Strategy in Action Making It Happen

Successfully Implementing the Strategic PlanResource AllocationThe initial concern is that adequate resources are allocated to appropriate business activities. David (2003), in particular, expresses the importance of allocating resources in accordance with strategic priorities - such as those parts of the business that are to be developed or expanded. Otherwise the overall corporate objectives may not be achieved. This view is further extended by Johnson et al (2006), who feel that resource needs throughout the value chain must be put in place. Moreover, Johnson ef al (2006) also note that approaches to resource allocation differ according to whether the organisation (or business unit) is stable, in a period of growth or in decline. Nonetheless, whichever position the organisation finds itself in, it is vital that senior management identify the financial implications of the business plan and then develop these into appropriate budgetary statements.Case History - The Worcester Business SchoolIn the case of the University of Worcester Business School, during an initial period of significant growth - the 2007/08 academic year - the entire University had an exceptionally good year. As a result several new posts were approved by the Vice Chancellor (Chief Executive). By the time recruitment levels were beginning to emerge for 2008/09 it became clear that Worcester Business School was set to double student numbers in just two years - a spectacular achievement in a stable market. Unfortunately, growth for the university as a whole had slowed somewhat. As a result, whilst gaining the lion's share of new staff appointments, the Business School was unable to secure its desired resource increase.Effectively a 100% increase in students (customers) had allowed an increase in staffing of less than 50%. Much of this apparent gap can be explained by the significant efficiency savings of teaching larger cohorts on a highly efficient delivery model. Process costs were also reduced on a per head basis.It is difficult for any organisation working under relatively tight financial constraints to seek significant new resources in anticipation of an increasing, but as yet unproven, demand. Once student numbers are confirmed for October start dates, it is already September- far too late to recruit highly qualified academic staff to bolster the teaching resource. As this was the case, significant management time had to be involved in securing flexible additional resources - in this case appointing a number of hourly paid lecturers on short-term contracts. This was not ideal, but much better than leaving student groups with no teacher! Organisational Structure and CultureIt was noted in the lastarticle of the Strategy in Action series, which appeared in the Professional Development Matters section of manager, April 2008 issue (Evans and Richardson, 2008), that organisational structure is crucial in not only supporting, but driving, the strategic plan. Clearly, the effectiveness of the organisational structure will affect inter-personal and inter-departmental relationships, with appropriate structures aiding communication and efficient process flow. Ultimately an organisation's structure will influence its competitive position. Whatever structural design is decided upon, the prevailing organisational culture, which cannot be changed Overnight/ is often thought to be a more powerful influence on the success of the strategic plan.Strategic managers need to examine the existing culture (and sub-cultures) and decide whether it is consistent with the demands of the strategic plan. Schein (1985) identified many factors that link culture to strategy, which include formal organisational statements and policies, leadership and coaching, reward systems and tangible features, such as buildings. However, what is important is to not only identify those factors, but retain, encourage and enhance those aspects of culture that contribute to the achievement of the strategic plan's success. …