Strategy to Reality -- slideset SCOPI event

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Strategy to Reality -- slideset SCOPI event

  1. 1. How to translate strategy into measurable actions? Strategic Center for Organisational Performance Improvement Jeroen De Flander Jordan, 18 May 2011
  2. 2. 1. What is strategy & strategic innovation?2. Strategy execution: your next competitive advantage?3. Measuring strategy execution: KPI’s and more4. 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. _ What’s the industry we want to play in?_ Overall competitive rules?_ Industry trends?_ Competitive advantage resides in the value chain_ Redefine ‘the who’ and ‘the how’ in a certain industry_ A business model = combination of choices within the value chain to get and maintain this advantage_ Ability to find, grow and exploit competitive advantage
  7. 7. 1. … is a discipline of its own
  8. 8. 1. … is a discipline of its own2. … is a vast area with blurred borders
  9. 9. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity
  10. 10. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy
  11. 11. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start
  12. 12. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence
  13. 13. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance
  14. 14. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance8. … demands clear responsibilities
  15. 15. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance8. … demands clear responsibilities9. … requires horizontal alignment
  16. 16. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance8. … demands clear responsibilities9. … requires horizontal alignment10. … asks for measurement
  17. 17. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance8. … demands clear responsibilities9. … requires horizontal alignment10. … asks for measurement11. … is a resident
  18. 18. 1. … is a discipline of its own2. … is a vast area with blurred borders3. … is on its way to maturity4. … requires a great strategy5. … requires your attention from the start6. … has a strong timing sequence7. … should integrate organisational and individual performance8. … demands clear responsibilities9. … requires horizontal alignment10. … asks for measurement11. … is a resident12. … needs heroes
  19. 19. “However beautiful the strategy,you should occasionally look at the results” - Sir Winston Churchill
  20. 20. 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? “However beautiful the strategy, you should occasionally look at the results” - Sir Winston Churchill
  21. 21. 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.”
  22. 22. Skilled ManagersEngaged People &Performance-Driven CultureStrategy FocusIndividual Objective SettingSupport for ManagersPerformance-Related PayStrategy CommunicationInitiative ManagementExtract from the Strategy Execution Barometer
  23. 23. “Initiative management is the spotwhere strategy translates into practice or remains on paper forever”
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. _ 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.”
  28. 28. “Look beyond the send button and shift your focus to the receiving end”
  29. 29. 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)
  30. 30. 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)
  31. 31. 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)
  32. 32. “Future performance is born today…”
  33. 33. 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
  34. 34. 1 Performance 0+0=8
  35. 35. 1 Performance 0+0=8“A strategy Execution frameworkshould be simple, easy-to-communicateand visually strong”
  36. 36. 2 Knowledge is not enough
  37. 37. 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
  38. 38. 3 Simplify The best way to get me ANGRY! VERY ANGRY!! “Oh, but this action demands only 1 hour … every quarter … from each employee”
  39. 39. 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
  40. 40. 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’?
  41. 41. 4 Communicate your strategy Your strategy .. you told someone .. who told someone .. who told someone
  42. 42. 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?
  43. 43. 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
  44. 44. 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”
  45. 45. 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.
  46. 46. 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!
  47. 47. 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
  48. 48. 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
  49. 49. 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
  50. 50. 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.”
  51. 51. 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
  52. 52. 6 Grow leaders and capabilities
  53. 53. 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 61
  54. 54. 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
  55. 55. 250+ useful Actionable, up-to-date implementation tips benchmark informationJoin us on
  56. 56. Jeroen De Flander is a seasoned internationalStrategy Execution expert, top executive coach,seminar leader and highly regarded keynote speaker.Jeroen has helped more than 15,000 managers in 20countries 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
  57. 57. How to translate strategy into measurable actions?

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