An evaluation of a proposed framework to facilitate organisational strategic execution

Krynauw, Pieter (Pieter Lourens) (2004-12)

Thesis (MBA)--Stellenbosch University, 2004.

Thesis

ENGLISH ABSTRACT: The study project for a proposed framework to facilitate strategic execution aims to formulate a methodology with a set of standard tools, to enable organisations to be successful in strategy execution on a continuous basis. The framework is to be implemented within a team in the Honeywell site office structure, which is responsible for delivering support services in the hydrocarbon processing industry. The framework is based on a six step process to facilitate continuous alignment to strategy, by following the continuous improvement methodology of the Deming wheel. The components of the framework are "landscapinq", "team maturity", "gap analysis", "alignmenf, "action plan" and "review". The first four components represent the "pian", the second to final component represent the "do", and the last component represents the "check" or "study" section of the Deming wheel's PDSA (plan, do, study, act) cycle. These main components in the framework are fixed, but the tools utilised in the execution of the components are flexible. This is to allow the implementers to choose the tools that they are most comfortable with and that will have the greatest chance of success in their environments. Tools that are used in this study include a change cycle assessment and objective setting tools. The implementation also relies on specific assumptions and existing methodologies. These include value based management, performance management that is based on focussing on strengths and not competencies, as well as the assumption that similar methodologies are used throughout the organisation. The components of the framework are explained in chapter two and then implemented in chapter four. The process is followed from landscaping through to the review section, where all alignment plans are evaluated against the specified definitions of victory and its related critical success factors. The most important section is arguably the team maturity component. This determines maturity in terms of skill levels, team effectiveness and readiness for change and ultimately whether the implementation can continue or whether the status quo should be improved before continuation. During this implementation the framework continues through the team maturity component to the execution of four identified priority action plans. The priority plans include a communication and information delivery infrastructure, complete organisational restructuring, performance management and skills development. The results from the implementation based on statistical matched pair experiments and the interpretation of the p-values concludes that the framework is a successful methodology, that ensures continuous alignment and ultimately strategic execution. The study concludes by recommending further additions to the framework that include a feedback loop to senior management, that will serve as input for future strategy formulation. Finally, the study also recommends the expansion of success metries to include the skills assessment and ultimately the metries that will measure success or failure of the high level objectives set by senior management.

AFRIKAANSE OPSOMMING: Die studie projek vir 'n voorgestelde belynings raamwerk om strategiese uitvoering te fasiliteer mik daarna om 'n metodologie te formuleer met 'n stel standaard hulpmiddels om maatskappye met suksesvolle strategiese uitvoering op 'n volhoudbare basis te help. Die raamwerk word dan geimplementeer op 'n span binne die organisasie struktuur van die Honeywell aanleg kantoor wat verantwoordelik is vir ondersteunings dienslewering in die hidro-koolstof verwerkings industrie. Die raamwerk is op 'n ses stap proses gebaseer om aanhoudende belyning tot stratgie te fasiliteer en volg 'n aanhoudende verbeterings metodologie van die Deming wiel. Die komponente van die raamwerk is "uitlegging" I "span volwassenheid", "gaping analisse", "belyning", "implementeer plan" en "hersien". Die eerste vier komponente verteenwoodig die "beplan", die tweede laaste komponent verteenwoordig die "doen" en die laaste komponent verteenwoordig die "hersien" of "studeer" gedeelte van die Deming wiel se SDSA (beplan, doen, studeer, aksie) siklus. Die hoof raamwerk komponente in die metodologie is vas, maar die hulpmiddels wat gebruik kan word in die uitvoering van die komponente is aanpasbaar om sodoende die implementeerders toe te laat om die hulpmiddels te kies waarmee hulle die gemaklikste is en wat die beste resultate in hulomgewing sal lewer. Hulpmiddels wat in hierdie studie gebruik word sluit in 'n veranderingsiklus evaluering en doelstelling hulpmiddels. Die implementasie steun ook op spesifieke aannames en bestaande metodologieë. Hierdie sluit in waarde gebaseerde bestuur, prestasie bestuur wat gebaseer is op sterkpunte en nie bevoegdhede nie, sowel as die aaname dat soortgelyke metodologieë regdeur die organisasie gebruik word. Die komponente van die raamwerk word verduidelik in hoofstuk twee en word daarna in hoofstuk vier geïmplementeer. Die proses word gevolg vanaf uitlegging regdeur tot die hersien afdeling waar al die belynde planne ge-evalueer word teen die spesifieke definisies van sukses en die verwante kritieke sukses faktore. Die mees belangrikste afdeling kan gesien word as die span volwassenheids komponent wat volwassenheid in terme van vaardigheidsvlakke, span effektiwiteit en gereedheid vir verandering bepaal en uiteindelik of die implementasie kan voortgaan of die staus quo eers verbeter moet word. Gedurende hierdie implementasie duur die raamwerk voort van die span volwassenheid komponent tot die uitvoering van vier geïndentifiseerde prioriteit aksie planne. Die prioriteit planne sluit in 'n kommunikasie en informasie infrastruktuur voorsiening, volledige organisasie herstruktuering, prestasie bestuur en vaardigheidsontwikkeling. Die uitkoms van hierdie implementasie, gebaseer op statistiese ooreenstemmende paar eksperimente en die intrepetasie van die p-waardes, tref die gevolgtrekking dat die raamwerk 'n suksesvolle metodologie is wat volhoubare belyning en uiteindelikke strategie uitvoering verseker. Hierdie studie kom tot 'n gevolg deur verdere byvoegings tot die raamwerk voor te stel. Byvoegings sluit in 'n terugvoerings meganisme na senior bestuur wat as insette vir toekomstige strategie formulering kan dien. Ten slotte stel hierdie studie voor dat sukses metings uitgebrei word om die vaardigheidsevaluering in te sluit en uiteindelik ook die metings te gebruik wat die sukses of mislukking van hoë vlak doelstellings deur senior bestuur daar gestel, te meet.

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