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2011 strategy conference strategy to execution - final 2

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2011 strategy conference strategy to execution - final 2

  1. 1. The Role of Leadership in Translating Strategy to Execution Mason Holloway • October 5, 2011October 5–7, 2011 SHRM 2011 Strategy Conference
  2. 2. AgendaWhere are we now and how do we fail?The 4 C’s of executionCapturing the performance lossQ&A and Wrap-up ©SHRM 2011 2
  3. 3. How Important is it?The Institute for Corporate Productivity study, the Top TenCritical Human Capital Issues of 2011: 1. Leadership development 2. Succession planning 3. Strategy execution/alignment 4. Managing/coping with change 5. Talent management. 6. Innovation and creativity 7. Performance management 8. Knowledge retention 9. Engagement 10. Coaching ©SHRM 2011 3
  4. 4. How is Strategy Like a Promise Unfulfilled? ©SHRM 2011 4
  5. 5. Strategy – Where we go Wrong 37% Average Performance Loss = white) Section Title (12 point Arial; color 7.5% Inadequate or unavailable resources 5.2 % Poorly communicated strategy 4.5% Actions required to execute not63% clearly defined (no clear outcomes)Average Realized 4.1% Unclear accountabilities forPerformance execution 3.7% Organizational silos and culture blocking execution 3.0% Inadequate performance monitoring 3.0% Inadequate consequences or rewards for failure or success 2.6% Poor senior leadership 1.9% Uncommitted leadership 0.7% Other obstacles (including * Harvard Business School Publishing, 2005 inadequate skills and capabilities) ©SHRM 2011 5
  6. 6. 9 out of 10 Strategies Fail!©SHRM 2011 6
  7. 7. The Four C’s of Strategy ExecutionClarifyCommunicateCascadeConfirm ©SHRM 2011 7
  8. 8. The First C - ClarifyClarifying the Strategy is made up of two important parts: • Testing your strategy • Aligning your strategy ©SHRM 2011 8
  9. 9. Clarify - Test your Strategy Does your strategy fit with (and support): Your mission? Does the strategy support the story of “what you do?” Your vision? Does it tell the story of where want to go? Your values? Does it honor who you are (including the market and employee perspectives)?©SHRM 2011 9
  10. 10. Align with your Mission, Vision and Values Past Performance Current Performance Predicted PerformanceVision How has the workforce How closely does our current What will the workforce need to translated the vision into strategy support our vision? do with the strategy in the future action in the past? to align more closely with the What factors prevent better vision (In performance terms)? Where have the disconnects alignment? occurred? Should the Vision be Does the new strategy enable updated/modified to reflect future How have you addressed this the vision to resonate in the trends? in your new strategy current market and workforce?Mission How has our mission been How does our performance What effect will modifying our carried forward or been against our current strategy mission (if the new strategy changed by our past align with our mission? requires it) have on the strategies? workforce? How will disconnects be dealt with in the new strategy?Business How well has our workforce How well is our workforce What can (or should) be changedModel executed strategy within our aligned to drive the strategy (either business model or business model? within our current business workforce) to drive greater model? success given the new strategy? ©SHRM 2011 10
  11. 11. Align with your Human Performance CapabilityAlign Human Performance to your Strategic Plan in 3 Steps:STEP Identify Performance STRENGTHS that you can Leverage Identify and include key performers from high performing functions in the planning process Get input on how their performance could support or extend opportunities to drive toward the organizational goals and vision.STEP Look for performance gaps that if closed would create opportunity Focus on answering the question: if this performance gap were closed, what incremental or even transformational opportunities would become possible? (e.g new initiatives based on excess capacity.)STEP Identify performance capability that does not currently exist, but is necessary for successfully executing the strategy ©SHRM 2011 11
  12. 12. The Second C - CommunicateOn your mark… Get set… GO!! ©SHRM 2011 12
  13. 13. Communicate your StrategyHow are strategic decisions are being made?By small senior group, including CEO or 52 equivalent With formal strategic planning process 23 By business unit leaders 11 By CEO or equivalent 10 By sector leaders 2 By frontline employees 1 % respondents1 Other 11All data weighted by GDP of constituent countries; respondents who answered ‘don’t know’ are not shown; figures sum to 100% because of rounding.Source: July/Aug 2006 McKinsey Quarterly survey of business executives ©SHRM 2011 13
  14. 14. Communicate to the HeadIs “telling” enough? We have to educatePeople throughout the organization mustunderstand the ‘What, Why and How’ of thestrategy. ©SHRM 2011 14
  15. 15. Communicate to the HeartWhat does the strategy MEAN to me?What will change?How will it affect me?What should I fear?What should I look forward to? ©SHRM 2011 15
  16. 16. Communicate to the Hands What is the call to action?What do we want them to do? EXACTLY? ©SHRM 2011 16
  17. 17. The Third C - Cascade©SHRM 2011 17
  18. 18. Cascade - From Vision to Reality Convert your Strategic Vision into Capability in 3 Steps:STEP Identify Priority Plans • Consider the overall vision and strategy as well as the strategic vision or your organization. • Document the top 3 initiatives that your organization must achieve in order to accomplish the strategy..STEP Move from Initiative to Goal • Determine and set goals that would naturally help you accomplish the Initiatives you identified. • For each of the initiatives, identify 2 goals that, if achieved, would drive results and lead to achievement of the initiative.STEP Clarify and Align • Ensure that yours are specific, measurable, and can be easily and clearly communicated and understood. • Align to team performance capabilities using an approach like Performance DNA to assess. ©SHRM 2011 18
  19. 19. Cascade – Identify and Prioritize Use a brainstorming and prioritization approach to translate your strategy into initiativesBrainstorm Affinitize Prioritize Align & Assign Priority #1 Owner: Results needed: Performance resources: Measurement: Contribution to Goal: Governance ©SHRM 2011 19
  20. 20. Cascade – Move to Initiatives Make your initiatives measureable with goals and success descriptors Goals That Lead to How will I know if we are How will I know this (result Plan Achievement successful? described in previous column) has occurred?Initiative #1 Goal #1 Goal # 2Initiative #2 Goal #1 Goal # 2Initiative #3 Goal #1 Goal # 2 ©SHRM 2011 20
  21. 21. Cascade – Make your Goals Real Link your goals to current capability  Identify gaps  Assign owners Goal Critical Team If Yes, Key Team Capabilities Members Members to Support (Human with Right This Goal Performance) Capabilities (* indicates lead) Available?Goal #1: Yes NoGoal #2 Yes No ©SHRM 2011 21
  22. 22. Cascade – Goals to Outcomes Link your goals to measureable outcomes  Identify measurable outcomes at the individual level  Identify measurement criteria Goal Key Team Member Outcomes Measurement Identified Required for Criteria Goal AchievementGoal #1: ©SHRM 2011 22
  23. 23. The Fourth C - Confirm“However beautiful the strategy, youshould occasionally look at the results.”- Winston Churchill ©SHRM 2011 23
  24. 24. Confirm your StrategyConfirm your strategy in two parts by: • Measuring the impact of your strategy • Monitoring the ongoing progress of initiatives ©SHRM 2011 24
  25. 25. Measure and Monitor• Monitor progress toward your strategic objectives• Measure the achievement of outcomes for initiatives ©SHRM 2011 25
  26. 26. Capturing the Performance Loss 37% Average Performance Loss = white) Section Title (12 point Arial; color 7.5% Inadequate or unavailable resources 5.2 % Poorly communicated strategy 4.5% Actions required to execute not63% clearly defined (no clear outcomes)Average Realized 4.1% Unclear accountabilities forPerformance execution 3.7% Organizational silos and culture blocking execution 3.0% Inadequate performance monitoring 3.0% Inadequate consequences or rewards for failure or success 2.6% Poor senior leadership 1.9% Uncommitted leadership 0.7% Other obstacles (including * Harvard Business School Publishing, 2005 inadequate skills and capabilities) ©SHRM 2011 26
  27. 27. Questions?©SHRM 2011 27
  28. 28. Wrap up Mason Holloway, DirectorCONTACT Beacon Performance Group www.beaconassociates.net mholloway@beaconassociates.net 443-995-4797 ©SHRM 2011 28

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