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How to execute strategy in highly complex organisation and achieve measurable results

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Strategy definition and strategy execution are two distinct tasks. Strategy definition contributes only 5% to the success of an organization, while the remaining 95% depends on its execution. The first task involves conducting external market research and corporate financial analysis, while the second task focuses on creating value with employees.

To begin with, the Strategy Execution Diagnostic should be used, which involves an 8-point assessment covering Mission, Vision, Strategy, Structure, Culture, Goals, Measurement, and Investment Projects. This assessment helps set strategic objectives and provides a framework for focusing on the outcome. The success of strategy execution combines three dimensions: strategic assessment, recommendations, and actions.

Step 1: Strategic directions analysis involves identifying the current strategy followed by the company and developing future strategies in three dimensions:

  • Product leadership: Organizations that excel in providing high-value-added products or services with a willingness to pay a premium.

  • Operational excellence: Organizations that focus on operational cost efficiency.

  • Customer intimacy: Organizations that enhance willingness to pay by providing customized experiences for customers.

The strategic option aims to create a competitive advantage based on the willingness to pay strategy, while cost-cutting strategies focus on process efficiency. Operational cost-cutting activities should be included in the strategy execution plan. A detailed analysis of the operating model, including IT, organization, processes, culture, and measurements, can further enhance the value discipline analysis and help establish strategic objectives.

An alternative approach is to define strategic options for organic and inorganic growth or pursue a cost-cutting strategy. Breaking these options into manageable milestones allows for the development of a strategy map and the identification of 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: Define a plan that includes measurable goals and objectives for achieving strategic directions. After defining the strategy, one or multiple directions may be chosen for execution planning. Measurable objectives can be set using the balanced scorecard or OKRs (Objectives and Key Results). These objectives may cover financial, customer intimacy, internal process, and innovation and growth categories.

Step 3: DICCE (Duration, Integrity, Commitment, and Effort) model should be used to assess the success of projects. This model helps determine the probability of project success by evaluating the duration, integrity of the project team, commitment of management and people, and effort required for participation.

Step 4: Strategy execution involves following the change plan through the Program Management Office (PMO) team. It includes understanding the reasons for implementing the change, defining potential solutions, motivating the organization through emotional levers analysis, communicating the change plan to key stakeholders, taking action by applying the change strategy, and consolidating feedback to adjust methods if necessary.

In addition to these steps, cultural analysis, political analysis, and emotional levers analysis are crucial. Cultural analysis involves assessing the corporate culture across dimensions such as attention to details, stability, aggressiveness, team orientation, people orientation, innovation and risk-taking, and outcome orientation. Political analysis focuses on stakeholders and managing their perceptions. Emotional levers analysis helps motivate the organization by evaluating the emotional impact of actions and considering factors such as respectful authenticity, thoughtful passion, realistic hope, deserved pride, and actionable discontent.

Communication is vital throughout the strategy execution process. Various change management methods can be utilized, such as assigning change agents, creating stakeholder maps, utilizing technology, and employing different communication channels. It is important to consider the sequence of actions and the potential impact on individuals and the organization. Feedback should be collected, and the initial plan may need to be adjusted 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.

Strategy definition as opposed to strategy execution are two different tasks. Strategy definition contributes in 5% to the success of the organisation, while remaining 95% is all about its’ execution. First one requires conducting external market research and corporate financial analysis, second is focusing how to create value with your employees. 

To begin with, the strategy Execution Diagnostic is to be used following 8 points assessment. The model covers Mission, Vision, Strategy, Structure, Culture, Goals, Measurement, and Investment Projects. As a result of the 8 points assessment, set strategy objectives, you will be able to focus on the outcome. Though what happens in between to achieve those objectives. The ultimate success of the strategy execution combines 3 dimensions of set strategy assessment followed by recommendations and actions for the executions. 

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Step 1. Strategic directions analysis, which brings together identifying which strategy is currently followed by the company, and which strategy is to be developed in future across 3 dimensions:

  • Product leadership – organisations which has mastered high value added and achieved largest ‘Willingness To Pay’ for the product or services,

  • Operational excellence – organisations, which has focused on the operational costs’ efficiency, 

  • Customer intimacy – organisations, which has improved ‘Willingness To Pay’ through creating customised experience for the customers. 

 

The ultimate objective of the strategic option is to create a competitive advantage in case of the WTP (Willingness To Pay strategy). The opposite direction is to be set for cost cutting strategy, where the efficiency of the processes are key to for the management. Than any operational cost cutting activities will be covered in the strategy execution.

Furthermore, in-depth analysis may cover operating model including 5 dimensions of the operations such as: IT, Organisation, Processes, Culture, Measurements. The assessment will enhance depth of the value discipline analysis and allow building the strategic objectives.

An alternative is to define number of strategic options in organic and inorganic growth, or follow cost cutting strategy. Delineation of the strategic options, and breaking into more manageable milestones allowing to build strategy map and outline required actions/projects towards ultimate objectives. 

Definition of each projects shall be supported with detailed risk, timeframe, scope, budget and cost description. 

 

Step 2. Define plan, include  measurable goals and objectives in achieving strategic directions.

As a result of the strategy definition, one or multiple directions may set the execution planning going forward, and support identifying which objectives should be set as part of the balanced scorecard or OKRs (Objectives and Key Results).

There are multiple objectives which may be considered as part of the balance scorecards, 

Few categories shall be outlined:

  • Financial: the set objective may cover ROIC, revenue growth, % of market share growth, operating margin increase, Net Cash Flow.

