Knowledge measurement for strategy implementation

Abstract

In information era, the organization should produce the best strategies to face the competitive advantages. The strategies must be aligned into the organizational objectives. Even the organization had produced “fantastic” strategic plan and “organized “action plan, it will be useless, unless it was followed by optimal implementing of strategies and full support from overall organizational resources. However, much of the weaknesses in the practice of strategic management emerge in the process of implementation rather than in the conception of strategy. For example, Hambrick and Cannella (1989) and Mintzberg (1994) claim that more than half of the strategies devised by organizations are never implemented due to unexpected difficulties faced during the execution stage. Miller (2002) also reports that organizations fail to implement more than 70 percent of their new strategic initiatives. Others survey by Gopinath and Hoffman (1995) and Zahra and Pearce (1992) which is investigating the views of CEOs and strategic management professors about key research areas in the strategic management field identified that strategy implementation as the most important area for future research inquiry. These phenomenons show the lack of understanding about strategy implementation and the necessity to shift the focus area from the formulation strategy into its implementation.