Mostly, companies are facing the question: Are we doing the right things? But rarely: Are we doing the things right? (cf. Kreikebaum et al. 2011, p. 161) So, what is the difference between these two questions? The first one is about the companies’ strategy, the second about the implementation of it. As simple as it sounds – it is not! A great strategy or breakthrough technology is only then a competitive advantage, if it is implemented and executed firmly. Unfortunately, most companies fail at this attempt (cf. Neilson et al. 2008, p. 143).
A variety of studies has shown that there is a great gap between strategy development and strategy implementation. A study from Corboy & O’Corrbui claim that nearly 70% (cf. Corboy & O’Corrbui 1999, p. 29) of strategic plans are not implemented successfully; different ones say the numbers of failure are even much higher and revolve around 90% (cf. DeLisi 2001, p. 2; Riekhof & Offermann 2006, p. 31).
Many managerial books are focusing on the strategy development, the question how to find the right strategy, but not that many face the question how to implement the ideas into practice. As the strategy development processes work well and a vast number of well-tested tools for analysis and development of strategies as well as high-quality management books concentrating on strategy derivation processes exist, the gap is on the side of the strategy implementation. In the meantime, all over the world corporations are losing billions and simultaneously jeopardizing their future while failing in strategy execution and implementation.
In practice, there is still a lack of coordination of strategy implementation processes. On the one hand there is no consistency of strategy programs especially when it comes to realisation of strategies and on the other hand there are too many or impropriate tools in use. While hundreds of different strategy tools and methods are today available, also in computerized form and included into specific processes, there is still a lack of information how to use them efficiently and how to implement them into the strategic roadmap.
This paper is closing the gap between strategy and practice, facing the issues of strategy implementation and presenting a checklist for successful strategy implementation
Table of Contents
Introduction
1. Issues for Failing of Strategy Processes: People, Organization and Tools
1.1. Key issues of failing of strategy processes in companies
1.2. Leaders’ Deficits while Dealing with Strategy Processes
1.3. The Balanced Scorecard as a Tool for Strategy Implementation
2. Key Factors of Strategy Implementation
2.1. The intuitive approach and its impact on strategy implementation
2.2. Implementing a Strategy: The Concept of Wheelen and Hunger
2.3. Checklist for Implementing a Strategy Roadmap
3. An Empirical Study Concerning the Strategy Implementation
3.1. Field Research – Object, Scope and Target Group
3.2. Findings from the Interviews
3.3. Insights from the study
4. Checklist for Strategy Implementation. A Consolidation of Theory and Practice for Best Results Achievement
4.1. Checklist for a Successful Strategy Implementation
4.2. Hints for Strategy Communication
Objectives and Topics
The primary objective of this work is to address the prevalent gap between strategy development and its execution. By examining the common causes of failure in implementation processes—such as poor planning, lack of leadership commitment, and structural silos—the paper aims to provide executives and managers with a practical, structured checklist to ensure that strategies are successfully translated into action at all organizational levels.
- Analysis of key failure factors in strategy processes, specifically focusing on people, organization, and tools.
- Evaluation of different strategic approaches, including the intuitive approach and the Wheelen & Hunger concept.
- Empirical investigation into current business practices and common obstacles faced by leadership.
- Development of a comprehensive, consolidated checklist for successful strategy implementation.
- Best practices for effective strategy communication to enhance employee engagement.
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1.1. Key issues of failing of strategy processes in companies.
People are seen as the one most important issue when it comes to failure of strategy implementation programs. Here are to highlight topics like: fear of losing position and influence and lack of strategy acceptance and therefore lack of commitment. Moreover, power struggles between stakeholders cause conflict potentials and instability. Furthermore, inadequate planning and preparation is one of the main causes of strategy implementation failure.
In figure 2 and 3 can be found a variety of reasons for failing strategy processes. Following, at four key aspects will be looked more closely.
Planning is often seen as an annoying task and is being readily skipped or rushed through if only possible. Time lines and resources are then aligned by the rule of thumb without a feasibility check, just for the sake of having a plan (cf. Bossidy & Charan 2002, S. 195). Although that is not the rule, it is a quiet of an issue as one important part of the planning effort is to check the availability of resources as knowledge and manpower as well as financial funds are essential while implementing a strategy.
„An astonishing number of strategies fail because leaders don’t make a realistic assessment of whether the organization can execute the plan.“ (Bossidy & Charan 2002, S. 195) Therefore before the planning of strategy implementation process is completed it has to be performed a check of needed capacities, knowledge and budget for completing the process successfully. Furthermore, it has to be verified, if some external resources (e. g. consultants) are needed or the budget have to be stretched or even the strategy redefined due to fit to the company’s financial and non-financial possibilities. In some cases, the second best strategic alternative will be a better choice when it can be implemented successfully (cf. Riekhof & Offermann 2006, pp. 38).
