STRATEGY

EXECUTION
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
Mission

Vision

Goals | Objectives

Strategic Analysis
Strategic Choices

Strategy Implementation

Strategy Evaluation

©...
Implementation is concerned with the efforts of…

…translating
strategies into
actions on a
daily basis.

© 2014 Berlin As...
"Walking" those plans—
missions, goals, and operational
programmes—is challenging.

© 2014 Berlin Asong. All rights reserv...
Walking those plans
has been 'unexpectedly'
difficult for some firms.

© 2014 Berlin Asong. All rights reserved.

7
Wal-Mart's failed
foray in the German
grocery market.

© 2014 Berlin Asong. All rights reserved.

8
GM woes in the
years leading up to its
2009 bankruptcy.

GM’s Former CEO Rick Wagoner
© 2014 Berlin Asong. All rights rese...
After failing to make a
profit since it entered the
US grocery market in
2007, Tesco is exiting.
Picture source: gourmetre...
Amongst its
woes, is Yahoo!’s
inability to execute.
© 2014 Berlin Asong. All rights reserved.

11
It remains to be seen if
Merissa Mayer, former Google
exec, now Yahoo CEO can
turnaround the company.

Picture: fastcompan...
…the digital camera inventor filed
for bankruptcy in January 2012, after losing
its competitiveness to rivals.

© 2014 Ber...
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
What’s the distinction
between strategy failure &
strategy-execution failure?

© 2014 Berlin Asong. All rights reserved.

...
Simplistically…

© 2014 Berlin Asong. All rights reserved.

16
Strategy

Strategy-Execution

Content

Process

What

© 2014 Berlin Asong. All rights reserved.

How

17
Strategy-Execution

Mission
Vision
Goals | Objectives
Strategic Analysis
Strategic Choices

Strategy Implementation

PROCE...
However…

…there’s a strong link
between strategy and
strategy-execution.

© 2014 Berlin Asong. All rights reserved.

19
CONTENT

Strategy

Strategy-Execution (SE)

Mission
Vision
Goals | Objectives
Strategic Analysis

Strategy
influences SE.
...
Strategy

Strategy-Execution (SE)

A poorly thoughtA poorly executed out strategy affects
strategy affects the the perform...
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
Strategy Failure

Strategy-Execution Failure

…is a poorly
…is a failed strategy. executed strategy.

© 2014 Berlin Asong....
The failure of a
strategy could be traced
to its execution.
© 2014 Berlin Asong. All rights reserved.

24
Did you notice “failed
strategy” & “poorly executed
strategy” share a common feature?

© 2014 Berlin Asong. All rights res...
FAILURE
© 2014 Berlin Asong. All rights reserved.

26
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
Why strategy
execution is a critical
activity of successful
organisations?

© 2014 Berlin Asong. All rights reserved.

28
1

To be successful,
you must execute.
Source: iredellrunners.com

© 2014 Berlin Asong. All rights reserved.

29
No matter how great your
idea is, if you can’t execute it,
you’re not different from
someone without an idea.

© 2014 Berl...
2

Strategy execution…

…is a measure
of firm’s future
performance.

© 2014 Berlin Asong. All rights reserved.

31
26.06.2012
NASDAQ

Failure to execute…

…has seen blackberry
maker RIM lost 87%
market value.
© 2014 Berlin Asong. All rig...
26.06.2012
NYSE

Failure to execute…

…has seen Nokia lost
85% market value.
© 2014 Berlin Asong. All rights reserved.

33
3

Resources are
wasted when firms
fail to execute or
execute poorly.

Mission
Vision
Goals | Objectives
Strategic Analysi...
4

Leadership performance

is increasingly measured
by ability to execute.

© 2014 Berlin Asong. All rights reserved.

35
Take a look at all the
CEOs (FTSE 100 & S&P 500) who’ve lost the top
job, from 2008–2012. Reason:
strategy execution failu...
Nam Yong (LG)
Chris DeWolfe (MySpace)
Rick Wagoner (GM)
Jerry Y (Y
ang ahoo!)
Carol Bartz (Y
ahoo!)
Olli-Pekka Kallasvuo (...
5

People come to work
to get the job done.
© 2014 Berlin Asong. All rights reserved.

That is, to execute on the firm’s s...
Therefore, strategy execution…

…is the sum of all
the jobs done inside the
firm, and by its partners.
© 2014 Berlin Asong...
60%

In fact, it’s reported that…

of strategy-executions fail annually.
Kaplan, R. S. and Norton, D. P. (2006), "Creating...
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
30 minutes

Why?

60% of strategy-executions fail annually.

© 2014 Berlin Asong. All rights reserved.

42
© 2014 Berlin Asong. All rights reserved.

HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business Revie...
Markets

Strategy

© 2014 Berlin Asong. All rights reserved.

Fault the
Strategy.

44
Strategy is out of sync
with changing market’s needs
and expectations.

© 2014 Berlin Asong. All rights reserved.

