1. Implementation processes and internal marketing: Making it happen

2. Agenda - 1
Why do we need to make an issue out of strategy implementation?
Implementation versus strategy
So, what is the thing about implementation?
Implementation denial
So, why doesn’t it work?
Building implementation strategies

3. Agenda - 2 Strategic internal marketing
Where does that leave us with strategy implementation?

4. Why do we need to make an issue out of strategy implementation?
Many company change initiatives fail
Implementation capabilities
The need for internal marketing
getting employees on our side
getting managers on our side
getting collaborators on our side
changing culture

5. How groups can block effective change in a company
Energy
Low
High
The
“yes … but”s
or malicious
obedience
The
ideal
High
Understanding
The
dinosaurs
The
dangerous
enthusiasts
Low

6. Implementation versus strategy
Traditional approaches: organization, resources action lists, control systems
Creates a dichotomy between strategy formulation and implementation
Need better ways of integrating strategy and implementation

7. So, what is the thing about implementation?
Implementation failures associated with
separation of planning from management
hopeless optimism
implementation recognized too late
denial of implementation problems
implementation bolted-on at the end
fixation
implementation is a black-box

8. Implementation denial
Failure to recognize the implementation problem
Need to recognize problems and prepare for change

9. Recognising the implementation problem and preparing for change
Perception that there is a problem
High
Low
Ready
to go
Blissful
ignorance
High
Willingness
to change
Low
Worried stayers/
frightened
rabbits
Closed
minds

10. So, why doesn’t it work? Strategy versus implementation skills
diagnosing implementation problems means comparing strategy (appropriate or inappropriate) with execution skills (good or bad)

11. Diagnosing the implementation problem
Strategy
Appropriate
Inappropriate
Success
Roulette
Good
Execution
skills
Trouble
Failure
Bad

12. So, why doesn’t it work? Organizational stretch
what is the relationship between the fit of the strategy with company capabilities, systems and structures and the strategy itself (new or old)?

13. Matching strategy to company capabilities
Fit of strategy with company
capabilities, systems, structures
Good
Poor
Synergistic
strategies
Stretch
strategies
New
Market
strategy
Conventional
strategies
Obsolete
strategies
Old

14. So, why doesn’t it work?
Testing out the strategy versus blaming the salesperson
Lip-service to strategy caused by
management by assumption
structural contradictions
empty promises marketing
bunny marketing
Counter-implementation emerges

15. Testing market strategies
Test the strategy
Results
Reason
Is this really a coherent
and complete strategy? No No
implementation
This strategy does
not tell us what to do
Yes
Lip-service - we may
agree with the strategy
but we cannot put it
into effect
Is this strategy capable of
being implemented by this
company at this time? No No
implementation
Yes
We do not accept this
strategy - let’s see what
counter-implementation
can do!
Have we communicated the
strategy - adapted it, won
support for it? No No
implementation
Yes
Implementation
(maybe)

16. So, why doesn’t it work? What about execution skills and competences?
interacting skills
allocating skills
monitoring skills
organizing skills

17. Building implementation strategies
Screen strategies for implementation problems
Isolate and evaluate priority implementation problems
Evaluate key players in implementation
Develop implementation strategies

18. Screening strategies for implementation problems
1. Screen strategies for implementation problems early
2. Isolate and evaluate implementation problems in detail
3. Identify and evaluate key players
4. Develop credible, costed implementation strategies
- or reject the strategy

19. Internal and external marketing
Strategy
Plan
Internal
marketing
programme
Product
Price
Communications
Distribution
External
marketing
programme
Product
Price
Communications
Distribution
Targeted at key
groups in the
company, alliance
partner companies,
and other influencers
Targeted at key
customers, segments
and niches, and other
external influencers

20. Role of Internal Marketing
The managerial actions necessary to make all members of the organization understand & accept their role in implementation
internal products-marketing strategies
internal prices-changes that must be undertaken to implement the marketing strategy
internal distribution-how the strategies are communicated internally (training)
internal promotion-persuasive communications

