Strategic Implementation and Changes in an Organization - Case Study Example

Organizations struggle to keep up with the pace of implementation of strategic policies set in line with the organization’s operations. The apparent hindrance to effective implementation is found within the management’s preparedness for the process of strategic management and the stakeholders’ resistance to strategic changes. Winning strategic management practices involve identification of the goal or objective of the organization and allocation of resources for achievement of the objectives within the organizations vision, mission and core values. Realization of the objectives is the benchmark for assessment, making it a routine for the management to employ creative strategies for effective achievement of the objectives. Implementation becomes a nightmare for many companies where commitment, assessment and review become distinct parameters without coordination and synergy, always frustrating initially vibrant ideas. Suitability studies are carried out alongside feasibility as well as acceptability levels, in order to ascertain its applicability in the specific area of interest. Strategic Management For efficiency in management and delivery of results in as far as policies are concerned, strategic planning is usually the solution. The specific areas of action are identified and appropriate solutions projected are brought out for implementation. The conversion of intentions into desired actions goes hand in hand with tackling of the factors that hinder the implementation of the strategies in efficient management. Leadership and management skills are the key solutions to strategic management, where each set of skills complement realization of objectives. Leadership skills offer one portion of the puzzle while management skills offer the other. Mintzberg’s model of management provides that strategic management goes farther than the mere formulation of strategic policies. A clear articulation of the mission, goals and objectives goes hand in hand with the successful implementation of the strategic plan. Prior plans are therefore put in place for the necessary implementation approach, since formulation and effective action are different things in strategic management. The identification of the mission, vision and goals of the organization before the specific strategy formulation usually addresses the real management problems in advance. Lamb (1994, p.ix) states that strategic management is a continuous process that requires frequent review and change to keep up with the pace in the market. The ever changing business environment necessitates the changes that should accompany a well balanced management. Formulation of Strategic Policies Strength, weakness, opportunity and threat (SWOT) analysis for available alternatives to revive and maintain good performance at Hapag Lloyd will be ensured from the start of strategic planning. Internal control strategies will be scrutinized art the stowage department for necessary change options to be postulated. For instance, the transit fleet will be assessed for strength and weakness over those of similar companies, to ascertain competition edge over rivals. If Hapag Lloyd lags behind its competitors, the Stowage Planner will have to come up with strategic plans for acquisition on up-to-date fleet units. External environment will force the company to adopt externally conducive practices that will enable competition with rival companies. For instance, strength and weakness assessment could be on the current market specification of staff academic competence, where deviations will be taken are of by appropriate job reanalysis, redesigning and job/ position re-specification. If employee turnover will be necessary in the short run, then quick procedures must be put in place. Otherwise, proper on-job training will be adopted to comply with the market demands. Hapag Lloyd will not allow competitors to continue having a cutting edge in the market due to old and outdated practices. Opportunity assessments will enable Hapag Lloyd to explore unique market practices and services that will position it above other competitors. For instance, ferrying of foodstuffs using specialized equipment not used before could be important in creating a name in the market. The threats involved like whether the company would be able to meet and sustain the innovation cost, an element of cost previously not on the company’s budget. Strategic Implementation and Changes According to Jacobs (1994, p83), strategic planning faces challenges ranging from time to the acceptance of the changes that go with the policy shift. External and internal resources are put into considerations when making relevant strategies that beat the test of time. Hapag Lloyd strategic management for the Stowage Planner will put the following issues into consideration: The best approach for Hapag Lloyd from myriad options for similar organizations is the real time strategic change. A pool of information is provided for the stakeholders to draw solutions from. Events will be designed for the department around stowage based on Dick Beckhard and Reuben Harris’s formula for strategic change: Change = (dissatisfaction) (vision) (first steps)>Resistance Effective strategic change will occur if; dissatisfaction is experienced in the Stowage department with conspicuous inefficiency being attributable to it; the company’s vision compelling the Stowage Planner to follow a certain route of action to keep in line with the company’s objectives achievement path as well as some steps being already in place for realization of the objectives (Kotter and Schlesinger, 1979, p105). All these conditions must be powerful enough to overcome any resistance form within the department, be it from the employees or their leaders. The formula implies that the stowage department will have to effect strategic changes if the Planner realizes the underperformance and the consequential dissatisfaction. For instance, there could be delays in delivery due to slow and incompetent recording and data entry, calling for replacement of data entry employees. The reason could also be due to outdated data entry and recording techniques. Innovation of the department for more accurate and faster systems of data entry and recording could be necessary. The vision of the company (convenient delivery of packages and consignments) is compromised when the company does not pay attention to the apparent delays. First steps towards the realization of the vision will be put in place when the Stowage Planner finds out that the current system is not efficient and introduces mitigation procedures such as allocation of extra employees in the data entry section to relieve the congestion and delays. A logistics team will be formed by the Stowage Planner to identify the necessary policy reforms in the department. The formula will guide the team in coming up with the missing parameters to complete the equation. All the practices of the sections within the department will be vital in the formulation necessary interventions. All stakeholders must feel represented in the policy formulation, since the implementation also requires all of their efforts. Psychological willingness carries the day for implementation as it with the formulation, despite there being guidelines. Drucker (1969, p118) explains that change in the system of operation is necessitated by time and constant reviews must be ensured for the department to continue in maintaining vitality. This is because future challenges come with specific needs that must be addresses at least differently from past experiences. For instance, cargo handling by the stowage department currently requires specialized equipment for the various cargos in the market. Interrelating Formulation and Implementation In line with the change formula that the Stowage Planner will adopt for Hapag Lloyd strategic