45
…by the time Kodak
realised digital camera,
especially in the consumer electronics space,
was the future of digital

photo...
Tata Nano launched in 2009 has been dubbed a flop.

© 2014 Berlin Asong. All rights reserved.

47
India car boss Ratan Tata
admits Tata Nano “mistakes”.

Source: BBC (January 2012)

© 2014 Berlin Asong. All rights reserv...
© 2014 Berlin Asong. All rights reserved.

Fault the
strategymakers.

49
2010: HP acquired Palm…
© 2014 Berlin Asong. All rights reserved.

50
…a bid to challenge
Apple’s iPad, and fend-off
threat to HP’s PC sales.

© 2014 Berlin Asong. All rights reserved.

51
18 August 2011—

HP’s Apotheker discontinued
TouchPad after 2 months in market.

© 2014 Berlin Asong. All rights reserved....
Strategy-makers spend more
time in designing the content of
strategies than thinking how to
implement them, successfully.
...
Why managers are
good at formulating
strategies but poor at
executing them?
© 2014 Berlin Asong. All rights reserved.

54
15 minutes

Why?
© 2014 Berlin Asong. All rights reserved.

55
1

Top executives mistakenly
think strategy execution is meant
for those at the lower end of the
organisational chart.

© ...
2

Executives are less skilled
and lessknowledgeable in the
art& scienceof strategy execution.

© 2014 Berlin Asong. All r...
Countless strategies
are designed without taking
into account the organisation’s
ability to execute them.
David Hilliard, ...
Managers are
trained to plan,
not execute.

Hrebiniak, (2004) “Strategy Execution is the Key”
© 2014 Berlin Asong. All rig...
…this thinking is promoted

by business educators.

© 2014 Berlin Asong. All rights reserved.

60
3

Purpose & benefits of strategic
plans are not (or poorly) conveyed to
employees, teams and frontline staff.
© 2014 Berl...
The chances are, 40% of your
workforce can’t articulate the
details of the firm’s strategy.

© 2014 Berlin Asong. All righ...
Employee resistance may stem
from lack of understanding caused by
failure of top management to articulate
the merits of st...
Content of marketing
plan, not simplified for
easy understanding.

© 2014 Berlin Asong. All rights reserved.

64
4

Poor management

of stakeholders’
expectations.

© 2014 Berlin Asong. All rights reserved.

65
Employees

Investors
Suppliers/distributors

Consumers

Organisation

Government/Regulators

© 2014 Berlin Asong. All righ...
© 2014 Berlin Asong. All rights reserved.

Fault
Structural
Factors.

67
Not assigning clear
responsibilities and
accountabilities.

Who is responsible for What? Are they equipped enough to carry...
Individuals | T
eams | Departments | Suppliers
T | Goals
asks

Who is responsible for What? Are they equipped enough to ca...
Inter & intra-divisional tensions
a major contributor to its crippling
performance in the 70s & 80s.

© 2014 Berlin Asong....
© 2014 Berlin Asong. All rights reserved.

71
Fault

© 2014 Berlin Asong. All rights reserved.

employees.

72
Strategy-implementation introduces…

CHANGE

.

© 2014 Berlin Asong. All rights reserved.

73
Why employees
resist change?

© 2014 Berlin Asong. All rights reserved.

74
1

Unaware
of need for change.
© 2014 Berlin Asong. All rights reserved.

75
HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business
Review 88, no. 7/8: 74-75. Business Source Corpo...
The chances are, 40% of your
workforce can’t articulate the
details of the firm’s strategy.

© 2014 Berlin Asong. All righ...
2

People feel more
comfortable with their
existing environment.

© 2014 Berlin Asong. All rights reserved.

78
3

Psychological

insecurity.
© 2014 Berlin Asong. All rights reserved.

79
Implementation of a strategic plans introduces…

CHANGE
…which sometimes exposes the psychological

,

insecurity of emplo...
Would I lose
my job? Would my
duties change?

© 2014 Berlin Asong. All rights reserved.

81
Would I lose my
existing privileges?

© 2014 Berlin Asong. All rights reserved.

82
Would resources be
diverted away from my
unit to other units?

© 2014 Berlin Asong. All rights reserved.

83
Would I have to
learn new skills?

© 2014 Berlin Asong. All rights reserved.

84
4

Inadequate support
from top management.

© 2014 Berlin Asong. All rights reserved.

85
5

Internal and external stakeholders
challenge or are bent on thwarting
the execution of marketing plans.
© 2014 Berlin A...
© 2014 Berlin Asong. All rights reserved.

Fault
process
factors.

87
1

Implementation
is ill-timed.

© 2014 Berlin Asong. All rights reserved.

88
2

Strategy-execution’s phases
are poorly designed, disjointed
or not clearly thought-out.

Phase One

© 2014 Berlin Asong...
3

Source: http://jagoadvisor.com

Bold but unrealistic plans in terms of goals, resources
needed, timescale of achievemen...
4

Lack of

execution strategy.
How do we ensure success?

© 2014 Berlin Asong. All rights reserved.

91
5

Lack of/invalid systems
to track & measure the
performance of strategic plans.

