Bringing an Operational Strategy into Practice - A Case Study on Strategy Implementation in a Maintenance Organization in the Hydropower Sector

Abstract

Translating strategic intent into day-to-day action remains a key challenge for organizations. This thesis explores how a newly developed Operations and Maintenance (O&M) strategy was implemented and followed up at the case company, a large Nordic power utility. Following a major organizational shift involving the insourcing of local O&M functions, the O&M strategy was introduced to support a transition toward value-driven maintenance and strengthen internal capabilities. The purpose of this study was to examine how the O&M strategy has been translated into practice, and how its core values have been internalized across the maintenance organization. This thesis explores the implementation of the O&M strategy from a micro-perspective, focusing on how the strategy is translated into daily work and internalized by managers A Strategy-as-Practice perspective was applied to understand how individuals and routines shape the execution and perception of the strategy. The research was conducted as a qualitative case study, based on interviews with managers from the O&M division and other key stakeholders, complemented by document analysis and reflections from a validation workshop. The findings show that strategy translation relies both on formal tools and the interpretive efforts of middle managers, whose engagement shapes how the strategy is embedded locally. While several practices support implementation, the link to strategic intent is often implicit and behavioral dimensions are not systematically followed up. The internalization of core values varies depending on their character and the extent to which they are reinforced through appropriate implementation practices. Further, the findings suggest that while operational control is strong, it could be complemented by more reflective practices to better capture the cultural and behavioral dimensions of the strategy. The thesis recommends strengthening performance dialogues, enabling strategic reflection, clarifying leadership expectations, and improving cross-divisional coordination to support long- term implementation of the O&M strategy.