Strategy Execution Management - Turning Ideas Into Action
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In 2016 it was estimated that 67% of strategies fail because of poor execution.
“Our problem is not about the strategy itself, but our execution of it.” Tony Hayward CEO BP (10/2007-BP sets out its Agenda to Close Performance Gap with Rivals) “The change will not be in our fundamental strategy – we think that strategy is sound – but in our execution.” Benjamin Rosen, Chairman Compaq, 1999. A McKinsey study in 2007 “How to improve strategic planning” identified five ideas to improve the strategic planning process, which comprised:
• Start with the issues, anticipate the big challenges and emergent trends rather than a focus on data-driven processes such as budgets and financial forecasts
• Bring together the right people, that is those who are the most knowledgeable and influential, able to stimulate and challenge accepted thinking with honest open discussions about difficult issues.
• Adapt planning cycles to the needs of each business, get away from a time-consuming annual process to a planning cycle that fits the needs of the business which may be only every two to three years.
• Implement a strategic-performance management system, that assigns accountability for initiatives and make their progress more transparent.
• Integrate human-resources systems into the strategic plan, by tying the evaluation and compensation of managers to the progress of new initiatives.
The development of an organisation’s strategy is often a tense, intense and exciting process, an opportunity to vent frustrations, put cards on the table and tell it how it is. Rationally, a strategic review may be undertaken because of competitive and financial pressures. The whole panoply of business guru strategic models can be deployed along with the input from market research, workshops and facilitation from consultants and subject matter experts. Awaydays, burning platforms, project codewords and the utmost secrecy all add to the buzz and excitement. The CEO and Board may aspire to become an agile learning organisation, capable of adapting to changing circumstances and customer demands. Seemingly, the hard and exhausting intellectual work has now been completed. The difficult practical work in executing the strategy must now begin as it is unveiled for conversion into plans, performance measures and communication programmes. Bridging the air gap between strategic plans and execution requires practicable frameworks and toolsets to minimise the risk of strategic failure. Such a framework has been described in Kaplan and Nortons’ book, “The Execution Premium – linking strategy to operations for competitive advantage”. The framework describes the work that is required to implement the strategy which requires a comprehensive management toolset to support it. No doubt, different tools and approaches can be utilised for different stages of the framework. One of the few toolsets that are available is KeyneLink™️ a strategy-driven execution management system that integrates an organisation’s strategy, vision and values with the daily activities of its people. KeyneLink™ is an approach supported by a web-based system linking colleagues goals and objectives to the strategy. Progress in the execution of the strategy is managed on a regular basis.
The whole point about strategy execution management is to facilitate regular communication between managers and their subordinates. This communication provides the focus for explicitly cascading strategic alignment down through an organisation. This systemic approach beats leaving strategy execution to the vagaries of differing corporate cultures and management styles that bedevil large and even small organisations. Shouting a strategy from the rooftops doesn’t make it happen.