V Wk 6 - Final Strategic Plan [due Mon] Assignment Content 1.         Resource: Final Strategic Plan Grading Guide   Create the Final Strategic Plan. The Final Strategic Plan contains the elements of

STRATEGIC IMPLEMENTATION PLAN 12

Strategic Plan – Implementation Plan, Strategic Controls, and Contingency Plan Analysis

Implementation Plan

An implementation plan is used as a support tool for the strategic plan. Strategic planning is conducted on an organizational level, showing the company's direction and resource allocation strategy. This implementation plan will be based on Allete Inc. All the components of an implementation plan will be discussed thoroughly in this discussion including change management strategies, strategic controls, and risk management and contingency plans.

Objectives

The first objective of this implementation plan is to increase cooperation among all the departments in Allete. Secondly, the implementation plan will ensure that there is accountability in all the levels of the organization. Additionally, the implementation plan will facilitate the achievement of the set goals and targets in Allete. The implementation plan is further meant to optimize the operations of Allete Inc and bring more productivity in all production factors (Hosmer, 2017).

Functional Tactics

Functional tactics refer to core activities that have to be accomplished in every functional area. Functional areas include product research and development, financial, production, and marketing (Brinckmann & Kim, 2015). In product and research and development, Allete has to conduct thorough market research to determine the current changes in the market about their products. Allete should hire financial experts to help in auditing, budgeting, and making the necessary business decisions. Production has to align with customer needs and preferences. Allete has to use modern technology in production and further conduct customer research to determine what is needed. In marketing, Allete Inc has to use the 4Ps of the marketing mix (Brinckmann & Kim, 2015).

Action Items

Action items show how business owners can efficiently interpret strategic goals into organizational action and implementation items. Action items can be tracked through tracking software to promote effectiveness. The action items, in this case, will be tailored to answering some questions (Brinckmann & Kim, 2015). The first action item to be implemented by Allete is creating proper procedures for communications that will facilitate sharing of information with all its staff. In providing information to the team, all proper channels must be followed such as email, notice boards, and other electronic means. To improve the operations of Allete, marketing strategy is developed. To make sure that the set targets are achieved, enough resources are allocated. A communication plan which includes the chain of command should be created for reporting the status and progress of the implementation plan.

Milestones and Deadlines

Milestones and deadlines are crucial for an effective implementation plan. It is through milestones and periods that goals are achieved easily by all the employees in an organization. Milestones set out what should be done when it has to be and person responsible for it (Brinckmann & Kim, 2015). The milestones are set to take three months to be fully completed.

Tasks and Task Ownership

Task and task ownership ensure that the project milestones are achieved as set. It is crucial to assign one person a task to ensure that there is a high level of accountability and responsibility. This implementation plan aims to ensure that Allete levels up with the competitors and trends in the market. The table below shows the tasks and task ownership

Resource Allocation

Resource allocation refers to the process through which a company decides on how scarce resources can be used to produce optimum production of goods and services. There are various methods and strategies of resource allocation that Allete can adopt. However, it is more effective to utilize only one way of resource allocation as it is bound to be more productive. Allete can apply a six-step process of resource allocation. First, Allete should divide the whole project into tasks to facilitate effective budgeting. Secondly, Allete should assign resources to every job. Third, Allete should determine the attributes of resources to promote efficiency. Fourth, Allete should conduct resource leveling to avoid issues in efficiency and effectiveness. Additionally, Allete should make re-allocation were necessary to avoid deficits. Moreover, Allete should track the utilization of resources to prevent any wastage.

