In earlier posts we examined the first 8 (eight) questions business executives must answer to formulate a clear, compelling business strategy. In this post, we examine the first part of implementation of strategy by considering the ninth question; How can I align all employees to the Strategy and motivate them to achieve it?

Introduction:

  • Execution is the GAP between Vision and Reality
  • Execution is the GAP between Plan and Actual
  • Execution is GAP between the Promise and the Delivery
  • Execution is the major job of the (Business) Leader
  • The lack of enforcement of standards, codes, regulations and laws in a company or in a nation is a lack of Execution

Definition:

Execution is a discipline to, infuse strategy with realism, develop comprehensive operating plans, align people with goals, and track their delivery to reward them and to build a culture of thinking, doing and follow-through.

Sound execution is ultimately achieved by addressing 5 (five) areas in business;

1.     Strategy Formulation Process

2.     Operating Plans

3.     Performance Management System

4.     Prevailing Culture

5.     Conduct of the business leader

Let us examine each of these five areas by simply asking a number of question in each are.

 A.    Strategy Formulation Process – A strategy document is necessary but it is lacking in potency if it is not infused with execution from start to finish

  • Are the objectives or goals clear and concise (To increase market share by 6% while retaining operating margins)?
  • Was the strategy built by involving those who will implement it (from line staff and their team leads)?
  • Does it contain a sound analysis of the operating environment?
  • Does it contain sound knowledge about who the customer is (customer behavior, customer preference)?
  • Does it address BOTH the best way to grow and the obstacles to growth?
  • Is it adaptable (once a year strategizing can be dangerous)?
  • Does it anticipate the reaction of competitors to company activities?
  • Does it capture the critical issues facing the business (every business has critical issues that limit growth or threaten survival)?
  • Can it be condensed into a maximum of 3 or 4 building blocks (E.g. Seek new market segments, differentiate offering to attract premium price, pursue strategic alliances with complementary players?
  • Is it owned by the CEO?

B.    Operating Plans – Should address the “HOW” by providing the pathway to the desired destination

  • Are there clear programs and initiatives that seek to address the HOW (commission new market research, increase R&D allocation to build better product, appoint senior manager to focus on Strategic Alliances, expand the channels of distribution by 20%)
  • Are there contingency plans or alternatives in place if something goes wrong?
  • Are the initiatives broken down into small time-bound chunks with clear lines of accountability for team members?
  • Has HR been involved in determining the competencies or lack of same of the team that will be involved in execution?
  • Have the underlying assumptions been debated and/or tested?
  • Has the Finance team been involved in debating/accepting the financial indicators?
  • Was the Finance team involved in ascertaining the cost of the programs and initiatives which will be translated into the budget?
  • Has there been a cross-functional debate of the final plan with all departments represented?

C.     Performance Management System – the aim of any performance management system should be to get employees to deliver the strategic objectives of the company (maintenance/enforcement)

  • Have the current strategic objectives and programs and initiatives been translated into performance targets and goals for all employees?
  • Have the future strategic objectives been translated into job profiles and job descriptions to ensure there are employees who can perform the tasks of the future?
  • Are job descriptions adequately captured in performance contracts?
  • Is there constant supervision?
  • Is there a rigorous and fair appraisal system that is documented at least every 6 months?
  • Are top performers rewarded?
  • Are poor performers equipped or removed?

In the second and last post on implementing strategy, we will review how Culture and the conduct of the CEO impacts strategy implementation.