  • Customer intimacy: To measure increase specification for the customer engagement, there are possible measurement in place such as Net Promoter Score or a customer satisfaction.

  • Internal processes: Inventory Cycle, workforce utilisation, or number of sales transactions.

  • Innovation and growth: may be measured by number of product and services, 

 

Step 3.  DICCE – projects success assessment

Once the Balance Scorecard is defined, there is a need to identify and define individual projects. The success of the project may be assessed using DICCE model. This model is to be applied prior the start of the project, and shall be assessed by the consultants, or assigned Strategic Enterprise Program Management Office team, which covers:

  • D – Duration of the project

  •  I – Integrity of project team

  • C – Commitment of management 

  • C – Commitment of people

  • E – Effort required for people to attend the process

 

The calculation of DICCE model will allow assessment of the probability of success.

In order to achieve the objectives, there is an ultimate need to shorten the duration, provide committee and capable execution team, ensure the shareholders are engaged and supports the effort of implementation. Finally, people who are affected, need to see benefit of the change, which shall take them a minimum time to participate in the transformation.  

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Step 4. Strategy executions

Set and follow the change plan through your PMO team. 

  • Understand - why this change is to be implemented, following strategy planning,

  • Enlist – define potential solutions, perhaps using balance scorecard,

  • Motivate – use emotional levers analysis, of all the action in the plan, to assess the desired emotional impact,

  • Communicate – engage key stakeholders in the change plan and communicate your approach,

  • Act – apply change strategy with all enlisted actions,

  • Consolidate – collect feedback from the actions, and reapply other methods. 

 

Once we have identified the strategic objectives, enlisted actions through detailed balance scorecard, it’s time to identify hidden barriers through:

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  • Cultural analysis – shift from people performance based to profit based objectives and cost-based objectives. 

  • Political analysis – understand the organisation dynamics, 

  • Emotional levers analysis – understand the impact of the actions on individual emotional state.

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Cultural analysis

None of the key tangible financial objectives can be achieved in isolation from the corporate culture, by rating 7 Dimensions of Culture mode, you will be able to understand a it better and set the objectives for change. Through assessing:

  • Attention to details

  • Stability

  • Aggressiveness

  • Team orientation

  • People orientation

  • Innovation and risk taking

  • Outcome oriented

The mapping of ‘as is’ corporate culture to ‘to be’ culture , which allows to focus  on activities  associate to intangible cultural change.

Success factors in corporate culture are mainly dedicated to isolate individual behaviour and reinforcing the change through one of many change methods, and repetition. 

Political Analysis

Political landscape is entirely focused on stakeholders analysis, listing out who are our key stakeholders understanding who will support the strategy execution, and focusing on shift of perception of those who don’t.

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Emotional levers

After all analysis, it’s time to motivate your organisation, therefore your change plan needs rigid assessment of the individual action and its impact on people emotions as part of the emotional levers assessment, following:

  • Respectful authenticity – gaining trust from people,

  • Thoughtful passion – generating engagement through passion and energy,

  • Realistic hope – creating hopeful attitude, show perspective of changing the future,

  • Deserved pride – creating sense of proud of achievements for the change participants,

  • Actionable discontent – enhancing eager, through allowing individuals to feel as acting to their full potential,

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Political Analysis

None of the change, nor strategy execution is excessively simplistic, it requires adaptability, conducting risk analysis and searching for hidden barriers, the ability to overcome those barriers allows to achieve ultimate objectives. Perhaps some of those methods will support you in the journey.  

 

  • Fair process leadership

  • Network definition

  • Networking

  • Use coaching and consulting methods

  • Provide learning options

 

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Communicate & Act

Communicate, communicate, communicate. Apply at least 7 methods of change management, and repeat 7 times!

There are many change management methods which you may cover:

a.     Assign of change agent. The Art of communications needs to be adjusted through the  entire duration of the strategy execution, and the Change Agent/ Steering Committee, needs to collect feedback and act upon the actions, in order to achieve strategic objectives. 

b.     Create stakeholders map. Understanding interests of individuals, creating map of supporters, early adapters, and resistants, helps to lead the communication actions.

c.     No Action. Lack of the action or comment, when it is expected is also a method, the results are to be measured. 

d.     Beyond change plan, organisations may adopt faster, agile approach in strategy execution, which may allow to incorporate new methodology, and gain further engagement. 

e.     Use technology to adopt change, with number of software solutions. Incorporating digital into the execution model. 

f.      Other. The communication plan may cover many of the methods, such as employee communication letters, individual consultation, chats, FAQs materials (Frequently Asked Questions), handbooks, middle management meetings, mid-project brochures, networking workshops, articles and newspapers, year-end brochures). Other methods may focus on motivation and changing behaviour, though sharing competitive information, sharing financial information, organizing site visits, or townhall gatherings, workshops or seminars. 

It is important to think through the entire change plan, and what actions shall be conducted in what sequence, as some may have negative impact. For example, firing change resistant may leave feeling of unsafely among remaining team member, and undermine comfort of work among remaining team members.  The feeling of safety, creates innovation, creativity and connects individuals and engage them with the change. 

Trying to diminish the urgency of the change, also undermine the effort of transformation, if there are key financial result to be achieved, before liquidation, there are serious timelines for the transformation, otherwise the company may bankrupt.

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Consolidate

Finally, in the strategy execution, it is desirable to collect feedback and act upon, with pivoting the initial plan. Pivoting from the original plan is an ultimate skill to adopt to changing situation. Though you shall never forget the strategic objectives and OKRs which are expected to be achieved. 

by Gabriela Janzen-Nowak, MBA

©2023 by Janzen Advisory.

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