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Jeroen De FlanderReykjavik, 20 September 2012
1. What is strategy & strategic innovation?2. Strategy execution: your next competitive   advantage?3. Become a Strategy E...
A process?      A tool?     A management style?A philosophy?   A culture?       A mystery?
What’s the biggest car-renting company in the world?
Location       Airports                        DowntownMarketing      Travel Agents                   Mechanics & insuranc...
_ Clear choice WHO you are going to serve   │ a unique value proposition for a customer segment_ Clear choice HOW you are ...
2020       20121990
“However beautiful the strategy,you should occasionally look at the results”                         - Sir Winston Churchill
1. Did you know that companies loose between 40 to 60% of   their strategy during implementation?   Harvard Business Revie...
1.   Strategy Focus2.   Strategy Communication3.   Initiative Management4.   Individual Objective Setting5.   Skilled Mana...
Skilled ManagersEngaged People &Performance-Driven CultureStrategy FocusIndividual Objective SettingSupport for ManagersPe...
“Initiative management is the spotwhere strategy translates into practice         or remains on paper forever”
1. Strategic initiatives: poorly staffed and budgeted     _ 49% of all strategic initiatives are poorly budgeted and staff...
1.   Strategic initiatives: poorly staffed and budgeted     _ 49% of all strategic initiatives are poorly budgeted and sta...
1.   Strategic initiatives: poorly staffed and budgeted     _ 49% of all strategic initiatives are poorly budgeted and sta...
_ Initiative management builds on the results of something else._ It crosses the traditional silos, so the ownership is of...
“Look beyond the send button and shift       your focus to the receiving end”
1. SM: know (care?) if managers understand the strategy?     _ 33% of all managers are never actually asked the question  ...
1.   SM: know (care?) if managers understand the strategy?     _ 33% of all managers are never actually asked the question...
1.   SM: know (care?) if managers understand the strategy?     _ 33% of all managers are never actually asked the question...
“Future performance is born today…”
1   Build the 8, a simple SE framework2   Knowledge is not enough3   Simplify4   Communicate your strategy5   Measure stra...
1 Performance 0+0=8
1 Performance 0+0=8“A strategy Execution frameworkshould be simple, easy-to-communicateand visually strong”
2 Knowledge is not enough
2 Knowledge is not enough                   _ Who needs to know what?                   _ How are we going to make the kno...
3 Simplify                 The best way to get me ANGRY!                        VERY ANGRY!!             “Oh, but this act...
3 Simplify    1 hour every quarter in a company with 1000 employees                                =                   2.6...
3 Simplify             1. Would you like to introduce something that worked  So...         very well in your former compan...
4 Communicate your strategy  Your strategy    .. you told someone .. who told someone .. who told someone
4 Communicate your strategyAsk yourself the follow 5 questions:1. Do I understand the overall strategy?2. Do I understand ...
4 Communicate your strategy              When your employee says ‘yes’ to the strategy....                      ....what d...
4 Communicate your strategy1.   Work on the communication skills of your CEO2.   Give your strategy a face3.   Be able to ...
4 Communicate your strategy… a compelling business case that creates enthusiasm and inspires   people.… a simple storyline...
5 Measure strategy and strategy execution1. Don’t believe IT companies   – It’s a process, not a tool   – It’s about casca...
5 Measure strategy and strategy execution1. Senior management is not convinced and shows little   commitment2. BSC = devel...
6 Grow leaders and capabilities    “A strategy, even a great one, doesn’t implement itself”“Strategy Execution is the resp...
6 Grow leaders and capabilitiesPowerPoint fanatic                        From PowerPoint to practiceDo as I say, not as I ...
6 Grow leaders and capabilities“Strategy Execution isn’t something others are doing while you are               working on...
6 Grow leaders and capabilities                    _ Continuously collect data                    _ Be inspired           ...
6 Grow leaders and capabilities        1 Define what you need and how you are going to get it                             ...
1   Build the 8, a simple SE framework2   Knowledge is not enough3   Simplify4   Communicate your strategy5   Measure stra...
300+ useful       Actionable, up-to-date         implementation tips   benchmark informationJoin us on
Jeroen De Flander is a seasoned internationalStrategy Execution expert, top executive coach,seminar leader and highly rega...
Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
strategy execution - Iceland conference by Jeroen De Flander
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  1. 1. Jeroen De FlanderReykjavik, 20 September 2012
  2. 2. 1. What is strategy & strategic innovation?2. Strategy execution: your next competitive advantage?3. Become a Strategy Execution Hero: 6 best practicesRoger L. MARTINStrategy &Design Thinking “Don’t measure performance by what you have accomplished, but by what you should have accomplished within your capabilities.”
  3. 3. A process? A tool? A management style?A philosophy? A culture? A mystery?
  4. 4. What’s the biggest car-renting company in the world?
