Barriers to strategy implementation: A case study of Air New Zealand

Tan, Yii Teang
Verreynne, Martie-Louise
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Master of Business
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Auckland University of Technology

The ability to implement strategies successfully is important to any organisation. Despite the importance of the implementation process within strategic management, this is an area of study often overshadowed by a focus on the strategy formulation process. This thesis concentrates on the strategy implementation process, investigating barriers to strategy implementation. A research framework called the Organisational Minefield was developed to represent the importance of the implementation process to organisations. In contrary to most studies available in strategic management, this research included participants from all levels of the organisation. To identify barriers to strategy implementation, a case study of Air New Zealand was conducted. This involved focussed interviews with 28 participants from the Network and Revenue Management Department of Air New Zealand. Other sources of data such as research articles and secondary company data sources were also used. The findings revealed that: participants from different levels of the organisation have unique perceptions of the implementation process; implementation variables could become roadblocks that undermine the implementation process; these barriers can be overcome if managers are perceptive to the organisation’s current situation; and the Organisational Minefield framework presented verified the significance of the role of barriers in the implementation process. The findings add two additional barriers to implementation, namely leadership and power. It was also discovered that the participants acknowledged that these two barriers will impede or enhance the success of Air New Zealand. This was backed by the level of commitment and loyalty shown by the participants, which brought Air New Zealand one step closer to unravelling the mysteries of the implementation process.

Strategic planning -- New Zealand -- Case studies
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