Implementation processes and internal marketing: Making it happen

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

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

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

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

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

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

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

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

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)

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

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)?

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

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

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)

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

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

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

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

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

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

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

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

The tools of internal marketing SOURCE: AHMED AND RAFIG

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

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

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

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

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

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

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

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

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

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

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

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

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