EFFECTIVE STRATEGY EXECUTION TO REALISE SHAREHOLDER VALUE: A PROPOSED FRAMEWORK FOR MANAGEMENT

摘要

Shareholder value, the value created for shareholders by an enterprise, is at the heart of strategy realisation. The review of the literature on effective strategy execution indicates that there is still room for improvement since fifty seven (57) percent of firms were unsuccessful at executing strategic initiatives, organisations fail to implement more than seventy (70) percent of their new strategic initiatives, sixty six (66) percent of corporate strategy is never implemented, and that firms realise only sixty three (63) percent of their strategies' potential value. Literature indicate that there are numerous frameworks on strategy planning and execution. It was observed that many organisations have matured and are able to plan and craft a sound business strategy. However, the tragedy is that strategy execution is still a challenge even though its successful implementation creates a competitive edge for the organisation. Moreover, strategy planning and execution are not mutually exclusive. It is also important to note that the test of how well the corporate strategy was planned and developed, shows how well it can be executed. The challenge with effective strategy execution is attributed to the lack of a model or framework which could be used by leaders in an organisation when making business decisions. A framework which could also provide guidance to managers as they take actions. The model or framework is key to effective strategy execution as the implementation process is complex, involves people across the organisation, poor decisions put resources at risk and there is a need to ensure that shareholder value is realised. This paper seeks to identify how shareholder value could be created and preserved as the corporate strategy is executed. This is a positioning paper for future research.