Improving Strategy Implementation Using Blockchain Smart Contracts

Abstract

Every organization develops a strategy that needs to be implemented and is undertaken through project delivery. In essence, project requirements should exactly replicate an organization’s strategy. In reality, this does not happen, and behavioral factors deviate the project delivery from the strategic objectives. This occurs as project stakeholders can have competing objectives. Resultantly, requirements that are implemented through projects that are less aligned to the strategy. This article develops a game theoretic model to simulate why such deviations occur. That explains the difference between strategy development and implementation. This article also explains how the implementation of a blockchain smart contract can eliminate this difference and help an organization implement their strategy effectively. The difference between the overall strategy and the final implementation can make a significant difference in the overall value of the company because if it does not implement strategy effectively, it could lose market share, causing reduced revenue and a significant future stock price fall.