Alignment: the foundation of effective strategy execution

Abstract

Purpose Understanding a lack of strategy execution research, especially a lack of execution frameworks, the purpose of this paper is to focus on building a model of one of the most classic aspects of effective strategy execution, i.e. alignment. The proposed framework of alignment demonstrates linkages among different factors of alignment and suggests a managerial action plan to successfully convert strategic goals into execution performance. Design/methodology/approach This study develops an empirically tested framework of “alignment” that can be used to plan effective strategy execution. The research context of the study is the firms operating in the infrastructure sector of India. A multi-method approach, combining qualitative and quantitative techniques, has been adopted with emphasis on the interpretation of the framework to suggest managerial actions. Findings This study shows that structure-strategy linkage is the most fundamental task of strategy execution. However, there are other aspects of alignment also that are critical. Also, there exist hierarchical relationships among different alignments. The structural understanding of alignment is required to set strong foundation for execution process. Research limitations/implications This study is limited to firms in the infrastructure sector of India. A questionnaire survey approach may invite some bias in response. Also, a large sample size could have been more useful to generalize findings. The proposed framework in this study suggest that the alignment of structure with strategy is important but not sufficient for effective strategy execution. There exist hierarchical relationships, among the factors of alignment, showing a dependence-driving relationship. Practical implications Strategy execution is one of the biggest challenges that corporations have been facing. The existing literature has identified many issues leading to effective strategy execution. The “alignment” aspect of execution has been the most talked about. There are different levels of alignment required for successful strategy execution. Literature suggests some of the key areas of alignment. However, there has been a lack of frameworks demonstrating linkages among different alignments to facilitate effective strategy execution. Originality/value There is a lack of strategy execution frameworks, especially reflecting on the alignment aspect of strategy execution. This study focuses not only on “how” of the framework development but also on the “why” aspect of the same. The interpretation approach also helps in pondering on the contextual realities.