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Talking Strategy, Dr Julius Tapera

IN our last issue, we looked at some of the challenges faced by organisations in strategy implementation, which include lack of adequate resources, government regulations, lack of follow through, competitive pressures, inadequate communication and feedback, lack of performance management links to outcomes, and culture not ready for change. 

In this article, we continue looking at the other challenges, which include unfavourable economic conditions, confusion over goals or expectations, confliction accountabilities, environmental uncertainty, lack of effective co-ordination of strategic interventions, poorly defined implementation tasks and inadequate monitoring of implementation activities. 

Economic conditions are not favourable

Positive macro-economic fundamentals are part of what creates a conducive environment for business. Where the economic conditions are not favourable, strategy formulation and implementation become a challenge. For example, hyperinflation, high-income tax regimes, high-interest rates on borrowing, foreign currency shortages, limited incentives to stimulate production and exports are some of the unfavourable macro-economic conditions that militate  against organisational performance. 

Effective strategy formulation and implementation are threatened under such conditions. Thus, managers have to navigate through adverse economic conditions for their organisations to maintain a competitive edge and achieve their strategic  goals.

Confusion over goals or expectations

Part of strategy formulation entails explicitly defining organisational goals so that the end picture of what the organisation seeks to achieve is clear to all employees and management. 

Failure to clearly define strategic goals or expectations can hinder effective implementation as those involved in the implementation process may not be clear about what is expected of them. 

The managers that are supposed to provide leadership for the implementation process will also lack adequate guidance on what to monitor if goals are not clearly defined. 

This lack of clarity may end up resulting in confusion over organisational goals or unmet expectations as resources and efforts of implementers may be misdirected to non-strategic activities and unimportant goals.

Conflicting accountabilities 

Clear segregation of duties, reporting lines, the definition of responsibilities and clarification of accountabilities are some of the organisational operational activities that impact the strategic planning process. 

Good organisational structure, which supports effective strategy implementation, clearly defines roles and responsibilities, has a clear chain of command, and also defines intra and inter-departmental interaction and accountabilities. 

Lack of clarity in defining accountabilities among managers or functionaries within the organisation may lead to conflict, which will eventually hinder effective strategy execution. 

Environmental uncertainty

The operating environment continues to be volatile, uncertain, complex and ambiguous, posing a threat to the effective implementation of the organisational strategy. 

While organisations analyse past and current trends in both the macro-and industry-specific environments to predict the future, environmental volatility and complexity continue to create uncertainty which makes effective strategy implementation a challenge. 

Some of the factors that compound environmental uncertainty include limited reliable market data, technological dynamism, political volatility, the unpredictability of competitor moves and ecological environmental variabilities. 

Organisational leaders, therefore, have the challenge of minimising the impact of environmental uncertainty on the effectiveness of strategy implementation, so that their organisations continue to create and maintain a competitive advantage in the marketplace.

Lack of effective co-ordination of strategic interventions

The strategy implementation process requires effective co-ordination of all the functional departments, strategic business units, branches and the firm’s interface with its various external stakeholders. 

Lack of effective co-ordination of strategic interventions can negatively impact strategy implementation resulting in the firm losing its competitive advantage. Thus, organisational leaders need to develop the requisite capabilities to effectively co-ordinate all strategic interventions to ensure that the organisation retains its competitive edge and attains superior performance.

Poorly defined implementation tasks

Subsequent to formulating the organisation’s strategy, it is critical that the requisite implementation tasks be clearly defined to guide the implementers. 

In addition, organisational leaders need to clearly articulate key performance indicators, which become standards against which performance is measured during the implementation process. 

Poorly defined implementation tasks can thus be a hindrance to effective strategy execution as the implementers will lack proper guidance, resulting in their actions not significantly contributing to the achievement of organisational goals.

Inadequate monitoring of implementation activities

Effective strategy implementation requires consistent monitoring and evaluation of the implementation activities. Organisational leaders should not assume that a well-formulated strategy will succeed without diligently checking whether the implementation interventions are producing the desired results. 

Instead, leaders should be deliberate about putting in place monitoring and evaluation systems that adequately support the effective implementation of the strategy. 

Through effective strategy monitoring, management should continuously and systematically gather data on specific performance indicators for measurement of progress towards the achievement of  objectives and effectiveness of resource utilisation. Where such monitoring is inadequate or non-existent, strategy execution may be negatively affected.

ν Dr Julius Tapera holds a PhD in Strategic Management and is currently the Assistant to the Vice-Chancellor at Lupane State University. He is a Strategic Management Consultant, Motivational Speaker & Author. He is contactable on Mobile: +263773586037; Email: [email protected] or [email protected]