Strategy implementation is an action-oriented, operations-driven activity aimed at shaping performance of core business activities in a strategy-supportive manner. It is tougher and more time-consuming than crafting strategy.
Analyse the barriers to strategy implementation. To enhance your answer, apply your knowledge to a specific industry or organisation of your choice. (20)
There are several barriers that can hinder the successful implementation of a strategy in any industry or organization. These barriers can be categorized into internal and external factors.
One internal barrier to strategy implementation is a lack of clear communication and alignment within the organization. If employees at all levels of the organization do not understand the strategy or their individual roles in implementing it, they may not be able to effectively contribute to its execution. This can lead to confusion, resistance, and a lack of commitment to the strategy. For example, in the healthcare industry, if a hospital implements a new strategy to improve patient satisfaction but fails to effectively communicate this strategy to nurses and other staff members, they may not be able to provide the necessary care and attention to meet the new goals.
Another internal barrier is the presence of organizational politics and resistance to change. In many organizations, there are individuals or groups who resist change due to fear of losing power, influence, or control. These individuals may undermine the strategy implementation efforts or push for alternative approaches that align with their own interests. This can create a lack of unity and cohesion within the organization and hinder progress. For instance, in the technology industry, if a software company decides to implement a new strategy to shift its focus towards a new market segment, the existing sales team may resist the change as they fear it may disrupt their established customer base and commission structure.
External barriers to strategy implementation include economic factors, market conditions, and competition. Economic downturns or fluctuations can lead to financial constraints and resource limitations, making it challenging to allocate the necessary investments and resources for strategy implementation. Additionally, changes in market conditions or increased competition can require organizations to continuously adapt their strategies, which may strain their ability to effectively implement and sustain the desired changes. For example, in the retail industry, if a fashion brand aims to implement a strategy focused on sustainability by switching to eco-friendly materials, they may face external barriers such as higher costs or limited availability of these materials due to market demand or supply chain limitations.
Lastly, a lack of leadership or capability can be a significant barrier to strategy implementation. If an organization lacks leaders with the necessary skills, knowledge, and experience to drive the implementation process, it can hinder progress and result in a misalignment between strategy and execution. This can lead to confusion, inefficiencies, and a lack of accountability. For instance, in the automotive industry, if a car manufacturer decides to implement a strategy focused on electric vehicles, but their engineering team lacks the expertise in electric vehicle technology, it can hinder the successful execution of the strategy.
In conclusion, barriers to strategy implementation can arise from both internal and external factors, including communication and alignment issues within the organization, resistance to change, economic factors, market conditions, competition, and leadership or capability gaps. These barriers can vary in their impact and severity depending on the specific industry or organization. Overcoming these barriers requires effective communication, stakeholder engagement, change management efforts, and continuous monitoring and adaptation to ensure successful strategy implementation.