Summary of Chapters
Introduction: This chapter introduces the strategic challenge of moving from development to execution and outlines the research objective of providing a practical checklist for leaders.
1. Issues for Failing of Strategy Processes: People, Organization and Tools: This chapter examines the primary causes of implementation failure, focusing on leadership shortcomings, human factors, and organizational structures.
1.1. Key issues of failing of strategy processes in companies: This section details specific reasons for failure, such as inadequate planning, resistance to change, and the lack of proper commitment from stakeholders.
1.2. Leaders’ Deficits while Dealing with Strategy Processes: This section explores the specific leadership competencies missing in many organizations, such as strategic planning, change management, and effective communication.
1.3. The Balanced Scorecard as a Tool for Strategy Implementation: This section discusses the Balanced Scorecard as a framework to bridge the gap between abstract strategy and operational reality, highlighting both its potential and implementation difficulties.
2. Key Factors of Strategy Implementation: This chapter introduces two different theoretical approaches to strategic management and derives fundamental success factors.
2.1. The intuitive approach and its impact on strategy implementation: This section covers the leadership-centric approach, emphasizing the role of the entrepreneur, vision, and top-down decision making.
2.2. Implementing a Strategy: The Concept of Wheelen and Hunger: This section explains a more structured approach to strategic management, involving analysis, formulation, implementation, and feedback loops.
2.3. Checklist for Implementing a Strategy Roadmap: This section provides a condensed summary of do's and don'ts for leadership, strategy analysis, and project management based on the previously discussed theories.
3. An Empirical Study Concerning the Strategy Implementation: This chapter presents the methodology and findings of a field survey conducted among business professionals regarding their strategy practices.
3.1. Field Research – Object, Scope and Target Group: This section outlines the survey design, the selection of participants, and the research goals regarding current strategy implementation practices.
3.2. Findings from the Interviews: This section analyzes the data gathered, comparing theoretical expectations with the practical realities of tools used and leadership challenges encountered.
3.3. Insights from the study: This section synthesizes the results, confirming which challenges from the theory are most prevalent in current business practice.
4. Checklist for Strategy Implementation. A Consolidation of Theory and Practice for Best Results Achievement: This final chapter combines theoretical knowledge and empirical findings into a practical implementation framework.
4.1. Checklist for a Successful Strategy Implementation: This section offers a comprehensive, itemized checklist for leaders to verify all necessary components before and during strategy execution.
4.2. Hints for Strategy Communication: This section provides actionable advice on how to communicate strategy effectively to inspire and engage employees.
Keywords
Strategy Implementation, Leadership, Balanced Scorecard, Change Management, Strategic Planning, Organizational Structure, Employee Motivation, Communication Plan, Performance Measurement, Strategy Execution, Business Strategy, Implementation Failure, Management Tools, Empirical Study, Strategic Roadmap
Frequently Asked Questions
What is the core problem addressed in this paper?
The paper addresses the significant gap between strategy development and strategy implementation, noting that most organizations fail to execute their strategic plans effectively despite having robust development processes.
What are the central themes discussed in this work?
The central themes include the role of leadership in strategy execution, the human and organizational causes of failure, the use of management tools like the Balanced Scorecard, and the importance of effective communication.
What is the primary goal of this research?
The primary goal is to provide a structured, practical checklist for leaders to help them navigate the challenges of strategy implementation and increase the probability of achieving successful outcomes.
Which scientific methods were applied in this paper?
The author combined a thorough literature review with an empirical field study, consisting of an online survey of professionals, to validate theoretical concepts against current business practice.
What is covered in the main body of the paper?
The main body covers the analysis of strategy failure factors, a comparative analysis of intuitive versus structured strategic approaches, a field study of current practices, and the final synthesis into a actionable implementation checklist.
How would you characterize this paper using key terms?
The paper is characterized by terms such as Strategy Implementation, Leadership, Balanced Scorecard, Change Management, and Strategic Planning, reflecting its focus on practical business execution.
Why is the Balanced Scorecard emphasized as an implementation tool?
It is highlighted because it effectively translates high-level strategy into concrete objectives, measures, and actions, helping to align different organizational levels with the company's vision.
What role does the author attribute to leadership communication?
Communication is seen as the central instrument of leadership. The author emphasizes that it must go beyond simple information dissemination, requiring a two-way flow, storytelling, and alignment with employee concerns to be effective.
What distinguishes the intuitive approach from the Wheelen and Hunger approach?
The intuitive approach is heavily dependent on the charismatic leader and top-down decision making, whereas the Wheelen and Hunger approach is more structured, utilizing explicit analytical phases and feedback loops.
- Quote paper
- Monika Sadowska (Author), 2012, Successful Strategy Implementation, Munich, GRIN Verlag, https://www.grin.com/document/272411
