3 ways the best companies excel at strategy execution
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Great business performance requires best option for neutral trading strategy evergreen strategy and flawless execution. Leaders need to revisit their approach to strategy formulation and execution. In this article, we clarify what is strategy execution and explore ideas from research and practice that could help you and your team be on top of the game.
Kaplan and David P. They introduced their own vision of a management system with 6 sequential stages for successful strategy execution: Ed Best option for neutral trading strategy evergreen from the American Management Association synthesized the best of both approaches into 10 steps: By including communication and employee alignment and performance reward into the loop, Ed Barrows addressed two common flaws into strategy execution. These well-defined step-by-step methodologies of strategy execution endorsed by renowned CEOs and experts may well sound inspiring for leaders.
Our team has worked for more than 25 years with international SMEs and enterprises in the water, electricity, manufacturing, transportation, software and electronics industries. We learnt the above five best practices are more often implemented in fast growing small and medium-size companies than larger organisations. Personally, working at the top level of a multinational environmental and utility group and in several of its subsidiaries in multiple countries, I learnt that strategy and its execution are often left to the initiative of local management.
There is a common issue with strategic alignment between the corporate and its subsidiaries: I saw investments done outside the group strategy scope. Executives at local level were following a different strategy because they argued that the local market required flexibility. They justified those investments because there were opportunities to generate revenue and possibly some profit.
But they diverted group resources that should have been dedicated to support the group strategy. Sharing and enforcing the group strategy within a large organisation is a challenge. Controlling strategy execution is an imperative. We also observed that enterprises that benefit from an environment relatively favourable to growth tend to underestimate the importance of adapting their strategy execution approach, and may react too late to shift their leadership practice.
Providing flexibility in the execution at operational level is critical. There are opportunities to discover more efficient and agile ways of achieving strategic outcomes. Next, they ensure that the company is investing behind the change. They proposed a 3-stage strategy-to-execution continuum. N Wiita and O Leonard explained that they examined how 49 enterprise leadership teams spend their time and their perceived effectiveness on critical behaviours.
Senior leaders need to come with a shared understanding of the company value proposition and distinctive capabilities: They are also agile in course-correcting when the needs of the business change, and are more easily prepared to shift organisational resources to best option for neutral trading strategy evergreen that the strategy is executed. RHR International consultants suggested that simply focusing on strengths and implementing change programmes to address gaps or weaknesses is not enough anymore.
As a matter of facts, I remember one of the challenges I was assigned to few years ago: There was a lot of backlog in the Account Payable process.
Business Unit finance controllers were blaming the poor AP team performance for not being able to produce reliable monthly accounts. The procurement team was complaining of difficulties to source goods and services as providers where paid late. The audit unveiled that the main issue was a lack of trust and coordination between the AP team and the business account holders.
We provided additional resources to ensure that the backlog was progressively resolved. But most importantly, I spend most of my time engaging with best option for neutral trading strategy evergreen, finance controllers and account holders in the business and providers, to share best option for neutral trading strategy evergreen common understanding of the issue and agree on an ad-hoc action plan.
We insisted in the AP team members to meet face-to-face with their counterparts in the business in order to build rapport, discuss the issues and agree on best option for neutral trading strategy evergreen corrective actions. The approach proved to be critical to help switch to a more proactive management of the relationship with internal clients and providers. In a nutshell, compared with other organisations, companies that excel at executing their strategy:.
They looked at thousands of leaders who were rated as being highly effective at execution and investigated the coinciding behaviours that improve execution. According to J Zenger and J Folkman, 4 behaviours in particular are critical and balancing them is the strategy that will improve execution most of all:. In conclusion, companies and leaders that excel at strategy execution are focusing their efforts on:.
Test some of the suggestions above to improve it! Discover Agily businesses, customer experience and workplace transformation solutions at www. What is strategy execution? He then shared 5 lessons from what they saw the best companies doing with strategy planning: Treat strategy as evergreen - less as a plan and more as a direction and agenda of decisions. Value flexibility - There is no single path forward and your team needs ability to steer around potential roadblocks.
Think of strategy as a portfolio of optionsnot bonds - when volatility is high, strategic decisions should be treated more like call options and management should focus on investing resources on initiatives as a call on potential profits. Create response mechanisms to react quickly and effectively to unplanned changes. Adopt agile planning using time-boxed sprints similar to the method used for agile development or micro-battles to constantly move forward by testing the waters, learning and refining the strategy based on results.
It is time to ask yourself: How far have you changed your business strategy execution approach to adopt some of the 5 best practices mentioned above? How do you enforce strategic alignment at the same time you allow for flexibility and agility in its execution? How do you share practices that are most successful in delivering strategic outcomes?
How to excel at both strategy and execution? Strategy must be built by committing to an identity Senior leaders need to come with a shared understanding of the company value proposition and distinctive capabilities: The key differentiators for high-performing teams were that they spent: Concentrate on the unique people capabilities that fuel success RHR International consultants suggested that simply focusing on strengths and implementing change programmes to address gaps or weaknesses is not enough anymore.
In a nutshell, compared with other organisations, companies that excel at executing their strategy: Dedicate more time and thinking to the strategy elaboration and planning phases, Focus on developing people capabilities to be successful and Check progress more regularly and adjust plans with an agile approach. According to J Zenger and J Folkman, 4 behaviours in particular are critical best option for neutral trading strategy evergreen balancing them is the strategy that will improve execution best option for neutral trading strategy evergreen of all: Be clear and methodical: Set stretch goals and deadlines: Although they warned us of not pushing too much as this could erode trust and motivation, and will hurt execution on the long run.
Give more feedback, especially more positive feedback: According to the authors, feedback increases intrinsic motivation and therefore execution. They saw a major difference in execution with leaders who give a lot more positive feedback and positive recognition.
Resolve conflict and build team unity: They observed that creating a high-performance team culture is an important element of good execution. Work collaboratively in planning execution: Listen to the stakeholders and engage them early in the process of strategy planning. Win their support because if they do not collaborate, they may well slow or block your plans. Assess risks, diversify ways of generating the outcomes, prepare contingency plans, review your strategic initiatives portfolio and monitor progress regularly, and be prepared to swiftly change your plans.
Best option for neutral trading strategy evergreen conclusion, companies and leaders that excel at strategy execution are focusing their efforts on: They generate value for their customers in an unique way; how they can translate the strategic vision into unique everyday processes and capabilities, as well as clear actionable goals.
A more agile way of executing their strategy. They treat strategy more as evergreen, value flexibility and create response mechanisms to steer around potential roadblocks and achieve their expected outcomes.
Developing their people unique capabilities. They foster open discussions about cultural enablers and barriers to execution, optimise talent capabilities, and translate the strategy into personal goals and rewards for managers and employees. Encouraging good behaviours such as team building, collaborative working, transparency, positive feedback, etc. Agily Business, customer experience and workplace transformation.