Strategy Implementation Barriers (Kaplan and Norton)

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Strategy Implementation Barriers (Kaplan and Norton)
Lea Roostalu, Member
According to Norton and Kaplan, following 4 barriers interfere in implementing a strategy (Norton & Kaplan, 1996):
1. The vision barrier - only 5% of the workforce understands the strategy
2. The people barrier - only 25% of managers have incentives linked to strategy
3. The management barrier - 85% of executive teams spend less than one hour per month discussing strategy
4. The resource barrier - 60% of organisations do not link budgets to strategy.
These barriers need to be eliminated BEFORE implementing a strategy, because the issue does not imply that the strategy was poor (ibid).

Strategy Execution
Leodegardo M. Pruna, Member
We cannot totally eliminate the barriers mentioned. But what we can do is to address them properly in such a way that each of these barriers does not block the efficient and effective implementation of strategy.
It would be good that before or even during the time that the strategy is implemented, we already have established coherence or will be able to activate certain actions to reduce the pitfalls arising from these 4 barriers.

Strategy Implementation Barriers
Melvin Gooding, Member
- Top management believes most of the time that they understand their environment and try to implement plans that are way off-target. They are usually far from the people who understand what is really taking place, so that the plans that are made bear no reality to the present situations.
- Culture can impede strategy as well. When the culture of the organization is counter to that of the strategy that is also a major set-back. The employees must have the same mind set, the same values and visions or else the strategy is just words on paper.



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