© 2014 Berlin Asong. All rights reserve...
"People do not do
what you expect but
what you inspect".

© 2014 Berlin Asong. All rights reserved.

93
20 minutes
Excellent delivery of customer services is a
cornerstone of BT’s current marketing strategy.

What mechanism or...
6

Implementation phase

is delayed, rushed
or killed too early.

© 2014 Berlin Asong. All rights reserved.

95
Was the TouchPad

killed too early?

© 2014 Berlin Asong. All rights reserved.

96
Financial
Constraints.

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97
Lack of sufficient funding

Source: www.romania-insider.com

© 2014 Berlin Asong. All rights reserved.

98
Dysfunctional

Strategic Partnerships.

© 2014 Berlin Asong. All rights reserved.

99
Relationship breakdown with business partners
(manufacturer, resource/service provider, distributor,
advertising agency, r...
External Factors

Beyond the Control of

Strategy-Makers.

© 2014 Berlin Asong. All rights reserved.

101
1

External factors beyond the control of
marketing planners and implementers.

PESTEL forces.
© 2014 Berlin Asong. All ri...
2

Lack of contingency
planning against foreseen &
unforeseen market shifts & shocks.

© 2014 Berlin Asong. All rights res...
© 2014 Berlin Asong. All rights reserved.

Failure
to Learn.

104
Failure to learn from
past execution mistakes
and challenges.

© 2014 Berlin Asong. All rights reserved.

105
12

Dysfunctional

organisational culture.

© 2014 Berlin Asong. All rights reserved.

106
Learning Objectives

I.

What is strategy-execution?
i. Understanding the distinction between strategy-execution and strat...
IMPROVING THE

QUALITY
STRATEGY-EXECUTION

OF

© 2014 Berlin Asong. All rights reserved.

108
How can we
improve the quality of
strategy execution?

© 2014 Berlin Asong. All rights reserved.

109
There are many tools for improving the
quality of strategy execution, but the
McKinsey 7s trumps other models.
…diagnostic...
© 2014 Berlin Asong. All rights reserved.

111
Source: McKinsey

© 2014 Berlin Asong. All rights reserved.

112
Shared values

Organisation’s
mission & guiding
beliefs.
© 2014 Berlin Asong. All rights reserved.

113
Diagnostic Questions
What’s the mission of the organisation?
What are the values of the organisation?
What values does the...
Strategy

The means by
which the firm achieves
its strategic goals.

© 2014 Berlin Asong. All rights reserved.

115
Diagnostic Questions
How does the organisation compete?
What’s the organisation’s competitive priorities?
What is the rati...
Structure

The way work is
divided; authority and
responsibility are defined.

© 2014 Berlin Asong. All rights reserved.

...
Breakdown strategy-execution into specific

tasks or jobs attached with SMART goals.
Chunks of goals

© 2014 Berlin Asong....
Diagnostic Questions
How does the organisation organise itself (functional, geographic, divisional, product, hybrid)?
What...
Eliminate barriers to knowledge

sharing among employees,
managers and departments.

© 2014 Berlin Asong. All rights reser...
Systems

The processes

(decision-making, HRM,
marketing, customer service, manufacturing, distribution, IT, security, ris...
Diagnostic Questions

Which processes are crucial to the organisation’s ability to compete?
Which processes are crucial to...
Staff

Quality, quantity &
morale of employees; role of
external stakeholders.

© 2014 Berlin Asong. All rights reserved.
...
Diagnostic Questions

Has the organisation got the right quality & quantity of talents?
Has it got the right leadership?
H...
Stakeholder Mapping
High

Definitive
Stakeholder

Demanding
Stakeholder

Dominant
Stakeholder

Discretionary
Stakeholder

...
Stakeholder Mapping
High

Primary
Stakeholder

Primary
Stakeholder

Secondary
Stakeholder

Secondary
Stakeholder

Interest...
Stakeholder Mapping
High

Keepthem
highlysatisfied.

Keepthemsatisfied.

Keepthem
informed.

Monitorthem.

Interest

Low
H...
Identify & involve
the right people.

© 2014 Berlin Asong. All rights reserved.

128
Planners must articulate
purpose of strategic plans; listen
to divergent views; listen
to employees’ concerns.
© 2014 Berl...
Top managers must
set an enabling culture that
encourages, reinforces and
rewards collaboration.

© 2014 Berlin Asong. All...
Leverage the benefits of
information communication
technologies to speed
Knowledge sharing.

© 2014 Berlin Asong. All righ...
Planners must equip, support and motivate
employees to produce desirable behaviours
necessary for successful implementatio...
Individuals | T
eams | Departments | Suppliers
T | Goals
asks

Who is responsible for What? Are they equipped enough to ca...
Build bridges
among teams,
departments &
divisions.
© 2014 Berlin Asong. All rights reserved.

134
Style

Organisational culture,
behaviour, image; leadership
or management style.

