The impact of executive directors' service contracts on strategic plan
Abstract
Purpose
The purpose of this paper is to help boards of directors to find ways of establishing continuity in the strategic plan when strategists are employed on contract leave before the end of the strategic plan period.
Design/methodology/approach
The author has conducted research in organisations that have executives on contracts of three to five years, and identifies how strategic plans are negatively affected when executives on contract – especially top management – leave organisations when their contracts ends. Research in organisations has shown that strategic plans usually have longer periods than the contract of the strategist, and contract renewal is sometimes not obvious.
Findings
The length of the strategist's contract and the length of the strategic plan have not been taken into account when crafting strategic plans in organisations and appointing executive directors. This scenario has caused a lot of strategy failures.
Practical implications
Ways are provided for boards of directors and organisations to foster a culture of continuity of the strategic plan even when executives leave the organisation unceremoniously or when their contracts end and are not renewed.
Originality/value
This paper gives practical advice from situations in organisations and helps boards of directors to take into account the duration of strategic plans when employing executives.
Keywords
Citation
Dandira, M. (2011), "The impact of executive directors' service contracts on strategic plan", Business Strategy Series, Vol. 12 No. 1, pp. 12-18. https://doi.org/10.1108/17515631111106830
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited