Strategy Implementation Survey Results 2012

4,570 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,570
On SlideShare
0
From Embeds
0
Number of Embeds
718
Actions
Shares
0
Downloads
138
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Strategy Implementation Survey Results 2012

  1. 1. Bridges Business Consultancy Int Pte Ltd Strategy Implementation Survey Findings 2012Bridges Business Consultancy Int Pte Ltd ©
  2. 2. Introduction Ten years ago Bridges Business Consultancy Int Pte Ltd published its first research into the field of strategy implementation. Our most astounding statistic was that nine out of 10 implementations fail to be implemented successfully. This figure which was extracted by looking at the strategy goals and then measuring who achieved a minimum of 50% of the goals in the time allocated. In 2005 our first few years research, along with our client experience, contributed to our international best seller, Bricks to Bridges – Make Your Strategy Come Alive. We now bring you our 10th year of research with some startling responses. It has involved online responses for the first time as well as over 130 interviews. The majority of organizations have over 10,000 employees and their headquarters are predominantly in the US and Singapore. 62% of the companies were Multi Nationals (MNCs), 21% were from the Public Sector and 17% were local companies. The main industry this year was from IT followed by Financial Institutions, Government and Pharmaceutical. The main participants in the survey were middle and senior managers with a handful of supervisors.Bridges Business Consultancy Int Pte Ltd ©
  3. 3. Executive Summary The pressure on companies over the last few years has forced many to revisit their strategy and vision. This is resoundingly supported in that almost all the companies interviewed were developing a new strategy or vision, mission and values or both. 80% of leaders feel their company is good at crafting strategy but only 44% at its implementation and only 2% are confident that they will achieve 80-100% of their strategy’s objectives. Most leaders allocate more time to implementing strategy than creating it and an overwhelming number believe that their bonus should be linked to the successful implementation of the strategy. 70% of leaders spend less than one-day a month reviewing strategy. We asked this question this year for the first time and the result is disappointing (but not surprising) as we hoped it would be higher. Leaders believe that only 5% of employees have a basic understanding of the company strategy which again is disappointing but consistent with other organization’s research. It is encouraging that almost two-thirds of the companies link their budget to the strategy.Bridges Business Consultancy Int Pte Ltd ©
  4. 4. Executive Summary (Cont’d) The top three toughest implementation challenges leaders perceive are: 1. ensuring staff members take different actions or demonstrate different actions 2. aligning implementation to the company’s culture 3. gaining people’s support Aligning implementation to the company’s culture is a surprise as the second highest challenge as it was not previously a top concern among leaders in our research. Middle management continue to be the biggest area or resistance compared to staff members and leaders.Bridges Business Consultancy Int Pte Ltd ©
  5. 5. Strategy Implementation Survey Findings 2012Bridges Business Consultancy Int Pte Ltd ©
  6. 6. 1. Please tick the initiatives your organization has been engaged in, in last two years. You can tick more than one box. 140 120 100 80 60 Others included: 40 • Patient Safety and Quality 20 • Virtualisation of existing 0 services. • Information Security System • Sales and customer support • Market Intelligence The majority of companies who participated in the survey are developing a new strategy and/or Vision, Mission and Values. The Balanced Scorecard continues to be a popular management tool but quality initiatives have dramatically reduced since we started the survey 10 years ago and customer service is less of a focus this year.Bridges Business Consultancy Int Pte Ltd ©
  7. 7. 2. How do you define strategy? • An action plan for the future. • A road map for success, a plan for the future resulting in success. • A systematic method, approach to achieve the mission and goals set out. • Choices made now that should lead the organization towards its vision and fulfil its mission. • Plan to bridge between desired future state and a current non-ideal state. • As a vehicle to execute on vision, values, mission. • Having a clear view of outcome being sought with a roadmap to successful implementation/adaption. • A clearly particulate and how we are going to get there in key focus areas. • An action/direction embraced by corporation to position it in a stronger to meet its mission, vision or values. As there is no globally agreed definition of strategy and we took the opportunity to ask leaders their definition. We received almost a different definition for every survey and the most popular response by far was explaining it as a plan of action for the future of the organization.Bridges Business Consultancy Int Pte Ltd ©
  8. 8. 3. How do you define strategy implementation? • Action to achieve the strategy. • How an action plan is drawn out. • Plan to achieve our objective. • Communicating and getting by on the strategic plans and objectives, measuring outcomes and adjusting accordingly. • Strategy translated into action. • It is the use of tools and methods (actions) to achieve goals set. Example: balanced scorecard. • To make/work out the planned plan. • Action to drive initiatives. • To put into right action. • Action to move towards future state according to plan. • The defined steps and measurements of the roll out of strategy. Similar to the previous question we also asked for a definition of strategy implementation and we received various responses. The majority were around actions to achieve the strategy.Bridges Business Consultancy Int Pte Ltd ©