© 2014 Berlin Asong. All rights reserved...
Diagnostic Questions
What’s the dominant culture inside?
What values does the organisation uphold?
How has the organisatio...
Directive style

© 2014 Berlin Asong. All rights reserved.

137
Coercive style

© 2014 Berlin Asong. All rights reserved.

138
Consultative style
© 2014 Berlin Asong. All rights reserved.

139
Participative style
© 2014 Berlin Asong. All rights reserved.

140
Skills

The capabilities &
competencies vital for
successful strategy
execution.
© 2014 Berlin Asong. All rights reserved....
The 7 elements
combined to create
a network of capabilities
vital for successful
strategy execution.

© 2014 Berlin Asong....
Diagnostic Questions

What’s the organisation good at?
What are the relative strengths of the organisation?
What are the r...
© 2014 Berlin Asong. All rights reserved.

144
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Strategy Execution

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What is strategy-execution?
Understanding the distinction between strategy-execution and strategy.
Understanding the distinction between strategy-execution failure and strategy failure.
Why strategy execution is a critical activity of organisational success?
What are the causes of strategy-execution failures?
How can the quality of strategy-executions be improved?

Published in: Business, Travel
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  • Dear Sir , thank you for your informative material on execution .This is by far the best I have seen . Are are kind enough to send me a copy in ppt form ? My email is : focusontee@yahoo.com
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  • Very educative presentation. Cud you send me a ppt version on cmd2812@gmail.com Thanks
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  • I am preparing a 4 hour talk on Execution, based on Charan/Bossidy book and came across your nice and thorought presentation on execution. Could it be possible for you to share your ppt. presentation. many thanks. Carlos Leiro.
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  • @marryleblond. Yes. Download a copy of the presentation from the 'save' link above the presentation. If you want the source file (i.e. PowerPoint file), write back to me, and include your email address. Thanks for the compliment.
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  • I came across your presentation by chance, and have to say that it is one of the best presentations I have seen in a long time, much less on the subject of strategy. If it's not a problem, would you be kind enough to share a ppt with me?
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Strategy Execution

