A leadership and change management framework to facilitate strategy implementation
Thesis (MBA)--Stellenbosch University, 2007.
Without effective execution no business strategy can succeed. Executives are far better at developing strategy than at executing it. A survey (Fortune magazine, 1999) was conducted to detennine the reasons as to why chief executive officers (CEOs) fail. In the majority of the cases (estimated at 70%), the fault of failed CEOs was bad execution. In another study of Times 1000 companies, 80% of directors felt said they had the right strategies, but only 14% thought they were implementing them well. Effective strategy realisation and execution are key to achieving business success. It is a challenging process, but worthy of management's altention across all levels of the organisation. Notwithstanding the experience of many organisations, it is possible to tum strategies and plans into actions in order to achieve successful implementation. Most companies know their businesses and what is required for success. As indicated in the above statistics, few successfully translate that knowledge into action plans that will enable the strategy to be successfully implemented and sustained. In the past, management literature focused primarily on strategy fonnulation. The execution of strategy is not nearly as clear as the fonnulation of strategy. Much more is known about strategy making, than making strategy work. A literature study was done in order to gain insight into what is required to make strategy work. Answers to questions such as the following are addressed in this thesis: What can be done dtfferently to ensure the success of strategy implementation? What are the leadership and change management principles that can be applied to ensure the success of the process? How can strategy be translated into actions which can be successfully implemented? Models were compiled for leadership, change management and successful strategy implementation. The synergies between these models were analysed. The models were combined to form a generic Strategy Implementation Framework, which can be used as a guide and reference to contribute towards successful strategy execution. "A vision and a strategy aren't enough. The long term key to success is execution," Richard M. Kovacevich, CEO of Wells Fargo