Strategic implementation is not easy – this article explores 5 of the most common mistakes that can impact implementation success.
Mistake 1: The strategy is not communicated
One of the first mistakes with implementing a strategy is not to communicate the strategy internally. Part of the role of an organizational strategy is to ensure alignment between the various divisions of the firm.
If the strategy is widely shared, employees are able to base their decisions relative to the strategy of the company of the firm – everyone can pull in the same direction. The strategy helps ensure alignment. If on the other hand the strategy is not communicated, getting this alignment is made a lot more difficult – employees are much more likely to make decisions that are inconsistent if they don’t know or understand the direction that they should be moving in.
Mistake 2: There is a lack of buy-in
Another challenge with implementing a strategy is a lack of strategic buy-in – both from management and employees. If employees don’t actually believe that the strategy is viable and likely to succeed, it is a lot less likely that the employees will actually fully commit to the implementation.
Mistake 3: The implementation is not monitored
Another mistake with implementing strategy is not to monitor the implementation process and ultimate performance. Monitoring the implementation helps ensure that deviations are identified – allowing the firm to correct the implementation problems. Monitoring the ultimate performance can help identify areas that need to be adjusted.
Mistake 4: The reward structure is misaligned with the strategy
The final mistake with strategic implementation is a lack of alignment between the strategy and the reward structure. If managers and employees are rewarded for actions that are at odds or incompatible with the strategy, then the difficulty in achieving the strategy is greatly increased.