  1. 1. STRATEGY EXECUTION
  2. 2. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 2
  3. 3. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 3
  4. 4. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Evaluation © 2014 Berlin Asong. All rights reserved. 4
  5. 5. Implementation is concerned with the efforts of… …translating strategies into actions on a daily basis. © 2014 Berlin Asong. All rights reserved. 5
  6. 6. "Walking" those plans— missions, goals, and operational programmes—is challenging. © 2014 Berlin Asong. All rights reserved. 6
  7. 7. Walking those plans has been 'unexpectedly' difficult for some firms. © 2014 Berlin Asong. All rights reserved. 7
  8. 8. Wal-Mart's failed foray in the German grocery market. © 2014 Berlin Asong. All rights reserved. 8
  9. 9. GM woes in the years leading up to its 2009 bankruptcy. GM’s Former CEO Rick Wagoner © 2014 Berlin Asong. All rights reserved. 9
  10. 10. After failing to make a profit since it entered the US grocery market in 2007, Tesco is exiting. Picture source: gourmetretailer.com © 2014 Berlin Asong. All rights reserved. 10
  11. 11. Amongst its woes, is Yahoo!’s inability to execute. © 2014 Berlin Asong. All rights reserved. 11
  12. 12. It remains to be seen if Merissa Mayer, former Google exec, now Yahoo CEO can turnaround the company. Picture: fastcompany.com © 2014 Berlin Asong. All rights reserved. 12
  13. 13. …the digital camera inventor filed for bankruptcy in January 2012, after losing its competitiveness to rivals. © 2014 Berlin Asong. All rights reserved. 13
  14. 14. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 14
  15. 15. What’s the distinction between strategy failure & strategy-execution failure? © 2014 Berlin Asong. All rights reserved. 15
  16. 16. Simplistically… © 2014 Berlin Asong. All rights reserved. 16
  17. 17. Strategy Strategy-Execution Content Process What © 2014 Berlin Asong. All rights reserved. How 17
  18. 18. Strategy-Execution Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation PROCESS CONTENT Strategy Strategy Implementation Strategy Evaluation © 2014 Berlin Asong. All rights reserved. 18
  19. 19. However… …there’s a strong link between strategy and strategy-execution. © 2014 Berlin Asong. All rights reserved. 19
  20. 20. CONTENT Strategy Strategy-Execution (SE) Mission Vision Goals | Objectives Strategic Analysis Strategy influences SE. Strategic Choices Strategy Implementation Strategy Evaluation © 2014 Berlin Asong. All rights reserved. 20
  21. 21. Strategy Strategy-Execution (SE) A poorly thoughtA poorly executed out strategy affects strategy affects the the performance of performance of strategy. SE. © 2014 Berlin Asong. All rights reserved. 21
  22. 22. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 22
  23. 23. Strategy Failure Strategy-Execution Failure …is a poorly …is a failed strategy. executed strategy. © 2014 Berlin Asong. All rights reserved. 23
  24. 24. The failure of a strategy could be traced to its execution. © 2014 Berlin Asong. All rights reserved. 24
  25. 25. Did you notice “failed strategy” & “poorly executed strategy” share a common feature? © 2014 Berlin Asong. All rights reserved. 25
  26. 26. FAILURE © 2014 Berlin Asong. All rights reserved. 26
  27. 27. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 27
  28. 28. Why strategy execution is a critical activity of successful organisations? © 2014 Berlin Asong. All rights reserved. 28
  29. 29. 1 To be successful, you must execute. Source: iredellrunners.com © 2014 Berlin Asong. All rights reserved. 29
  30. 30. No matter how great your idea is, if you can’t execute it, you’re not different from someone without an idea. © 2014 Berlin Asong. All rights reserved. 30
  31. 31. 2 Strategy execution… …is a measure of firm’s future performance. © 2014 Berlin Asong. All rights reserved. 31
  32. 32. 26.06.2012 NASDAQ Failure to execute… …has seen blackberry maker RIM lost 87% market value. © 2014 Berlin Asong. All rights reserved. 32
  33. 33. 26.06.2012 NYSE Failure to execute… …has seen Nokia lost 85% market value. © 2014 Berlin Asong. All rights reserved. 33
  34. 34. 3 Resources are wasted when firms fail to execute or execute poorly. Mission Vision Goals | Objectives Strategic Analysis Strategic Choices Strategy Implementation Strategy Evaluation © 2014 Berlin Asong. All rights reserved. 34
  35. 35. 4 Leadership performance is increasingly measured by ability to execute. © 2014 Berlin Asong. All rights reserved. 35
  36. 36. Take a look at all the CEOs (FTSE 100 & S&P 500) who’ve lost the top job, from 2008–2012. Reason: strategy execution failure. © 2014 Berlin Asong. All rights reserved. 36
  37. 37. Nam Yong (LG) Chris DeWolfe (MySpace) Rick Wagoner (GM) Jerry Y (Y ang ahoo!) Carol Bartz (Y ahoo!) Olli-Pekka Kallasvuo (Nokia) Leo Apotheker (HP) Jim Balsillie and Mike Lazardis (RIM) Fred Hassan (Schering Plough) © 2014 Berlin Asong. All rights reserved. Etc. 37
  38. 38. 5 People come to work to get the job done. © 2014 Berlin Asong. All rights reserved. That is, to execute on the firm’s strategy. 38
  39. 39. Therefore, strategy execution… …is the sum of all the jobs done inside the firm, and by its partners. © 2014 Berlin Asong. All rights reserved. 39
  40. 40. 60% In fact, it’s reported that… of strategy-executions fail annually. Kaplan, R. S. and Norton, D. P. (2006), "Creating the Office of Strategy Management”. [Online] Available from http://hbswk.hbs.edu/item/5420.html [accessed 22 February 2009] © 2014 Berlin Asong. All rights reserved. 40
  41. 41. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 41
  42. 42. 30 minutes Why? 60% of strategy-executions fail annually. © 2014 Berlin Asong. All rights reserved. 42
