You’ve identified that your organization needs to change, and have therefore invested a lot of time in building a strategy that will help you achieve your long-term goals. However, if you don’t have internal buy-in or alignment across your organization, this will hinder your strategy execution process.
Often, there is a gap between strategy formulation and execution. Strategy isn’t always effectively communicated across an organization and, without this communication, initiatives become unclear in their purpose — and internal resources may be used ineffectively.
Alignment forms a large part of strategy. If you don’t all share the same vision, or aren’t all working towards the same ultimate goal, your execution efforts could be in vain. Ensuring there is strategic alignment on what you’re working towards brings a common purpose among those involved. Activities and initiatives will be tailored to maximize both productivity and efficiency, plus there will be better understanding around what is possible to aim for.
Main types of strategy distribution
There are two main methods used for distributing a strategy across an organization. Both are designed to help individuals and teams achieve their tactical objectives that contribute to the overall success of a broader strategy, and are effective in designing various types of strategy including goal setting, budgeting, and financial forecasting.
Top-down
The top-down approach typically starts with a general idea (the “macro” level) which becomes more specific (“micro” level) as the plans progress. It can also refer to the way a strategy is formulated, being defined by senior stakeholders and c-suite, which is then filtered down to lower levels of management throughout the organization.
Using a top-down alignment to cascade your strategy can remove any confusion surrounding a strategy and associated activities, reduce risk by using facts and figures to drive action plans, and keep the entire process organized. It is generally viewed as more comprehensive, and ensures that strategy is aligned to overall goals and the direction the organization wants to head in, with everyone involved accountable for their own contributions. Top-down also supports resource allocation as senior teams will have better overarching visibility of the various capabilities within the business.
Bottom-up
Bottom-up strategy distribution is the opposite to top-down: it begins in the lower levels of the organizational hierarchy and is passed up to senior stakeholders. It is typically seen as more democratic, as ideas are formed by teams or smaller groups of employees, and encourages collaboration across different departments and seniorities.
This approach depends on open communication, but it builds consensus among team members, and increases buy-in and employee engagement when used correctly, as individuals have ownership of their own part in the strategy — which directly contributes to success. It allows a strategy to be agile, considering employee input when the strategy must suddenly change in a different direction, especially if employee feedback highlights unforeseen issues.
Which approach is right for my organization?
Both have different benefits and challenges — the approach you choose will depend on your current internal processes and organizational hierarchy. However, you can create a hybrid approach that is tailored to your needs to avoid the common issues (usually communication) that hinder strategic alignment.
Fragmented communication processes can make strategy distribution difficult, meaning it’s easy to fall behind on progress made with activities. Combining top-down management with bottom-up feedback will allow you to strive for more ambitious goals that are guided by the experiences and expertise of employees, encouraging open communication (therefore making your strategy more effective).
A hybrid approach also promotes strong cross-functional collaboration — enabling creativity in ideas and decision-making. This will boost employee morale, productivity, and instill a collective mindset towards success within your organization.
Strategy distribution: tools & techniques
Once you’ve decided the type of strategy distribution that best suits your needs, you need to then choose the right tools and techniques and define the activities that will support you in achieving your long-term vision.
Catchball process
The catchball process involves moving ideas and information from one person to another, as if you were throwing and catching a ball. It forms part of Hoshin Kanri methodology, and is often used in combination with a lean management style by encouraging dialogue between employees, ensuring objectives and roles are understood. It works best for complex initiatives that involve various departments.
Catchball begins with an individual defining or stating the purpose, objectives, ideas, or concerns that surround an initiative. These suggestions are shared in a public forum, and passed to others to receive feedback support and potential courses of action. This creates a feedback loop and enables you to make iterative adjustments to plans as you discover more information — ensuring that everyone who is able to provide input is able to.
X-matrix
Using the x-matrix can promote transparency, accountability, and continuous improvement within strategy execution. Usually, each department or business function will have their own x-matrix, with its clear visual layout ensuring there is complete clarity in communicating responsibilities. This also means there are no misunderstandings around the defined objectives.
It keeps varying levels of the business accountable for their role in strategy, by highlighting priorities and making it easier to track progress. Regular reviews encourage open communication about what’s working and what isn’t, and help to keep everyone aligned over the course of the project.
Bowling charts
Also known as bowler charts, these are used to track the performance of strategic objectives over a period of time. They are a simple, yet effective, visual aid that help build agility into strategy.
Bowling charts put a focus on performance, by demonstrating where performance is falling short and where resources may need to be reallocated. Regular progress reviews encourage accountability and open communication among individuals if they are not meeting objectives, leading to quicker resolution of issues in the future.
Action plans
Action plans clearly outline the strategy and translate the original ideas into defined next steps. They state the who, what, where, and when of a strategy which eliminates any confusion around strategy execution. These plans are usually decided following the catchball process and promote individual responsibility for contributions.
Collaborative techniques align employees, to ensure everyone is working towards the same goal, by removing siloes that can form between different teams and departments. This makes it easier, and more efficient, when cascading objectives. Not only do they encourage alignment between employees, but also the initiatives, activities, and overarching strategy.
Simplify strategic alignment
As mentioned slightly earlier, fragmented internal communication processes can slow down strategy deployment. A clear, well-structured approach to cascading strategy (whether top-down, bottom-up, or hybrid) supports alignment efforts across all levels of the organization. Complex strategies in particular require careful thought and consideration, and strong internal alignment to be most effective.
Feedback loops enable better, honest communication across business functions, but add no value when objectives are unclear or if feedback is received too late. Simplifying this process, and ensuring feedback focuses on improving strategic objectives, will benefit your agility and allow you to adapt swiftly to changes, capitalizing on growth opportunities.
Various tools and techniques (like Workbench) can support this process by centralizing strategy planning and execution, encouraging cross-functional engagement to improve the likelihood of strategic success.
