Focusing on business, strategic management with all its subsections are considered relatively new. Research is very much engaged to explore more and more views and parts of this incredibly wide and interesting field. Besides, also intersection points between strategic management and other managerial fields, like marketing or sustainability are very high in trend.
Nevertheless, often enough we hear complaints from academia and industry about the gap between strategy formulation and strategy execution or implementation. Research figured out that one of the reasons behind this challenge is the miscommunication between the C and the operational level. This in turn puts an immense load on the middle management to thoroughly articulate the formulated strategy and act as a two-ways-communication-channel between the C and operational level. So, getting orders from above, and articulating problems or ideas from below. In this context it is important to highlight on the agency problem and power misusage that might be an issue, if the middle management does not comply with the general stakeholder interest. Consequently, a strong governance system shall be integrated in the organization to monitor any deviation from the general company interest, its strategy and resources misusage.
Another challenge for strategy execution, which may even call for a reformulation, is the company’s business model. A business model that does not comply with the market’s new trends due to absence of flexibility and agility, makes the correspondent corporate strategy worthless. Instead, a strong and flexible business model that can easily adapt to change, can be a key competitive advantage for the company, which can be hardly copied or imitated.
Last but not least, is the scarcity of (some) resources. Companies that do heavily rely on natural resources suffer the most. Here, the formulated strategy will be hindered from execution if the required resources are not available, or underlie monopoly or an immense supplier bargaining power. This area in particular is entangled with political power and lobbying.
To sum up, strategy execution is one of the hardest and most sensitive processes an organization goes through. An adequate implementation calls for a precise market scanning, thorough planning and flexibility, and exact articulation, so to assure a correct implementation, drive new opportunities to the company and make it survive its competition.
To overcome such challenges in strategy execution, you need to have a reliable arm such as a strategy management solution. Such solution should indeed balance out such difficulties, add to the organization’s value and overall performance. A perfect match here would be ON TRACK, which aims at enhancing organizations’ productivity by providing a backbone for managing, sharing, and monitoring the achievement of strategic plans.