Developing strategy execution process in a global financial institution
Pentti, Annukka (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024052716371
https://urn.fi/URN:NBN:fi:amk-2024052716371
Tiivistelmä
The thesis is a study of how strategy execution process has been executed in a financial institution’s service organisation and the study aims to find suggestions on how to develop the process further. The objective of the thesis was to identify potential development ideas within the execution process to enable higher engagement and value creation.
Theoretical framework consists of two areas, strategy, and strategic management. From the frameworks within the area of strategy, the focus is on factors that determines the types and approaches strategies can have. In addition, aspects of formulating the strategy and deciding on strategic options are discussed. Strategic management frameworks address the characteristics of being a strategic leader, enabling transparency, being able to translate the strategy to understandable and tangible. In addition, aspects of communicating a strategy in an understandable way is discussed, and how by creating clarity and trust, companies can better engage their employees.
The studied strategy execution process had two streams with one being a traditional overall waterfall strategy for the areas and teams, and the other being a volunteer-based Pillar work structure. The Pillar work used participative methods as it invited the employees across the commissioning organisation to take part in project groups driving their own initiatives with objectives that aligned with the commissioning organisation’s overall strategy. Data used in the study was gathered from an organisation wide survey, interviews, and company data. The survey took place in June – July 2023, the interviews in March 2024. The survey was sent out anonymously to the entire population of the commissioning organisation and contained both quantitative and qualitative questions. Data was analysed by using Webropol and SPSS. The interviews were conduct-ed as semi-structured interviews, and they were recorded as Teams meetings. Company data was focusing on presentations from the roll-out phase and progress reports from the participative stream.
Main conclusion from the study is that the commissioning organisation needs to focus on creating an understandable story of the strategy and to make it tangible in all levels of the organisation. By creating clarity and understanding, the organisation will be able increase engagement. Increasing the general engagement to strategy will also benefit the Pillar structure. The study demonstrated that employees, to some extent, felt detached from the strategy, were unable to link their or their team’s actions to it.
In addition to the study and its conclusions, suggestions on how to develop the identified issues and gaps are introduced. Better aligning the cascading strategy and the Pillars creates cohesion. Using storytelling methods and using common language to explain the objectives, the strategy gets to be more understandable. Being able to participate, take charge of their own actions, and empowering employees to produce ways to support the strategy will increase the feel of belonging.
Theoretical framework consists of two areas, strategy, and strategic management. From the frameworks within the area of strategy, the focus is on factors that determines the types and approaches strategies can have. In addition, aspects of formulating the strategy and deciding on strategic options are discussed. Strategic management frameworks address the characteristics of being a strategic leader, enabling transparency, being able to translate the strategy to understandable and tangible. In addition, aspects of communicating a strategy in an understandable way is discussed, and how by creating clarity and trust, companies can better engage their employees.
The studied strategy execution process had two streams with one being a traditional overall waterfall strategy for the areas and teams, and the other being a volunteer-based Pillar work structure. The Pillar work used participative methods as it invited the employees across the commissioning organisation to take part in project groups driving their own initiatives with objectives that aligned with the commissioning organisation’s overall strategy. Data used in the study was gathered from an organisation wide survey, interviews, and company data. The survey took place in June – July 2023, the interviews in March 2024. The survey was sent out anonymously to the entire population of the commissioning organisation and contained both quantitative and qualitative questions. Data was analysed by using Webropol and SPSS. The interviews were conduct-ed as semi-structured interviews, and they were recorded as Teams meetings. Company data was focusing on presentations from the roll-out phase and progress reports from the participative stream.
Main conclusion from the study is that the commissioning organisation needs to focus on creating an understandable story of the strategy and to make it tangible in all levels of the organisation. By creating clarity and understanding, the organisation will be able increase engagement. Increasing the general engagement to strategy will also benefit the Pillar structure. The study demonstrated that employees, to some extent, felt detached from the strategy, were unable to link their or their team’s actions to it.
In addition to the study and its conclusions, suggestions on how to develop the identified issues and gaps are introduced. Better aligning the cascading strategy and the Pillars creates cohesion. Using storytelling methods and using common language to explain the objectives, the strategy gets to be more understandable. Being able to participate, take charge of their own actions, and empowering employees to produce ways to support the strategy will increase the feel of belonging.