Translating Strategy into Operational Objectives

Leaders at all levels need to ensure that the organisation’s strategy is implemented once developed. It is important to bear in mind that strategy formulation and implementation often overlap in practice. Organisations experience high levels of uncertainty, turbulence and rapid change and strategies can be obsolete by the time it has been implemented. Strategy implementation is the communication, interpretation, adoption, and enactment of strategic plans. Apart from the organisational culture, reward systems, organisational structure and resource allocation, leadership is one of the main drivers of strategy implementation. Strategic leaders have a vision of an ideal state and are willing to guide the organisation to the achievement of this vision through successful strategy implementation.

Why do strategies fail? Or, why do organisations do not successfully implement strategy? According to the Balanced Scorecard Collaborative (BSC), nine out of ten organisations do not implement strategies and only 10% of effectively formulated strategies are effectively implemented. Four barriers to successful strategy implementation have been identified by BSC:

• Vision barrier: A staggering 95% of the workforce does not understand the vision and strategy.
• Resource barrier: 60% of organisations do not link budgets to strategy.
• People barrier: Only 25% of managers have rewards linked to strategy.
• Management barrier: 85% of top management teams spend less than an hour on strategy.

The challenge that strategy implementation imposes on leaders is that of inciting commitment among internal as well as external stakeholders to implement strategies and embrace change. Effective communication is key in making this a reality and to keep the strategy alive!

As Manager it is your Responsibility To

• Develop an appropriate strategic direction for your division, aligned to that of the company.
• Communicate this to all employees and other stakeholders in your business-unit, translating it according to their frame of reference.
• Inspire and motivate the employees to achieve the strategic objectives of the business unit/division.
• Develop functional operational plans, directly aligned to the strategic plan to ensure the operationalisation of the strategic plan in your divisions.