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Resources

Linking Strategy to Execution

 
Authored By:  Christy Pearson, Ph.D.  

Resources 

"Turning Great Strategy into Great Performance" by Michael C. Mankins and Richard Steele.  Harvard Business Review, July-August 2005

 

Executing Your Strategy: How to Break it Down and Get it Done by Mark Morgan, Raymond E. Levitt, and William A. Malek 

 

Making Strategy Work: Leading Effective Execution and Change by Lawrence G. Hrebiniak

"However beautiful the strategy, you should occasionally look at the results." Winston Churchill

 
Organizations spend considerable amounts of time and money developing their strategy to obtain competitive advantage.  However, most organizations fail to fully realize expected results and are likely unaware of this issue or the factors that contribute to inadequate execution of their strategic initiatives.  A 2005 study surveying executives from nearly 200 companies found that almost all of them failed to meet expected forecasts.  This study also found that on average, most organizations achieved about 63% of their expected financial performance, as indicated in their strategic plan (Mankins & Steele, 2005).  While in more prosperous times, this inability to obtain expected business results can have less detrimental impact on a business, however, given the most recent economic conditions, this inability to achieve planned results can mean life or death for a company.  Regardless of the economic conditions, meeting only two-thirds of financial expectations is not a performance indicator of which any leader would be proud. 

What to Ask to Determine If Your Organization is Executing as Expected

 

Can you clearly articulate your strategy?  Can others?  Leaders should be able explain their strategy without use of complex charts, diagrams or detailed summary presentations.  If you can't explain it, how can your people.  Keep your strategy simple and communicate it often to responsible parties.  The tactical objectives required to execute the organization's strategy should be clearly defined and measurable. You want others to understand your strategy so that they can then translate it into specific objectives that can then be acted upon by the people in the organization.    

Is your culture aligned with your strategy?  Despite having a well developed strategy with probabilities of great business success, if your culture doesn't support it, it will never happen.  For example, if the strategy is taking the organization in a new direction and requires a cultural shift, leaders must ensure that their people understand the rationale for the change in direction, believe in the probabilities and understand what is required of them to help the company meet new strategic expectations.  New leaders often underestimate the importance of cultural buy-in and over-rely on the significance of their leadership role to sell their strategy. 

 

 

Do you have a clear and well defined process in place to ensure successful execution of your strategy?  In other words, how good is your plan?  Leaders are often admired for their visionary and strategic capabilities but not recognized for the less sexy but perhaps more important skill of performance planning. Strategy is just an idea until you have a well developed plan to implement it.  A solid performance plan includes specific objectives, identified responsible parties, expected timelines, realistic forecasts, and potential obstacles to successful execution.   

 

How well do you track business performance?  Tracking business performance is a critical area for leaders but can be viewed as boring and likely is delegated to those lower in the organization.  All leaders must track performance and identify factors either contributing or inhibiting expected results.  You do not need to be knee deep in the details but you should be able to accurately connect current business performance with future strategic outcomes.     

 

Do you and your team have the right level of discipline and diligence to guarantee on-going implementation of strategic initiatives?  Leaders need to ensure they have the right people on their team to oversee project management and performance planning.  Those who can both implement and maintain key processes and display the right level of discipline, insight, and diligence to ensure the plan is working are key contributors to your successful execution.   

 

Once initiatives are completed and expectations are met, how well do you reward and recognize your people?  Efforts should be made to ensure that successful implementation occurs and those responsible/accountable to these efforts are recognized and rewarded.  This is the time to take care of your people because without them, you would not be successful.   

The idea of effective execution is an easy one to grasp but the application of these principles proves to be much more challenging.  The ability to execute effectively is an acquired skill that takes practice and patience.  In today's fast-paced, results-oriented business world, leaders are under significant pressure to realize results more quickly.  However, quickly obtained results may be short-lived without adequate understanding of how they were accomplished and how they will be maintained.  When leaders can thoroughly answer the above questions regarding strategic execution, they demonstrate the ability to fully understand the components to execution and will be able to more quickly ascertain the root of issues, as they arise.  Finally, it is always important to take care of your people.  Given all the complexities, challenges and demands of a leader's role, it is important to not forget to highlight the talents of your people and their contribution to your achievements.  Leaders can carve out the path toward success, but if no one follows you, it doesn't matter where you are going.