  5. 5. Location Airports DowntownMarketing Travel Agents Mechanics & insuranceDelivery Airport Parking lots Home pick-upDrop off Airport HomeOrganisation Centralised DecentralisedSegment Business & pleasure travelers Car replacementAge cars Mainly new High average ageFee high LowWithin the same industry, Enterprise combines activities in the value chain in a different way to provide benefits to a different customer segment
  6. 6. _ Clear choice WHO you are going to serve │ a unique value proposition for a customer segment_ Clear choice HOW you are going to serve │ the distinct activities of the value chain “Strategy is a pattern in a stream of decisions” - Henry Mintzberg
  7. 7. 2020 20121990
  8. 8. “However beautiful the strategy,you should occasionally look at the results” - Sir Winston Churchill
  9. 9. 1. Did you know that companies loose between 40 to 60% of their strategy during implementation? Harvard Business Review2. Do I know exactly where my company, department or team is losing performance?3. What can I do to close the execution gap? “The essence of strategy is choosing what not to do.” - Michael Porter
  10. 10. 1. Strategy Focus2. Strategy Communication3. Initiative Management4. Individual Objective Setting5. Skilled Managers6. Engaged People and Performance-Driven Culture7. Performance-Related Pay8. Support for Managers “Don’t measure performance by what you have accomplished, but by what you should have accomplished within your capabilities.”
  11. 11. Skilled ManagersEngaged People &Performance-Driven CultureStrategy FocusIndividual Objective SettingSupport for ManagersPerformance-Related PayStrategy CommunicationInitiative Management Extract from the Strategy Execution Barometer
  12. 12. “Initiative management is the spotwhere strategy translates into practice or remains on paper forever”
  13. 13. 1. Strategic initiatives: poorly staffed and budgeted _ 49% of all strategic initiatives are poorly budgeted and staffed _ 92% of all managers are unhappy with resource allocation2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  14. 14. 1. Strategic initiatives: poorly staffed and budgeted _ 49% of all strategic initiatives are poorly budgeted and staffed _ 92% of all managers are unhappy with resource allocation2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  15. 15. 1. Strategic initiatives: poorly staffed and budgeted _ 49% of all strategic initiatives are poorly budgeted and staffed _ 92% of all managers are unhappy with resource allocation2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  16. 16. _ Initiative management builds on the results of something else._ It crosses the traditional silos, so the ownership is often blurred_ It requires sound decision-making – decisions which are not always yours to take_ It’s often in addition to the daily work “Initiative management is the fleet of trucks that you use to deliver your strategy to its final destination. They are your main strategy transporters.”
  17. 17. “Look beyond the send button and shift your focus to the receiving end”
  18. 18. 1. SM: know (care?) if managers understand the strategy? _ 33% of all managers are never actually asked the question _ worst score of all communication elements surveyed2. Managers lack information on their colleagues’ goals _ 83% is unhappy with the strategy info from colleagues _ 24% don’t receive anything at all3. Managers: no clear view on SE process _ 44% receives no information _ Comes in last after strategy understanding (point 1)
  19. 19. 1. SM: know (care?) if managers understand the strategy? _ 33% of all managers are never actually asked the question _ worst score of all communication elements surveyed2. Managers lack information on their colleagues’ goals _ 83% is unhappy with the strategy info from colleagues _ 24% don’t receive anything at all3. Managers: no clear view on SE process _ 44% receives no information _ Comes in last after strategy understanding (point 1)
  20. 20. 1. SM: know (care?) if managers understand the strategy? _ 33% of all managers are never actually asked the question _ worst score of all communication elements surveyed2. Managers lack information on their colleagues’ goals _ 83% is unhappy with the strategy info from colleagues _ 24% don’t receive anything at all3. Managers: no clear view on SE process _ 44% receives no information _ Comes in last after strategy understanding (point 1)
  21. 21. “Future performance is born today…”
  22. 22. 1 Build the 8, a simple SE framework2 Knowledge is not enough3 Simplify4 Communicate your strategy5 Measure strategy and strategy execution6 Grow leaders and capabilities
  23. 23. 1 Performance 0+0=8
  24. 24. 1 Performance 0+0=8“A strategy Execution frameworkshould be simple, easy-to-communicateand visually strong”
  25. 25. 2 Knowledge is not enough
  26. 26. 2 Knowledge is not enough _ Who needs to know what? _ How are we going to make the knowledge available? _ The platform _ What are the best learning methods? _ How can we motivate people to learn? _ Awareness, Connectivity, Motivation & Responsibility _ Manage the time lag between learning and doing
  27. 27. 3 Simplify The best way to get me ANGRY! VERY ANGRY!! “Oh, but this action demands only 1 hour … every quarter … from each employee”
  28. 28. 3 Simplify 1 hour every quarter in a company with 1000 employees = 2.6 full time equivalents ! “Any intelligent fool can make things bigger and more complex. It takes a touch of genius – and a lot of courage – to move in the opposite direction” - Albert Einstein
  29. 29. 3 Simplify 1. Would you like to introduce something that worked So... very well in your former company? 2. Would you like that everyone implements the models you have designed? 3. Do you get a kick out of complex theoretical models? 4. I don’t know what already exists? 5. Did you think about creating something completely new? 6. I never do a test run? 7. Did you decide that integration was needed? 8. I never eliminate ‘dead wood’?
