The strategic implementation process - Evoking strategic consensus through communication

Effective strategy implementation is predicated on the assumption that functional areas within the firm have a basic understanding of the strategy. Termed strategic consensus, this concept refers to the extent to which intraorganizational perceptions converge on shared understandings of strategic priorities. The present study provides an initial exploration of consensus, supporting the viability of frequent vertical communication as a means by which strategic consensus may be enhanced. The performance implications of vertical communication and consensus reaffirm the important roles that frequent communication and shared understandings play in the implementation process. Specifically, when vertical communication is frequent, strategic consensus is enhanced and organizational performance improves, as evidenced by higher levels of net operating income, gross revenues, and growth in net revenues. And, in firms where the marketing executive's interpretation of strategy aligns with the chief executive officer's (CEO) perspective (i.e., strategic consensus), organizations are rewarded with higher levels of both marketing and organizational performance. (C) 2001 Elsevier Science Inc. All rights reserved.