Simply put, 60% of strategies are not successfully implemented in business. The irony to this figure is that strategy execution is often rated as the number one or number two challenging issue facing corporate business today.

Managers will generally define strategy execution as the “successful implementation of a strategic plan” or “working to see the strategy completed in an organization”. Either of these definitions is valid though they do not help in understanding what strategy execution is.

Execution speaks to a core set of processes that will affect a company’s people, strategy and operations. These three points were first promoted in business by Larry Bossidy (retired CEO) and Ram Charan (management consultant) as a discipline in exposing reality and act on it.

Strategy Execution, to take it one step further, is a system of implementing these processes to help organizations realize their planned goals. Robert Kaplan (Harvard Business School) and David Norton (Palladium Group) noted that Strategy Execution can be outlined in six stages for a business.

1. Develop the strategy

2. Plan the strategy

3. Align the organization

4. Plan operations

5. Monitor and learn

6. Test and adapt

The former strategy execution plan offered up by Bossidy and Charan was seen as too simplistic by many businesses. The Strategy execution sequence laid out by Kaplan and Norton gained a large following but due to the 26 sub-activities involved, it was seen by many businesses as too complex to manage.

While there is no perfect solution to completing strategy execution, a combination of the above models outlined has shown its best promise. The following steps below are the result of this combination.

Strategy Visualization

One of the key challenges to business is understanding what the strategy is. Illustrating the strategy is an effective way to explain the important elements of the strategy and how each relates to each other. Strategy Map by Kaplan and Norton is used as a good example of this.

Strategy Measurement

Easily understood performance measures are identified in the key elements of the visualized strategy. From here, you will have a dashboard, a balanced scorecard or other framework in place for the reader to determine whether there has been progress made toward completion or notify of a shortfall.

Strategy Progress Reporting

Treat strategy reports the same way as budget reporting. Schedule regular intervals to review with an eye toward results versus controlling performance.

Strategy Decision Making

No amount of planning will foresee every event as your execution is underway. In coordination with regular reporting, assessing the environment and making course corrections along the way as conditions change will still be required. Keeping the strategy current and corrections implemented will be based on decisions made by the reporting stakeholders.

Strategy Projects Identified

Given the fact that corporations have many projects running concurrently, it is critical to have these captured as part of the strategy plan as well as the focus on any individual strategy execution plans running in a line of business that may impact or be impacted by the execution of the larger execution delivery.

Strategy Projects Aligned

Once captured, these strategy projects must be aligned. Only the ones directly impacting the overall strategy should then be resourced and continued.

Managing Projects Strategy

Executing strategy effectively is the result of assigning or enlisting a project management central office or officer to control and coordinate responsibility to monitor and report progress on each.

Strategy Communication

Executing strategy properly only works well when it is communicated and understood from all levels of the organization. Leaders must communicate the visualized plan to their workforce and make time to answer questions so they may understand not just the ‘how’, but also the ‘why’ the strategy execution is being done.

Strategy to Align Individual Goals

It is critical for this stage to be completed. Senior leaders must ensure all employees can articulate their contribution and where their place is within the context of the Strategy Execution. If every employee understands their purpose and worth, their continued support for the change in business will grow long term.

Strategy of Rewarding Performance

In management, it is understood that what gets measured gets done. When looking at Strategy Execution, we can take this one step further to say that what gets measured and rewarded, gets done faster. Senior leaders must include and manage an institute of incentives with the goal to drive behaviors consistent with the strategy.

Summary

Strategy Execution is not an easily managed process and can be difficult to manage as a practice. While the above may not be a perfect solution for your business, it will serve as an excellent guide to base your company strategy execution plan on. The main impediment to seeing execution to completion is the fact that many leaders have little to no experience in how best to approach the concept of Strategy Execution.