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Factors Affecting Strategy Implementation in the
       Iraqi Public Sector Organizations


               Abdulsattar Mawlood
                     Ph.D Candidate
          Faculty of Economics and Business
         Universiti Malaysia Sarawak (UNIMAS)
Keywords




• Strategic Management
• Strategy Implementation
• Public Management
• Iraqi Public Sector




                               2
Definitions


Strategic management
Strategic management is the set of managerial decisions and actions that
determines the long-run performance of an organization. It includes
environmental scanning (both external and internal), strategy formulation
(strategic planning), strategy implementation, and evaluation and control
(Hunger et al 2011)


Strategy Implementation
Strategy implementation is an iterative process of implementing
strategies, policies, programs and action plans that allows a firm to utilize
its resources to take advantage of opportunities in the competitive
environment (Harrington, 2006).


                                                                                3
Definitions (cont’d)


Iraqi Public Sector
Since 2003, the Government and people of Iraq have embarked on challenging
transition from:
1. a unitary state to a developing parliamentary republic system
2. a centralized mixed economy to one where the private sector is increasingly the
    engine of growth and provider of employment.

challenges:
Most public offices still follow outdated structures and systems, while others lack a
coherent architecture and standard operating procedures, without sufficient
automation of processes to ensure efficiency (UNDP, 2012).

Public Sector in Iraq has realized that the acquisition of strategic planning is the right
road to success and recognized that strategic management is necessary in order to
maintain responsiveness to the rapidly changing environment(MOP, 2009)

                                                                                             4
Problem Statement




Problem Statement
• Change in the management of public sector
• Complexity of strategy implementation
• Lack of Strategic Management practice in the Iraqi public sector
• Scarcities in the research of strategy implementation




                                                                     5
Research Objectives




1.   To establish various factors that influence
     strategy implementation and explore the best
     approaches that could be adopted to facilitate
     effective implementation of strategy in the
     public sector organizations in developing
     countries.

2.   To present new insights and understandings for
     strategy implementation in the public sector
     organizations.



                                                      6
Research Questions


1.   What are the factors that facilitate and
     impede effective strategy implementation in
     the public sector organizations?

2.   How do factors such as leadership traits,
     organizational   culture,    organizational
     structure, change management, and
     strategy formulation have impact on
     strategy implementation in the public sector
     organizations?

3.   What is the extent of understanding “the
     process     of    strategic management
     implementation” among the Iraqi public
     sector organizations?
                                                    7
Significance of the Study



1.   Identify the concept and framework of strategy
     implementation, taking into account the nature of
     work and environment of public sector
     organizations in developing countries.
2.   Provide useful knowledge on factors that might
     have impact to the implementation of strategy in
     public sector organizations.

3.   Support and enrich theory and model of strategy
     implementation in public sector organizations in
     developing countries that have similarities in their
     nature of service with Iraqi public sector.



                                                            8
Strategy Implementation Frameworks
    Authors                           Factors affecting strategy implementation
Hambrick and
                   resource commitments, subunit policies and programs, structure, rewards, and people
Cannella (1989)
                   organizational structure, organizational culture, uncertainty, operational planning,
Pettigrew 1992
                   resources, people, communication, control and feedback, and strategic outcome
Kargar and
                   organizational structures, organizational culture, compensation, resource allocation,
Blumenthal
                   and information systems
(1994)
                   tasks, people, structure, decision processes, culture, information systems, control
Hussey (1996)
                   systems, and reward systems
                   organization structure, control and information systems, reward systems, selection and
Pennings (1996)
                   socialization, power and politics and organization culture
Noble’s (1999)     goals, organizational structure, leadership, communications, and incentives
                   organizational structure, organizational culture, organizational learning, uncertainty,
Okumus (2001)      operational planning, resources allocation, people, communication, monitoring and
                   feedback, external partners, and outcome
                   strategy, structure, resources, shared values, style, staff, systems and processes, and
Higgins (2005)
                   strategic performance
                   change management, organizational culture, organizational power structure, and
Hrebiniak (2006)
                   leadership
Brenes et al       strategy formulation, systematic execution, control and follow-up, leadership, and
(2007)             corporate governance
Factors affecting strategy implementation



                                                • Strategic performance
•   Organizational structure                    • Style
•   Organizational culture                      • Systems and processes
•   Resource allocation                         • Tasks
•   Reward systems                              • Uncertainty
•   People                                      • Outcome
•   Control systems                             • External partners
•   Communications                Strategy      • Goals
•   Information systems        Implementation   • Organizational learning
•   Leadership                                  • Corporate governance
•   Strategy formulation                        • Power and politics
•   Operational planning                        • Subunit policies and
•   Decision processes                            programs
•   Shared values                               • Selection and
•   Change management                             socialization