21. Models of internal marketing
SOURCE: AHMED AND RAFIQ (2002) INTERNAL MARKETING BUTTERWORTH HEINEMANN CHAPTER 2

22. Rafiq and Ahmed meta-model of internal marketing
Pre-launch information
regarding marketing
campaigns
Employees realise the
importance of
their role
Supportive
recruitment
practices
Training
Participative
management
Employee
discretion
Word of mouth
promotion
Increased
loyalty
Motivated
employees
Service
quality
strategy
Supportive
senior
management
Customer
conscious/
customer
orientated
employees
Perceived
service
quality
Good
interaction
Customer
satisfaction
Increased
profitability
Jobs as
products
Sales
minded
employees
Increased sales
due to interactive
marketing
Application
of marketing
techniques
internally
Employees’
satisfaction
Attraction and retention
of customer conscious
employees

23. A framework for internal marketing of services
Inter-functional
Co-ordination
and Integration
Employee
motivation
Marketing-like
approach
Job
satisfaction
Customer
orientation
Empowerment
Service
quality
Customer satisfaction

24. The tools of internal marketing
SOURCE: AHMED AND RAFIG

25. Caveats Employees as customers
products may be unwanted (e.g. new methods of working)
employees must accept the ‘product’ or be forced into acceptance under the threat of disciplinary action or dismissal

26. Caveats
problem with idea of customer sovereignty
make impossible demands on organisation and its resources
In this approach employees do not know that they are customers even though they are treated as such

27. INTERNAL MARKETING MIX
Number of elements under the control of management are combined and integrated in order to produce the required response from the target market.
Use extended seven P’s of service marketing
Explicitly recognises inter-functional interdependence and the need for an integrated effort for effective service (or product) delivery
Major aim of an internal marketing programme

28. Levels of internal marketing
Surface
Structural
Processual
Organizational
levels
Critical
questions
What are the plans,
systems and
procedures in
this business?
Product:
Plans and strategies
Price:
Opportunities
given up
Communications:
Information,
market research
Distribution:
Reports,
presentations
Who runs things
here?
Product:
New strategic direction
Price:
Loss of control,
status, initiative
Communications:
Sponsorship,
agenda-setting
Distribution:
Policies,
participation
Who has influence
here - sets the agenda,
owns key processes,
is an “expert”?
Product:
individual’s job, status, role
Price:
Adjustment to
change, new culture
Communications:
Persuasion, image,
influence, choice of criteria
Distribution:
informal communications
network,
social interaction
Internal
marketing
levels

29. Strategic internal marketing
Programme
Product
Price
Communications
Distribution
Contents
The strategy and the plan,
including the values, attitudes
and behaviours needed to
make them work
What we are asking internal
customers to “pay” – other
projects abandoned, personal
and psychological adjustment
to change
Media and messages to inform
and persuade
Physical and social venues for
delivering the product and
communications
Examples
For example, the written plan,
the new company initiative
For example, stepping out of
comfort zones for new types
of operations
For example, reports, plans,
presentations, videos,
roadshows
For example, meetings, work-groups,
training sessions and workshops,
informal meetings, social occasions

30. Implementing Marketing Activities
Good communication is key
upward communication from the front line
allows management to understand problems & needs of the employees
Employees must understand the implementation timetable
specific activities to be performed, time required, sequence, & who is responsible

31. Implementing an Internal Marketing Approach
Conscientious recruitment, selection & training of employees
Top managers must be completely committed to the marketing strategy & overall plan
Employee compensation must be linked to marketing strategy implementation
Open communication must exist at all levels
Organizational structure, processes & policies must match the marketing strategy

32. Strategic internal marketing
Operational internal marketing
service marketing and quality
brand ambassadors
internal communications
innovation management
corporate positioning
Internal markets instead of external markets

33. Strategic internal marketing
internal market orientation
internal marketing strategy
the structure of SIM

34. Strategic internal marketing
The internal marketing programme
internal market measurement
internal marketing targets
internal marketing evaluation
The hidden face of strategic internal marketing

35. Causes of Improper Implementation
Marketing strategy is inappropriate or unrealistic
Implementation was inappropriate for the strategy or was simply mismanaged
Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation

36. Where does that leave us with strategy implementation?
Execution skills versus process management in strategy implementation
weak implementation
management-driven implementation
implementation-driven strategy
integrated strategy and implementation

37. Process management Execution skills
Execution skills versus process management in marketing strategy implementation
Process management
High
Low
Integrated
strategy and
implementation
Management-
driven
implementation
Strong
Execution
skills
Implementation-
driven
strategy
Weak
implementation
Weak