The global business landscape is littered with expensive, well-intended strategies that failed in the execution phase. Some of these doomed. Why do businesses consistently fail to execute their competitive strategies? Because leaders don't identify and invest in the full range of. Doing the right projects means actively deciding not to undertake the wrong projects. Executing Your Strategy - Morgan, Levitt, Malek. Strategic Focus.
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EXECUTING YOUR STRATEGY. How to Break It Down & Get It Done. Mark Morgan. Author and Consultant. StratEx Advisors, Inc. musicmarkup.info Why do businesses consistently fail to execute their competitive strategies? Because leaders don't identify and invest in the full range of projects and programs. A book review of Executing Your Strategy by Mark Morgan, William A. Malek, Raymond E. Levitt, recommended for the serious practitioner.
Email Sometimes a particular episode will bring to light new ways of building on your strengths. To win a highly competitive bid for supplying 66 passenger train cars to a British rail operator, Bombardier shifted its manufacturing and commercial models to a platform-based approach, which allowed it to use and reuse the same designs for several different types of railway cars. But the benefits were immediate: lower costs, less technology risk, faster time-to-market, and better reliability. Bombardier won the bid — and, more importantly, learned from the experience, making the episode a model for other bids and contracts. Additional contracts soon followed.
They can both envision a blockbuster strategy and figure out in detail how to develop and sell it to customers. There are similarly ambidextrous people in every company, but they often go unappreciated.
Find them, recognize and reward them, and give them opportunities to influence others. Foster ambidexterity in practices and processes as well as in people. Over time, this approach will channel investments toward projects with a more strategic rationale. They had already outsourced much of their activity, redesigning airport practices and enhancing operations.
But not much had changed. Convening the directors and some department leaders, the head of the airport explained that some seemingly minor operational issues — long customs lines, slow boarding processes, and inadequate basic amenities — were not just problems in execution.
Individual airport employees, he added, could make a difference. The head of the airport then conducted in-depth sessions with employees on breaking down silos and improving operations. In these sessions, he turned repeatedly to a common theme: Each minor operational improvement would affect the attractiveness of the country for commercial travel and logistics.
Other airports in the Saudi system are now expected to follow suit. The people in your day-to-day operations — wherever they are, and on whatever level — are continually called upon to make decisions on behalf of the enterprise. It is well established that financial rewards and other tangible incentives will go only so far in motivating people. Successful leaders spend a great deal of time and attention on the connection between strategy and personal commitment.
One such leader has run the trade promotion effectiveness TPE capability at two global consumer products goods CPG companies over the past several years. CPG companies use this capability to build the momentum of key brands. It involves assembling assortments of products to promote, merchandising them to retailers, arranging in-store displays and online promotions, adjusting prices and discounts to test demand, and assessing the results.
A great TPE capability consistently attracts customers and compels them to seek out the same products for months after the campaign ends. In both enterprises, this executive took the time to go up and down the organization, making a case for why the specific mechanics of trade promotion matter to the value proposition of the company and, ultimately, to its survival. Otherwise, they will just get in your way. Consider, for example, the metrics used to track the results delivered by call center employees.
Danaher , a conglomerate of more than 25 companies specializing in environmental science, life sciences, dental technologies, and industrial manufacturing technologies, is intensely focused on creating value through operational excellence.
The financial metrics core growth, operating margin expansion, working capital returns, and return on invested capital are used not just by investors but also by managers to evaluate the value of their own activities. Danaher also tracks two customer-facing metrics on-time delivery and quality as perceived by customers , and two metrics related to employees retention rates and the percentage of managerial positions filled by internal candidates.
Lengthy in-person operating reviews, conducted monthly, are very data driven, focusing on solving problems and improving current practices. The meetings are constructive: People feel accountable and challenged, but also encouraged to rise to the challenges. Data analytics is evolving to the point where it can help revitalize metrics and incentives. A spreadsheet is no longer enough to capture and analyze this body of material; you can use large information management systems programmed to deliver carefully crafted performance data.
No matter how complex the input, the final incentives and metrics need to be simple enough to drive clear, consistent behavior. Transcend Functional Barriers Great capabilities always transcend functional barriers. These companies all bring people from different functions to work together informally and creatively.
Most companies have some experience with this. For example, any effective TPE capability brings together marketing, sales, design, finance, and analytics professionals, all working closely together and learning from one another. When their narrow priorities conflict, the teams end up stuck in cycles of internal competition. The bigger a company gets, the harder it becomes to resolve these problems.
You can break this cycle by putting together cross-functional teams to blueprint, build, and roll out capabilities. Appoint a single executive for each capability team, accountable for fully developing the capability.
Ensure this person has credibility at all levels of the organization. Tap high-quality people from each function for this team, and give the leader the authority to set incentives for performance. To guard against this risk, you need a strong dotted line from each team member back to the original function. Sooner or later, the capabilities orientation will probably become habitual, affecting the way people including functional leaders see their roles: not as gatekeepers of their expertise, but as contributors to a larger whole.
Become a Fully Digital Enterprise The seventh principle should affect every technological investment you make — and with luck, it will prevent you from making some outdated ones.
