Implementing Strategies--Technological and Functional

Technological

Technological implementation includes ensuring that the company has the technological means to achieve its strategies. For example, a firm that seeks to streamline its supplier/buyer relationships by upgrading order entry processes must first determine if they have the technically-trained personnel to support such a move, if they have the information systems in place to make it happen, and the hardware and software compatible for such a venture.

Functional

This activity includes making sure that the various functional elements of the organization are supportive of the change in strategy and are willing to operate in an open, systems approach that emphasizes cross-functional cooperation rather than competition and functional "siloing." In the mid-1980s, AT&T was forced to respond to its breakup and the deregulation of long-distance service by developing a new, customer and marketing oriented focus. This shift was difficult for a company that had long been spared the need to actively compete due to its being a monopoly and further, was dominated internally by its R&D function. Top management's strategic decision to shift to a marketing orientation was met with disdain and outright hostility by the traditionally dominant research and development side of the organization. By the end of the 18 months of functional conflict that followed this directive, the vice president for marketing ultimately quit, taking his staff with him. The R&D function "won" their battle against marketing, concentrating on maintaining their power base rather than working together to help make AT&T a competitive player in a new, potentially profitable market.