13-steps to successful strategy implementation

Organisations, both government and private, are recognising that achieving their strategy outcomes requires a framework which integrates a broad base of typically disparate internal processes.

The development of strategy is often undertaken by a relatively small group within the organisation, typically consisting of senior executives and strategic planners, and often supported by large external consulting resources. However, as observed by Professor Robert Kaplan, founder of the balanced scorecard approach, a plan is just a plan until it is implemented. Repeated surveys show that often less than 20% of organisations effectively implement their strategy plan and achieve the desired results.

Strategy implementation requires the engagement of all managers and employees within the organisation and depends on creating a ‘strategy-focussed’ environment. This requires a coordinated set of cross functional activities and the deployment of a number of supporting tools.

Key components of successful strategy implementation include:

1)????? Developing strategic themes and creating strategy maps that operationalise the strategy plan into key business objectives including desired outcomes and drivers of those outcomes

2)????? Uncovering the key value adding processes and aligning these to an optimised business model and organisational design

3) Establishing a process to cascade objectives to departments to align departmental objectives with the wider strategy

4)????? Setting 90-day work packets that ensure urgency and ‘agile’ delivery of the plan

5)????? Establishing a framework for identifying and prioritising key strategic initiatives

6)????? Reviewing and aligning employee performance management and development to deliver better alignment of personal goals and raise employee engagement and commitment.

7)????? Aligning workforce planning to the strategy – both in terms of numbers and potentially changing skills needs

8)????? Establishing a new framework for budgeting (OPEX and CAPEX) where strategic expenditure is clearly delineated from ‘business as usual’ cost management

9)????? Building a framework of strategic KPIs to monitor strategic progress

10)?? Redesigning strategic performance reporting to address ‘key business questions’ underpinning the strategy

11)?? Developing a new framework for executive monthly and quarterly review meetings

12)?? Building a communication plan that constantly reinforces strategic priorities throughout the organisation

13)?? Establishing a Strategy Management Office to coordinate the diverse activities of strategy implementation and provide a business analysis function in support of the executive team.

Many organisations fail to recognise the breadth of work required to deliver on the above. In many organisations, there simply isn’t a coordinating function with the mandate to deliver on these diverse process areas. Consequently, strategy implementation fails as the overarching process becomes fragmented and lacks the discipline of integration between these various process activities.

Designing an effective end-to-end strategy process requires identifying an appropriate tool-set that can support the components listed above and then treating the implementation as the ultimate, overarching organisational strategic initiative.

For more information, contact Nigel Penny on Whatsapp at +44 7460563036, or email: [email protected] ?

The author: Nigel Penny is a strategy and performance management consultant with over 35 years international experience. He works globally with major private and public sector clients and has undertaken consulting assignments in over 35 separate countries. He is an ex-partner at KPMG and ex Vice President of Balanced Scorecard Collaborative. He runs workshops in strategic planning providing both training and strategic intervention consulting.13