The New Leaders




       Annual Conference
       Jeroen De Flander
TiasNimbas Tilburg, 29 March 2011
1. What is strategic innovation & strategy execution?

2. What’s the problem?

3. Why do you need Strategy Execution Heroes?

4. HR needs to join the battle against the strategy
   tourists

                          “Don’t measure performance by what you
                         have accomplished, but by what you should
                         have accomplished within your capabilities.”
A process?      A tool?     A management style?




A philosophy?   A culture?       A mystery?
What’s the biggest car-renting company in the world?
Location       Airports                        Downtown
Marketing      Travel Agents                   Mechanics & insurance
Delivery       Airport Parking lots            Home pick-up
Drop off       Airport                         Home
Organisation   Centralised                     Decentralised
Segment        Business & pleasure travelers   Car replacement
Age cars       Mainly new                      High average age
Fee            high                            Low


Within the same industry, Enterprise combines activities in the value chain
 in a different way to provide benefits to a different customer segment
_ 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
1. Did you know that companies loose between 40 to 60% of
   their strategy during implementation?
   Harvard Business Review


2. 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
1.   Strategy Focus
2.   Strategy Communication
3.   Initiative Management
4.   Individual Objective Setting
5.   Skilled Managers
6.   Engaged People and Performance-Driven Culture
7.   Performance-Related Pay
8.   Support for Managers
                              “Don’t measure performance by what you
                             have accomplished, but by what you should
                             have accomplished within your capabilities.”
“Initiative management is the spot
where strategy translates into practice
         or remains on paper forever”
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 allocation

2.   Strategic projects lack transparent accountabilities
     _ 1 in 4 managers: responsible for key strategic projects?
     _ 79% of all managers find the project accountabilities unclear
3.   Mismatch between project portfolio and strategy
     _ 1 in 5 projects fail to support the strategy
     _ 85%: mismatch between project portfolio and strategy
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 allocation



2. Strategic projects lack transparent accountabilities
     _ 1 in 4 managers: responsible for key strategic projects?
     _ 79% of all managers find the project accountabilities unclear

3.   Mismatch between project portfolio and strategy
     _ 1 in 5 projects fail to support the strategy
     _ 85%: mismatch between project portfolio and strategy
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 allocation
2.   Strategic projects lack transparent accountabilities
     _ 1 in 4 managers: responsible for key strategic projects?
     _ 79% of all managers find the project accountabilities unclear


3. Mismatch between project portfolio and strategy
     _ 1 in 5 projects fail to support the strategy
     _ 85%: mismatch between project portfolio and strategy
“Don’t tell people to be an execution
hero. Rather, help them to develop
the right skills and encourage them to
adopt the right attitudes that lead to
sound strategy execution.”


        What are the skills you need?
    Which attitudes create sound execution?
“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.”
PowerPoint fanatic                        From PowerPoint to practice

Do as I say, not as I do                  Actions speak louder than words

We need to start from scratch             Let’s see what works

I’m too important to focus on execution   Execution is my priority
1   Demystify strategy
2   Create an simple execution framework
3   Build the right skills in the right way
4   Don’t assume a ‘Yes’ is always a ‘Yes’
5   Simplify
6   Get rid of the strategy tourists
1 Demystify strategy




                       _ Remember the old Martini commercial. Ideas can
                         come from ‘Anybody, Anywhere, Anytime’.
                       _ Communicate the current strategy


                       _ Build, communicate and manage an easy strategy
                         framework stick to it.
                       _ Avoid strategy ‘blah blah’ and get rid of the strategy
                         tourists

                       _ Part of development program
                       _ But more important: try it / do it. Not wait until you
                         are...
2 Create a simple execution framework
2 Create a simple execution framework




“A strategy Execution framework
should be simple, easy-to-communicate
and visually strong”
3 Build the right skills in the right way




1.   No company-wide view on skills development
2.   Too much at once
3.   Assumed that senior managers meet the skills standard
4.   Successful development isn’t clearly understood
5.   Development starts before the process is clear
6.   All efforts goes into the development of a few skills
7.   Too expensive
8.   Average quality trainers and coaches
3 Build the right skills in the right way




         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

                                                                                23
4 Don’t assume a ‘yes’ is always a ‘yes!’




                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
                                          or
I’m against the strategy, don’t want to implement but I don’t tell it in your face
5 Simplify




  So...      _ Would you like to introduce something that worked
               very well in your former company?
             _ Would you like that everyone implements the
               models you have designed?
             _ Do you get a kick out of complex theoretical models?
             _ Do you know what already exists?
             _ Did you think about creating something completely
               new?
             _ Have you tested it?
             _ Did you decide that integration was needed?
             _ Never thought about eliminating ‘dead wood’?
6 Get rid of the strategy tourists
Jeroen De Flander is a seasoned international
Strategy Execution expert, top executive coach,
seminar leader and highly regarded keynote speaker.
Jeroen has helped more than 15,000 managers in 20
countries master the necessary execution skills. His
book, Strategy Execution Heroes, reached the
Amazon bestseller list in 5 countries.
He is co-founder of the performance factory – a
leading research, training and advisory firm which is
solely focused on helping individuals and
organisations increase performance through best-in-
class Strategy Execution.
For several years, he was the responsible manager
worldwide of the Balanced Scorecard product line for
Arthur D. Little – a leading strategy consulting firm.
The 50+ companies he has advised on various
strategy 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 a
strategy execution seminar for your company, please
contact him through his website /blog www.jeroen-
de-flander.com, email: jeroen@jeroen-de-
flander.com or Twitter:@JeroenDeFlander
The New Leaders

