Strategy Deployment sees your mission, vision and objectives cascaded throughout your organization and brought to life, but this can all too often be the first misstep for your business.
Written by: Deborah Biscomb, Head of Marketing
In Strategy Deployment, the journey is as important as the end-goal. Without a plan to achieve your strategic goals, and careful, effective execution of said plan, your organization will likely fall short.
To meet your strategic goals with consistency, you must consider your planning and execution. Every company has a strategy, but market leaders are defined by their ability to successfully deploy and execute their strategy. Unfortunately, the success rates leave considerable room for improvement.
A high strategy failure rate
Just 56% of strategies are successful as reported by PMI.
Many fail at the deployment stage, and this has a negative impact on the bottom-line and buy-in. Organizations that don’t align their business model with their strategy report consistently poorer financial results than their peers.
The investment in Strategy Deployment should be equal to, if not more than, the effort allocated to strategy planning. But, in The Balanced Scorecard, authors David Norton and Robert Kaplan note that 90% of organizations fail in Strategy Execution. Leaders must critically evaluate their path of choice, and the execution associated with it if there proves to be no correlation to bottom-line value.
The effort spent on researching, devising and producing a strategy is wasted too frequently.
Success is cultivated by culture
A successful strategy is created through millions of ‘little wins’. Sweating the small stuff pays off in the long-term, as every individual component and stakeholder plays a huge role in your wider victory.
Strategy is usually driven by senior management. Modern strategy leaders, however, recognize that every person contributes to meeting strategic goals. In these organizations, performance is measured on an ongoing basis, decisions are aligned with the strategy and efficiencies are optimized to achieve the best outcome.
An execution-oriented culture reigns supreme.
5 Strategy Deployment mistakes to avoid
Replicating the success of leading organizations isn’t inherently a difficult task. In fact, you can begin by avoiding the 5 Strategy Deployment mistakes that derail many organizations.
1) Failing to connect your strategy to operations
Top performing companies have devised ways of bridging the gap between strategy and operations.
To ensure success, leadership must cascade a strategy to every business unit and employee, down to a project level.
This must be tracked constantly to ensure the strategy is on-track and that people are working on the right things.
Every action must drive the strategic plan.
It’s worth considering how you communicate a strategy to each business unit and department head.
Strategy Deployment becomes easier when key managers are invested in it. Regular check-ins are essential, at least weekly, if not daily. This is none-more evident when multiple projects are running, as this will reduce the risk of a project going off-track or being delayed.
Ford's approach to communication
Former Ford CEO Alan Mulally understood this need when he took over the helm of the automotive company.
He implemented a weekly BPR (Business Plan Review) process for his leadership team. Held at the same time every week, attendance at the meeting was mandatory.
Each leader had to deliver status reports and updates on their business areas, giving an early indication of any delays or problems. Tracking performance in this way strengthened the bottom-line and ensured the strategy was being executed.
2) Overlooking assumptions
Every strategy is based on a set of assumptions. However, these are often ignored when a plan isn’t working, with managers forging ahead without course correction.
Once Strategy Execution is ruled out, double-check your underlying assumptions. Keep every option open when considering how to improve your performance.
Forming diverse project teams can help question assumptions and undercover biases that might impact your strategy.
This also requires feedback mechanisms to allow for quick communication with senior leadership to rectify discovered assumptions.
Strategic Assumptions Surfacing and Testing
SAST (Strategic Assumptions Surfacing and Testing) can also be used to question, define and decide on assumptions. This five-phase process relies on the following principles:
- Adversarial: the best way to test an assumption is to oppose it.
- Participative: resources and knowledge are distributed among a group of individuals.
- Integrative: a unified set of assumptions and an action plan are needed for decision-making.
- Managerial mind supporting: exposure to the assumption deepens a manager’s insight into an organisation and its strategy.
3) Poor governance
To reach a goal, you need to double-check your course and correct it when necessary.
Strategy must be conscientiously deployed, actively managed and its execution tracked. Investing in dashboards, establishing common KPIs, leading indicators and regular reporting is critical. It will help with decision-making, accountability, confidence and agility.
With your whole organization aligned, they can drive your strategy and connect their work to it.
Many organizations have become reliant on lagging indicators which fail to provide a full picture of performance. Your strategy cannot go forward if your organization is constantly looking back. Look for metrics that tell you where you’re going, such as the growth of your sales pipeline.
4) A lack of focus
Similarly, a lack of focus is a common Strategy Deployment mistake we’ve seen time and time again.
You must have the courage (and data) to end projects or initiatives that aren’t aligned with your strategy and that are holding you back. Focus on what’s important and streamline your resources.
Assessing your project portfolio is a continuous endeavor.
Question how important each project is to your strategy and how well they are progressing.
Your success hinges on the performance of many projects - make sure you’re working on the right ones.
5) Relying on outdated technology and tools
The deployment and execution of your strategy cannot be seamless if it’s reliant on clunky spreadsheets, siloed data and elbow grease.
Consider digitalizing your Strategy Deployment and make use of Strategy Execution software that can support you in ensuring that you deliver on your strategic needs and goals.
People are tired of seeing endless presentations, spreadsheets and emails.
It’s demotivating, slow and laborious to manage projects through these channels and important information can be rapidly buried.
Since reporting on progress using these tools is a very manual process it is difficult to stay ahead and understand where the real problems lay.
Strategy Execution software, such as i-nexus, can quickly surface relevant information such as project timelines and delays, KPIs, critical problems and goal performance. Allowing key stakeholders to see relevant information as and when needed.
Automation also removes a considerable amount of legwork from deploying your strategy, enabling you to focus on its deployment and, ultimately, its execution.
Not to be underestimated
The mechanics of Strategy Deployment are straightforward when your team, business and information are aligned. Focusing on these areas are as important as your strategic planning.
Developing an effective strategy will start your organization off well. Taking a considered approach to Strategy Deployment will power the rest of your journey. Don’t underestimate its contribution to your success.
What are the next steps?
The five Strategy Deployment mistakes detailed in this blog provide a small sampling of the issues surrounding successful Strategy Execution, but this is only one piece of the puzzle. To gain a wider understanding around Strategy Deployment, we've curated the content below:
- Assessing organizational capabilities: How do I know my goals will be delivered? Explore the importance of an organizational capabilities profile when it comes to executing your strategy.
- The Key to Strategy Execution: Uncover the benefits of excellent Strategy Execution, the organizations who have succeeded, and how your business can follow suit.
- Demo i-nexus: Witness how a Strategy Execution Platform can help your organization deliver on its strategic, operational and transformational goals.
About the author
Deborah Biscomb is i-nexus’ Head of Marketing. Deborah has wide-ranging experience of markets such as retail, manufacturing, financial services, public sector, telecommunications, energy and utilities, distribution and logistics. As Head of Marketing, her drive is to raise awareness and understanding of the challenges facing enterprises in controlling their strategy and driving superior results.