Evaluating strategic alignment and stakeholder value at a component manufacturing company in South Africa.

Abstract

Competing on a global scale has been extremely challenging for most organisations. Firms have been forced to assess all aspects of its business seeking innovative ways to improve competitiveness and increase value creation for all stakeholders. Developing strategy alone will not deliver success, unless strategy has been created from a comprehensive understanding of market conditions and industry drivers coupled with lucid communication and focused participation of staff at all levels within the organisation. Management has the daunting task of making strategy meaningful and actionable to everyone in the organisation. The purpose of this study is to identify if organisational strategic alignment is being achieved and creating value for all stakeholders. A systematic literature review was conducted to identify if an appropriate strategy formulation process was followed to compile the business strategy. An examination of strategic alignment within the organization was conducted. Performance measurement tools were reviewed to assess progress towards strategy and an assessment of stakeholder value creation was conducted. Data for this study was collected from a web based questionnaire and hard copies captured. A sample of 108 employees from a component manufacturing company with head office based in Durban, South Africa was assessed. The assessment highlights that a well-defined business strategy exists. Major weakness is evident in aligning organizational resources towards achieving strategy. The company also lacks performance measurement tools to monitor progress towards achieving strategic objectives. Recommendations are proposed to improve organizational strategic alignment and the use of performance measurement tools to monitor strategy progress. The organization needs to create a focused approach towards achieving value from a stakeholder perspective.