  43. 43. © 2014 Berlin Asong. All rights reserved. HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business Review 88, no. 7/8: 74-75. Business Source Corporate, EBSCOhost 43
  44. 44. Markets Strategy © 2014 Berlin Asong. All rights reserved. Fault the Strategy. 44
  45. 45. Strategy is out of sync with changing market’s needs and expectations. © 2014 Berlin Asong. All rights reserved. 45
  46. 46. …by the time Kodak realised digital camera, especially in the consumer electronics space, was the future of digital photography, it was too late. © 2014 Berlin Asong. All rights reserved. 46
  47. 47. Tata Nano launched in 2009 has been dubbed a flop. © 2014 Berlin Asong. All rights reserved. 47
  48. 48. India car boss Ratan Tata admits Tata Nano “mistakes”. Source: BBC (January 2012) © 2014 Berlin Asong. All rights reserved. 48
  49. 49. © 2014 Berlin Asong. All rights reserved. Fault the strategymakers. 49
  50. 50. 2010: HP acquired Palm… © 2014 Berlin Asong. All rights reserved. 50
  51. 51. …a bid to challenge Apple’s iPad, and fend-off threat to HP’s PC sales. © 2014 Berlin Asong. All rights reserved. 51
  52. 52. 18 August 2011— HP’s Apotheker discontinued TouchPad after 2 months in market. © 2014 Berlin Asong. All rights reserved. Former HP CEO Leo Apotheker 52
  53. 53. Strategy-makers spend more time in designing the content of strategies than thinking how to implement them, successfully. © 2014 Berlin Asong. All rights reserved. 53
  54. 54. Why managers are good at formulating strategies but poor at executing them? © 2014 Berlin Asong. All rights reserved. 54
  55. 55. 15 minutes Why? © 2014 Berlin Asong. All rights reserved. 55
  56. 56. 1 Top executives mistakenly think strategy execution is meant for those at the lower end of the organisational chart. © 2014 Berlin Asong. All rights reserved. 56
  57. 57. 2 Executives are less skilled and lessknowledgeable in the art& scienceof strategy execution. © 2014 Berlin Asong. All rights reserved. 57
  58. 58. Countless strategies are designed without taking into account the organisation’s ability to execute them. David Hilliard, “Strategy Execution – Acting on what really matters”. © 2014 Berlin Asong. All rights reserved. 58
  59. 59. Managers are trained to plan, not execute. Hrebiniak, (2004) “Strategy Execution is the Key” © 2014 Berlin Asong. All rights reserved. 59
  60. 60. …this thinking is promoted by business educators. © 2014 Berlin Asong. All rights reserved. 60
  61. 61. 3 Purpose & benefits of strategic plans are not (or poorly) conveyed to employees, teams and frontline staff. © 2014 Berlin Asong. All rights reserved. 61
  62. 62. The chances are, 40% of your workforce can’t articulate the details of the firm’s strategy. © 2014 Berlin Asong. All rights reserved. 62
  63. 63. Employee resistance may stem from lack of understanding caused by failure of top management to articulate the merits of strategic plans. © 2014 Berlin Asong. All rights reserved. 63
  64. 64. Content of marketing plan, not simplified for easy understanding. © 2014 Berlin Asong. All rights reserved. 64
  65. 65. 4 Poor management of stakeholders’ expectations. © 2014 Berlin Asong. All rights reserved. 65
  66. 66. Employees Investors Suppliers/distributors Consumers Organisation Government/Regulators © 2014 Berlin Asong. All rights reserved. Communities 66
  67. 67. © 2014 Berlin Asong. All rights reserved. Fault Structural Factors. 67
  68. 68. Not assigning clear responsibilities and accountabilities. Who is responsible for What? Are they equipped enough to carry out the what? © 2014 Berlin Asong. All rights reserved. 68
  69. 69. Individuals | T eams | Departments | Suppliers T | Goals asks Who is responsible for What? Are they equipped enough to carry out the what? Skills | Knowledge | Information | authority | equipment | support | motivation © 2014 Berlin Asong. All rights reserved. 69
  70. 70. Inter & intra-divisional tensions a major contributor to its crippling performance in the 70s & 80s. © 2014 Berlin Asong. All rights reserved. 70
  71. 71. © 2014 Berlin Asong. All rights reserved. 71
  72. 72. Fault © 2014 Berlin Asong. All rights reserved. employees. 72
  73. 73. Strategy-implementation introduces… CHANGE . © 2014 Berlin Asong. All rights reserved. 73
  74. 74. Why employees resist change? © 2014 Berlin Asong. All rights reserved. 74
  75. 75. 1 Unaware of need for change. © 2014 Berlin Asong. All rights reserved. 75
  76. 76. HBR (2010), "How Hierarchy Can Hurt Strategy Execution." Harvard Business Review 88, no. 7/8: 74-75. Business Source Corporate, EBSCOhost © 2014 Berlin Asong. All rights reserved. 76
  77. 77. The chances are, 40% of your workforce can’t articulate the details of the firm’s strategy. © 2014 Berlin Asong. All rights reserved. 77
  78. 78. 2 People feel more comfortable with their existing environment. © 2014 Berlin Asong. All rights reserved. 78
  79. 79. 3 Psychological insecurity. © 2014 Berlin Asong. All rights reserved. 79
  80. 80. Implementation of a strategic plans introduces… CHANGE …which sometimes exposes the psychological , insecurity of employees. For example,… © 2013 Berlin Asong. All rights reserved. 80
  81. 81. Would I lose my job? Would my duties change? © 2014 Berlin Asong. All rights reserved. 81
  82. 82. Would I lose my existing privileges? © 2014 Berlin Asong. All rights reserved. 82
  83. 83. Would resources be diverted away from my unit to other units? © 2014 Berlin Asong. All rights reserved. 83
  84. 84. Would I have to learn new skills? © 2014 Berlin Asong. All rights reserved. 84
  85. 85. 4 Inadequate support from top management. © 2014 Berlin Asong. All rights reserved. 85
  86. 86. 5 Internal and external stakeholders challenge or are bent on thwarting the execution of marketing plans. © 2014 Berlin Asong. All rights reserved. 86
