Monitoring Mechanism of Strategy Implementation

Question: Discuss about the Monitoring Mechanism of Strategy Implementation. Answer: The strategy implementation process is one of the most crucial part of the entire operational success of Tesla. In this context, the organization is highly focused on monitoring minute changes in the market environment in order to implement the changes in their strategy. The effectiveness of the strategy implementation process also holds a greater importance in the monitoring mechanism. It has been noted that the prime focus of Board of Directors in Tesla is overseeing the performance of the management. In addition to that, risk oversight is a major aspects of their responsibilities (Sharma, 2016). They are bound to review several important areas corporate governance, which is conducted by pertinent board committees. Moreover, in order to properly implement the business strategy towards an appropriate and fruitful direction the board of directors is expected to put in their effort and time (Tesla, 2017). Furthermore, it has been observed from the organizational activities of Tesla that performance management is considered as a major factor for the successful implementation process (Chernev, 2014). Therefore, compensation committee is needed assess the performance of various executive officers. This success of the strategy implementation process is also taken into consideration at the time of assessment. In addition to that, the corporate governance and nominating committee is also accountable for reviewing the potential as well as actual conflicts of interest between corporate officers as well as board members (Chang, 2016). As the conflict of interest has a greater influence in the success of strategy implementation process, the corporate governance and nominating committee must conduct this sensitive review with greater precision (Tesla, 2017). The effectiveness of the practices conducted by board governances is immensely reflected through the level of success in strategy implementation process. In this context, the nominating as well as corporate governance committee would be also focused on evaluating and reviewing the effectualness in governance practices. The assessment immensely helps Tesla to conduct an appropriate monitoring of strategy implementation process. In this context, the managerial professionals play an immense role in identifying the issues and advantages of the implemented strategy (Hulscher, Laurant Grol, 2013). In order to identify the effectiveness of the strategy implementation process, the organization focuses on several major quantifiable market indicators. These indicators are number of obtained sales leads, achieved dollar amounts as well as customers reached. These quantifiable market indicators have a greater ability to reflect the success implementation process. The managerial board can effect ively identify whether the implementation process has achieved the strategic goals are not. This particular monitoring technique also helps Tesla to stop or change the strategy at the implementation phase (Tesla, 2017). Tesla immensely focuses on the Balance Score Card perspectives for evaluating as well as controlling the strategy implementation process. This particular perspectives is highly effective to offer an effective and realistic framework for implementing the strategy successfully. In addition to that, it helps to evolve the strategy in accordance with technological, market as well as competitive environment of Tesla (Mangram, 2013). There are four key crucial perspectives, which formulate the evaluation of strategy implementation process. These perspectives are financial measures, customer relationships, internal business processes as well as learning and growth. The evaluation of the strategy implementation process up to 2013 is depicted below with the help of Balanced Score Card Perspectives (Tesla, 2017). Balanced Score Card Perspectives of Tesla Financial The Growth Rate of Sales in the year of 2013 is 133.98%. The Growth Rate of Lithium Ion Battery Market in the year of 2012 to 2016 is 79% 5.62 billion-dollar Automotive Annual Sales. 10 million dollars acquired from 560 million dollars of sales in the year of 2013. Customer Profitability 179.53% increase from December 2012, Gross Profit Margin in June 2013 is 20.35% Operating margin in June 2013 is 2.05% Return on assets in June 2013 is 0.0026% Retention Elon Musk has updated wireless software and backed the high resale value Acquisition Elon Musk has undertaken the marketing approach on the basis of greater handling, comfort as well as speed Satisfaction Tesla has offered greater service options, which include Highest rating consumer reports, swapping service, battery, service center, Valet service as well as Tesla Rangers Internal Business Process Tesla has taken initiative of low cost resource acquisition Tesla has brought the manufacturing process under direct supervision Inject molding machines have been used for building 90% of Model S parts Learning Innovation Tesla has successfully empowered the sales and customer service agents Tesla has emphasized on innovation by spending high amount in R D Tesla has increased the industry knowledge by selling Drivetrains and undertaking manufacturing process Table 1: Balance Score Card Perspectives of Tesla (Source: Tesla, 2017) Reference Chang, J. F. (2016).Business process management systems: strategy and implementation. CRC Press. Chernev, A. (2014).Strategic marketing management. Cerebellum Press. Hulscher, M., Laurant, M., Grol, R. (2013). Process evaluation of implementation strategies.Improving Patient Care: The Implementation of Change in Health Care, Second Edition, 333-349. Mangram, M. E. (2013). Tesla Motors: A Balanced Scorecard Approach to More Effective Performance Management--Case Analysis.Journal of Strategic Management Education,9(1). Sharma, S. (2016). The Tesla Phenomena A Business Strategy Report. Tesla, (2017).Tesla.com. Retrieved 2 March 2017, from https://www.tesla.com/