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Implementation processes and internal marketing: Making it happen.

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Presentation on theme: "Implementation processes and internal marketing: Making it happen."— Presentation transcript:

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 Understanding HighLow The “yes … but”s or malicious obedience The ideal The dangerous enthusiasts The dinosaurs Low High

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 Willingness to change HighLow High Low Ready to go Blissful ignorance 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 Execution skills AppropriateInappropriate SuccessRoulette FailureTrouble Good 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 Market strategy GoodPoor Synergistic strategies Stretch strategies Obsolete strategies Conventional strategies New 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? Is this strategy capable of being implemented by this company at this time? Have we communicated the strategy - adapted it, won support for it? No implementation This strategy does not tell us what to do No implementation Lip-service - we may agree with the strategy but we cannot put it into effect No implementation We do not accept this strategy - let’s see what counter-implementation can do! Implementation (maybe) Yes No

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 External marketing programme Product Price Communications Distribution Internal 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


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

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

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 Organizational levels Critical questions Internal marketing levels Processual Surface Structural 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

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  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 Execution skills versus process management in marketing strategy implementation Process management Execution skills LowHigh Integrated strategy and implementation Management- driven implementation Weak implementation Implementation- driven strategy Weak Strong

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