  87. 87. © 2014 Berlin Asong. All rights reserved. Fault process factors. 87
  88. 88. 1 Implementation is ill-timed. © 2014 Berlin Asong. All rights reserved. 88
  89. 89. 2 Strategy-execution’s phases are poorly designed, disjointed or not clearly thought-out. Phase One © 2014 Berlin Asong. All rights reserved. Phase Two Phase Three 89
  90. 90. 3 Source: http://jagoadvisor.com Bold but unrealistic plans in terms of goals, resources needed, timescale of achievement, and responsibilities assigned to individuals, teams and managers. © 2014 Berlin Asong. All rights reserved. 90
  91. 91. 4 Lack of execution strategy. How do we ensure success? © 2014 Berlin Asong. All rights reserved. 91
  92. 92. 5 Lack of/invalid systems to track & measure the performance of strategic plans. © 2014 Berlin Asong. All rights reserved. 92
  93. 93. "People do not do what you expect but what you inspect". © 2014 Berlin Asong. All rights reserved. 93
  94. 94. 20 minutes Excellent delivery of customer services is a cornerstone of BT’s current marketing strategy. What mechanism or measures would you put in place to ensure and monitor excellent service delivery? © 2014 Berlin Asong. All rights reserved. 94
  95. 95. 6 Implementation phase is delayed, rushed or killed too early. © 2014 Berlin Asong. All rights reserved. 95
  96. 96. Was the TouchPad killed too early? © 2014 Berlin Asong. All rights reserved. 96
  97. 97. Financial Constraints. © 2014 Berlin Asong. All rights reserved. 97
  98. 98. Lack of sufficient funding Source: www.romania-insider.com © 2014 Berlin Asong. All rights reserved. 98
  99. 99. Dysfunctional Strategic Partnerships. © 2014 Berlin Asong. All rights reserved. 99
  100. 100. Relationship breakdown with business partners (manufacturer, resource/service provider, distributor, advertising agency, regulator, community, etc.). © 2014 Berlin Asong. All rights reserved. 100
  101. 101. External Factors Beyond the Control of Strategy-Makers. © 2014 Berlin Asong. All rights reserved. 101
  102. 102. 1 External factors beyond the control of marketing planners and implementers. PESTEL forces. © 2014 Berlin Asong. All rights reserved. 102
  103. 103. 2 Lack of contingency planning against foreseen & unforeseen market shifts & shocks. © 2014 Berlin Asong. All rights reserved. 103
  104. 104. © 2014 Berlin Asong. All rights reserved. Failure to Learn. 104
  105. 105. Failure to learn from past execution mistakes and challenges. © 2014 Berlin Asong. All rights reserved. 105
  106. 106. 12 Dysfunctional organisational culture. © 2014 Berlin Asong. All rights reserved. 106
  107. 107. Learning Objectives I. What is strategy-execution? i. Understanding the distinction between strategy-execution and strategy. ii. Understanding the distinction between strategy-execution failure and strategy failure. II. Why strategy execution is a critical activity of organisational success? III. What are the causes of strategy-execution failures? IV. How can the quality of strategy-executions be improved? © 2014 Berlin Asong. All rights reserved. 107
  108. 108. IMPROVING THE QUALITY STRATEGY-EXECUTION OF © 2014 Berlin Asong. All rights reserved. 108
  109. 109. How can we improve the quality of strategy execution? © 2014 Berlin Asong. All rights reserved. 109
  110. 110. There are many tools for improving the quality of strategy execution, but the McKinsey 7s trumps other models. …diagnostic value; wholly integrative parts; mirrors the causes of strategy-execution failures. © 2014 Berlin Asong. All rights reserved. 110
  111. 111. © 2014 Berlin Asong. All rights reserved. 111
  112. 112. Source: McKinsey © 2014 Berlin Asong. All rights reserved. 112
  113. 113. Shared values Organisation’s mission & guiding beliefs. © 2014 Berlin Asong. All rights reserved. 113
  114. 114. Diagnostic Questions What’s the mission of the organisation? What are the values of the organisation? What values does the organisation uphold? Is the organisation living up to its values? Are those values constraining or enabling the effectiveness of the 6S? What are the medium & long-term goals of the organisation? What are the effects of its goals on staff morale & well-being? Are the organisation’s values in sync with customers & the larger society? Are employees, shareholders, divisional units, etc. aligned with its goals? What do people (customers, shareholders, employees, management, suppliers, etc.) say about the organisation? Is the organisation meeting its goals? Etc. © 2014 Berlin Asong. All rights reserved. 114
  115. 115. Strategy The means by which the firm achieves its strategic goals. © 2014 Berlin Asong. All rights reserved. 115
  116. 116. Diagnostic Questions How does the organisation compete? What’s the organisation’s competitive priorities? What is the rational behind the strategy? Does the strategy fit the organisation’s operating environment? How does the strategy fare with current and future competitive forces? Are crucial processes and resources aligned with the strategy? What are its medium-term & long-term goals? What strategic trade-offs has the firm made? What position does the organisation occupy in its industry? Is the strategy working? Etc. © 2014 Berlin Asong. All rights reserved. 116
  117. 117. Structure The way work is divided; authority and responsibility are defined. © 2014 Berlin Asong. All rights reserved. 117
  118. 118. Breakdown strategy-execution into specific tasks or jobs attached with SMART goals. Chunks of goals © 2014 Berlin Asong. All rights reserved. Overall Strategy 118
