Strategy definition and strategy execution are two distinct tasks. Strategy definition – which involves conducting external market research and corporate financial analysis – contributes only 5% to your organisation’s success, while the remaining 95% depends on its execution – which focuses on creating value with your employees.
Ultimately, the success of your strategy’s execution will be the result of a three-dimension process: strategic assessment, recommendations, and actions.
To begin with, conduct a Strategy Execution Diagnostic. This 8-point assessment covers Mission, Vision, Strategy, Structure, Culture, Goals, Measurement, and Investment Projects. It helps you set strategic objectives and provides you with a framework for focusing on the outcome.
Next, let’s dive into the way to execute your strategy flawlessly.
Step 1: Strategic Directions Analysis
A strategic directions analysis combines an exploration of your company’s current strategy and the development of its future strategies across three dimensions:
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Product leadership: Organisations that excel in providing high-value-added products or services to customers with a willingness to pay a premium.
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Operational excellence: Organisations that focus on operational cost efficiency.
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Customer intimacy: Organisations that enhance willingness to pay by providing customised experiences to customers.
Various strategic options can rely on each or a combination of these dimensions: creating a competitive advantage based on a willingness-to-pay strategy (customer intimacy), organic and inorganic growth (product leadership), or cost-cutting (operational excellence) – which should be included in your strategy execution plan with a detailed analysis of your operating model, including IT, organisation, processes, culture, and measurements.
By breaking these options into manageable milestones, you can develop a strategy map and identify the required actions or projects to achieve the ultimate objectives. Each project should be supported by detailed descriptions of risks, timeframes, scope, budget, and costs.
Step 2: Change Plan
Define a change plan that includes measurable goals and objectives for achieving your strategic directions, including one or multiple directions. You can set measurable objectives using the balanced scorecard or OKRs (Objectives and Key Results) across several categories:
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Financials, including cover ROIC, revenue growth, percentage of market share growth, operating margin increase, and net cash flow.
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Customer intimacy, measuring increased specification for customer engagement.
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Internal processes, such as inventory cycle, workforce utilisation, or number of sales transactions.
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Innovation & growth, possibly by number of products and services.
Step 3: DICCE Model
The DICCE (Duration, Integrity, Commitment, and Effort) model determines the probability of the project’s success by evaluating specific metrics:
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D – Duration of the project
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I – Integrity of project team
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C – Commitment of management
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C – Commitment of people
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E – Effort required for people to attend the process
Step 4: Strategy Execution
Track your change plan’s implementation through a Program Management Office (PMO) team. It includes:
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Understanding the reasons for implementing the change.
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Defining potential solutions.
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Motivating the organisation through emotional levers analysis.
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Communicating the change plan to key stakeholders.
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Taking action by applying the change strategy.
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Consolidating feedback to adjust methods if necessary.
In addition to these steps, identify hidden barriers through:
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Cultural analysis, assessing the corporate culture across dimensions such as attention to detail, stability, aggressiveness, team orientation, people orientation, innovation and risk-taking, and outcome orientation.
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Political analysis, understanding your organisation’s stakeholders and managing their perceptions.
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Emotional levers analysis, evaluating the emotional impact of actions and considering factors such as respectful authenticity, thoughtful passion, realistic hope, deserved pride, and actionable discontent.
Lastly, communication is vital throughout the strategy execution process. You can use various change management methods, such as:
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Assigning change agents.
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Creating stakeholder maps (supporters, early adopters, and resistants).
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Utilising technology, Incorporating digital into the execution model.
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Employing different communication channels, such as employee communication letters, individual consultations, chats, FAQs, handbooks, etc.
Importantly, consider the sequence of actions and the potential impact on individuals and the organisation. Collect feedback and adjust the initial plan based on changing circumstances while keeping the strategic objectives and OKRs in mind.
In conclusion, strategy execution requires a comprehensive approach that involves careful planning, assessment, communication, and adaptation.
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