1. The silent killers of
strategy implementation
in QS firms
Lungelo Gcwabaza

2. “Corporate sustainability is a business approach
that creates long-term consumer and employee
value by creating a “green strategy” aimed toward
the natural environment and taking into
consideration every dimension of how a business
operates in the social, cultural, and economic
environment”.
Introduction
Opening
– William Clay Ford Jr. Executive
Chairman, Ford Motor Company.

3. Introduction
Opening
Corporate sustainability is based on two guiding
principles:
1. Sustainable business practices are critical to the creation
of long-term shareholder value in an increasingly resource-
constrained world;
2. Sustainability factors represent opportunities and risks that
competitive companies must address.

4. Introduction
Opening
Why is this import?
Because;
“Creating sustainable
business performance
through strategy
implementation”

5. “Simply knowing what to do is not enough; in the
final analysis, success is judged in terms of actual
rather than intended results. Choice and action
determine actual results, and each is incomplete
without the other.”
Introduction
Opening
Hrebiniak and Joyce, 1984 -
“Implementing Strategy”

6. Competitive
Complex
Effectiveness
Efficiency
Productivity
Growth
Sustainability
The Business Landscape
Introduction
Opening

7. On average, companies deliver 63% of the financial
performance on their strategy promised. – Harvard Business
Review.
57% of firms failed to execute strategic initiatives over the
past three years. – An Economist Survey.
Just 3% of executives believe their companies are
successful at execution. - An AMA Survey.
80% of C-level executives believe the ability to successfully
execute is nearly impossible to achieve. – Get it Done! A blueprint
for Business Execution
Introduction
Opening

8. "It is not sufficient to formulate brilliant strategies. To affect
performance, strategies must be implemented.
Managers can orchestrate many organizational variables to
implement strategies.
They must change financial resources, organizational
structures, administrative and information systems, corporate
culture, organizational skills and staff, and performance
evaluation and reward systems“
-Shrivastava, 1994: 156.
Introduction

9. Business
Related
Studies
Construction
Industry
Studies
Quantity
Surveying
Profession?
Introduction
Current Research

10. Introduction
Resolution
For the average business, a 35% improvement in the
quality of strategy implementation was directly
associated with a 30% increase in shareholder value1.
Effective and conscience implementation of strategy can
lead to creating and maintained competitive advantage in
addition to elevating sustainable business
performance2.
1. Becker et al. (2001:213)
2. Hrebiniak (2005:6)

11. The purpose of this research is to investigate
the critical impeders of effective strategy
execution that quantity surveying firms must
overcome to realize strategic objectives in
the South African context.
The Aim

12. Overview
• Definition of strategy
• Key drivers of strategy
• Why Strategic plans fail?
• Barriers to implementation
• Consequences of failure
Literature
Review

13. Literature
Review
Definition of Strategy Implementation
The strategy implementation stage involves converting
strategic alternatives into an operational plan1
Strategy implementation is the process that turns plans
into action assignments and ensures that such
assignments are executed in a manner that accomplishes
the plan’s stated objectives2
1. Aaker (1988)
2. Kotler (1984)

14. Literature
Review
Describes change
+
Reflects obligations

15. How?Why?What?
Literature
Review

16. Alignment: “WHAT”
• Includes how well employees understand the
company strategy, realize why it is critical to
success and recognize the actions required to
make it a reality.
Mindset: “WHY”
• The level of emotional commitment to the strategy and
encompasses the belief that the strategy is right, passion
that it will make a difference and an urgency to make it
happen.
Capability: “HOW”
• Refers to the essential skills required within the
organization to effectively execute strategic initiatives.
Skills include business acumen and decision-making,
leadership and management and sales capabilities.
Literature
Review

17. Why do strategic plans fail?
Literature
Review

18. Literature
Review
“Where they struggled was
in converting awareness
into action. The
necessary knowledge
about what to do existed,
but the company lacked
the capacity to move on it
in a decisive and
committed way.”
- From “Tracking the enemies of
agility” - Julian Birkinshaw (2013)

19. Barriers to implementation
1. Insufficient capabilities of
employees
2. Ineffective coordination of
implementation activities
3. Lack of commitment
4. Lack of leadership and
discretion of middle
managers
5. Deviation from original
objectives
6. Lack of confidence about
success
Literature
Review

20. Consequences of Failure
ₓ Goals have not been reached
ₓ Unattained desired revenues
ₓ Failed new market penetration
ₓ Energy and resources were wasted
ₓ Skepticism and resistance towards new strategies
Literature
Review

