X
    Categories: Strategic Management

Which Phase of Strategic Management Is Called the Action Phase

Strategic management is a process that enables organizations to align their vision, mission, and objectives with their resources and capabilities to achieve sustainable competitive advantage. It involves various phases, including strategy formulation, strategy implementation, and performance evaluation. The action phase is a critical phase in the strategic management process. In this article, we will discuss the action phase in detail and why it is important for organizations.

What is the Action Phase?

The action phase is also known as the implementation phase. It is the phase in the strategic management process where the organization puts the strategic plan into action. During this phase, the organization develops a plan of action, allocates resources, and creates a structure that supports the execution of the strategy. The action phase involves the following steps:

  1. Developing an Action Plan: The first step in the action phase is developing an action plan. The action plan includes specific tasks and activities that must be completed to achieve the objectives outlined in the strategic plan. The action plan must be detailed and include timelines, resources, and responsible parties for each task.
  1. Allocating Resources: The second step in the action phase is allocating resources. Resources are the assets and capabilities required to execute the action plan successfully. This includes financial resources, human resources, and technological resources. The organization must ensure that it has the necessary resources to execute the action plan successfully.
  1. Building Support: The third step in the action phase is building support from stakeholders. Stakeholders include employees, customers, suppliers, and investors. The organization must communicate the strategic plan and the action plan to stakeholders and build support for the plan. This involves creating a culture that supports the strategy and building relationships with stakeholders.
  1. Creating a Structure: The fourth step in the action phase is creating a structure that supports the execution of the strategy. This includes establishing clear objectives, developing policies and procedures, and creating a culture that supports the strategy. The organization must ensure that its structure supports the execution of the action plan and enables the organization to achieve its objectives.

Why is the Action Phase Important?

The action phase is important for several reasons. First, it is the phase where the organization puts the strategic plan into action. Without the action phase, the strategic plan remains a theoretical concept, and the organization cannot achieve its objectives. Second, the action phase enables the organization to allocate resources effectively. Without the action phase, the organization may waste resources on activities that do not contribute to achieving its objectives. Third, the action phase enables the organization to build support from stakeholders. Without stakeholder support, the organization may face resistance to the strategic plan, which can lead to its failure. Fourth, the action phase enables the organization to create a structure that supports the execution of the strategy. Without the right structure, the organization may not be able to execute the action plan successfully.

Challenges in the Action Phase

The action phase can be challenging for organizations. Some of the common challenges include:

  1. Resistance to Change: One of the biggest challenges in the action phase is resistance to change. Employees and stakeholders may resist the strategic plan and the action plan, which can make it difficult to execute the plan successfully. The organization must communicate the plan effectively and build support from stakeholders to overcome resistance to change.
  1. Resource Constraints: Another challenge in the action phase is resource constraints. The organization may not have the necessary resources to execute the action plan successfully. This can include financial resources, human resources, and technological resources. The organization must prioritize the use of resources and identify alternative sources of resources to overcome resource constraints.
  1. Implementation Gap: Another challenge in the action phase is the implementation gap. The implementation gap occurs when there is a disconnect between the strategic plan and the action plan. This can happen when the action plan does not align with the strategic plan or when there is a lack of clarity in the action plan. To overcome the implementation gap, the organization must ensure that the action plan is aligned with the strategic plan and that there is clarity in the action plan.
  1. Lack of Accountability: Another challenge in the action phase is the lack of accountability. The organization must ensure that each task and activity in the action plan has a responsible party who is accountable for its completion. Without accountability, tasks may not be completed on time, which can lead to delays in the execution of the action plan.

Tips for Successful Action Phase

To ensure a successful action phase, organizations should follow these tips:

  1. Communicate the plan effectively: Effective communication is critical in the action phase. The organization must communicate the strategic plan and the action plan effectively to stakeholders. This involves creating a clear message, using various communication channels, and building relationships with stakeholders.
  1. Align the action plan with the strategic plan: The action plan must align with the strategic plan to ensure that the organization can achieve its objectives. The organization must ensure that the action plan is specific, measurable, achievable, relevant, and time-bound (SMART).
  1. Allocate resources effectively: Resource allocation is critical in the action phase. The organization must ensure that it has the necessary resources to execute the action plan successfully. This involves prioritizing the use of resources, identifying alternative sources of resources, and tracking resource usage.
  1. Build support from stakeholders: Stakeholder support is critical in the action phase. The organization must build relationships with stakeholders, communicate the strategic plan and the action plan effectively, and address their concerns and feedback.
  1. Monitor and evaluate progress: Monitoring and evaluating progress are critical in the action phase. The organization must track progress against the action plan, identify any issues or gaps, and take corrective action. This involves using metrics and KPIs, conducting regular meetings, and communicating progress to stakeholders.

The action phase is a critical phase in the strategic management process. It is the phase where the organization puts the strategic plan into action. The action phase involves developing an action plan, allocating resources, building support from stakeholders, and creating a structure that supports the execution of the strategy. The action phase is important because it enables the organization to achieve its objectives, allocate resources effectively, build support from stakeholders, and create a structure that supports the execution of the strategy. However, the action phase can be challenging, and organizations must overcome resistance to change, resource constraints, implementation gaps, and lack of accountability to ensure success. By following the tips outlined in this article, organizations can ensure a successful action phase and achieve their strategic objectives.

hardik gupta :