REASONS FOR STRATEGY IMPLEMENTATION FAILURE

There are 7 reasons of for strategy implementation failure which are discussed below.

INCOMPETENT MANAGEMENT

Inadequate capabilities of managers are a common cause of strategy implementation failure. Without competent organizational
members, implementing a strategy successfully becomes very difficult if not impossible. Organizational members with
implementation responsibilities need to have sufficient skills and knowledge to implement the strategy. Eventually organizational
members are the ones who have to perform the implementation activities to make the strategy a success. Especially, having
competent management is important. When top management is incompetent, the whole organization is affected and thus the
strategy implementation effort as well. Furthermore, when employees have little confidence in the ability of management to
execute the strategy then their commitment to the strategy will be low and having incompetent members within a team negatively
influences the performance of other organizational members. Well-performing organizational members have their motivation
reduced when they have to work with poor performing colleagues. Especially the presence of incompetent managers has a very
negative influence on the performance of subordinates.

A VAGUE STRATEGIC VISION

Successful strategy formulation and implementation begins with formulating a sound and clear strategic vision by top
management. A strategic vision describes the desired future state of the organization. The strategic vision helps clarify the
direction in which an organization is to move a clear and well-formulated strategic vision is a key requirement for effective
organizational redesign. Without a clear strategic vision organizational members and other stakeholders lack a clear direction for
the new strategy. Managers and employees need to know that they have to achieve with respect to the strategy implementation.
Therefore, the strategic vision needs to be clearly defined and well formulated. In addition, the strategic vision needs to be
attractive and easy to communicate toward organizational members, customers, shareholders, and other relevant stakeholders.
The simpler the strategic vision is, the easier it is to understand and execute for organizational members. A clear and attractive
strategic vision increases the confidence of employees in a successful outcome of a strategy implementation effort.

AN INADEQUATE STRATEGY

No implementation can save a strategy, which is not feasible or sound to begin with. A failure to think through the strategy makes
it impossible to implement, except by chance. An unclear strategy and conflicting priorities are barriers to strategy
implementation. Not only needs a strategy be sound and feasible it needs to be clear also. Organizational members who have to
implement the strategy need to have a clear understanding of the strategy. They need to understand what the operational
objectives of the strategy implementation are and what the consequences are for them as individuals. Furthermore, organizational
members need to know what to do to make the strategy a success. Consequently, a strategy needs to be simple and focus on the
essence of the strategy. When a strategy is clear and simple, it is easier to understand for organizational members. However,
managers and executives have a tendency to keep the strategy rather vague allowing them to avoid criticism when the strategy
proves unsuccessful. Vague strategies are often a natural outcome of policymaking processes in the public sector. Strategies and
policies are often developed in a way that reduces the level of clarity of the strategy or policy and makes implementation
problematic.

  LACKING IMPLEMENTATION PLAN

After the strategy is developed, it needs to be translated into a concrete and well worked out implementation plan. A strategic
plan cannot be executed when it is not translated into operational terms. Even the best strategy is worthless when managers
cannot translate the strategy into operational reality. The strategy implementation plan specifies the processes, activities and
operational objectives that are required to achieve the goals of the strategy. The strategic objectives need to be translated into
measurable operational implementation sub-objectives and linked to departmental and individual goals. Measurable objectives
provide an effective basis for management control of the implementation.
A lack of clear strategy objectives contributes to strategy implementation failure. Without concrete objectives and milestones, it
is impossible to measure the progress of the strategy implementation. This makes managing and improving the strategy
implementation impossible. Therefore, the implementation plan needs to contain a clear set of concrete and measurable
objectives or targets. Clear and specific tasks need to be defined which are required to achieve these targets.

INADEQUATE PLANNING AND CONTROL

Many strategy implementations fail because of a lack of monitoring and control. Often an effective planning and control system
is missing. Without timely and accurate management information it is impossible to assess the progress of the strategy
implementation effort. It is very important to assess what affect the implementation is having and correct or adjust the strategy or
its implementation should it produce negative or unsatisfactory results. During the strategy implementation, the strategic goals
translated into operational goals with performance indicators need to be monitored to assess whether the objectives are being
achieved. Without monitoring and evaluation it is not possible to cut an errant strategy before losses or negative impacts become
too costly or damaging. As strategy implementation plans are destined to change, implementation teams need to regularly meet in
well-structured, punctuated sessions to share information, reconfirm priorities and make decisions. This way, management can
make adjustments when needed and thus control the strategy implementation effort. To make these adjustments it is required to
assign clear responsibilities for the achievement of those targets.
 NEGLECT OF POLITICAL INTERESTS

Politics and struggles over power and leadership are just a few obstacles that may undermine an implementation effort. Strategy
formulation and implementation inevitably raise questions of power within an organization. The existence of conflicts, and the
use of individual and group power needs to be taken into consideration. The very prospect of change confronts established
positions, which may lead to resistance to change. Resistance to change may lead to passivity toward the strategy or even
sabotage. Managers can overcome resistance to change by involving potential opponents in decision-making, taking their
interests seriously and clearly communicating the new strategy and its advantages to them.

A CULTURE OF FEAR

The existing organizational culture can be an obstacle to strategy implementation. An organization culture can be characterized
by fear for making mistakes, responsibility, participation, and change. When managers act in authoritarian and punitive ways,
subordinates may become reluctant to make mistakes and engage in learning behaviors. Employees may become shaped by
organizations with high levels of centralization, formalization, and rigid rules and may become passive and unable to be creative
or exercise initiative on the rare occasions that it is encouraged and rewarded. However, to implement a strategy successfully,
proactive organizational members are often needed who participate in strategy formulation and implementation. In order to
participate, organizational members need to dare to take initiative, voice their opinion, and not be afraid to make mistakes.
Therefore, an empowered and fearless organization culture needs to be created in which organizational members are able to make
mistakes without being punished for it.