management, implementation applicability of the policies to be brought forward will be assessed. Suitability assessment will reveal whether the strategy will be rational to implement. For instance, adoption of expensive cargo handling equipment will be analyzed. Whether the procurement of the machine is economically logical and viable will ascertain the suitability of the strategy. Economies of scale as well as economies of scope will be important in ascertaining the viability of the strategy. Whether the strategy is to be adopted will also depend on the available alternatives and the level of capability by the company to support the cost. Hapag Lloyd level of operation will determine the amount of cost that the company can comfortably operate at without meeting unbearable burden reducing revenues. Feasibility studies will be conducted for the Stowage department, to ascertain whether the resources required are actually available, besides being viable. Assessments are made on whether the necessary funding is available; presence of relevant human resources; time availability as well as the availability relevant information are as feasibility parameters. The equipment could require extra expertise that the company cannot employ, thereby prompting the adoption of an alternative (Galbraith and Kazanjian, 1986, p203). Acceptability within the stakeholders will be assessed and alternatives assessed for likeability to increase the propensity to being implementable in the department. For instance, the reallocation of duties within the sections of the department to increase efficiency may not go well with the employees. While serious operational problems may be revealed by apparent resistance to change, the Stowage Planner must device means to make the changes appealing to the employees. For instance, the department can sponsor incompetent data entry staff for extra training than relocation to another area, which would mean transferring incompetence to another section. The risks involved in moving an employee from data entry to loading cargo should be assessed to ascertain whether pilferage will increase. Industrial organizational approach as well as sociological approach will be useful in the implementation of the strategy formulated in the prevailing circumstances. Hapag Lloyd will be forced to give a competitive perspective in the strategies adopted, with regard to its market presence and the rivals (Jacobs,1994, pp67-92). Business ethics and profit maximization will be assessed to determine the driving force for the strategies. Ensuring Strategic Plan in Actual Operations Creation of a strategic map for implementation of the plan will help Hapag Lloyd reach the next step in strategic management. Focal points are identified and boosted to ensure that the plan is sustained. In organization as diversified as Hapag Lloyd is, cascading the implementation will deliver realization of results where a clearly broken down implementation planning will be done. Each section of the department will be informed of their role in the implementation of the strategic plan for successful collective implementation to occur. Each section of the department will formulate its own SWOT analysis for guideline conformation. For instance; data entry employees, loading employees, drivers, storage as well as maintenance employees will identify areas of implementation to be put into effect. Functional area leaders are appointed to assist in implementation procedure adherence as well as assessment. External implementation consultants are available for hire and will be deliberated by the company. Facilitation of the implementation will be handed over to the consultancy company to enable compliance levels and confidence. Hapag Lloyd will get extra professional services in implementation, where rare specialized skills are employed by experts. Management and Functional Level Issues Involved Alban and Bunker (1997, p102) provide that for large organizations such as Hapag Lloyd, the large group theory applies in formulation of strategic interventions. Large groups’ dynamics expose Hapag Lloyd to four challenges that require specific interventions. These challenges are; voice dilemma where every individual has limited airtime to be heard in decision making; structure dilemma where anxiety needs to be resolved in all participants; egocentric dilemma where everyone believes they are the best as well as affect contagion where everyone needs to relieve feelings to avoid certain undesirable experiences alone. With these challenges affecting Hapag Lloyd, specific solutions must be developed to approach solution finding in a broad picture. Dynamics of large group imply that the management policies tackle employees’ voice in the manner in which business is carried out in the stowage department. Workers under the stowage planner need to be heard, yet time for everyone’s sentiments and grievances to be forwarded is limited. For instance, handling of some consignments with extra caution could be affecting the number of hours that an employee is involved. Breakages and charges that accompany the handling of such consignments may be an unpleasant feature that the workers have to put up with due to the set regulations. Structure dilemma for Hapag Lloyd presents in problems associated in bringing every employee on board for active participation. Some employees may go away with lack of proactive spirit in the carrying out of duties due to insufficiency in structural systems to identify and punish quiescence (Thomas, 1985, pp57-59). On the other hand, motivation for active players may be lacking due to poor hard work identifying mechanisms as well as reward systems. Stowage department is particularly difficult to run since to identify active players becomes almost impossible due to the nature of expectations. This implies that for stowage to perform exceptionally well, the whole company’s output must also be performing exceptionally well. Egocentric dilemma at Hapag Lloyd will be detrimental to the overall cargo handling since sensitivity of the department requires cooperation (Harris, 1999, pp118-120). For instance, when one employee feels like he is above the rest in service delivery, it may kill the morale of the rest of the team. Trust among cargo handlers is important since pilferage and damage cannot be avoided if the team has some relationship issues. Contagion affect in the stowage department usually results in trust issues which can cause conspiracy and go-slows in the department thereby affecting the productivity of the entire company. Apparently, this department is the most sensitive since output is linked to delivery of goods to the market therefore contagion affect is likely to cripple operations of the company. Collective solution finding within the company’s management will be necessitated since commitment from the management will influence the rest of the stakeholders at Hapag Lloyd for implementation. To sum up strategic policies implementation issues likely to lie in the way for Hapag Lloyd, generally, technological advancements, performance reward systems, internal organizational command and decision making processes as well as hierarchy and structural issues will all come into play. Besides these issues, company’s culture and inherent organizational resistance to change will also arise in the implementation. Alternatively, force filed analysis will provide possible impediments to implementation where the forces for change will be facing forces against changes in the implementation. Conclusion While strategic management plays a vital role in revival of underperforming departments within an organization, the implementation of the projected policies requires extra input. It is meaningless to formulate strong policies during strategic planning, if the final result, expected upon implementation can not be assured. 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