For example, Under Armour began as a technologically enabled sports apparel company, specializing in microfiber-based synthetic fabrics that felt comfortable under all conditions. To keep its value proposition as an innovator, it aggressively expanded into fitness trackers and the development of smart apparel. The company is now developing clothing that will provide data that can both help athletes raise their game and point the way to design improvements.
Adopting digital technology may mean abandoning expensive legacy IT systems, perhaps more rapidly than you had planned. Customers and employees have come to expect the companies they deal with to be digitally sophisticated. They now take instant access, seamless interoperability, smartphone connectivity, and an intuitively obvious user experience for granted. To be sure, it is expensive and risky to shift digital systems wholesale, and therefore you need to be judicious; some companies are applying the Fit for Growth approach to IT, in which they reconsider every expense, investing more only in those that are directly linked to their most important capabilities.
Fortunately, cloud-based technologies provide many more options than were available before. To boost agility and reduce costs, you can outsource some tech activities, while keeping others that are distinctive to your business.
The biggest constraint is no longer the cost and difficulty of implementation. Keep It Simple, Sometimes Many company leaders wish for more simplicity: just a few products, a clear and simple value chain, and not too many projects on the schedule.
Unfortunately, it rarely works out that way. In a large, mainstream company, execution is by nature complex.
Capabilities are multifaceted. Different customers want different things.
Internal groups design new products or processes without consulting one another. Mergers and acquisitions add entirely new ways of doing things. Although you might clean house every so often, incoherence and complexity creep back in, along with the associated costs and bureaucracy. Many company leaders wish for more simplicity.
The answer is to constantly seek simplicity, but in a selective way. Use other meeting platforms, discussion groups, informal and formal encounters, performance management sessions, intranets, websites, screen savers, coffee corners, billboards, etc.
Pay attention to the quality of your strategy communication. In addition to the content itself, tone of voice and presentation skills are essential elements in transferring content and creating the necessary enthusiasm for others to pass on the message. Cascade When you cascade your business strategy, you break down objectives into smaller chunks for the next organisational level.
In the end, the size of your organisation will define the size of the cascade. It is crucial to achieve macro alignment between all the objectives — horizontally and vertically — in your organisation. We call this MECE. Take a look at the first Strategy Execution law in our free library for more information. On a micro level, you need to balance your objectives across perspectives.
The 4 traditional perspectives are: financial, customer, internal processes, and people. You can add other dimensions, as appropriate.
To check your strategy against reality. Manage initiatives projects Initiative management is the activity in which your dreams run up against reality, your business strategy meets operations, and resources are added to the strategy formula. Initiative management is about selecting, prioritizing and executing the right projects.
Set Objectives smart goals Smart goal setting is one of the best things you can do to improve performance. Two key researchers of goal-setting theory are: Edwin A. Locke University of Maryland and Gary P.
Latham University of Toronto. Make sure you link all individual objectives with the strategy at the organisational level.
Also, make sure you focus on the way you secure agreement on the goals. Want to know more about goal setting? Check out this mini guide about personal goals. It also simplifies the final performance evaluation. In fact, regular performance coaching is far more important than the formal review meeting somewhere around the middle of the year. Performance coaching is a relatively new, but rapidly growing, knowledge field.
The leading authority is Sir John Whitmore. Evaluate Performance Most organizations conduct a formal performance evaluation at the end of the individual performance management cycle. Ideally, the evaluation should answer the question: have the individual performance goals been achieved? Be sure you make an honest assessment. There are several techniques that can help you. One of the best known is the STAR technique. Strategy execution PDF Now, more than ever, we need a different way of thinking, a useful way to focus and turn our business strategy into success.
In the book, six senior executives from different fields and industries share their vision of Strategy Implementation.
Strategy Communication Reach for the head, heart and hands The communication of business strategy and its execution comes in different shapes and forms: from individual conversations during objective setting over group interactions around the Balanced Scorecard, and from intranet postings to writing a memo regarding a strategy shift.
Strategy communication is crucial to strategy implementation success. Communication of the business strategy and its execution is an essential, ongoing component of your strategy implementation efforts. And although some elements might seem trivial and simplistic on the surface as everyone can communicate to some degree, the reality shows that it demands substantial skill and knowledge to communicate the relevant information to the desired person that results in the required action.
Look beyond the send button and shift your focus to the receiving end. Why do people talk about your business strategy? I will talk about the corporate business strategy… …because I feel smart showing others what I know. Everybody else is talking about it. But if we are honest, we all talk too much and do too little. It might cost us our next promotion. A great strategy story needs: … a compelling business case that creates enthusiasm and inspires people.
Stick to the message and make sure others do too. People need to see how they fit in. The Balanced Scorecard is the best-known technique to do so. Here are some Balanced Scorecard facts and figures: 5. Kaplan and Dr David P. Norton, but by Art Schneiderman — a fact that I was unaware of until a few years ago.
At the time of its conception, Schneiderman worked as an independent consultant for Analog Devices, a mid-sized semi-conductor company. Subsequently, Kaplan and Norton included anonymous details of this use of the Balanced Scorecard in their article on the Balanced Scorecard. The initial high-profile articles and this highly successful book have made the BSC well-known, but perhaps also wrongly led to Kaplan and Norton being seen as the creators of the Balanced Scorecard concept.