The execution of strategy at Nedbank branches in KwaZulu-Natal.

Abstract

Ineffective strategy execution is a major risk to business. Studies have found that most companies find it difficult to execute their strategies. A business can design brilliant strategies, but if they cannot be effectively executed, no change will take place. The gap between formulation and execution of strategy is therefore a problem. This study looked at the key drivers to achieving effective strategy execution. The study was with Nedbank Retail Banking in KwaZulu-Natal, consisting of retail branches serving clients face-to-face. The study compared the literature research with what was taking place in these retail branches. In addition, comparisons were made to identify any differences in execution between managers in top and lower performing branches. A qualitative approach was used through in-depth interview schedules with Nedbank branch managers for seven (7) top and seven (7) lower performing branches. These interactions were in formal interviews conducted by the researcher via Skype-for- Business, due to the geographic locations. Analysis was done using thematic analysis. The literature review established that the process undertaken to execute strategy, leadership, and communication of the strategy were key to effective execution. These were considered within the control of the respondents, and what the research explored further. The research concluded that in terms of the process taken, focus must be maintained using dashboards, measurements, and checklists. This was important to drive change. Sharing of learnings and reviews helped to shift focus when needed. Focusing on a few critical goals was critical so as not to overwhelm employees. In leadership, the relevance of experience was not conclusive. Two-way communication, inclusive of all employees, team meetings and visual communication with less of the written communication, was key for good communication. The research found that these three drivers aid in effective strategy execution, and recommended research into change and project management as also important in the effective execution of strategy.