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Strategic Implementation and Change Management 2019 Group 3 Assignment MN AD VM

Strategic Implementation and Change Management 2019 Group 3 Assignment MN AD VM
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   STRATEGY IMPLEMENTATION 0 Classified - Confidential FACULTYOF COMMERCE GRADUATE SCHOOL OF BUSINESS (GSB) MASTER OF BUSINESS ADMNISTRATION IN STRATEGIC MANAGEMENT SMBA (5302) STRATEGIC IMPLEMENTATION AND CHANGE MANAGEMENT GROUP THREE ASSINGMENT Afareshe Dube: N0177305D Vimbai Machache: N0177314F Milidzani Ncube: N01522774W YEAR:2019 Lecturer: Mr. M Sibanda TOPIC Challenges and solutions of strategy implementation in the services sector   STRATEGY IMPLEMENTATION 1 Classified - Confidential Abstract This study sought to evaluate the challenges and solutions of strategy implementation in the services sector. The literature by various researchers provided an insight into strategy implementation in the services sector. The paper highlighted that strategy implementation complements the formulation process since well formulated strategies will only result in high  performance attributable to a successful implementation program. Thus, the reviewed literature acknowledged that strategies usually fail because of improper implementation process. The study adopted a desk study where secondary data by other researchers was explored to understand the factors that affect strategy implementation. The identified factors included the horizontal differentiation challenges, communication, organizational structure, organizational culture, inadequate resources among others. The solutions for the challenges included  providing adequate resources, alignment of the organizational structure, management support as well as involving all stakeholders during the implementation process. Keywords Strategy, implementation, Leadership, culture, structure, staff; strategic decision; implementation process and outcomes. Introduction Strategy formulation and implementation process are the key pillars of the success of any organization. They both need close attention, time and monetary support from the senior leadership, with more focus in the implementation process to ensure that the organization lives its dreams and arrive in its destined future profitable. The successful strategy implementation enables a higher organizational performance. Koech and Were (2016) asserted that strategy implementation is a process through which strategies and policies are put into practice by developing programs, procedures and budgets. This is a process by which the ideas are translated into operational as well as functional targets. “Strategy implementation is a connecting loop between formulation and control”  (Rajasekar, 2014, p. 170). The implementation process comes as a tactic that drives that strategy towards the organisation’s vision . As Olson, Slater and Hult (2005) say it, ‘doing is harder than dreaming’ (Miako & Machuki, 2016) in quoting (Hrebiniak, 2006) propounded that although formulating a consistent strategy is a difficult task for any management team, making that strategy work, that is, implementing it throughout the organization is even more difficult. Strategy implementation is the significant management challenge being faced by most   STRATEGY IMPLEMENTATION 2 Classified - Confidential corporations. “ It is thus not surprising that, after a comprehensive strategy or single strategic decision has been formulated, significant difficulties usually arise during the subsequent implementation process ”  (Miako & Machuki, 2016). “Executives should pay careful attention to the implementation of strategies to avoid common  pitfalls that result in failure”  (Rajasekar, 2014, p. 169). Koech and Were (2016), (Kandie & Koech, 2015) posited that successful implementation of the strategy is critical for an organisation to remain competitive in a dynamic, complex and unpredictable environment. Seotlela and Miruka (2014) contented that if a strategy is poorly designed and implemented, this will have a significant negative consequence for the firm, management, shop floor employees as well as other stakeholders. “Strategy implementation is more important for the organization than the strategy formulation  because if the strategy is not successfully implemented by the staff and management, its cost and damages grow more than the failure of strategy formulation” . (Mbaka and Mugambi, 2014,  p. 65). Thus, it is very important to be conversant with the challenges and solutions associated with strategy implementation.  Literature review This paper seeks to identify the challenges and solutions in strategic implementation. It has  been noted that many organizations are good in coming out with the strategic plans but have challenges in implementing the strategies. Ibrahim Al-Kandi; Mehmet Asutay; Robert Dixon (2013) Stated that the competitive advantage of an organization is illustrated by the distinctiveness of its capabilities and how it uses these capabilities to achieve extraordinary  profits or returns in comparison to other organizations, and they pointed out that one of the most important capabilities that organizations can adopt is an effective and strategic decision-making process. Niklas Brinkscroder (2014) proffered that, there is a difference between having a strategy in mind and executing this strategy. A lot of strategic considerations never make it into the real business operations. He pointed out that Strategy, Structure and behavior have a bigger role in strategy implementation. As stated by Olsen, Slater, and Hult (2005) in their study where they found out that firm performance is strongly influenced by how well a firm`s strategy is matched to its organizational structure and the behavior of its people. Kibicho (2015) asserted that although a notable progress has been made in the arena of strategic management, the strategy implementation failure persists. As propounded by Mbaka and Mugambi (2014), strategy implementation includes new structure development as well as other alignments and processes.   