The Symptoms of Strategy Formulation-Implementation Dichotomy
(Simply put: Why Marketing Strategies Fail
- Ignoring and underestimating the relationship between company’s strategy formulation process and its unique implementation’s capabilities and constraints (Bonoma, 1985).
- Reducing the ability of an organization to create a marketing strategy that fully draws on its real competencies (Hamel and Prahalad, 1989).
- Separating plans produced from the changing realities of the ‘inner working’ of the organization (Bonoma and Crittenden, 1988).
- Encouraging the establishment of professional planners or strategists and the consequent ‘uncoupling’ of strategy frok operations plan (Hobbs and Heany, 1977).
- Relying to heavily on the rational-analytic belief that strategies are direct, and explicitly chosen by management, rather than displaying some emergent characteristics and growing out of the experiences, preferences, and abilities of the organization and its members (Hart 1992, Mintzberg 1987, Stacey, 2011)
- Assuming that strategies are problematic, while execution is not (Bonoma, 1992, Piercy, 1998).
- Taking no account of any need for effective strategies to span internal boundaries between functional and organizational interest groups (Piercy and Morgan, 1993; Ruekert and Walker, 1987).
- Underestimating the significance of the political and negotiating infrastructure within the organization, and its impact on the process of gaining the commitment of organizational members at all locations (Pfeffer, 1992; Piercy, 1985; Piercy and Morgan, 1991).
- Ignoring the potential for middle management ‘counterimplementation’ efforts (Guth and MacMillan, 1986).
- Generating increasing opportunity costs for firms as ‘timebased’ strategies may place a premium on a firm’s ability to implement plans more quickly (Stalk and Hout, 1990).
- Failing to realize important first-mover or pioneer advantages as product life cycles become shorter (Cespedes, 1994).
- Failing to exploit the shorter ‘window of opportunity’ for achieving competitive advantage with a given marketing strategy, as global competition and the rapid diffusion of technology and information systems make the imitation of successful strategies by competitors faster and faster (Hamel and Prahalad, 1989).