CONCEPTUAL MODELS SUPPORTING THE STUDY

In order to have a better understanding of the problem statement linked to this research it is useful to explore conceptual models which can support this study.

The following conceptual models as discussed below are supporting this study:

The Planning Context Environmental Scan model;

Louw and Venter‟s organisational architectures model;

The Nortel network external environment model. and

Zaribaf and Hamid‟s drivers for implementation outcomes model.

In the next sections, these models will be presented and discussed.

1.5.1 The planning context environmental scan model

Figure 1 outlines the planning context environmental scan model (Public Safety Canada, 2010). This model indicates the internal- and external environmental variables that impact strategy formulation which in turn impact strategy implementation. To ensure successful strategy implemention, the organisation needs to first determine the impact of these variables on the organisation.

9 Figure 1.1: The planning context environmental scan model

Adapted from: Public Safety Canada (2010:1)

An environmental scan involves being aware of the context in which an organisation is operating so as to understand how it could be affected. During an environmental scan, the organisation defines the internal- and external parameters to be taken into consideration when formulating- and implementing strategies. It outlines the time, scope, scale and risks affecting the achievement of its objectives.

The main variables in the internal environment which impact on strategy formulation and implementation as depicted in Figure 1.1 are:

Environment

Global

Technology

Social Economy Political/Legal

INTERNAL Strategic intent

Leadership Governance

Resources Culture Systems

10 the capabilities, understood in terms of resources and knowledge (e.g., capital, time, people, processes, systems, technologies), including results from the capability improvement process;

the organisation activities, policies, goals, objectives and strategies in terms of its strategic intent;

perceptions, values and culture of the organisation;

the nature and quality of leadership within the organisational functions and decision making processes, an

structures (e.g. government, roles and accountabilities).

On the other hand, the key elements of the external environment as can be seen in Figure 1.1, includes the cultural, political, legal, technological, economic, natural and international (global) environment. These environments influence the key drivers and trends that impact the organisation‟s objectives (strategy formulation) and ultimately drive the strategy implementation process. It also includes the perceptions and value expectations of external stakeholders.

1.5.2 Louw and Venter’s organisational architectures model

Table 1.1 shows the similar basic key pillars for organisational architectures which could be used for strategic- alignment and implementation.

Table 1.1: Louw and Venter’s organisational architectures model

Ulrich

Adapted from: Louw & Venter (2006:396)

McKinsey 7-S framework is the best known and most widely used framework for strategy implementation. According to Louw and Venter (2006:360), this framework

11 consist of so-called hard components of structure and systems (procedures) and soft components such as shared values (culture), management style, staff (people) and skills (organisational strengths). Lee (2004) is the most recent cohesive framework developed to integrate the various architectures of strategy implementation.

McKinsey 7-S and Jay Galbraith Star framework both identified strategy, structure, systems (processes) and people (staff) as strategy implementation tools. Veasey (2001) and Lee (2004) added culture, information technology, stakeholders, competencies (knowledge, skills and abilities) as further tools for strategy implementation. To conclude, Table 1 summarises the drivers for strategy implementation as stakeholders, culture, skills, processes, technology, leadership, structures and systems, governance, change management, people, leadership and rewards.

1.5.3 The Nortel network external environment model

Figure 2 shows the elements of the external environment that impact organisations.

The general environment consists of a number of important interacting sub-environments, namely the international-, technological-, economic-, legal-, political-, social-cultural- and natural environment (Daft, 2010:69). Within the external environment is also the task environment. The task or market environment comprises all those variables that have a direct working relationship with the organisation such as (Daft, 2010:69):

Customers (the market), with their specific characteristics, purchasing power and behaviour. As recipients of the organisation‟s output, they determine the organisation‟s success.

Competitors, who are already established in the market and intend to retain or improve their market share.

Labour market, the people available for recruitment and selection by the organisation.

Suppliers, who supply raw materials to the organisation to produce its output, products for further assembly, services and financing to the organisation.

Figure 1.2 depicts the relationship among the general and task (market) environments.

12 Figure 1.2: The Nortel network external environment model

Adapted from: Daft (2010:72)

Changes in these environments can create challenges for organisations, especially when trying to implement strategies.

5.5.4 Zaribaf and Hamid’s drivers for strategy implementation model

Figure 1.3 depicts the drivers for strategy implementation. To implement strategies, it is important to plan a program in which employees have well-defined job descriptions and implementation tools such as technology and information systems.

A suitable organisational structure together with strong visionary leadership and organisational culture can contribute towards effective strategy implementation.

International

Natural

Technological

Socio-cultural Economic Legal/Political

TASK

Competitors Customers

Suppliers Labour market

13 Figure 1.3: Zaribaf and Hamid’s drivers for strategy implementation model

Adapted from: Zaribaf & Hamid (2010:1)

Zaribaf and Hamid (2010:1) emphasised that the relationship between strategy planning and implementation is an important matter as it can result in many positive outcomes for the organisation. Successful implementation depends on:

revolutionising attitudes, viewpoints and future prospects;

comprehensive planning;

implementation commitment, and efficient control tools.

Figure 1.3 shows that if these strategic drivers are in place, it may lead to successful strategy implementation.

Based on the above conceptual models supporting the study and other secondary sources consulted the hypothetical model of this study is presented in the next section.