21. Methodology
• Study Design
• Population and
Sampling Technique
• Questionnaire
Administration
• Data Analysis
• Results
Overview

22.  This study builds on previous quantitative research
on strategy within the realm of quantity surveying
within the construction industry.
The quantitative research method was pursued
because the populace of study was spread all
over South Africa; and due to geographical
dispersion, a qualitative approach was not feasible.
Methodology
Study Design

23. • The population of relevance:
• Directors of QS firms registered on the ASAQS
Websites
• Any other upper/ senior managerial positions
• A population of 741 registered firms was derived from
the ASAQS online directory.
• Selection criteria = accessibility to test subjects.
• 50% of the population = 371 directors in SA,
altogether.
Methodology
(Continued)
Population

24. • Online web-survey to registered QSs also made
available on the ASAQS website
• Two reminder emails in the second and fourth week
Methodology
(Continued)
Questionnaire Administration

25. Methodology
(Continued)
• Microsoft excel.
• Frequency distribution, descriptive statistics
• Interpretation shall be based on the mean and
standard deviation score
• 7-point evidence Likert scale was used
Data Analysis

26. 5
Test the market for evidence
4
5 Dimensions, with a total of 49 (variables) obstacles
3
Categorize according to themes
2
Consolidate through a process of elimination
1
Collected all implementation obstacles
Methodology
(Continued)

27. 1
• Environmental obstacles
2
• Obstacles related to the consequences of
planning
3
• Organizational obstacles
4
• Management obstacles
5
• Individual (personnel) obstacles
Results

28. 1
• Environmental obstacles
Results
Cont.
Rank Variables Mean Std. Dev Mode
1 Economic obstacles
(inflation, down turn of the
market, etc.)
3.66 2.06 2
3 Political obstacles and
changes
3.61 2.17 3
3 State laws and
regulations related to
company activities.
3.61 2.23 5
Correlates with previous research Ali & Hadi,
2012

29. 2
• Obstacles related to the consequences of
planning
Results
Cont.
Correspond with previous research Al-Ghamdi,
2015
Rank Variables Mean Std. Dev Mode
1 Inadequate and improper use of
consultants and professionals of
strategy developing
3.02 1.92 3
3 Lack of conversion of appropriate
strategic plans into business
plans and short-term operational
objectives and the distribution of
these goals between different
sectors.
3.00 1.81 3
3 Inadequate identification of
company's major problems and
lack of focusing on them in
strategic planning process
3.00 1.89 2

30. 3
• Organizational obstacles
Results
Cont.
These results agree with Pateman, 2008
Rank Variables Mean Std. Dev Mode
1 Lack of consistency and
alignment between
organizational structure and
developed strategies.
3.05 1.85 2
3 Lack of proper communication
between individuals,
departments and units of the
organization.
3.00 1.90 3
3 Inadequate control systems
and performance
measurement and feedback.
3.00 1.79 3

31. 4
• Management obstacle
Results
Cont.
These results agree with Pateman, 2008
Rank Variables Mean Std. Dev Mode
1 Inadequate commitment of
managers to the organization and
its strategic plans.
2.98 1.92 2
3 Inadequate understanding of
managers and employees of
company strategies and future
prospects.
2.85 1.86 1
3 Inadequate protection and
consideration of company's
managers and other beneficiaries
to implementing the business
strategies.
2.85 1.75 2

32. 5
• Individual (Personnel) obstacles
Results
Cont.
These results agree with Lawrie, 2014
Rank Variables Mean Std. Dev Mode
1 People's inadequate
understanding of their company
business strategies.
2.95 1.81 4
2 Employees fear of endangerment
of their job security
2.93 1.96 2
3 Low capacity and capability of
staff in line with the objectives
and tasks.
2.85 1.96 1

33. Conclusions
Prominent obstacles to implementation
1. Environmental obstacles
2. Obstacles related to the consequences of
planning
3. Organizational obstacles

34. Conclusions
Compounding themes:
• Inconsistency In formulation
• Lack of managerial commitment
• Ineffective communication

35. Conclusions
Research critique:
• Further study into effectiveness of
implementation efforts & Frameworks used

36. Recommendations
Identify
Inform
Involve
Incentivize

37. Recommendations
“Forward thinking companies that execute successful
business strategy will enable the company to gain, as
efficiently as possible, a sustainable edge over its
competitors. They and their management teams make
things happen ahead of their competitors”
– Michael Meacher, Environment Minister
(Addressing ENVEC, October 2002)

38. • Mr. Lungelo Gcwabaza
• lungelogcwabaza@gmail.com
• 078-069-7754
Thank You
ANY
QUESTIONS