STRATEGY IMPLEMENTATION 3 Classified - Confidential Thus, a good strategy will only produce results if it is successfully executed. Bridging the gap  between strategy formulation and implementation has since a long time been experienced as challenging for many organizations (Kandie & Koech, 2015). When the strategy is not implemented successfully, the costs and damages will be more than those of strategy formulation failure. (Mbaka and Mugambi 2014, p. 65). (Kandie & Koech, 2015) sited statistics in the White Paper of Strategy Implementation of Chinese Corporations in 2006 which indicated that 83 percent of the surveyed companies failed to implement their strategy smoothly, and only 17 percent felt that they had a consistent strategy implementation  process. This proves that the strategy implementation process is the complicated part of strategic management. Koech and Were (2016) posited that strategy implementation is successful when there is congruency. This is also supported by Rajasekar (2014) who asserted that strategy implementation requires collaboration of all stakeholders both internal and external and simultaneously in all directions which is up, bottom and across. (Kandie & Koech, 2015) highlighted the factors affecting strategy implementation as stakeholder involvement in strategy development, quality of strategy, organization structure, organization culture, organization learning, strategic leadership, alignment of strategy to market conditions, operational planning, monitoring and review of progress, teamwork, resources allocation, people-strategy fit, effective communication, strategic and management control systems and information resources. “ Poor communication impedes a  business’s ability to implement and refine its strategy”.  (Rajasekar 2014, p.171). (Kandie & Koech, 2015) also alluded that ineffective communication is a key cause of poor strategy implementation. Kibicho (2015) posited that corporate culture strategy affects the choice of staff and choice of strategies on advertising and promotion as well as product development and choice of branch networks. “Whilst in mature organizations the organizational struct ure and culture play vital roles in the success of a strategy, the role of leadership is even more vital”.  (Rajasekar: 2014, p. 172). In this regard, the organization’s  internal communication system has a supreme hand in successful implementation of a strategy. “Optimally functioning competent management system needs to be put in place to ensure the right decisions are made”  (Kibicho: 2015, p. 77). (Kibicho: 2015) advocated that culture describes the patterns of behaviour that form a durable template by which ideas and images can be transferred from one generation to another or from one group to another through the social interaction between members of a group.   STRATEGY IMPLEMENTATION 4 Classified - Confidential Rajasekar (2014) posited that, the culture of an organization enables the level of openness, customer orientation, quality of work as well as the speed at which the tasks are accomplished and how to respond to changes in the environment. Thus, as affirmed by (Kandie & Koech, 2015) pparticipation of key stakeholders in strategy development ensures that there is ownership of a strategy and a buy-in into the strategy. Rajasekar (2014) asserted that there is a positive correlation between organizational culture and organizational reward structure and the culture’s influence varies between the most effective which is clan culture and the least effective which is hierarchy culture. Mbaka and Mugambi (2014, p. 64) postulated that the relationship among different units affects the outcome of strategy implementation. Rajasekar (2014, p. 171) posited that poor leadership is an obstacle for ssuccessful strategy implementation. Leadership plays a major role in implementing strategic plan in an organization because leaders must be able to show commitment and dedication for any meaningful event to take place (Kiptoo & Mwirigi, 2014). “For strategies implementati on to be successful, optimally functioning competent management system needs to be put in place to ensure the right decisions are made”  (Kibicho 2015, p. 77). Rajasekar (2014) also support this by indicating that poor leadership can result in lack of focus,  poor staff commitment, lack of coordination as well as erratic allocation of resources. It is a prerequisite for top managers to be committed to the strategic direction itself and demonstrate the willingness to give energy and loyalty to the implementation process as this  provides a positive signal for all employees in the organization (Kandie & Koech, 2015). Mbaka and Mugambi (2014) posited that a supportive communication climate is augments strategy implementation process. In this regard, communication enables knowledge dissemination for proper implementation of the strategy. “P oor or inadequate information sharing, unclear responsibility and accountability, and working against the organizational power structure all part of organizational structure results in failed implementation processes ” . (Rajasekar: 2014, p. 171). Mbaka and Mugambi (2014, p. 65) inadequate understanding of company strategies and outlook by management, as well as inadequate attention hinder the successful implementation of strategies. As propounded by Mbaka and Mugambi (2014), a transformational strategy will also require a transformational structure. Rajasekar (2014) supported this by highlighting that the structure of an organization will clarify roles and responsibilities whilst also enabling the allocation of resources.
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