A core focus area and function for every leadership team is the development, animation and execution of Strategy. We invite you to spend time with Linda Otto from Diversified Consulting to explore the following points while seeking workable solutions to support you and your company in the successful implementation of your strategy.
2. APRIL 2012
90% of organisations fail to execute their strategies
85% of executive teams spend less than one hour per month discussing
strategy
95% of the typical workforce do not understand their organisations strategy
70% of organisations do not link strategy to budgeting
70% of organisations do not link middle management incentives to strategy
Harvard Business School Publishing
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3. Overview APRIL 2012
• The Role of Strategy in business
– Strategy in a nutshell
• The Power of Strategy
– Why do so many strategies fail?
• The Solution
– ANIMate™ you strategy
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5. The Purpose behind APRIL 2012
Strategy
• Defines scope and direction of an organisation
• The blueprint that provides direction and specific outcomes to support
the realisation of the organisations Vision and Mission
• Details the way in which the various business operations work together
to achieve particular goals
• Delineates a territory in which a company seeks to be unique
• How we respond to customer needs, legislation, competitors and other
environmental factors
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7. Understanding Purpose APRIL 2012
• Vision is that which we aspiring to – our purpose
• The legacy that the business seeks to create
• Vision must be a vivid descriptor that create employee buy-in
• Vision should excite us, gets us out of bed in the morning and make us
proud of the company we work for
• Reason why we are here
• The Mission statement is how are we going to get there
• It provides clear steps required to achieve Vision
8. The Values Link APRIL 2012
• Define behaviours required by ALL employees to drive the Vision
• Need to be understood by all and embedded in the culture of the
business
• What gets measured gets done
• Values should be developed based on behaviours that are needed to
achieve success
• Do we recruit people in terms of how their values align with those of the
company
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9. The Strategic Plan APRIL 2012
Z
This is where we
Strategic Goals
want to be
This is HOW we will get there!
A
This is where we Time
are now
10. The Strategic Plan APRIL 2012
• Defines inputs and activities required to achieve Vision – Away from and
Towards
• Critical link - the plan that drives actualisation of Vision and Mission
• Organisational strategy provides the blue print for Divisional,
Departmental, Team and Individual strategies
• Strategy guides and directs Structure, Roles and Responsibilities
• Budgets are developed factoring in strategic initiatives
11. The Strategic Plan APRIL 2012
Organisations put more emphasis on rational factors than
on employees’ psychological engagement. Only 2.5% of
companies successfully complete 100% of their projects
(source: the Gallup Journal Feb 2012)
12. The Strategic Plan APRIL 2012
• Systems and tools available to drive cascading, implementation and
management of strategy
13. The Strategic Plan APRIL 2012
“However beautiful the strategy, you
should occasionally look at the results”
Sir Winston Churchill
14. Measurement of APRIL 2012
Performance
• Strategy dictates key performance related measures across all levels
• Performance management is done in order to assess performance against
strategic objectives
• Performance management is the tool we use to drive and measure
strategy
– How are we progressing?
– STOP, LOOK, CORRECT and TAKE ACTION
– Define measurement cycles
15. Measurement of APRIL 2012
Performance
• A dynamic tool
• Stakeholders need to be flexible wrt being able to make changes based on
performance feedback
• Measures may be in place but are they driving the desired performance?
“There is always a better strategy than the one you have;
you just haven't thought of it yet.”
Sir Brian Pitman, former CEO of Lloyds TSB
17. What are the drivers of APRIL 2012
failed Strategy?
Lack of alignment
• Not developed or aligned to organisational Vision
• Strategies developed in isolation – key stakeholders not involved
• Those leading the change either under communicate, give mixed
messages or do not model the behaviours the change / strategy requires
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18. What are the drivers of APRIL 2012
failed Strategy?
Leadership
• Leadership team are focused on building personal empires
– organisational vision not the true focus
– there is no united front from Leadership team resulting in confusion across teams
and departments
• Leaders are too operationally involved
– difficult to be a visionary when one is caught up in the daily nitty gritty
• Leaders are not empowered
– do not understand strategy
– Insufficient knowledge transfer regarding strategy
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19. What are the drivers of APRIL 2012
failed Strategy?
Implementation and measurement
• Strategy does not align with KPI’s
• Performance metrics that are aligned to recognition are often vague
• Measures are subjective and/or lacking evidence
• No operational roll out plan
• Progress is not measured
• Lack of recognition
• Time constraints
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20. What are the drivers of APRIL 2012
failed Strategy?
Engagement
• A compelling vision that excites people about the future has not been
developed or communicated
• Leaders believe that announcing strategy is the same as implementing it
• Leadership team do not engage with all levels of business regarding
strategy
• Limited understanding at a team and individual level of how roles fit into
achievement of strategy
• Employees end up being disengaged
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21. What are the drivers of APRIL 2012
failed Strategy?
Drive and momentum
• Strategy, once developed soon gets pushed aside
Shew! That’s over!
