Are you ready to execute your company strategy?

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:

  1. Do we have the best possible circumstances to execute our strategy?
  2. If not, what are the gaps to effectively execute our strategy?
  3. What are our most important strategy to execution gaps?
  4. 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?

Niels Van Hove
My purpose is to bring positive change and my passion is to help individuals and organizations be themselves at their best.As accredited Mental Toughness master trainer, I help individuals and businesses measure and improve their Mental Toughness online, through workshops and 1 on 1 coaching. I use the world's only valid and reliable Mental Toughness measurement.I help businesses bridge their strategy to execution gaps. My strategy execution alignment framework will measure your strategy execution readiness and improve strategy alignment.I assess, design and implement advanced S&OP and improve your supply chain performance. My accredited Mental Toughness coaching skills will help your team to develop effective mindset and behaviours to improve corporate alignment, communication, well-being and performance.

3 Comments

Oct 5, 2016 at 6:30 AM

May I ask where have you taken from the percentage values used in this article. Please indicate the source, so we can look into more detail at the methodology used to produce them.

Niels Van hove

Niels Van hove Sep 26, 2016 at 6:45 AM

Indeed, that’s why organisational structure, culture (mindset and behaviours) and Planning and monitoring processes are part of my strategy execution framework I describe in the post.

Eduardo Muniz

Eduardo Muniz Sep 20, 2016 at 11:52 AM

You might but the Organization’s Processes, Culture and Structure not necessarily. Track record confirms that.
You should assess Organization Readiness before (Formulation phase), during and after Strategy is deployed to identify Capability Gaps and make sure that Strategy model’s functionality FIT Organization Processes, Structure and Culture.

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