Symptoms of malfunctioning of strategy

Answer 1

Symptoms of malfunctioning of strategy are as follows:

1. Company is not performing as well as against its close rivals, similar companies or industry as a whole.

2. Company is not performing in terms of stated objectives, return on investment (ROI), market share, profitability trends, EPS, etc.,

3. Corporate culture is not aligned with strategy,

4. Implementation of the strategy is slow.

5. Organizational conflict and interdepartmental bickering are often symptoms of strategy malfunction,

6. Managerial problems continue despite changes in personnel and if they tend to be issue-based rather than people-based, their strategies may be inconsistent,

7. If success for one organizational department means failure for another department then it is a symptom of strategy malfunction,

8. If policy problems and issues continue to be brought to the top for resolution, then the strategy may be malfunctioning,

9. Overtaxing of available resources is a symptom of strategy malfunction,

10. Degree of risk is high as compared to rewards,

11. The strategy is inconsistent with the changing environment,

12. If strategy implementation does not give due cognizance to the time horizon, then it is a symptom of strategy malfunction.

Answer 2

There are seven symptoms of malfunctioning of strategy. The first one is not performing as well as other companies that are similar. The second is objectives are not being met. The third symptom is corporate structure is not aligned with the strategy. The fourth is slow implementation of strategy. The fifth symptom is signs of organizational conflict. The sixth symptom is the risk is higher than any perceived rewards, and the seventh is overtaxing of available resources. Depending on the business type, there could be other symptoms.