Change Management Strategies

Without an effective change management plan, there is a high likelihood of failure in the implementation process. All employees should be involved and participate actively throughout the change process. It is worth noting that change management is necessary to align the right team with the organization processes for better results. Therefore, it is recommended that Allete should utilize the Kotter's 8-step model. According to Stouten, Rousseau, and De Cremer (2018), John Kotter (1996), a leadership professor at Harvard popularized an eight-step model which starts the change process with (1) establishing a sense of urgency in which employees are alerted to the fact that change is essential. (2) A guiding coalition is formed which in turn (3) develops the change vision. (4) This vision is communicated to employees and (5) the coalition (and employees) is involved in the change process by developing change plans. (6) The next step promotes for short-term wins to reinforce the change implementation.(7)Then, he defines the consolidation stage which strengthens and continues the change by making additional changes that were not implemented yet but need to be taken care for as otherwise processes in the organization would not be sufficiently aligned with the initial change vision. (8) The final stage institutionalizes the change by integrating it with the organization’s structures and systems.

Additionally, Allete can provide incentives to its employees to reinforce positive behavior and promote engagement throughout the change process. The incentive can be given under an employee recognition plan wherein specific activities or values are matched with corresponding rewards. Allete can also consider redefining the company’s cultural values. Setting a culture of constant improvement will help in building understanding of the change strategy and will reinforce employees to start doing things the new way in order to support the strategy. Recruiting experts of change should also be considered. Seeking the help from change experts will ease the process towards change and will ensure smooth implementation of the plan.

Strategic Controls

Key Success Factors

To be successful, Allete has to develop critical success factors. These are key performances that are essential for an organization to meet its mission (Hitt, Ireland, & Hoskisson, 2015). Such success factors that Allete Inc has to develop include, customer relations, physical resources, activities managing and developing employees, and strategic focus. Additionally, the key success factors for the implementation of the strategic goals embody securing adequate resources and budgets. Most organization budget and human resources aren't invariably allocated so, having these factors are vital in achieving the success of the implementation plan. Anticipating for a possible modification in management problems is another issue that promotes the action of the strategic goal as a result of there'll be less or no resistance. Involving and incentivizing staff and stakeholders can facilitate stakeholders connect with the strategic goal, and this may facilitate its implementation.

Budget

An expected 8 percent of Allete’s total net income, that is (8% × $185,600) = $14,848, will be used to fund the implementation plan. The funding includes expenses for staff training, marketing strategies and programs, hiring expert personnel, and allowance for executives.

Forecasted Financials

Break-even Analysis

Allete’s break-even point is where revenue in dollars is equal to total cost. At break-even point, 500 units are needed to be sold to generate revenue of $34,000. This point is where the revenue and total cost are equal. Any point above the break-even point is the profit margin for Allete, while any point below the break-even point is where Allete loses.

Risk Management and Contingency Plans

It is important that Allete is prepared for possible risks that they may encounter. A contingency plan should also be in place for the identified risks. The purpose of the contingency plan is to lessen the damage of the risk when it occurs (Heimann, 2000). The possible risks and a corresponding contingency plan for the identified risks are shown in the table below.

Conclusion

From the discussion, it is evident that all the components of an implementation plan have been covered. Allete Inc should apply the strategies mentioned above and recommendations to improve its performance. Every department has a crucial role to play in facilitating successful outcomes. It is the role of the management to collaborate in all levels to promote better results of the implementation plan.

References

Brinckmann, J., & Kim, S. (2015). Why We Plan: The Impact of Nascent Entrepreneurs' Cognitive Characteristics and Human Capital on Business Planning. Strategic Entrepreneurship Journal, 9(2), 153-166. doi: 10.1002/sej.1197

Heimann, J. F. (2000). Contingency planning as a necessity. Paper presented at Project Management Institute Annual Seminars & Symposium, Houston, TX. Newtown Square, PA: Project Management Institute. Retrieved from https://www.pmi.org/learning/library/contingency-planning-necessity-risk-assessment-8898

Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2015). Strategic management: Competitiveness and globalization (11th ed). Stamford, CT

Hosmer, L. (2017). Strategic planning as if ethics mattered. Strategic Management Journal, 15(S2), 17-34. Doi: 10.1002/smj.4250151003

Stouten, J., Rousseau, D., & De Cremer, D. (2018). Successful Organizational Change: Integrating the Management Practice and Scholarly Literatures. Academy of Management Annals, 12(2), 752-788. Retrieved from https://www.cebma.org/wp-content/uploads/Stouten-et-al-2018.pdf