                                                                            10
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Abdulsattar strategy implementation

  • 1. Factors Affecting Strategy Implementation in the Iraqi Public Sector Organizations Abdulsattar Mawlood Ph.D Candidate Faculty of Economics and Business Universiti Malaysia Sarawak (UNIMAS)
  • 2. Keywords • Strategic Management • Strategy Implementation • Public Management • Iraqi Public Sector 2
  • 3. Definitions Strategic management Strategic management is the set of managerial decisions and actions that determines the long-run performance of an organization. It includes environmental scanning (both external and internal), strategy formulation (strategic planning), strategy implementation, and evaluation and control (Hunger et al 2011) Strategy Implementation Strategy implementation is an iterative process of implementing strategies, policies, programs and action plans that allows a firm to utilize its resources to take advantage of opportunities in the competitive environment (Harrington, 2006). 3
  • 4. Definitions (cont’d) Iraqi Public Sector Since 2003, the Government and people of Iraq have embarked on challenging transition from: 1. a unitary state to a developing parliamentary republic system 2. a centralized mixed economy to one where the private sector is increasingly the engine of growth and provider of employment. challenges: Most public offices still follow outdated structures and systems, while others lack a coherent architecture and standard operating procedures, without sufficient automation of processes to ensure efficiency (UNDP, 2012). Public Sector in Iraq has realized that the acquisition of strategic planning is the right road to success and recognized that strategic management is necessary in order to maintain responsiveness to the rapidly changing environment(MOP, 2009) 4
  • 5. Problem Statement Problem Statement • Change in the management of public sector • Complexity of strategy implementation • Lack of Strategic Management practice in the Iraqi public sector • Scarcities in the research of strategy implementation 5
  • 6. Research Objectives 1. To establish various factors that influence strategy implementation and explore the best approaches that could be adopted to facilitate effective implementation of strategy in the public sector organizations in developing countries. 2. To present new insights and understandings for strategy implementation in the public sector organizations. 6
  • 7. Research Questions 1. What are the factors that facilitate and impede effective strategy implementation in the public sector organizations? 2. How do factors such as leadership traits, organizational culture, organizational structure, change management, and strategy formulation have impact on strategy implementation in the public sector organizations? 3. What is the extent of understanding “the process of strategic management implementation” among the Iraqi public sector organizations? 7
  • 8. Significance of the Study 1. Identify the concept and framework of strategy implementation, taking into account the nature of work and environment of public sector organizations in developing countries. 2. Provide useful knowledge on factors that might have impact to the implementation of strategy in public sector organizations. 3. Support and enrich theory and model of strategy implementation in public sector organizations in developing countries that have similarities in their nature of service with Iraqi public sector. 8
  • 9. Strategy Implementation Frameworks Authors Factors affecting strategy implementation Hambrick and resource commitments, subunit policies and programs, structure, rewards, and people Cannella (1989) organizational structure, organizational culture, uncertainty, operational planning, Pettigrew 1992 resources, people, communication, control and feedback, and strategic outcome Kargar and organizational structures, organizational culture, compensation, resource allocation, Blumenthal and information systems (1994) tasks, people, structure, decision processes, culture, information systems, control Hussey (1996) systems, and reward systems organization structure, control and information systems, reward systems, selection and Pennings (1996) socialization, power and politics and organization culture Noble’s (1999) goals, organizational structure, leadership, communications, and incentives organizational structure, organizational culture, organizational learning, uncertainty, Okumus (2001) operational planning, resources allocation, people, communication, monitoring and feedback, external partners, and outcome strategy, structure, resources, shared values, style, staff, systems and processes, and Higgins (2005) strategic performance change management, organizational culture, organizational power structure, and Hrebiniak (2006) leadership Brenes et al strategy formulation, systematic execution, control and follow-up, leadership, and (2007) corporate governance
  • 10. Factors affecting strategy implementation • Strategic performance • Organizational structure • Style • Organizational culture • Systems and processes • Resource allocation • Tasks • Reward systems • Uncertainty • People • Outcome • Control systems • External partners • Communications Strategy • Goals • Information systems Implementation • Organizational learning • Leadership • Corporate governance • Strategy formulation • Power and politics • Operational planning • Subunit policies and • Decision processes programs • Shared values • Selection and • Change management socialization 10