The drivers and inhibitors of strategy execution

Abstract

A review of the literature reveals that the ability to execute strategy is more important than the quality of the strategy itself. Researchers indicate that despite the importance of the strategy execution process, far more research has been carried out into strategy formulation rather than into strategy execution. The literature shows that executives fail to execute up to 70 percent of their strategic initiatives, this research set out to explore the drivers and inhibitors of executing strategy. This research involved a qualitative study which consisted of in-depth, face-to-face interviews. A total of 25 executives were interviewed from a large South African financial institution. Content and frequency analysis were used to extract key constructs from the data obtained during the interview process. The outcome of this research has resulted in drivers and inhibitors critical to effective strategy execution being explicitly defined. The findings have been used to develop an empirically based framework which highlights six key factors which must be considered simultaneously in order to successfully execute strategy. These are: obtaining top executive commitment, generating engagement at all levels, communicating a clear, tangible strategy, cascading accountabilities, selecting the best people to drive key initiatives, and the ability to monitor and track progress. Copyright