Strategy Formulation vs. Strategy Implementation — What's the Difference?
By Tayyaba Rehman — Published on October 20, 2023
Strategy Formulation involves creating a detailed plan to achieve organizational goals, while Strategy Implementation is the process of executing the developed plan within the organization.
Difference Between Strategy Formulation and Strategy Implementation
Table of Contents
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Key Differences
Strategy Formulation and Strategy Implementation are sequential phases in strategic management. Strategy Formulation is the process where planners analyze the environment and the organization itself to identify the strategic goals and create a detailed plan. It is about determining what needs to be done to achieve the organizational objectives, involving analysis, decision-making, and planning. In this phase, organizations decide their mission, vision, and strategies, considering external opportunities and threats and internal strengths and weaknesses.
On the other hand, Strategy Implementation is the subsequent phase where the formulated strategy is put into action. It is concerned with the techniques and tactics used to execute the strategies. This phase necessitates the mobilization of resources, structuring, budgeting, and the management of change. It is the realization of the plans set out during the formulation stage, focusing on executing the actions needed to achieve the strategic goals and objectives.
While Strategy Formulation is more about analytical thinking, planning, and decision-making, Strategy Implementation is more about practical application, action, and execution. Strategy Formulation requires a deep understanding of the external environment and internal capabilities, resulting in strategic plans and objectives. In contrast, Strategy Implementation involves managing resources, organizational change, and operational activities to execute the strategy successfully.
Both phases are integral to strategic management, with formulation providing the roadmap and implementation bringing the plan to life. The effectiveness of Strategy Implementation is highly dependent on the appropriateness and the robustness of the Strategy Formulation. The formulation provides the what and the why, while implementation provides the how, translating strategic thoughts into strategic action.
A successful strategic management process harmoniously integrates Strategy Formulation and Strategy Implementation. The formulation of a sound and viable strategy is futile if not implemented effectively, and implementation is directionless without a well-formulated strategy. Thus, a balance between formulating the right strategy and implementing it effectively is crucial for achieving organizational success.
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Comparison Chart
Definition
It is the process of creating detailed plans to achieve organizational goals.
It is the process of executing the developed plans within the organization.
Focus
On analytical thinking, planning, and decision-making.
On practical application, action, and execution.
Nature
More about determining what needs to be done.
More about doing what has been planned.
Required Skillset
Involves analysis, creativity, and strategic thinking.
Involves management, organizational, and operational skills.
Dependency
Provides the roadmap for what needs to be achieved.
Dependent on the robustness and appropriateness of the formulated strategy.
Compare with Definitions
Strategy Formulation
Strategy Formulation is about deciding the best course of action to attain organizational success.
Strategy Formulation is crucial for aligning organizational resources with strategic objectives.
Strategy Implementation
Strategy Implementation focuses on operationalizing the strategic plan within the organization.
Strategy Implementation requires meticulous planning and management to ensure strategic alignment.
Strategy Formulation
Strategy Formulation is where the organization’s mission, vision, and strategies are determined.
Through Strategy Formulation, organizations develop plans to leverage their competitive advantage.
Strategy Implementation
Strategy Implementation involves translating strategic plans into actions to achieve objectives.
Strategy Implementation often necessitates organizational change to align with strategic goals.
Strategy Formulation
Strategy Formulation involves analyzing internal and external environments to set achievable goals.
Effective Strategy Formulation requires a clear understanding of the organization's strengths and weaknesses.
Strategy Implementation
Strategy Implementation is the realization of plans set out during the formulation stage.
The effectiveness of Strategy Implementation is dependent on the robustness of the formulated strategy.
Strategy Formulation
Strategy Formulation is the process of creating plans to achieve organizational objectives.
In Strategy Formulation, various strategic alternatives are developed and evaluated.
Strategy Implementation
Strategy Implementation is the action phase where formulated strategies are executed.
Successful Strategy Implementation requires effective communication and resource allocation.
Strategy Formulation
Strategy Formulation focuses on what needs to be done to realize organizational aspirations.
Strategic leaders are often responsible for Strategy Formulation to guide the organization forward.
Strategy Implementation
Strategy Implementation is about managing resources, structures, and functions to execute strategies.
Effective Strategy Implementation is crucial for realizing the strategic vision of the organization.
Common Curiosities
How does Strategy Implementation differ from Strategy Formulation?
Strategy Implementation is the execution phase where the formulated plans are put into action, focusing on practical application, while Strategy Formulation is about creating these plans.
What is Strategy Formulation?
Strategy Formulation is the process of creating detailed plans to achieve organizational goals, involving analysis, decision-making, and planning.
Can Strategy Implementation occur without Strategy Formulation?
No, effective implementation requires a well-formulated strategy to provide direction and focus.
Is Strategy Formulation a one-time activity?
No, it is an ongoing process, adapting to changes in the internal and external environment.
Is Strategy Formulation more important than Strategy Implementation?
Both are equally important; a well-formulated strategy is futile without effective implementation, and implementation is directionless without a well-formulated strategy.
What skills are crucial for Strategy Implementation?
Management, organizational, operational, and communication skills are crucial for effective Strategy Implementation.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
