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Strategy implementation
The document presents a comprehensive overview of strategy implementation, covering its definitions, processes, and common failures encountered by organizations. Key reasons for failure are identified as poor communication, resource allocation issues, and unclear strategic goals, with statistics indicating that a vast majority of organizations struggle with effective execution. It also outlines components of successful implementation, best practices, and emphasizes the importance of engaging employees and aligning strategies with organizational culture.
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Strategy implementation
- 1. Strategy Implementation Presenter :Haim Srur 11 July 2015 SlideShare
- 2. Today’s Agenda • Strategy formulation • Strategyimplementation • Why strategy implementation fails? • Strategy implementation models • Best practices 2
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- 6. Strategy Formulation Process 6 Definethe business Create the business’s vision, mission & values Determine the key issues of the business Formulate the strategy Industry Eco system PESTEL model SWOT analysis Five forces model Target customers Competencies Competitive advantages Disruptive technology
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- 8. Achieve Implement Revised Adapt Strategy Implementation This isa process by which a business implements and revises the formulated strategy to adapt changes in order to achieve its goals (Anthony W. Ulwick)
- 9. Strategy Implementation Implementation is thegap between what a company promises to the results is actually achieve (Larry bossidy and Ram Charam, Execution, 2007) 75% 55% 25% 20% 25% 45% 75% 80% 1980 1992 2000 2010 Unexplained market value Explain Market Value
- 10. 10 If it isnot a rocket science, it doesn’t mean that it is easy (xxx xxxx, 2001)
- 11. Reasons for strategy ImplementationFailure 10
- 12. A failure Phenomena Employeesat 60% of the companies rated their companies as weak in strategic execution 5% of all organizations succeed; 70% of all fail and 25% of all have some middling success Of the strategic initiation fail to achieve their desired results Nielson, Martin & Powers, 2008 Harvard Business School Dr. Kotter 60% 75% 9/10
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- 14. 1 2 Unclear strategy andconflicting priorities Bad strategy/ poorly conceived business models Strategy Related
- 15. EXTERNAL FACTORS R ea s o n s 1 2 Competition/Disruptive Economics cycle/ down turn
- 16. Internal Factors 16 1 2 4 5 3 6 Translationof ideas into actions Failures in coordination Failures in resources allocation Adopting of new reward system Weak employee engagement Failures in risks, changes anticipation & management
- 17. Components of successfulstrategy Implementation 7
- 18. Components of SuccessfulSI 18 Translation Resource allocation Communication Coordination Successful implementation Adoption StrategyFormulation Execution
- 19. Components of SuccessfulSI 19 • Turning Ideas, Vision into workable plan, and metrics. • Each plan should be by unit, division, department, team and individual • The plan should include: • purpose-to remind the “WHY” • Outcomes – “WHAT” – goals, priorities, resources, milestones, team • Values – “HOW”- Translation Resource allocation Communication Coordination Adoption StrategyFormulation
- 20. Components of SuccessfulSI 20 • 65% of the companies failed to allocate the right resources – the reasons are: • Factors that related to quality of translation • Internal conflicts, bad planning • Resources dispute between units • Missing capabilities/ competencies derived from the new direction StrategyFormulation Translation Resource allocation Communication Coordination Adoption
- 21. Components of SuccessfulSI 21 • 95% of the employees in an organization typically are unaware of or do not understand the company’s strategy • Ensuring that all key employees are aware of and understand the “what”, “why”, “how”, “when” and “who” of the strategy • Internal communication campaigns: branding, briefing, meetings, discussion in groups, manuals Translation Resource allocation Communication Coordination Adoption StrategyFormulation
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- 23. Components of SuccessfulSI 23 • Passing on both responsibility and accountability to key personnel for a specific action or goal in the process • Making sure that everyone knows what to do in the strategy execution process is therefore also a key factor in the endeavor • 3 interdependencies Pooled Sequential Reciprocal Translation Resource allocation Communication Coordination Adoption StrategyFormulation
- 24. Components of SuccessfulSI 24 • Monitoring the process & making adjustments to the strategy, in order to create a better fit to the real world • Constantly be ready, willing and able to change parts of other entire strategy • Risks management Translation Resource allocation Communication Coordination Adoption StrategyFormulation
- 25. 7 Best practices forstrategy implementation
- 26. 1 26 Implementation never goes according toplan (Murphy’s law of strategy)
- 27. 27 2Create STOP ToDo List • STOP traveling countries lists • Review all approved recruitments • Be aware to personal initiations
- 28. 28 3Review THE POOREST PERFORMING AREAOF LEADERS TODAY
- 29. 29 4Branding your strategy VisionConception Design Production Launch Brand Strategy Create Campaigns • Have fun creating the branding • Involve employees and first line manager – It is not role of marketing department Rational and emotional • Combine rational messages with emotional images • Use social activities as a platform for a change
- 30. 30 Heart and Head SEEFEEL CHANGE ANALYZING THINK CHANGE Is more effective than
- 31. 31 • Is boldbut achievable • Paints a vivid picture of the future • Appeals to employees’ hearts (and minds) • Is specific enough to help individuals make decisions and trade-offs • Is flexible enough to adapt to changing conditions • Is easy to communicate quickly—in 60 seconds Extracted from J. Kotter articles 6 things that make a vision effective:
- 32. 32 5 Manage Change Step 8:incorporate change into culture Step 7: never let-up Step 6: generate short term wins Step 5: Empowered broad based action Step 4: Communicate the vision for buy-in Step 3: develop a change vision Step 2: create the guiding coalition Step 1: establish sense of urgency Create climate for change Engage and enable Implement and sustain
- 33. 33 6Measurement CHANGE YOUR STRATEGY, CHANGE YOUR MEASURES NewStrategyOld Strategy
- 34. 34 7 Engage Alignment Strategy Clarification Roles and Expectations Governance and DecisionRights Engagement Capability Value Proposition Development Talent Management Accountability Goals and Metrics Rewards and Recognition Performance Management
- 35. 35 Engagement Matrix Feel motivated by the message Taking Actionin concert with the message Heard the message Understand the message Heart Low High Mind HighLow
- 36. Thank You !We’d Love to Hear From You, Get In Touch With Us! 16 Shoham St., , Tel Aviv, Israel 69359 info@srur.net www. srur.net +972-54- 5225777 0773180189