Strategy BSc39 2012

Additional material Dr Colm Foster

C Foster, 2010

Overview
Understand the importance of strategy execution Understand the link between Strategic Planning and Analysis and Strategy Execution We may even get to challenge the validity of the distinction !!
C Foster, 2010

Strategic Position Analysis ; Execution Loop

Deciding what you want to do and how to do it

SPA LEADERSHIP

Execution

Implementing the Chosen strategy

Iterative, continuous process, non-linear, art - not science

C Foster, 2010

Imbalance in the loop;

SPA Strategy paralysis Postponed perfection Ivory tower strategists Ideas from the heads of managers into the hands of workers Limited engagement of workers Limited creativity / innovation Unlikely to unlock discretionary effort Top down, militaristic model Inconsistent with War for Talent model

Execution

C Foster, 2010

Imbalance in the loop;

SPA Insufficient attention to strategy Lack of clear mission Opportunistic expansion Unfettered diversification ( dot-bomb) Elevation of management over leadership Big on How and When, short on Why & What Not to be confused with Discovery driven planning or Emergent strategy

Execution

Ready Fire Aim syndrome

C Foster, 2010

Imbalance in the loop;

SPA

Execution

Breakdown of trust / respect Zero feedback in the loop Cognitive bias selective perception Try harder response to implementation issues Potential to be blindsided by change Strategic plans as bookends

C Foster, 2010

 Why is getting the balance right so hard ?

C Foster, 2010

Managers trained to plan, not execute Let the grunts handle it Not interdependent Execution takes longer than formulation Execution is a process Involves more people
C Foster, 2010

Role of strategy
Good strategy does not guarantee good performance Bad strategy, on the other hand, almost certainly guarantees bad performance Misalignment / lack of focus at strategic level creates bullwhip effect as it cascades out
Since performance = strategy
C Foster, 2010

execution

Issues that impact execution

Need for sound planning and clearly focused strategy at corporate and business unit level the development of implementable strategies (2Up 2 Down approach) Need to integrate corporate and business strategies (clear role, appropriate metrics, agreed resource allocation) Need to define and communicate operational components not just Grand Vision (measurability accountability ) Need to develop skills, resources and capabilities appropriate to the strategy
C Foster, 2010

Kaplan & Norton : Balanced Scorecard

Balance long and short term views Ensure all stakeholders are represented Measure beyond traditional financials Feedforward and feedback measures ( leading and lagging
indicators ) successful )

Everything can be measured ( how will you know if you are Measures should be Specific, Measurable, Achievable, Relevant & Timebound Most important to execution is Relevance alignment of metrics with strategy
C Foster, 2010

Requirements for successful change John Kotter ( HBR March April 95 ) Establish a sense of urgency Form a powerful guiding coalition Create a vision Communicate the vision Empower others to act on the vision Plan for and create short-term wins Consolidate improvements and create still more change Institutionalise new approaches
C Foster, 2010

Beware of the One, Two, Three, Seven syndrome

1. 2. 3. 4. 5. 6. 7.

Assess the situation Isolate the problem Formulate the plan Woo up get superiors to approve Woo laterally get peers to agree Woo down get reports to accept Implement
Marshall Goldsmith: What got you here wont get you there
C Foster, 2010

Team Mission

Individual/ Functional Mission

Performance Measure

Actual Performance Trend Indicators Team Goals

Individual/ Functional Goals