Strategy execution

536 views

Published on

Follow these four steps for effective strategy development and execution.

Published in: Leadership & Management
  • Be the first to comment

Strategy execution

  1. 1. Strategy development and execution Mike Innes E3Connect Ltd
  2. 2. Amazon has 40,000 books on business strategy
  3. 3. I’ve not read them all. But I believe the following is the essence of strategy development and execution.
  4. 4. To start - what strategy is not Mission or vision statement Collection of management buzz words Financial projection 100 page document to keep in a drawDeveloped by MD/CEO alone in the office
  5. 5. Business success is based on creating economic value Business costs Customers’ recognition of value, (what they will pay you) Economic Value=
  6. 6. Strategy is how companies create and sustain economic value Business costs Customers’ recognition of value, (what they will pay you) Economic ValueSTRATEGY
  7. 7. So what does strategy look like? Diagnosis of your situation Work out where you are now and what your challenges are.
  8. 8. So what does strategy look like? Diagnosis of your situation Clarity on business model Who (customers), What (products and value), How (Route to Market) What (Competitive advantage)
  9. 9. So what does strategy look like? Diagnosis of your situation Clarity on business model Prioritize key challenges and opportunities Decide what to do and what not to do.
  10. 10. So what does strategy look like? Diagnosis of your situation Clarity on business model Prioritize key challenges and opportunities Execution Why it matters, clear actions, and ownership
  11. 11. Diagnosis of your situation Markets Customers Competitors Capabilities Most used tools for analysis SWOT PEST Ansoff Porters 5 forces
  12. 12. Diagnosis is all about gathering data and making sense of your current business situation Get out in the market place, talk (and listen) to your customers, involve your whole business in the process. Identify your best opportunities, your major challenges, and your biggest threats.
  13. 13. Get clarity on your business model – Who, What and How Who do you serve? WHO Your customer segments and ideal customer profile.
  14. 14. Get clarity on your business model – Who, What and How Who do you serve What do you offer and how does it add value? WHAT is your value proposition – Why should customers buy from you?
  15. 15. Get clarity on your business model – Who, What and How Who do you serve How do you get to market? HOW Your Route to Market (how do customers access your solutions) and how do you communicate with your customers. What do you offer and how does it add value?
  16. 16. Get clarity on your business model – Who, What and How Who do you serve What do you offer and how does it add value How do you get to market What resources and activities will sustain competitive advantage What assets do you need and what capabilities do you need to deliver your value proposition? What is your competitive advantage?
  17. 17. Strategy is about making choices Pick any two Good FastCheap
  18. 18. Prioritize your key challenges and opportunities – choose between 3 and no more than 5 Are they the most important things to your business? Do they add value to your customers? Do they address the most critical challenges? Are they focused on a 2 to 4 year horizon? Are they a clear target rather than a vague intent?
  19. 19. Peter Drucker “Plans are only good intentions unless they immediately degenerate into hard work”
  20. 20. Execution – Develop and implement coherent action plans, based on your chosen 3 to 5 strategic priorities For each strategic objective What it is Clearly define the strategic objective, be specific. Why it matters and what success looks like Why is it important to focus on this priority, what impact will it have on your company when you succeed, how will it add value to your customers? Define the supporting initiatives What supporting projects must be delivered to support the overall objective. Key metrics to guide progress How will you track progress towards the objective. Focus on leading metrics rather than lagging metrics. Challenges to overcome Define the key external and internal challenges and constraints that need to be addressed. How will you create time and urgency? Ownership and first action steps Who will own the strategic priority and who will assist? What are the first actions that need to be taken over the next few months.
  21. 21. In summary - strategy is an iterative process to create and sustain economic value Diagnose Work out where you are now and what your challenges are.
  22. 22. In summary - strategy is an iterative process to create and sustain economic value Diagnose Work out where you are now and what your challenges are. Choose Decide what to do and what not to do.
  23. 23. In summary - strategy is an iterative process to create and sustain economic value Execute Why it matters, clear action steps to start, get individual commitment Diagnose Work out where you are now and what your challenges are. Choose Decide what to do and what not to do.
  24. 24. In summary - strategy is an iterative process to create and sustain economic value Execute Why it matters, clear action steps to start, get individual commitment Adjust Expect surprises, stay close to your customers, correct if necessary. Diagnose Work out where you are now and what your challenges are. Choose Decide what to do and what not to do.
  25. 25. Let me know if I can help Mike Innes E3Connect Ltd Insert photograph here Helping you define why your customers should buy from you. Creating compelling value propositions is a solid foundation for strategy development and execution www.mikeinnes.com

×