The Institutionalization of the strategy includes two components: culture and structure.
Culture – company culture, culture of innovation, performance culture and culture of engagement – includes discussions about values and principles, as well as the employees’ willingness to change. The difficulties and possible opposition– often also called “soft factors” – are the main focus of this step and need to be considered as part of a communication strategy.
The aspect of structure addresses responsibilities, (implementation) qualifications, skills and knowledge, organizational structure and managerial styles (transformational management). Management is a very critical factor for success in the process of strategy implementation, as in a best-case scenario clarity, drive, purpose and commitment to performance need to be encouraged.
Potential impediments are individual managers and employees – especially in the context of extensive transformations and re-structuring, loss of focus, insufficient leadership and guidance, inadequate information and poor communication.