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Talking Strategy, With Dr Julius Tapera
THIS is a continuation of our look at the critical success factors for effective strategy implementation.
In our last issue, we looked at some of the critical success factors, which include, resource availability, prioritisation, dynamic strategic capabilities, buy-in at all levels, strategic focus, flexibility, organisational culture, and strategic leadership.
In this issue, we focus on the additional CSFs, which include people, effective communication, technology, organisational structure, operational planning, control and feedback.
People (human capital)
The effectiveness of strategy is dependent upon having the right people, with the right knowledge, skills and competencies in the right positions at all levels of the organisational hierarchy.
Talent management is thus a very crucial aspect of effective strategic planning. Employee retention, motivation, professional training and development, and redeployment maximises employees’ productivity and reinforces organisational performance.
These strategic human resource planning interventions facilitate the alignment of employees’ knowledge, skills and competencies to the firm’s business strategy and the translation of the strategy into actionable goals. Enhanced employee performance becomes a source of sustained competitive advantage for the firm.
Effective communication
Effective communication at all levels within the organisation is critical for strategy implementation. For example, the organisation’s vision, mission, values, key result areas and overall strategic direction have to be clearly articulated to all employees and management so that there is a unity of purpose and direction. Timeliness, accuracy, conciseness, adequacy and appropriate frequency are some of the key characteristics of effective communication, requisite for effective strategy implementation.
In addition, there is a need for a correct choice of appropriate channels of communication, taking into account a number of variables such as urgency, confidentiality, cost and audience among other critical factors.
Communication facilitates the effective integration and coordination of all strategic processes that are necessary for organisational success.
Technology absorption
The rapid and continuous improvement in technology needs to be harnessed effectively and efficiently for creating a competitive advantage and positioning the organisation for success.
Integration of information technology in strategy formulation and implementation is increasingly becoming critical in shaping the strategic direction of organisations.
In recent times organisations have taken a deliberate thrust to incorporate digital strategies in their overall corporate strategies, deploying cutting-edge technologies in their operations for creating competitive advantage and operational efficiencies. Information technology has also been used to harness, synthesize, store and disseminate information relevant to strategic decision-making.
Organisational structure
Does strategy follow structure or structure follows strategy? This question has had a variety of answers, with some scholars asserting that structure follows strategy, while other scholars argue that strategy follows structure.
Other scholars also contend that both arguments can be subsumed. By and large, strategy follows a structure as the structure of the organisation facilitates the division of labour among organisational members and the coordination of their input towards the achievement of strategic goals.
The organisational structure facilitates the allocation of responsibilities across functional departments, defines authority, and informs intra- and inter-departmental interaction.
Well-structured organisations, therefore, facilitate the effective formulation and implementation of strategy, creation of competitive advantage and continuous improvement of organisational performance. Organisational design and development become very critical in shaping organisational structures, which facilitate effective strategy implementation.
Operational planning
Operational planning entails the configuration of functional departments and the coordination of their interface in the whole strategic planning process.
While strategic planning is long-term, focusing on the broader organisational vision, covering periods ranging from 5 to 7 years, operational planning is short-term and more detailed, covering one-year periods, or even shorter, the latter focusing on departmental activities and their input into the broader scope of the former. Operational systems design, procedures and processes and the development of work programmes and projects that are designed to facilitate the effective implementation of strategies all constitute operational planning.
The success of a strategy depends on how well the organisational operations are planned and the extent to which the plans are followed in effectively implementing strategy.
A well-formulated strategy may fail if the operational plan to implement it is either not clearly articulated or not meticulously followed or lacks both elements.
Control and feedback
Strategic control entails continuous monitoring of all strategic processes and ensuring that they are following laid down plans, programmes, procedures and processes.
Lack of effective control, both financial and operational, can lead to the derailment of the whole strategic process, leading to the organisation losing its competitive advantage.
Organisational systems should also facilitate the communication of feedback at all levels, whether positive or negative.
Feedback in relation to strategic control ensures that where there is a deviation from set standards, procedures, or the strategic path, corrective measures are taken in good time to ensure consistent compliance and conformity.
Positive feedback is also important for maintaining, reinforcing and supporting actions and processes that support organisational strategy and create scope for sustainable competitive advantage.
Overall, feedback is critical for continuous system and process improvement, which ultimately contributes to sustainable competitive advantage and improvement in organisational performance.
λ Dr Julius Tapera holds a PhD in Strategic Management and is currently the Assistant to the Vice-Chancellor at Lupane State University. He is a strategic management consultant, motivational speaker and author. He is contactable on Mobile: +263773586037; Email: [email protected] or [email protected]
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