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406 PART 5: THE LEADER AS SOCIAL ARCHITECT
as much as 70 percent of all business strategies never get implemented, refl ecting
the complexity of strategy implementation. 58
Strategy implementation involves using several tools or parts of the organiza-
tion that can be adjusted to put strategy into action. Strong leadership is one of
the most important tools for strategy implementation. Follower support for the
strategic plan is essential for successful implementation, and leaders create the en-
vironment that determines whether people understand and feel committed to the
company’s strategic direction. People who feel trust in their leaders and commit-
ment to the organization are typically more supportive of strategy and put forth
more effort to implement strategic decisions. 59
As an example of using leadership in strategy implementation, the manager
of a department store might implement a strategy of better customer service by
pumping up morale, encouraging greater interaction with customers, being phys-
ically present on the sales fl oor, and speaking enthusiastically with employees
about providing quality service. Strategy is also implemented through organiza-
tional elements such as structural design, pay or reward systems, budget alloca-
tions, and organizational rules, policies, or procedures. Leaders are responsible
for making decisions about changes in structure, systems, policies, and so forth,
to support the company’s strategic direction. When she was general manager
of the Applebee’s Neighborhood Grill & Bar in Mankato, Minnesota, Lisa
Hofferbert implemented a strategy of increased sales by budgeting for news-
paper and radio ads asking customers to help the store break a sales record,
designing daily incentive-based contests for employees, redesigning employee
parking policies to give greater access for customers to park near the store, and
making the sales target a mandatory topic on the agenda for every staff meeting.
These changes, combined with Hofferbert’s inspirational leadership and com-
mitment to taking care of her employees, helped the store meet her ambitious
goal of $3 million in sales for the year. 60
Leaders make decisions every day—some large and some small—that
support company strategy. Exhibit 13.7 provides a simplifi ed model for how
leaders make strategic decisions. The two dimensions considered are whether
a particular choice will have a high or low strategic impact on the business

Exhibit 13.7 Making Strategic Decisions
Ease of Implementation
Hard Easy

High Impact, Hard to High Impact, Easy to
High Implement. Implement.
Major changes, but Simple changes that have
with potential for high strategic impact—take
high payoff action here first
Strategic
Impact Low Impact, Hard to Low Impact, Easy to
Implement. Implement.
Low Difficult changes with little Incremental improvements,
or no potential for payoff— “small wins;” pursue for
avoid this category symbolic value of success

Source: Adapted from Amir Hartman and John Sifonis, wtih John Kador, Net Ready: Strategies for the
New E-conomy (McGraw-Hill, 2000), p. 95.