Strategy Cancellation

Strategy Cancellation

Conditions Where It Would Make Sense to Cancel or Reverse the Implementation of a Strategic Initiative

It would make sense to cancel or reverse the implementation of a strategic initiative if its implementation exceeds the budget. For example, if a strategic initiative includes expanding into a new market, a business or organization may reverse or cancel the initiative if the costs incurred in the expansion exceed the budget. A strategic initiative may also be cancelled or reversed if its results do not meet the organization’s expectations. For example, a strategic initiative to increase profits may be cancelled if it does not enable the company to meet its target profit margins.

Actions Considered When Canceling a Strategy

One of the things that would need to take place when cancelling a strategy is explaining why the strategy is being cancelled. Explaining the reason for cancelling a strategy is important to prevent resistance from those involved in and affected by the change. Hughes (2018) states that a lack of communication can create resistance to change by reducing readiness. The second thing that should take place is planning what should be done after the strategy is cancelled to avoid disrupting operations in the organization.

People and Costs Involved When Canceling a Strategy

The people who would be involved in cancelling a strategy are the stakeholders involved in strategy implementation. According to Rudawska (2019), the stakeholders involved in strategy implementation include individuals and entities interested in the organization’s success. Therefore, an organization would involve employees and company or business owners in cancelling a strategy. Substantial funds may be invested if cancelling a strategy breaches an existing contract because the organization may be required to pay fines and damages.

How to Redirect and Move Forward and Not Backward in the Change of Strategic Direction

If a strategy is cancelled after people have possibly been hired for new positions, the organization may have to assign them other roles within the organization or terminate their employment if the organization cannot add them to its workforce. If marketing campaigns have already been launched, the theme of the campaigns and the marketing message can be changed to focus on what the organization can offer. The organization can also redirect and move forward by redirecting resources to successful strategic initiatives, motivating employees to support the initiatives, and giving recommendations on what should be done to enhance organizational success.

References

Hughes, M. (2018). Resistance and organizational change readiness. Managing and Leading Organizational Change, 219–236. https://doi.org/10.4324/9781351265966-13

Rudawska, E. (2019). Stakeholders in the implementation of a sustainable marketing strategy. Stakeholder Engagement and Sustainability, 81–104. https://doi.org/10.4324/9780429265518-6

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Under what conditions would it make sense to cancel or reverse the implementation of a strategic initiative? Consider all that would need to take place when cancelling a strategy.

Strategy Cancellation

Who would be involved? Substantial funds have been invested, now what? Have people possibly been hired for new positions? Marketing campaigns may have already been launched. How do we redirect and move forward and not backward in this change of strategic direction?