  9. 9. 4. Do you think your company is good at developing 5. Do you believe your company is good at strategy? implementing strategy? 20% 80% Yes 44% Yes No 56% No There is a disparity between leaders believe that there company is good at developing strategy and its ability to execute the strategy. Only half the leaders who believe their company can craft a good strategy have confidence in the execution.Bridges Business Consultancy Int Pte Ltd ©
  10. 10. 6. Do you believe that implementing a strategy requires 7. In your experience, approximately what more time than crafting strategy? percentages of a strategys objectives that are set at the start are successfully met on completion of the execution? 2% 80-100% Yes 60-79% No 98% 40-59% 20-39% Less than 20% 0 10 20 30 40 50 60 Almost all those interviewed believe implementation requires more time than it take to create a good strategy and shockingly only 2% of leaders are confident that they will achieve 80-100% of their strategy’s objectives.Bridges Business Consultancy Int Pte Ltd ©
  11. 11. 8. How much time does your leadership team spend a 9. Do you believe a leaders bonus should be linked to month discussing strategy (as against operations) in the successful implementation of the strategy? leadership meetings? 4% More than two weeks Between one to two weeks Yes 4-6 days a month No 2-3 days a month 96% Less than one day a month Less than one hour a month 0 20 40 60 80 70% of leaders spend less than one-day a month reviewing strategy and an overwhelming number believe that their bonus should be linked to the successful implementation of the strategy.Bridges Business Consultancy Int Pte Ltd ©
  12. 12. 10. What percentage of the work force do you feel 11. To what extent does your CEO stay involved in have at least a basic understanding of the company implementing strategy after it is crafted? strategy and can explain it? 80-100% 60-79% 80-100% 40-59% 60-79% 40-59% 20-39% 20-39% Less than 20% Less than 20% 0 20 40 60 80 0 10 20 30 40 50 Leaders believe that only 5% of employees have a basic understanding of the company strategy. Most of the time the CEO stays involved in the implementation after it is crafted.Bridges Business Consultancy Int Pte Ltd ©
  13. 13. 12. Please rank the list below the top three toughest implementation challenge with 1, 2 and 3. Aligning the implementation to your companys culture Gaining peoples support across the whole organization Measuring implementation Rank 3 Changing rewards & recognition Rank 2 Acquiring customer feedback Support of senior management Rank 1 Implementing process changes Communicating change Ensuring staff members take different actions or desmonstrate different behaviors 0 10 20 30 40 50 The top three toughest implementation challenges leaders perceive are (1) ensuring staff members take different actions or demonstrate different actions (2) aligning implementation to the company’s culture and (3) gaining people’s support.Bridges Business Consultancy Int Pte Ltd ©
  14. 14. 13. From question 12 please explain why you have selected the number 1 item as the toughest challenge for implementing strategy. Verbatim comments: • Putting into action and getting support to support strategy. • People working in the organization is often the greatest obstacle, and yet the most important resource necessary, to make the strategy "happen". • If the staff thinks the current processes/actions behaviours are good they wont want to change to different ones. • As the organization is huge, the communications role needs to be tightened. People dont want to change. • Need to reach out to large no. of staff who may be too far remote to understand these "highbrow" corporate strategies. • Company has many different types of experts. • Without management support, nothing move.Bridges Business Consultancy Int Pte Ltd ©
  15. 15. 14. Where do you feel the greatest resistance 15. Do you craft the strategy and link the annual come from in an organization to a strategys budget to it or vice versa? execution? Top Management Middle Managers Front-line 12% 36% Craft the strategy and 32% then link the annual budget to it 64% 56% Set the budget with little or no reference to the strategy Middle Management is the highest resistor to executing the strategy and almost two- thirds of companies link the budget to the strategy.Bridges Business Consultancy Int Pte Ltd ©
  16. 16. 16. How many people are there in your organization? 17. Which category does your organization belong to? More than 10,000 Local 5001 to 10,000 17% 1001 to 5000 Multi-National Public Sector 501 to 1000 21% Corporation (MNC) 301 to 500 62% 51 to 300 11 to 50 Less than 10 0 10 20 30 40 50 60Bridges Business Consultancy Int Pte Ltd ©
  17. 17. 18. Where is your organizations headquarters? Country 52 45 9 7 9 5 5 2 3 2 2 1 1 1 1 1 1 1 1 1 1 1 19. Which country are you based in? Country 43 19 16 15 17 10 7 7 2 1 1 1 3 1 1 1 1 1 1Bridges Business Consultancy Int Pte Ltd ©
  18. 18. 20. Which industry sector best describes your organization? Other *Healthcare - 9 *Agriculture Business - 7 Other *Insurance - 6 Energy and Utilities *Defence/Security - 2 Life Sciences/ Pharmaceutical *Design Centre Telecommunications *Professional Business Services Retail *Manufacturing *Military Electrical *Training Manufacturing Legal Government/ Ministry FMCG IT/ Computing Oil and Gas Banking/ Finance 0 10 20 30 40 50 60 Industry SectorBridges Business Consultancy Int Pte Ltd ©
  19. 19. 22. How will you best describe your position in 23. What is the annual revenue of your the organization? organization? (in US dollars) Annual Revenue (in USD) Supervisor Less than Middle Management Team 5% US$500,000 11% US$500,001 to Top Management Team 10% US$1,000,000 54% US$1,000,001 to Board Member 20% US$5,000,000 CEO/ President/ Managing US$5,000,001 to Director US$100,000,000 More than Others US$100,000,000 0 20 40 60 80 100 Others: • Director • General Manager • Group HR Manager • Individual Professional • Consultant For further information please contact: bridges@bridgesconsultancy.com or call +6568860123Bridges Business Consultancy Int Pte Ltd ©

×