  119. 119. Diagnostic Questions How does the organisation organise itself (functional, geographic, divisional, product, hybrid)? What’s the rational for such structures? How’s the organisation structure evolved over the years? And why? How is power distributed in the organisation? Which person or group wields the stronger influence? And why? Is power centralised or decentralised? Is the management flexible or rigid? Does the structure enable or hinder the performance of employees? How quick or slow does the organisation respond to outside changes? Are roles and responsibilities clearly defined? Etc. © 2014 Berlin Asong. All rights reserved. 119
  120. 120. Eliminate barriers to knowledge sharing among employees, managers and departments. © 2014 Berlin Asong. All rights reserved. 120
  121. 121. Systems The processes (decision-making, HRM, marketing, customer service, manufacturing, distribution, IT, security, risk management, etc.) that define how the strategy would be achieved. © 2014 Berlin Asong. All rights reserved. 121
  122. 122. Diagnostic Questions Which processes are crucial to the organisation’s ability to compete? Which processes are crucial to the organisation’s ability to deliver value for customers? Does the organisation possess the processes vital for its survival? How does the organisation track the performance of these processes? How effective are these processes? Etc. © 2014 Berlin Asong. All rights reserved. 122
  123. 123. Staff Quality, quantity & morale of employees; role of external stakeholders. © 2014 Berlin Asong. All rights reserved. 123
  124. 124. Diagnostic Questions Has the organisation got the right quality & quantity of talents? Has it got the right leadership? Has it got the right quality and quantity of leaders? Are staff well trained & motivated? Is the organisation losing talents to rival firms? Is the organisation extracting the right level of productivity from staff? Is the HRM aligned with goals & strategy of the organisation? Etc. © 2014 Berlin Asong. All rights reserved. 124
  125. 125. Stakeholder Mapping High Definitive Stakeholder Demanding Stakeholder Dominant Stakeholder Discretionary Stakeholder Interest Low High Power Low Adapted from Mitchell, R. K., Agle, B. R. & Wood, D. J. (1997), “Toward A Theory Of Stakeholder Identification And Salience”. Journal of Academy of Management, vol. 22, no. 4, pp. 853-886 © 2014 Berlin Asong. All rights reserved. 125
  126. 126. Stakeholder Mapping High Primary Stakeholder Primary Stakeholder Secondary Stakeholder Secondary Stakeholder Interest Low High © 2014 Berlin Asong. All rights reserved. Power Low 126
  127. 127. Stakeholder Mapping High Keepthem highlysatisfied. Keepthemsatisfied. Keepthem informed. Monitorthem. Interest Low High © 2014 Berlin Asong. All rights reserved. Power Low 127
  128. 128. Identify & involve the right people. © 2014 Berlin Asong. All rights reserved. 128
  129. 129. Planners must articulate purpose of strategic plans; listen to divergent views; listen to employees’ concerns. © 2014 Berlin Asong. All rights reserved. 129
  130. 130. Top managers must set an enabling culture that encourages, reinforces and rewards collaboration. © 2014 Berlin Asong. All rights reserved. 130
  131. 131. Leverage the benefits of information communication technologies to speed Knowledge sharing. © 2014 Berlin Asong. All rights reserved. 131
  132. 132. Planners must equip, support and motivate employees to produce desirable behaviours necessary for successful implementation. © 2014 Berlin Asong. All rights reserved. 132
  133. 133. Individuals | T eams | Departments | Suppliers T | Goals asks Who is responsible for What? Are they equipped enough to carry out the what? Skills | Knowledge | Information | authority | equipment | support | motivation © 2014 Berlin Asong. All rights reserved. 133
  134. 134. Build bridges among teams, departments & divisions. © 2014 Berlin Asong. All rights reserved. 134
  135. 135. Style Organisational culture, behaviour, image; leadership or management style. © 2014 Berlin Asong. All rights reserved. 135
  136. 136. Diagnostic Questions What’s the dominant culture inside? What values does the organisation uphold? How has the organisation inherited its current values? What do people like and dislike about the organisation? And why? Are the organisation’s values in sync with customers & the larger society? What’s the prevailing management/leadership style in the organisation? Is the management/leadership style enabling or constraining employee performance? Do employees trust the integrity of the board & top management? What do people inside & outside say about the management/leadership? What do people inside & outside say about the organisation? Etc. © 2014 Berlin Asong. All rights reserved. 136
  137. 137. Directive style © 2014 Berlin Asong. All rights reserved. 137
  138. 138. Coercive style © 2014 Berlin Asong. All rights reserved. 138
  139. 139. Consultative style © 2014 Berlin Asong. All rights reserved. 139
  140. 140. Participative style © 2014 Berlin Asong. All rights reserved. 140
  141. 141. Skills The capabilities & competencies vital for successful strategy execution. © 2014 Berlin Asong. All rights reserved. 141
  142. 142. The 7 elements combined to create a network of capabilities vital for successful strategy execution. © 2014 Berlin Asong. All rights reserved. 142
  143. 143. Diagnostic Questions What’s the organisation good at? What are the relative strengths of the organisation? What are the relative weaknesses of the organisation? Whatresources/competencesareresponsibletotheorganisation’scurrentperformance? What assets have been (& will be) crucial to the organisation’s survival? Has the organisation got the capabilities to survive today & tomorrow? What do stakeholders like about the organisation? Etc. © 2014 Berlin Asong. All rights reserved. 143
  144. 144. © 2014 Berlin Asong. All rights reserved. 144
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