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The impact of executive directors' service contracts on strategic plan

Martin Dandira (Lecturer at Chinhoyi University of Technology, Chinhoyi, Zimbabwe)

Business Strategy Series

ISSN: 1751-5637

Article publication date: 11 January 2011

4267

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

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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