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Management - Vikhanskiy OS

3.4. Mobilizing the capacity to implement the strategy

Along with strategic changes and creation of the necessary climate in the organization, an important task that the management of the organization has to solve at the stage of implementing the strategy is the formation and mobilization of the resources of the organization and its human potential for the implementation of the strategy.

As for the strategy of using human potential, two most general remarks must be made. First, the most important condition for the implementation of the strategy is the commitment, devotion of the members of the organization to the business that the organization is leading, in particular to the implementation of the strategy implemented by the organization. Develop a sense of commitment is difficult. At the stage of implementation of the strategy, management should do everything possible to ensure that the members of the organization have developed as stable a perception of the organization's strategy as their personal business. Secondly, the success of the implementation of the strategy largely depends on the extent to which members of the organization have a desire to achieve the best results at their workplace. The ability to work well and the desire to work better are those characteristics of people who should always be at the center of the attention of management and, in particular, should be the subject of special attention at the stage of implementation of the strategy.

The process of resource mobilization begins with the fact that the mechanism for using the resource potential of the organization is brought into line with the strategy being implemented. This is done to ensure that senior management has led the nature and focus of the functional units in accordance with the tasks of implementing the strategy. Prior to the functional units that manage the movement of resources within the organization, new tasks must be brought. It is also important to remove the resistance on their part that results from the change and to convince them of the need for effective participation in the implementation of the strategy and for carrying out appropriate preparatory work and changes.

The basis for resource mobilization is the allocation of the organization's resources to individual components of the strategy. The most important condition for the effective use of resources and, accordingly, the effective implementation of the strategy is their correct distribution over time. Since the external environment is dynamic and the opportunities for which the strategy is oriented are not permanent, the lack of the necessary resources at the right time can lead to the organization failing to implement its strategy, even if it was very well developed. Therefore, in order to avoid failure in the implementation of the strategy at the stage of its implementation, management must organize the correct allocation of financial resources of the organization - a distribution that always at the right time would have the necessary funds.

To do this, management should establish strategic guidelines for the use of funds that capture the purpose for which the costs can be carried out, and where money should not be invested. Further, at the implementation stage, the need for funds of individual parts of the organization for solving individual tasks and performing functions should be analyzed, and priorities for the allocation of funds should be determined. These priorities are set in such a way that funding is most conducive to the implementation of the strategy.

The process of resource mobilization at the stage of implementation of the strategy assumes, along with an efficient allocation of resources, the assessment and retention of sources of capital. Management should not only know about the sources that it can use to get money, about the opportunities and restrictions on their use, about the cost of capital, but also to do everything possible to preserve these sources and acquire new ones, if this is necessary to implement Strategy.
The main tool used to allocate resources is the preparation and execution of a budget, which can relate not only to money, but also to stocks, capital, sales, etc.

Execution is always the most difficult stage in any process. A key role in the implementation of the strategy belongs to the leadership of the organization. As can be seen from this chapter, the implementation of the strategy involves strategic changes and the mobilization of the organization's capacity to implement the strategy. These two super-tasks demand from the management of the organization not only a clear vision of where the organization is going, but also the ability to lead it in the right direction. The real strategist is that he can maximize the mobilization of the resources of the organization and distribute them in such a way that their use has the greatest effect. A real strategist is characterized by the fact that he not only knows what and how to change, but also can make the necessary changes. Finally, the real strategist is able to interact with members of the organization in such a way that they perceive his ideas and by their own efforts carry them out.

Completion of the chapter with these remarks on the role and characteristics of managers in the process of implementing the strategy is not accidental. This is done in order to once again emphasize that the implementation of the strategy is a creative process and the key role in it belongs to the top management.