7.1. Developing Strategies into Annual Plans
Strategy implementation, i.e. managing the company using the approved strategy, is another aspect which must be applied systematically in order for the strategy to be implemented successfully (Kaplan & Norton, 2001). Unsystematic implementation (when a company creates a strategy but does not follow through on its implementation), is why often viable strategies fail to produce anticipated results.
The most useful suggestion when it comes to implementing a strategy is to manage implementation by setting shorter, i.e. annual plans, which will clarify the specific activities and projects that individual departments should implement in order to attain the objectives defined in a specific strategy and for a given time frame.
In terms of short-term (implementation) plans (Johnson, Scholes, 1993), it is advisable to specifically define the activities, projects etc. that a given department (marketing, finance, purchasing, production etc.) should implement. Specifically, the following should be considered:
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WHAT– which activity or product should the given department implement in the given strategic horizon (year)
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WHO – is responsible for the implementation of the given activity or project
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(by) WHEN should the given activity or project be implemented
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For HOW MUCH - i.e. determining a rough budget
Example of a short-term, annual (implementation) plan for Marketing
| Marketing Plan for the Year 2015 | ||
| Activity/Project (WHAT) | Responsibility (WHO) | Date (by WHEN) |
| Brand Strategy | ||
| Project for refining supported values associated with the brand (the company’s own customer-oriented research aimed at determining current brand perception, setting values which should be associated with the brand, communicating these values – via the company website, inside the company etc.) | FK | April 30th, 2015 |
| Selection procedure for a PR agency and presenting the company in national media via expert articles – approx. 6-8 expert articles per year (brand support – image, building brand awareness among target audience) | FK | May 31st, 2015 |
| Selection procedure for a communication agency and initiating cooperation in marketing | AD | July 31st, 2015 |
| Integrated marketing campaign in support of the product XY (online, print media, POS materials at the store, contests – collecting contacts etc.) | HE | March – May and September– October 2015 |
| Creating an online database of contacts - suggestion for database structure, addressing contact consent policies, proposing contact collection methods etc. | HE | September 15th, 2015 |
| Creating an online marketing specialist position, recruiting for this position etc. | FK | March 15th, 2015 |
| Regular monitoring of competition (prices, product changes, main lines of communication) – update 2 x per year | HE | May 31st and November 21st 2015 |
| Revision and redesign of all product flyers | FK | March 15th, 2015 |
| Etc. | ||
Preparing an annual plan is an entirely flexible process. Instead of using the same structure as above, it is possible to divide individual marketing activities/projects according to sub-strategic aspects.
Apart from planning activities, annual plans should also include a budget- in this case, an annual marketing budget. This budget should cover all costs for a given time period – from employee wages (including social and health insurance, bonuses etc.) to supplier-related costs (e.g. monthly subscription fees to PR or other agencies), investment costs for campaigns (buying advertising space in print media, buying online advertising space etc.), printing POS materials (flyers, gift items etc.) and others.
