Question

Talking about formulating strategy and implementing strategy in organizations, Jamie Dimon, the CEO of JPMorgan Chase, has said, "I'd rather have a first-rate execution and a second-rate strategy anytime [rather] than a brilliant idea and mediocre management." Similarly in his book Execution: The Discipline of Getting Things Done, Larry Bossidy of AlliedSignal stated that, "Strategies most often fail because they aren't well executed." Do you think that these two CEO's make a valid point? Discuss the distinction they make between strategic formulation (planning) and the implementation of a strategic plan in an organization.

Answer 1

The goal for each organization includes the major priority of executing the strategic planning in order to run the business without any flaws. The smooth functioning of the firms depends upon the fine decision of executives in each higher level of hierarchy. The hasty decisions of management committee members leads to failure of attaining high sales margin and earning good reputation of the products.

The method of analysis of employees talent resources are considered as the best one in framing such effective decision related to employess satisfaction in their own work. Rather than undergoing the system of micromanagement, taking first class decision and executing it in the proper situation of peaceful work environment are determined well to be the valid point of two CEOs views on matured and powerful management decision.

There will be always the two side of effective steps of success for gaining maximum end results in a positive side. First step is framing the strategic plans and Second step is executing the plan and applying it in the practical mode and waiting for the good results. The results may be fail to achieve. But again the management should try to learn the lesson from the failures which they faced in the previous planning and should again strive hard to focus on the weak points by replacing those things with a good points.

The decision makers of the firms makes the distinction between strategic formulation and the implementation of its plan. It can explained by the following facts. 1) Strategic planning are fully based on action-oriented approach. Generally the strategic planning is related with the concepts of managerial economics. The planning makes research on current trend of the global market and by analyzing the deep advantageous factors for promoting the sales and marketing margin, it helps management to fix the affordable price for the goods and services. The plans mainly adds the activities of reduction of firms costs of production in the short as well in the long run. 2) Then secondly when coming to the second step of implementation, the management commitee determines the methodology of protocol. The protocol instructs all the employees how to produce the quality goods and services within the given resources. The optimal mix of both usable resources of factors of production in one side and cost of production will fetch the deseriable results if the implementation of strategic planning are applied in a good sense of management techniques.