Strategy Driven Organization - Sustainable Growth and Profitability
Copyright Enterprise Design Labs 2005 - 2018
A strategy has to be implemented and executed to be of any use to an organization. Strategy implementation is one of three co-incident parts/stages of the strategic management process; it provides the connecting loop between formulation and execution and control. Strategy implementation concerns making the selected strategy operational throughout the organization. It involves several activities that must take place to ensure that the selected strategies are successful; these include using tools such as:
Strategy implementation decisions and actions are the means through which management intentions and choices are actually realized. Strategy implementation is key to any organization's survival and growth; and requires the collaboration of everyone inside the organization, and on many occasions parties outside the organization. Strategy implementation is the responsibility of top, middle and lower/line managers focused on building capacity through projects and programs to strengthen the organization, and enable it to better deliver value to customers and meeting stakeholders expectations.
Closing The Strategy Implementation Gap
Strategy implementation involves change - closing the gap between organization's current capacity development and the capacity development that the corporate and business strategy calls for. The main causes of strategic gap can be grouped into the following categories:
Strategic gap analysis attempts to determine what a company should do differently to achieve a particular goal by looking at the time frame, management, budget and other factors to determine where shortcomings lies.
Factors Influencing Strategy Implementation Success/Failure
In a rapidly changing world any competitive advantage a firm creates is temporary and not sustainable; without systematic changes to the firm's strategy and plans so it can respond and take advantage of opportunities that emerge as a result of changes in the environment while managing emerging threats that successful execution. Strategy Implementation is fraught with challenges as evidenced by the low percentage of strategies that are effectively implemented. Strategy implementation require a number of key components necessary to support implementation such as:
All these factors are interdependent and their influences on implementation success/failure are non-deterministic.
The failure in leadership to properly perform the leadership functions can lead to management induced gap and implementation failure. Failure in leadership manifests itself as follows:
Information Availability and Accuracy
Inadequate information systems capacity leading to poor Information Flows and availability of accurate information to support fast and accurate progress tracking, timely intervention, and corrective action at the right time and place.may result in obstacles to successful implementation because of the degradation in certain management functions such as:
Uncertainty - Effects of Uncertainty
Uncertainty creates obstacles and challenges to decision-making due to limited knowledge of current conditions and gaps in our understanding of future outcomes and affects management behavior in performing their duties such as:
Uncertainty deals with possible outcomes that are unknown; and is a major component of risk (the likelihood or scale of negative consequences).
Structure Alignment problems - the overall strategy not properly aligned (i.e., working) with the current structure; the way people and tasks/work are organized, and roles and responsibilities are assigned to people not aligned with strategy would lead to implementation gap. Structure not driven by the strategy can create obstacles to successful implementation manifested in the following ways::
The organization structure design and the degree to which it effectively enables managing complexity, coordination and control of organizational behavior is critical to effective decision-making as the decision rights cascade during strategy implementation and execution grows. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors. .
Weak culture is by definition not supportive of the new strategy and leads to organizational behavior and performance problems that present obstacles and challenges to successful implementation. unsupportive culture is reflected in organizational behavior such as::
Execution requires supportive culture and demands ownership at all levels in the organization including management and workforce. People must commit to and own the processes and actions central to effective execution.
Poor Human Resource Management is manifested in the following ways:
Human resource management is a function concerned with ensuring that the organization obtains and retains the skilled, committed and well-motivated workforce it needs. Strategic Human Resource Management is particularly focused on the alignment of human resources as a means of gaining competitive advantage. in terms of the adequacy of their knowledge competencies, and skills.
Changing technology can offer major opportunities for improving goal achievement, or threaten the existence of the firm. Lack of organizational capability to adapt to technology changes is reflected in the conditions and gaps:
Changing technology can offer major opportunities for improving goal achievement, or threaten the existence of the firm due to unpredictable problems
Factors Supporting Effective Strategy Implementation
Effective strategy implementation and execution involves managing change in the organization's internal environment which then allows the organization to successfully adapt to the changing external environment in which it operates but cannot control.
The key factors that support successful implementation and execution are the following internal environment elements:
These factors are generally in agreement with the key success factors or prerequisites for effective strategy implementation as identified by the McKinsey.
Organization capacity development can be measured in terms of changes in the enabling environment, organizational, and individual levels.
Each of the factors influences implementation outcomes (closing the gap) in a different way; if an organization fails to pay proper attention to one of these factors, it can result in implementation failure, therefore an organization needs a system and approach to support management in successful execution.
The factors that influence the successful implementation of a strategy are interdependent and their influences are non-deterministic it is typically very difficult for managers to comprehend the contribution of these factors to the successful outcomes of strategy implementation making strategy implementation very hard.
Typically, the implementation gap - the gap between the strategic plan and its implementation - is caused by missing integrative links such as:
In business, plans for the future are identified as goals and objectives which collectively define the organization's strategic direction and intent. After objectives are established, corporate level and business unit strategies are selected; corporate and business level strategy define the outcomes, achievements, or goals a business wishes to achieve over a specific time-frame.
I am a computer scientist interested in modeling of complex business systems, and model-driven analysis and evaluation of strategic management and operations management and the interplay between them. Specifically, I am interested in the use of modeling to improve understanding of strategy, its formulation, implementation and execution, and the interplay between intended strategy, emergent strategy and leaning to inform better strategic decision-making.