Strategy success is measured by its execution. In spite of the importance of strategy there are too many factors that are barriers to success. This presentation is focus on structural, organizational and personal factors that can impact the success of strategy implementation

1. Strategy Implementation
Presenter : Haim Srur
11 July 2015
SlideShare

2. Today’s Agenda
• Strategy formulation
• Strategy implementation
• Why strategy implementation fails?
• Strategy implementation models
• Best practices
2

4. WHAT IS STRATEGY
FORMULATION ?

5. Strategy Typology
5
Growth
Cost
LeadershipDiversification

6. Strategy Formulation Process
6
Define the
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

7. WHAT IS STRATEGY
IMPLEMENTATION ?

8. Achieve
Implement
Revised
Adapt
Strategy Implementation
This is a 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 the gap 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 is not a rocket
science,
it doesn’t mean
that it is easy
(xxx xxxx, 2001)

11. Reasons for strategy
Implementation Failure
10

12. A failure Phenomena
Employees at 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

13. Failure Causes
13
Strategy
related
External
factors
Internal
factors
Reasons

14. 1
2
Unclear strategy and conflicting priorities
Bad strategy/ poorly conceived
business models
Strategy Related

15. EXTERNAL FACTORS
R e a s o n s
1
2
Competition/Disruptive
Economics cycle/ down turn

16. Internal Factors
16
1
2
4
5
3
6
Translation of 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 successful strategy
Implementation
7

18. Components of Successful SI
18
Translation
Resource
allocation
Communication
Coordination
Successful
implementation
Adoption
StrategyFormulation
Execution

19. Components of Successful SI
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 Successful SI
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 Successful SI
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

22. Components of Successful SI

23. Components of Successful SI
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 Successful SI
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
for strategy implementation

26. 1
26
Implementation
never goes
according to plan
(Murphy’s law of strategy)

27. 27
2Create STOP To Do List
• STOP traveling
countries lists
• Review all approved
recruitments
• Be aware to
personal initiations

28. 28
3Review
THE POOREST PERFORMING
AREA OF LEADERS TODAY

29. 29
4Branding your strategy
Vision Conception
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
SEE FEEL CHANGE
ANALYZING THINK CHANGE
Is more effective than

31. 31
• Is bold but 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
New StrategyOld Strategy

34. 34
7
Engage
Alignment
Strategy
Clarification
Roles and
Expectations
Governance and
Decision Rights
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
Action in
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