What are the best tools and methods to monitor and evaluate your strategy execution?

Here's a truth few leaders are willing to acknowledge, much less address: The gap between strategy and execution cannot be solved with a new tool, template or message track. The question every leader should ask every day is simple: Do I have enough strategists at the ready to revolutionize our strategy work? Asking non-strategists to implement a strategy is a surefire way to deliver subpar results. Focus, first and always, on activating, training and supporting strategists. All strategy--from development to execution--then flows from there.

The strategy execution gap arises from several factors: 1. Strategies not clearly communicated lead to misunderstandings. 2. Disconnect between goals & daily activities affects execution. 3. Inadequate resources hinder strategy implementation. 4. Employees may resist new strategies due to various reasons. 5. Short-term goals often overshadow long-term strategic objectives. 6. Ineffective leadership can derail strategy execution efforts. 7. Ambiguous goals & undefined metrics make progress tracking difficult. 8. Market shifts or regulatory changes impact strategy execution unpredictably. Addressing these issues involves clear communication, alignment of goals, adequate resources, effective leadership, and adaptability to changes.

Of all the aforementioned causes, communication between different levels & across functions of the org is the most critical. Communications is used to define roles, delegate responsibilities, and establish accountabilities; communications builds consensus on the allocation of scarce resources, illuminates both strengths & gaps in capabilities; and is used to explain the incentives to support strategy execution. Finally, it breaks down the barriers of resistance & conflicting interests among stakeholders. Communications of existing & emerging risks and opportunities is critical to strategy development & execution as well. Senior middle managers are able to bridge these gaps since they operate in the space between the thinkers and doers.

Establish appropriate Key Results. Please do not confuse it with KRAs which is not same as KRs. Effective KRs will provide a clear insight on effectiveness of your strategy execution. All the initiatives that you identify as part of your strategic planning will explicitly demonstrate in the form of key results.

I recognize the complexity inherent in monitoring and evaluating strategy execution. The strategy execution gap can stem from various causes, ranging from lack of alignment and communication to unforeseen external factors. It's crucial to address these factors comprehensively, ensuring clear roles, adequate resources, and alignment across all levels of the organization. By considering these nuances, organizations can better navigate the challenges of executing their strategies and achieve their desired outcomes

I advocate for a dynamic approach to measuring the strategy execution gap—one that transcends mere metrics and embraces the intricacies of organizational dynamics. Beyond traditional frameworks like the balanced scorecard and KPIs, I emphasize the importance of qualitative assessments and contextual understanding. By delving deeper into the underlying factors driving execution challenges, such as cultural barriers, leadership alignment, and agility, organizations can gain invaluable insights into their strategy's effectiveness. Moreover, fostering a culture of transparency and accountability enables continuous learning and adaptation, empowering teams to proactively address gaps and seize opportunities for improvement.

In seeking to develop & execute a strategy of a particular goal in higher education, I've followed the lead of the venture capitalists. The Venture Capital Handbook by David & Laura Gladstone (Ch3) provides a framework for assessing the financial, operational, and strategic impact of an initiative & defining KPI's. I applied the framework in assessing Gettysburg College's partnership with the Gilder Lehrman Institute of American History to offer the College's first online Master's program. I applied the framework to lead a cross-divisional team of administrators to evaluate the feasibility of the program, our capability gaps, & setting financial goals & KPI's. The assessment took a few weeks to complete without external consultants.

Measuring the strategy execution gap involves tracking key performance indicators (KPIs) that align with the strategic objectives. Tools like Balanced Scorecard and OKRs (Objectives and Key Results) provide a framework for setting clear goals and tracking progress toward them. The Balanced Scorecard evaluates performance across four perspectives: financial, customer, internal processes, and learning and growth, ensuring that all aspects of the organization are aligned with the strategy. OKRs help break down the strategy into specific, measurable results, making it easier to see where execution may be falling short.

This is spot on. The only observation I would add is that all organizations should investigate the use of Vision Boards and apply the concepts of Design Thinking in defining strategy. These are powerful tools for building consensus, accountability, and amassing champions of change. Many hands make light work especially if you are all rowing in the same direction for the same goal. Excellent article on the principles underpinning strong strategy development and execution. Good luck everyone reading this. Feel free to give me a shout out with questions. Christopher Delaney

Employees in all levels of the organization must connect their own contribution to the overall objective in corporate strategy. If this connection is not clear, company will fail in executing it. Middle management plays a very important role in explaining and making this connection clear. Also setting up individual and teams objectives that connects both worlds is a key element to have strategy perpetuated and aligned throughout whole organization.

Closing the strategy execution gap demands a multifaceted approach that combines strategic clarity with operational agility. Leveraging tools like strategy maps offers a visual roadmap, aligning objectives and initiatives. Embracing the PDCA cycle fosters a culture of continuous improvement, enabling iterative refinement of execution strategies.

Closing the strategy execution gap requires improving communication, ensuring accountability, and using tools that allow for continuous monitoring and adaptation. Regular check-ins and progress reviews, using methods like Action Learning or Agile project management, can keep teams on track. Tools like Project management software (e.g., Asana, Monday.com) and data visualization platforms (e.g., Power BI, Tableau) allow teams to monitor execution progress in real-time and adjust course if needed. Additionally, adopting a feedback loop for constant evaluation helps address execution barriers early. Leadership should also foster a culture of accountability.