"Many managers fail to distinguish between strategy formulation and strategy implementation. Yet, it is crucial to realize the difference between…

Difference between Strategy Formulation and Implementation Strategy Formulation Strategy Implementation Strategy Formulation includes planning and decision-making involved in developing the organization's strategic goals and plans. Strategy Implementation involves all those means related to executing the strategic plans. In short, Strategy Formulation is placing the Forces before the action. In short, Strategy Implementation is managing forces during the action. An Entrepreneurial Activity based on strategic decision-making. An Administrative Task based on strategic and operational decisions. Emphasizes on effectiveness. Emphasizes on efficiency. Primarily an intellectual and rational process. Primarily an operational process. Requires co-ordination among few individuals at the top level. Requires co-ordination among many individuals at the middle and lower levels. Requires a great deal of initiative, logical skills, conceptual intuitive and analytical skills. Requires specific motivational and leadership traits. Strategic Formulation precedes Strategy Implementation. Strategic Implementation follows Strategy Formulation. OR In recent years information technology and communications have significantly altered the functioning of organizations. The role played by middle management is diminishing as the tasks performed by them are increasingly being replaced by the technological tools. Hourglass organization structure consists of three layers in an organization structure with constricted middle layer. The structure has a short and narrow middle management level. Information technology links the top and bottom levels in the organization reducing away many tasks that are performed by the middle level managers. A shrunken middle layer coordinates diverse lower-level activities. Hourglass structure has obvious benefits from reduced costs. It also helps in enhancing responsiveness by simplifying decision making. Decision making authorities are shifted close to the source of information, so decision making is faster. However, with the reduced size of middle management, the promotion opportunities for the lower levels diminish significantly.