Strategy Drivers Based on the McKinsey Model: A Case Study

The effective execution of organizational strategy remains a fundamental challenge for both managers and management researchers. In the realm of strategy research, insufficient attention has been given to achieving a harmonious equilibrium between organizational components and the perceptions of strategy hindrances held by strategists, namely CEOs and senior managers. This perspective focuses on strategy as a dynamic "action" resulting from the daily activities of strategists within the organizational context. Given that strategy failures can result in a squandering of organizational resources, addressing this issue is of paramount importance. This research aims to identify obstacles to strategy implementation as perceived by the senior management team of a government-owned agricultural and industrial company in Iran. The authors employ the McKinsey model as a theoretical framework to scrutinize the failure of strategy implementation, dissecting the constituents of each model factor through the lens of senior managers.

This research adopts a qualitative approach, specifically an exploratory case study utilizing an embedded methodology. Semi-structured interviews were employed to collect qualitative data, enabling the researcher to gain in-depth insights into the research topic while systematically gathering data. Subsequent interviews were conducted to obtain further data or clarifications until thematic saturation was achieved after the 21st interview. The resulting data underwent open coding. Triangulation of data was performed using observations and secondary data sources, including the organization's website, annual reports, quarterly meeting minutes, strategies, policies, mission statements, and goals.

Identified codes encompassed both negative and positive impact codes. Regarding the effects of these codes on strategy implementation, 155 codes were identified with a negative impact, 29 codes with a positive impact, 4 codes with a dual impact, and 16 notes (comprising questions and ambiguities). These codes were ultimately categorized into 21 distinct categories and organized into five overarching themes. Some noteworthy categories include organizational background, entrepreneurial spirit, collaborative planning, employee disengagement, conflicts of interest and opinions between middle and senior managers, issues with strategy formulation, managerial incompetence, financial challenges, leadership frustration, chronic understaffing, and a lack of commitment, among others. The resulting themes encompass leadership style, structural and systemic problems, skills, personnel, and strategy.

This study scrutinizes the dimensions of the McKinsey model from the perspective of senior and middle managers, ultimately pinpointing challenges in strategy implementation. Foremost among these challenges is the absence of "common values." Issues such as representation, leader frustration due to misalignment with middle managers, and feelings of injustice between line managers and staff contribute to convoluted and conflicting communication within the organizational hierarchy. Within the middle management layer, direct leader involvement in their affairs, occasionally bypassing them, and the repressive approach of middle managers compound confusion, feelings of injustice, and diminished motivation. The lack of skill among middle managers in managing these situations further exacerbates employee apathy. The research findings underscore that successful strategy execution necessitates more than just a sound formulation method. All seven components of the organization must achieve harmony and balance for successful strategy implementation to occur.