ARE YOU READY TO EXECUTE YOUR COMPANY STRATEGY ?
Your company has a
strategy. Are you confident it is ready to be deployed and executed? Most
likely not, as 60%-90% of strategy implementations fail and
only 14%of executives are satisfied with the execution of a
strategy. This post introduces a framework to assess your company’s strategy
execution readiness, in order to align leaders around how to bridge your
strategy to execution gaps.
Before a strategy can be deployed and
executed effectively, you need to have leadership alignment around execution
readiness. Your leadership team has to ask themselves at least the following
four questions:
- Do we
have the best possible circumstances to execute our strategy?
- If not,
what are the gaps to effectively execute our strategy?
- What
are our most important strategy to execution gaps?
- How and
when are we going to address these gaps?
Answers to these questions will provide
understanding between your leaders on how they perceive the risk profile
of execution the strategy. It will give your leadership team insight if they
feel ready to execute their strategy. But most important, it will create
alignment on how your company can create the best possible circumstances to
execute the strategy successfully.
To help executives understand their gaps to
effective strategy execution, we researched 7 strategy implementation
frameworks and over 75 leading strategy execution articles published over the
last 30 years. We looked for the most common and impactful strategy execution
factors, and distilled and grouped 5 key success factors. What follows is a
brief description of these 5 ultimate strategy execution success factors.
Leadership
Alignment:
There is collective leadership and common
language around purpose, vision, behaviours, strategic capabilities, balanced
scorecard and budget objectives. This supports focused decision making,
resource allocation and issue resolution.
60% of organizations do not have strategic initiatives in
the budget
Mindset
and Behaviours
A resilient, positive and growth mindset
culture, with effective behaviours and group dynamics supports alignment,
integration and strategy execution. These cultures are proven to outperform
negative, fearful cultures with aggressive behaviours. People & Culture get
a mention in 6 from 7 researched strategy frameworks, however:
30% of managers mention cross unit working as greatest
challenge to strategy execution
Performance
and Appraisal
The strategy is cascaded to individual
performance level. Objectives , rewards and consequences are clear and include
the ‘What’ as well as the ‘How’ we do it. Recruitment policies are aligned with
values and behaviours and there is action towards performance issues. Reward
systems are mentioned in 6 out of 7 researched strategy frameworks, however:
70% of middle management and 90% of front line employees
incentives is not linked to strategy
Organization
Change
The organizational structure supports the
strategy. There is strategic capability building, clear roles and responsibilities
and continuous formal, informal and two-way strategy communication to engage
employees. Organizational structure is mentioned in 7 out of 7 researched
strategy frameworks, however:
In 38% of companies, managers do not inform their team
about the chosen strategic direction
Integrated
Planning & Monitoring
There is a strategy implementation plan. A
periodic rolling forecast provides visibility in gaps to budget and supports
enterprise resource re-allocation. Strategic initiatives, goals, measurements
and targets are continuously monitored. Control, process, information systems
and goals are mentioned in 5 out of 7 researched strategy frameworks, however:
92% of companies do not report on strategic lead
performance indicators
If you and your leadership team ask
yourselves the right questions around these five key strategy execution themes,
you will create understanding around your strategy to execution gaps. You will
start a conversation together about your strategy execution readiness. You will
hold up a mirror and ask; Are we ready to execute?
https://www.i-nexus.com/stratex-hub/are-you-ready-to-execute-your-company-strategy/
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