Executing Business Strategies

Executing Business Strategies
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Executing Business Strategies
The formulation and execution of strategies comprise of a systematic process. While the formulation of strategies is an important practice in management, today, managers have rated the execution of strategies as the most challenging issue. As such, more than 60% of strategies are not successful when it comes to implementation. Therefore, businesses should consider adopting a risk-based approach in the execution of strategies. Such an approach allows managers to find or establish problems within the strategies, most of which hinder the implementation of these strategies (Berinato, 2009). Similarly, there is a need for businesses to integrate a risk-based management system that will help managers to react to threats, or manage the risks associated with the strategy. Evidence has identified four steps, which are important for businesses contemplating using the risk-based approach in strategy execution. First, businesses should use the strategy-mapping tool, which will help in the visual representation of the strategy (Porter, 2008).
Because the firm’s strategy could have some risks, the second step is to use the strategy map in identifying and evaluating the possible organizational risks. In the third step, managers can design management control systems that will help in managing the identified risks. The fourth step is central to the monitoring of the risk in on an ongoing basis. Considering that, executing a strategy has shown to challenge many managers and businesses; there is a need to approach the same strategically using a risk-based strategy execution approach. Failing to reimburse for risk is like...