Abstract
Strategic implementation is a crucial and critical pillar in the process of strategic management. As more organizations are focused on ensuring sustainability, it becomes increasingly important that strategic implementation is made more effective, so that sustainability gets embedded in the way the organizations plan, work, and implement their policies to achieve their overall objectives and goals. With this background, adopting a qualitative approach and a case study research design, the aim of this chapter is to deliberate on strategic implementation in a public enterprise. In the process, the main research question addressed is how to ensure effective strategic implementation to ensure organizational sustainability.
TopBackground
TransNamib Holding Limited (TNHL) has experienced difficulties with strategic implementation in the past, as seen by the failure to meet targets for the company's financial performance, staff retention, and many other areas. In its 2019 Integrated Strategic Business Plan, TransNamib Holdings Limited states that it is not spared from challenges of strategic implementation evident from the non-achievement of strategic objectives like set financial objectives. According to Wilton (2019), TransNamib is Namibia's official surface carrier which offers rail and road transportation both inside Namibia and across its borders. TransNamib, which replaced the previous TransNamib Ltd., was created by the National Transportation Service Holding Company Act, 28 of 1998. The Government of the Republic of Namibia owns all the company's shares and has non-regulatory authority over it by appointing the directors. Wilton (2019) adds that over the ten years, TransNamib has experienced a consistent reduction in transport volumes. Mining commodities and bulk liquid transportation volumes fell by 27% and 11%, respectively, between 2012 and 2013. Owing to the outdated infrastructure and equipment, rising operating and maintenance expenses have crippled TransNamib. Consequently TransNamib has experienced talent exodus, lackluster reputation and the company’s transport capacity has nosedived into oblivion. Consequences include concerns with governance and cash flow. One of the primary factors has been the lack of significant investments in resources and personnel over a long time. Further causes include the expansion of road transportation and increased pricing competitiveness.
Key Terms in this Chapter
Financial Performance: This refers to the attainment of the business's financial performance during a specific time period, including the collection and distribution of funds as measured by capital sufficiency, liquidity, solvency, efficiency, leverage, and profitability. The phrase “financial performance” refers to a company's general financial standing.
State-Owned Enterprises (SOEs): These are legal entities established by governments to engage in commercial activities on their behalf. These enterprises might be held entirely or in part by a government, and are often designated to take part in particular business endeavors. An enterprise that is entirely or substantially owned and controlled by the government is referred to as a state-owned enterprise (SOE).
Leader: One who influences a group of individuals to achieve a common goal in an organizational position directly and personally responsible for leading individual direct reports, a project, a team, and/or a function.
Value: Relative worth, merit, or importance and the worth of something in terms of the amount of other things, for which it can be exchanged; to consider worthy of respect, excellence, usefulness, regard or esteem highly.
Competence: Refers to the capacity of individuals/ employees to act in a wide variety of situations. It is their education, skills, experience, energy, and attitudes.
Organizational Performance: Organizational performance supports a process approach, putting the emphasis on the internal process of using a set of metrics to quantify the efficacy and efficiency of activity.
Leadership: An ability to influence followers to adjust their behavior as they encounter receptiveness or opposition from the leader in various situations. The perception that an individual is leading others and is able to self-identify as a leader may be subject to the individual’s own view of the role of a leader.
Strategy Implementation: It is the sum of all the actions and decisions necessary to carry out a strategic plan. The act of carrying out a plan to achieve the desired goal or collection of goals is known as strategy implementation.
Business: Pertains broadly to commercial, financial, and industrial activities.