When trying to solve what defines successful strategy execution… We came up with an equation! Clear strategic direction from top management – i.e. expressed as ‘vision’ and strategic targets that describes a disirable but uncertain future Translation of direction into strategy: ”Whats does that mean for us – and what do we need to do?” expressed in a strategy map showing key initiatives and their cause-and-effect relationships The right people being engaged to do the right things in the right way… and the goals and processes to follow up continuously
Resonans’ strategy process
We conduct a strategic analysis in order to define how the organisation can better utilize its strengths and capabilities to deliver enhanced value for customers and owners
The direction are put into words as a positive strategic aspiration – backed up by strategic goals and the 3-5 “ must-win-battles ” that an organization must win in order to reach it’s direction.
The “must-win-battles” are translated into a strategy map – build through a creative process, involving employees and managers – and solutions are identified by learning from existing positive deviances
Finally, the strategy is put into action by people doing things ! Progress is monitored closely – and adjustments are made immediately when needed
What megatrends will impact and how?
What do our customers think of our products and service?
What differentiates and makes us unique?
What strengths and capabilities supports our customers demands – and can be utilized better?
What are the expectations of our owners and shareholders?
What changes are we facing - growth or higher productivity?
What unexploited opportunities shall we pursue?
The analysis basically answers two things: what hot dish are we bringing to the table – and what is special about how we cook the ingredients and service our ‘guests’…
” Strategy must of course be based on data and analysis… but is not a 200-pages report. Strategy must be adapted to reality – where data and market conditions are constantly changing… ”
Setting the strategic direction
When the oil platform Piper Alpha in the North Sea caught fire, a worker was trapped by the fire on the edge of the platform. Rather than certain death in the fire, he chose probable death by jumping 100 feet into the freezing sea.
The term 'burning platform' is now used to describe a situation where the company are forced to act – and is often used to set the strategic agenda and direction.
Doing this, encourages people to act by loading them up with negative information; to move away from something…
This can be powerful – but often a positive aspiration is a much more effective way of setting the agenda; to move towards a desired future…
Be ambitious: An aspiration must be within sight but beyond reach – and have the power to motivate the entire company
” The task of leadership is to create an alignment of strengths in ways that make weaknesses irrelevant ” - Peter Drucker
Translating the strategy: Building strategy maps
Strategy maps show the cause-and-effect links by which specific improvements create desired outcomes
The strategy map can be developed from the top down if strategy is a “translation” from corporate level – AND – bottom-up if you are taking a capability approach
Building a strategy map together – is a strong process creating momentum, shared understanding and makes a great first step in a successful execution
You start by placing the MWB’s – and the positive deviances identified… and then start filling out the gaps and prioritizing…
Strategy maps are a strong tool to build, describe and communicate your strategy
Productivity and cost
Product and service
Operational excellence in production, customer management and IT
Regulatory and CSR
People skills and competences
Culture and values
WHICH DRIVES EXECUTE THAT DELIVER PEOPLE & ORGANISATION BUSINESS PROCESSES CUSTOMER VALUE FINANCIAL VALUE
How it might look….
Positive deviances initiatives
“ We want to become the most…” MWB 1 MWB 3 MWB 2 … in real life
Translating the strategy – defining “must-win-battles” and discovering how to win them…
Must-win battles (MWBs) are the 3-5 key battles that an organization must win in order to achieve its most important goals.
When doing a positive deviance inquiry , you identify outliers who, despite having no special advantages, are doing exceptionally well at winning a “battle”
The difficult part is to spot the positive deviances…
There are 4 steps in doing this:
Define and describe the MWBs
Search for positive deviances analysing data and making inquiries
Investigate and learn
Spread, maintain and strengthen solution
It’s not about celebration. It is about learning from unexpected outliers
” The future is already here — it's just not very evenly distributed ” - William Gibson
Takes much longer
Requires attention everyday
May collide with existing power structures, culture, ability to change and competences (also among CXO’s)
Demands clear roles and responsibilities
… requires alignment and strong links between organisational, team and individual performance KPI’s
Execute, review and adjust: Building a process that help you keep focused Organisational level Team/Individual level The “8 model of strategy execution”
Execute, review and adjust: The power of progress and small wins
Knowing what serves to catalyze and nourish strategy execution and progress – and what does the opposite – turns out to be the key to effectively making people doing things …
When we think about progress, we often imagine succeeding with big important projects…
Big projects are however risky and fragile and requires many days of hard work and even lots of frustration…
In order to create and keep momentum – support progress, help to downsize scope of initiatives – and take out any obstacles that occurs…
” Want to truly engage your employees in strategy execution? Help them see their own progress… ”
Contact information Anders Birch, Seniorkonsulent, Cand.scient.pol . Focus on implementation of strategy, change and organizational development in both private and public sectors. Anders is an experienced management consultant who also has practical management experience from the telco business, with responsibility for group strategy, efficiency and process improvements and strategic procurement. Mobile: + 45 53 39 40 20 E-mail: email@example.com