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22. Impact of economic APRIL 2012
downturn on strategy
• Study conducted in 2009 and again in last quarter of 2010 by FTI
Consulting – Forbes Insights (180 completed interviews by CEOs, senior
strategists, and senior communications officers.)
– 76% of companies have changed their approach to strategic initiatives
in the past year.
– When strategies fail most often it is because companies misinterpret
the market opportunity (23%), launch initiatives that don’t align with
core competencies (20%), or because key stakeholders don’t
understand the strategy and don’t commit or follow-through (19%)
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23. Impact of economic APRIL 2012
downturn on strategy
– Vast majority of CEOs (92%), communicators (92%) and strategists
(88%) say communications is critical to the success of their strategic
initiatives and nearly half of respondents (46%) report that
communications is an integral and active component of the strategic
planning and execution process.
– Increased communications (41%) tops the list of key changes
companies are making to improve the success rate of their strategic
initiatives.
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25. ANIMate™ your Strategy APRIL 2012
ANIMate ™ YOUR STRATEGY:
To animate means to…
…give life to your strategy
…give movement to your strategy
… align leaders, teams and individuals to the strategic goals
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27. Activate Strategy within APRIL 2012
the business
• Create awareness around organisational strategy
• Link strategy to the business, the team and the individual.
• Employees are aware of and able to recite organisational strategic
initiatives down to how these link in with their department, team and
own role.
• Employees can identify own personal contribution towards strategy
• Recognition becomes a reality - aligned to performance that drives
successful implementation and realisation of strategy
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28. Navigate the Journey APRIL 2012
• Leaders are equipped with the tools required to direct their peoples
efforts towards
• Ensure that people align what they do and how they do it to the strategy
and values
• Being clear on the journey and what success looks like
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29. Integrate Strategy into APRIL 2012
daily operations
• Ensure integration of strategic actions across existing communication
channels (recruitment process, performance management system,
development plans)
• Employees display behaviours that align to values and culture
• Ongoing communication and engagement
• Alignment of the KPIs to the strategic goals
• Performance that aligns to the strategy
• Development plans that align to the strategy
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30. Motivate our People APRIL 2012
• Recognise and reward employees who align behaviours and efforts
towards the strategy
• Fit for purpose reward and recognition initiative focused on alignment
towards desired activity and behaviours.
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31. Outcomes APRIL 2012
• Accountability for strategic actions
• Alignment of employees to the strategic objectives
• Improved planning for changes being introduced into the business
• Improved adoption of changes in the business
• Defined actions for short term, medium term and long term improvements
• Improved probability of achieving the strategic objectives
• Building the desired culture
• Alignment of behaviours
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32. Measure of Success APRIL 2012
• Hospitality Industry
– % increase in CSI and 5% increase of NPS (Net Promoter Score) over 6 months
– 99% rating on Brand Strategy campaign
– 96 % rating on Brand strategy comms and engagement
• Contact Centre Industry
– Call Centre build (On Budget On Time)
– 300% achievement of performance targets in month 1
• Aviation industry
– Retention strategy – shifted potential retention from 20% to 80% in 3 months
33. Move to action APRIL 2012
• Complete ANIMate™ survey
• Have you created Awareness , Acceptance and Adoption of the strategy
in your business?
• Where are your gaps?
• What are your opportunities?
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34. Conclusion APRIL 2012
“In real life, strategy is actually very
straightforward. You pick a general direction
and implement like hell” -
Jack Welch
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Editor's Notes
As much as these percentages may have changed with time, it has been our experience that these common themes continue to hinder organisations in performance and delivery
Now while I can appreciate that I have some senior stakeholders here in the audience today, I would like to spend a little bit of time exploring the process of strategy in relation to the organisational Vision and Mission. I know that many of us have grown immune to terms like Vision and Mission and I would like to propose that may be as a result of us never having had the chance to experience the power of these concepts as for the most part they remain on paper alone and never have the opportunity to be animated within many of our work environments. So please hear me out and give me a chance to illustrate the power that these really have in igniting and engaing your workforce relating to stretegy and performance.
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These should all be aligned to and governed by an overarching organisational strategy Division, Departmental, Team and Individual strategies should cascade from and roll up to organisational strategy Cascade – premis of using systems and tools to enable the cascading of strategy Now that we know what I want to achieve –what roles are required to enable execution of strategy? systems and tools to enable the cascading of strategy
Innovation – looking for innovative ways to progress based on core offering but also factoring in current climate – seeing shift in a lot of companies who are now gearing themselves for growth.
HR to provide accurate data
HR to provide accurate data
Airline company looking at ways of improving TAT on getting bags from off aircraft and onto carousal – measure was that it would take 15 mins from time of landing to first bag being placed on carousal –first bag was on in time but not the rest
Airline company looking at ways of improving TAT on getting bags from off aircraft and onto carousal – measure was that it would take 15 mins from time of landing to first bag being placed on carousal –first bag was on in time but not the rest
PWC - *
HR to provide accurate data
Link PWC
HR to provide accurate data
HR to provide accurate data
HR to provide accurate data
Ability to execute solely dependent on your level of engagement with your people – you need to have the right people on the bus.