  30. 30. 4 Communicate your strategy Your strategy .. you told someone .. who told someone .. who told someone
  31. 31. 4 Communicate your strategyAsk yourself the follow 5 questions:1. Do I understand the overall strategy?2. Do I understand the objectives defined on the organisational level above you?3. Do I communicate the strategy to my team / stakeholders?4. Do I visualise the link between lower – and higher level objectives?5. Do I take responsibility to align objectives across hierarchical levels?
  32. 32. 4 Communicate your strategy When your employee says ‘yes’ to the strategy.... ....what does (s)he really say? I will make the strategy happen, no matter what or I will work hard (effort ) to implement the strategy or I see the benefits of the strategy and will contribute to the implementation or I don’t see the benefits but don’t want to loose my job orI’m against the strategy, don’t want to implement but I don’t tell it in your face
  33. 33. 4 Communicate your strategy1. Work on the communication skills of your CEO2. Give your strategy a face3. Be able to answer the question “What’s in it for me?”4. Treat your strategy as your core product5. Don’t rush but avoid gold-plating “When you are tired of the strategy story, you have probably reached 3% of the target population”
  34. 34. 4 Communicate your strategy… a compelling business case that creates enthusiasm and inspires people.… a simple storyline so it’s easy for employees to pick it up and repeat the story vividly at the kitchen table.… consistency. Stick to the message and make sure others do too.… to be easy to relate to. People need to see how they fit in.… great communication skills to get the strategy into the heads, hands and harts of the employees.… a heavy investment in awareness creation.… role models.
  35. 35. 5 Measure strategy and strategy execution1. Don’t believe IT companies – It’s a process, not a tool – It’s about cascading strategy, not KPI’s2. Get your vocabulary strait – An objective is not a measure is not a target3. Less is more or “20 = plenty”4. The BSC is not the end station… so don’t stop!5. BSC ≠ ideal solution for improving individual performance6. Automate with care!
  36. 36. 5 Measure strategy and strategy execution1. Senior management is not convinced and shows little commitment2. BSC = developed by ‘the happy few’3. The internal/external project members have limited or only theoretical knowledge4. BSC = only used by top management5. The scorecard stays too long in the development stage before it’s launched and used6. There are not enough links to the strategy and planning processes7. The content of the BSC is unrealistic8. BSC = only used for remuneration purposes
  37. 37. 6 Grow leaders and capabilities “A strategy, even a great one, doesn’t implement itself”“Strategy Execution is the responsibility that makes or breaks executives”* “Strategy Execution is all about realising the full potential of your strategy – and not limiting yourself to only 50, 60 or 70 percent” *Alan Branche & Sam Bodley-Scott
  38. 38. 6 Grow leaders and capabilitiesPowerPoint fanatic From PowerPoint to practiceDo as I say, not as I do Actions speak louder than wordsWe need to start from scratch Let’s see what worksI’m too important to focus on execution Execution is my priority
  39. 39. 6 Grow leaders and capabilities“Strategy Execution isn’t something others are doing while you are working on something more important.” “Your Strategy Execution role is part of your overall leadership role.” “A good leader is a strategist as well as an implementer. It’s not a question of either/or.” “Most managers find it easier to define a new strategy than it is to implement the existing one.”“Execution is part of your management job. It may sound boring, but nevertheless it is your job.”
  40. 40. 6 Grow leaders and capabilities _ Continuously collect data _ Be inspired _ Dig & digest _ Turn data & ideas into ambition _ Your conceptual skills and fuel are the limit _ Master The Pyramid Principle® _ Become an author _ Think quality and absorption
  41. 41. 6 Grow leaders and capabilities 1 Define what you need and how you are going to get it 3 Design world-class learning interventions 5 Set development objectives 1 2 3 4 5 6 6 Measure success 4 Execute flawlessly 2 Manage your development portfolio 47
  42. 42. 1 Build the 8, a simple SE framework2 Knowledge is not enough3 Simplify4 Communicate your strategy5 Measure strategy and strategy execution6 Grow leaders and capabilities
  43. 43. 300+ useful Actionable, up-to-date implementation tips benchmark informationJoin us on
  44. 44. Jeroen De Flander is a seasoned internationalStrategy Execution expert, top executive coach,seminar leader and highly regarded keynote speaker.Jeroen has helped more than 20,500 managers in 28countries master the necessary execution skills.He is co-founder of the performance factory – aleading research, training and advisory firm which issolely focused on helping individuals andorganisations increase performance through best-in-class Strategy Execution.For several years, he was the responsible managerworldwide of the Balanced Scorecard product line forArthur D. Little – a leading strategy consulting firm.The 50+ companies he has advised on variousstrategy execution topics include Atos Worldline, AXA,Base, Bridgestone, CEMEX, GDFSuez, Honda, ING,Johnson & Johnson, Komatsu and Sony.To book Jeroen to speak at your next event or to run astrategy execution seminar for your company, pleasecontact him through his blog www.jeroen-de-flander.com or jeroen@jeroen-de-flander.com
  45. 45. Jeroen De Flander
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