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214 PART 3 • STRATEGY IMPLEMENTATION

FIGURE 7-1
Comprehensive Strategic-Management Model

Chapter 10: Business Ethics/Social Responsibility/Environmental Sustainability Issues

Perform
External Audit
Chapter 3

Implement
Generate, Implement Strategies—
Develop Vision Establish Evaluate, Measure
and Mission Long-Term Strategies— Marketing, and Evaluate
Statements Objectives and Select Management Finance, Performance
Strategies
Chapter 2 Chapter 5 Issues Accounting, R&D, Chapter 9
Chapter 6 and MIS Issues
Chapter 7
Chapter 8

Perform
Internal Audit
Chapter 4

Chapter 11: Global/International Issues

Strategy Strategy Strategy
Formulation Implementation Evaluation
Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40.

divisions, and building a better management information system. These types of activities
obviously differ greatly between manufacturing, service, and governmental organizations.

Management Perspectives
In all but the smallest organizations, the transition from strategy formulation to strategy imple-
mentation requires a shift in responsibility from strategists to divisional and functional man-
agers. Implementation problems can arise because of this shift in responsibility, especially if
strategy-formulation decisions come as a surprise to middle- and lower-level managers.
Managers and employees are motivated more by perceived self-interests than by organiza-
tional interests, unless the two coincide. Therefore, it is essential that divisional and functional
managers be involved as much as possible in strategy-formulation activities. Of equal impor-
tance, strategists should be involved as much as possible in strategy-implementation activities.
As indicated in Table 7-1, management issues central to strategy implementation include
establishing annual objectives, devising policies, allocating resources, altering an existing
organizational structure, restructuring and reengineering, revising reward and incentive plans,
minimizing resistance to change, matching managers with strategy, developing a strategy-
supportive culture, adapting production/operations processes, developing an effective human