Strategy execution is the process of turning an idea into tangible results to achieve business goals and objectives. It is the last step in the broader strategy creation process. You begin by discovering your organization needs change, devising a plan of how this will take place, and then you implement this plan. While this may seem like a simple process, strategy execution can be a lot more complex in reality.
Creating a strategy is comprehensive and holistic. Strategies typically comprise many moving parts, combined with the understanding of how these parts come together to generate results. Having that understanding is the difference between a bad strategy, and a good one.
We’ve all been there before. You have a brilliant idea that works seamlessly on paper. When it comes to implementing it, you recognize the strategy needs to change or it can’t progress in the way you envisioned. Perhaps there were external factors that weren’t accounted for in your original plan, or circumstances have impacted your plan in ways you didn’t expect. There are also other common reasons that strategy execution fails.
Lack of clarity
Without defining explicit goals and objectives for your strategic initiative, you won’t have clarity over what you’re trying to achieve. This means any efforts or activities will lack focus and direction, making it harder to bring positive change.
Resources
Not understanding your available resources can also cause a strategy to fail. Careful consideration of the skills and tools you have internally will strengthen your plan, ensuring that goals and objectives are attainable.
Risk management
Risks are always present in every activity — but how you manage them is a contributor to success. By undertaking regular risk analyses, understanding your organization’s risk appetite, and how you mitigate identified risks, you will be better prepared to overcome these hurdles should they arise.
No internal support
Good strategy execution is the responsibility of various stakeholders and employees, not just an individual. Without support from fellow team members, executing the strategy can be cumbersome, with vital parts of the plan not getting as much attention as they deserve.
Poorly defined boundaries
It can be very easy to get swept up in the excitement of new ideas — even when you’re already deep into planning your strategy. To make sure your active strategy is getting the required focus, you need to define boundaries. You need to progress at the expected rate while simultaneously keeping your BAU activities afloat. Setting boundaries will keep your strategy execution on track.
There are several frameworks that depict the critical components of strategy execution. Typically, they comprise the following four components, known as the 4 A’s.
When creating your strategy, it’s imperative that you factor in these four elements. Build and integrate them into your strategy plan. This will give you a better idea of whether your strategy is feasible, and hopefully highlight any issues ahead of execution.
A good strategy needs to be cohesive, with the different components working together in harmony. This varies from traditional frameworks to styles of working. Bear these in mind for when you’re planning your next strategic initiative.
Key performance indicator (KPI) tracking
Regularly tracking your KPIs will highlight positive progress, or if adjustments need to be made to the strategy. By doing this at set intervals throughout your strategy execution, this allows you to gain frequent insight and maintain a level of control. If there are issues, you will be able to quickly identify process improvements, optimizations, and maximize efficiency.
Breakthrough objectives
Breakthrough objectives are used in Hoshin Kanri, by helping to maintain focus on impact that drives change. These are long-term stretch goals that are built around change and innovation. Your objectives should encourage stakeholders and employees to push your strategy further. Limit the number of set breakthrough objectives so efforts can be easily prioritized.
Execution discipline
If you are not disciplined in your execution efforts, this could cause your execution to fall behind or progress in an unexpected direction. The end-to-end process of strategy must be managed, from planning through to implementation. Having a clear list of priorities to follow will ensure everyone is working to achieve the same goal.
Consistency
Being consistent with your strategy (for example, following a tried and tested process) will help you to build a system that is repeatable, disciplined, and agile. This also includes taking a proactive approach to strategy efforts and moving away with ad hoc activities.
Frameworks to structure strategy execution
Strategy creation and execution is often a long and resource-intensive process — requiring strict coordination and collaboration to ensure progress. Using frameworks to structure your strategy execution can help to keep team members accountable, focused, and the entire process organized.
Hoshin Kanri
Hoshin Kanri helps to achieve strategic alignment by encouraging understanding and ownership of individual roles and responsibilities. It is a seven step process that correlates strategic goals and objectives with planned activities. The X-matrix is particularly useful in strategy execution as it visually displays the relationships between tactics and strategy, and how they contribute to your goal.
Objectives & key results (OKRs)
OKRs create strategic alignment and offer a structured way to convert your strategy into defined goals — with built-in flexibility and adaptability. It is a simple framework, easy to use, and won’t over complicate your strategic initiatives. OKRs can be adjusted as your strategy evolves, and will help stakeholders and employees to quickly understand priorities, what needs to be achieved, and how you will measure progress.
Balanced scorecard
Balanced scorecards are another option for building strategic alignment — focusing on the relationship between daily activities (tactics) and larger activities or projects (strategy). It demonstrates to employees how parts of the plan interact and contribute to your end goal, bringing clarity to the process.
You can build your execution engine several different ways, depending on your preferred methodologies or what resources you have available to you. However, you should always try to include proven frameworks to help you maintain structure and focus throughout the strategy process.
If you prefer a traditional approach, you can create multiple documents using built-in software (like Microsoft Office or Google Suite), use tooling that you already have in-house, or bring it all together using a specialized digital tool, like Workbench.
Workbench is purpose built for strategy execution. It combines different tools and methodologies, like the X-matrix and KPI tracking, to help you easily move from planning to implementation. It offers owner-assigned project plans to keep team members across your organization accountable, ensuring they each understand their individual role and contribution. Breakthrough and other objectives are clearly defined, cascaded, and measured throughout the project to avoid miscommunications and bring transparency to your activities. Workbench simplifies strategic alignment, allowing you to execute your strategy with precision and agility.
Strategy is about so much more than having a plan. It’s understanding its nuances, the potential for change, and how you overcome challenges to execute on that plan. Having strong situational awareness throughout the strategy lifecycle will guide your actions, helping you to make informed decisions and achieve the desired results. By using proven frameworks, and additional tooling (if you need!), your strategy will be structured and focused, providing you with a solid foundation for your future initiatives.