Strategy Execution Heroes - the new leaders

  • 1.
    The New Leaders Annual Conference Jeroen De Flander TiasNimbas Tilburg, 29 March 2011
  • 2.
    1. What isstrategic innovation & strategy execution? 2. What’s the problem? 3. Why do you need Strategy Execution Heroes? 4. HR needs to join the battle against the strategy tourists “Don’t measure performance by what you have accomplished, but by what you should have accomplished within your capabilities.”
  • 3.
    A process? A tool? A management style? A philosophy? A culture? A mystery?
  • 4.
    What’s the biggestcar-renting company in the world?
  • 5.
    Location Airports Downtown Marketing Travel Agents Mechanics & insurance Delivery Airport Parking lots Home pick-up Drop off Airport Home Organisation Centralised Decentralised Segment Business & pleasure travelers Car replacement Age cars Mainly new High average age Fee high Low Within the same industry, Enterprise combines activities in the value chain in a different way to provide benefits to a different customer segment
  • 6.
    _ What’s theindustry 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.
    1. Did youknow that companies loose between 40 to 60% of their strategy during implementation? Harvard Business Review 2. 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
  • 10.
    1. Strategy Focus 2. Strategy Communication 3. Initiative Management 4. Individual Objective Setting 5. Skilled Managers 6. Engaged People and Performance-Driven Culture 7. Performance-Related Pay 8. Support for Managers “Don’t measure performance by what you have accomplished, but by what you should have accomplished within your capabilities.”
  • 11.
    “Initiative management isthe spot where strategy translates into practice or remains on paper forever”
  • 12.
    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 allocation 2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear 3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  • 13.
    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 allocation 2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear 3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  • 14.
    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 allocation 2. Strategic projects lack transparent accountabilities _ 1 in 4 managers: responsible for key strategic projects? _ 79% of all managers find the project accountabilities unclear 3. Mismatch between project portfolio and strategy _ 1 in 5 projects fail to support the strategy _ 85%: mismatch between project portfolio and strategy
  • 15.
    “Don’t tell peopleto be an execution hero. Rather, help them to develop the right skills and encourage them to adopt the right attitudes that lead to sound strategy execution.” What are the skills you need? Which attitudes create sound execution?
  • 16.
    “Strategy Execution isn’tsomething 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.”
  • 17.
    PowerPoint fanatic From PowerPoint to practice Do as I say, not as I do Actions speak louder than words We need to start from scratch Let’s see what works I’m too important to focus on execution Execution is my priority
  • 18.
    1 Demystify strategy 2 Create an simple execution framework 3 Build the right skills in the right way 4 Don’t assume a ‘Yes’ is always a ‘Yes’ 5 Simplify 6 Get rid of the strategy tourists
  • 19.
    1 Demystify strategy _ Remember the old Martini commercial. Ideas can come from ‘Anybody, Anywhere, Anytime’. _ Communicate the current strategy _ Build, communicate and manage an easy strategy framework stick to it. _ Avoid strategy ‘blah blah’ and get rid of the strategy tourists _ Part of development program _ But more important: try it / do it. Not wait until you are...
  • 20.
    2 Create asimple execution framework
  • 21.
    2 Create asimple execution framework “A strategy Execution framework should be simple, easy-to-communicate and visually strong”
  • 22.
    3 Build theright skills in the right way 1. No company-wide view on skills development 2. Too much at once 3. Assumed that senior managers meet the skills standard 4. Successful development isn’t clearly understood 5. Development starts before the process is clear 6. All efforts goes into the development of a few skills 7. Too expensive 8. Average quality trainers and coaches
  • 23.
    3 Build theright skills in the right way 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 23
  • 24.
    4 Don’t assumea ‘yes’ is always a ‘yes!’ 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 or I’m against the strategy, don’t want to implement but I don’t tell it in your face
  • 25.
    5 Simplify So... _ Would you like to introduce something that worked very well in your former company? _ Would you like that everyone implements the models you have designed? _ Do you get a kick out of complex theoretical models? _ Do you know what already exists? _ Did you think about creating something completely new? _ Have you tested it? _ Did you decide that integration was needed? _ Never thought about eliminating ‘dead wood’?
  • 26.
    6 Get ridof the strategy tourists
  • 27.
    Jeroen De Flanderis a seasoned international Strategy Execution expert, top executive coach, seminar leader and highly regarded keynote speaker. Jeroen has helped more than 15,000 managers in 20 countries master the necessary execution skills. His book, Strategy Execution Heroes, reached the Amazon bestseller list in 5 countries. He is co-founder of the performance factory – a leading research, training and advisory firm which is solely focused on helping individuals and organisations increase performance through best-in- class Strategy Execution. For several years, he was the responsible manager worldwide of the Balanced Scorecard product line for Arthur D. Little – a leading strategy consulting firm. The 50+ companies he has advised on various strategy 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 a strategy execution seminar for your company, please contact him through his website /blog www.jeroen- de-flander.com, email: jeroen@jeroen-de- flander.com or Twitter:@JeroenDeFlander
  • 28.