Structure Follows Strategy, in Strategy Driven Enterprise Organizations
Copyright Enterprise Design Labs 2005 - 2018
Strategy implementation is one of three co-incident processes involves in the strategy management. The strategy implementation process involves the translation of chosen strategy (from the set of options resulting from strategy formulation) into organizational methods and actions so as to achieve strategic goals and objectives. It is the responsibility of top, middle and lower/line managers focused on the creation of new strategic assets (capabilities and core competencies) and/or enhancing and strengthen existing strategic assets in order for the organization to maintain its ability to achieve future outcomes. Strategy implementation provides the connecting loop between formulation and execution and control.
Factors Influencing Strategy Implementation Success/Failure
Strategy implementation is key to any organization's survival. Strategy implementation requires the collaboration of everyone inside the organization, and on many occasions parties outside the organization. Strategy implementation is the responsibility of middle and lower level managers, however the role of top management is vital in preparing a workable strategy and communicating it clearly so that middle and lower level managers can easily implement it Strategy implementation consists of all the decisions and activities/actions required to turn strategic choices into reality, and requires an organization model that enables effective strategic decision-making, and competencies in strategic management such as:
All these factors are interdependent and influence each other and, to varying degrees, the success/failure of strategy implementation.
Challenges to Successful Strategy Implementation
An organization must develop the capacity to effectively meet the challenges of successfully implementing a strategy due to influencing factors such as:
Failure of to properly perform leadership functions can lead to poor leadership which results in obstacles to successful implementation such as:
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 such as limited knowledge in current conditions and gaps in future outcomes, to decision-making such as:
The structure and operating principles as well as governance of the organization becomes more complex and critical to manage. 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 problems.
The structure enables strategic alignment which enables effective cascading of objectives, goals, and decision rights to the appropriate people (actors) in the organization with the capability and capacity to perform the actions at the right time and place to accomplish the requisite goals and objectives. Weak structure can create obstacles to successful implementation manifested in the following ways::
Organization culture defines the particular way the organization solves problems of survival through adaptation to external environment and internal integration which is supportive of the strategy. Organizational culture can be supportive of the following: Learning and Development (Growth), Participatory Decision-Making, Power Sharing, Support and Collaboration, Tolerance for risk and conflicts. Weak culture is by definition not supportive of the new strategy and leads to organizational behavior and performance problems that present obstacles and challenges leading to implementation failure manifested in the following ways:
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. Poor Human Resource Management is manifested in the following ways:
Technological trends include not only the glamorous invention that revolutionizes the lives of the actors in the organization and its environments, but also the gradual painstaking improvements in methods, in materials, in design, in application, unemployment, and the transportation and commercial base nd their diffusion into new industries and efficiency. The rate of technological change varies considerably from one industry to another.
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:
The factors discussed above 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.
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.