Business Strategies

Business Strategies: What are the implementation obstacles and how to overcome them?

In the recent decade, strategic market planning and strategic management have experienced a fast development. Along side with the proven benefits of strategic planning, more and more questions were raised on implementing these strategies effectively. 

This discussion post aims to provide a broad overview of the different obstacles that organizations face in the implementation of those high-level strategies. In addition,  suggestions on steps to achieve an effective implementation will also be provided.

An exploratory factor analysis conducted on aspects that affects successful implementation strategies in the food industry companies by Ali and Hadi (2012) indicated five common challenges faced:

1. Individual and staff obstacles
2. Managerial obstacles
3. Planning consequences
4. Organization obstacles
5. Environmental obstacles

·      Individual and staff (human personnel) obstacles
High-level strategies are often time cascade down to lower level managers and the large population of human personnel in the organization for implementation. Inadequate understanding of the business strategies seems to have the biggest impact in preventing proper implementation of the business strategies. Business strategies that causes large degree of change could potential create fear in employee levels if employees are not educated on the advantages of the strategies being implemented.
Suggestions: To help with the understanding and reducing fear among employees, management could conduct seminars that serve not only to educate but also to motivate. Knowledge comes clarity of the changes as part of the strategic implementation. A risk-free environment should also be created to encourage and allow for employees to be honest in providing feedback to the management (Beer & Russell, 2004).

·      Managerial obstacles
Another obstacle faced in the implementation of any business strategies is when there is a lack of understanding of the company’s strategies and future outlook on top of the inadequate support from key influential individuals and managers. It might seem like a small issue, but without the adequate buy-in from these group of individuals what works closely and act as ‘change agents’, the implementation are likely to face larger obstacles from employee levels. Further more, complication and frustrations could arise when strategies implementation and change control are delegated to a group of managers have little understanding (Beer & Russell, 2004) and were not included in the initial conversation of these business strategies.
Suggestions: One method to reduce challenges from managerial level is the implementation of participative management/Management By Objective (MBO). This method allows for managers to be involved in the planning and strategies development. By capturing the input, ideas, and experiences of managers; the business strategies developed will more realistic and the implementation are more likely to be supported (Ali & Hadi, 2012).

·      Planning consequences
Successful implementations of high-level strategies are hindered when there is insufficient consensus among the individuals in the decision-making role and execution role. In addition, the issue with lack of responsibility and accountability arises in organizations where the senior team (who are often the decision makers) is slow and/or take the strategic decisions-making task lightly.
Suggestions: The different levels of key contributors in the organization should perform the strategic planning process to ensure adequate conversation and discussions are occurring. Issues such as customers needs, stockholder and competitors’ position should all be considered and discussed. Every strategies developed should be evaluated on the impact it would have on every level and every aspect in the organization.

·      Organization obstacles 
Research has shown that business strategies  that are inconsistent with the organization’s  culture more likely to face strong challenges   and also have lower buy-in from managers and employees (Hrebiniak, 2006).
Suggestions: During strategies development, it is crucial for the upper management and senior team to consider the organization culture into the business strategies to ensure successful implementation. The coherent system of basic values, norms or employees expectations of behaviors could be incorporated in the execution of any organization’s business strategies. These shared values and organizational social norms are critical in influencing the potential success.

·      Environmental obstacles
The lack of adequate attention given in researching the competitive market and industry also post a huge obstacle in effectively implementing any business strategies. Senior management team that reacts to every obstacle by rolling out a ‘strategic change’ is not at all strategic to the organization.
Suggestions: In addition to studying the market and each competitors status, it is equally important of consider political obstacles, social obstacles, economic condition and also the state laws and regulations.

           
While most of these obstacles are avoidable if they are accounted for during the strategies development stage; it is crucial for upper management and leaders of the organization to provide adequate attention to these issues to ensure a successful implementation of the business strategies.

           

References:

Ali, M., & Hadi, A. (2012). Surveying and Identifying the Factors Affecting Successful Implementation of Business Strategies in Companies of Fars Province Industrial Towns (Case study: Companies of Food Industries). International Journal Of Business & Social Science, 3(1), 265-272.

Beer, M., & Eisenstat, R. A. (2004). How to have an honest conversation about your business strategy. Harvard Business Review, 82(2), 82-89.

Hrebiniak, L.G. (2006). Obstacles to Effective Strategy Implementation. Organizational Dynamics, 35, 12-31.