Thursday, August 15, 2013

Strategy Implementation…POLCIES & Resource allocation Series 2

Implementation of strategies for an organization requires s set up disciplines which needs to be engraved within the organizational culture. Broadly defined, policy refers to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals. Policies are instruments for strategy implementation. Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior; they clarify what can and cannot be done in pursuit of an organization’s objectives. The work of policy framers is equally important since that is a part of strengthening the internal control aspect of an organization. Policies are designed to implement the strategies. There has to be a process of designing the policies which would lead to implementation of strategies. Polices should be designed to help the organization to achieve the goals with exercising control over the employees. 

But in my research I find that a policy tries to get people as a force full obligation of abiding the same. I find that polices should be framed where strategies decision of implementation are made free. Policies should promote delegation of decision making to appropriate managerial levels where various problems usually arise. Resource allocation is another key step for successful implementation of strategies.  In my research I find that In organizations that do not use a strategic-management approach to decision making, resource allocation is often based on political or personal factors.

Well the death of the strategy implementation begins from here since personal factors rules the strategy allocation. In my 10 years of my professional career I also my readers would find that resource allocation have been getting highest personal influence which is one of the key reason for the failure of strategy implementation which further grinds into poor outcome form employees. All organizations have at least four types of resources that can be used to achieve desired objectives: financial resources, physical resources, human resources, and technological resources. Out of the above resources the human resources are the main engines of executing and successful implementation drivers of strategies. Often it is being found that there are number of factors commonly prohibit effective resource allocation, including an over protection of resources, too great an emphasis on short-run financial criteria, organizational politics, vague strategy targets, a reluctance to take risks, and a lack of sufficient knowledge are slow killers of successful implementation of strategy.

In my research I have come across the following common mistakes in resource allocation and these are the places where we need to make clear choices linked with the strategy taken by an organization.

1.     To emphasize short-term profits or long-term growth
2.     To emphasize profit margin or market share
3.     To emphasize market development or market penetration
4.     To lay off or furlough
5.     To seek growth or stability
6.     To take high risk or low risk
7.     To be more socially responsible or more profitable
8.     To outsource jobs or pay more to keep jobs at home
9.     To acquire externally or to build internally
10.  To restructure or reengineer
11.  To use leverage or equity to raise funds
12.  To use part-time or full-time employees

To sum up I find that resource allocation and policy frame work should be free from personal bias but I fail to find few organizations only has the culture of unbiased approach. Well that might be reason why every organization is not an great organization. 

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