration and revenue results as general sections of the map of change. Create and post a scorecard for the new strategy implementation, serving as a cheerleader to employees throughout the process that success is feasible step by step. Obtain feedback with each stage through employee surveys. Creating a structure of dual citizenship where employees must respond to managerial direction but feel compelled to add to the improvement of the corporate culture helps build a stronger team that embraces the changes, according to Kaplan and Norton. Request customer satisfaction. Integrations that appear smooth internally may be adversely affect customer relations. Open yourself to adjustments in the new strategy, time line and goals based on feedback and customer satisfaction

Submitted by : Sharad Gupta 47 MBA 2012-14