Imperatives of a Great Strategy Vol.6

Alignment and Execution

featuring "Execution: The Discipline of Getting Things Done" by Larry Bossidy and Ram Charan.

Crafting and executing a successful strategy is a fundamental aspect of organizational leadership. The imperatives of a good strategy design and execution have been explored and articulated by many prominent contemporary strategists whose insights have become widely accepted in the business world.

Suppose we can understand the foundational imperatives commonly shared by these thinkers and identify the recently emerged imperatives that will significantly impact the future. In that case, we can offer a new synergistic and holistic strategy thinking that builds on the foundations and addresses what is needed today.

This is why I analyzed a representative set of books and authors discussing strategy.

I selected ten that had the most significant impact on today's business practices or will have it soon. I targeted to identify and delve into the common imperatives recommended by these selected strategists, drawing from their influential books and studies.

In my research covering ten books and the thinking of their authors, I found ten common imperatives to craft and execute a great strategy:

1.???? Understanding the landscape

2.???? Distinctive Competence and Competitive Advantage

3.???? Strategic positioning

4.???? Agility and adaptability

5.???? Innovation and disruption

6.???? Alignment and Execution

7.???? Customer centricity

8.???? Data-Driven Decision Making

9.???? Continuous Learning and Feedback Loops

10. Ethical Considerations

I covered the 5th imperative, "Innovation and Disruption" featuring the book "The Innovator's Dilemma" by Clayton Christensen in the 5th article. Now we move to the 6th imperative and the specific book and the author who covered this specific imperative extensively in the book:

6.???? Alignment and Execution:

Execution is a perennial challenge in strategy and an existential imperative for a great strategy. In "Execution: The Discipline of Getting Things Done," Larry Bossidy and Ram Charan stress the importance of aligning people, processes, and resources with strategic objectives. A good strategy is not just about formulation but also about effective execution. Alignment ensures that the entire organization is working towards common goals.

I remember one of my bosses saying “Execution is the only strategy that the consumer sees”. It is actually a quote by Eric Ries, the famous author of “The Lean Start-up”. And it is so true. No matter how good your strategy is on paper, if you cannot execute it with excellence, it means nothing to anybody, especially to your customers or consumers. Probably you would opt for a mediocre strategy executed with excellence vs. a great strategy executed badly or not at all. For this very reason, it is strategic to make a strategy executable. When drafting your strategy, making it leveraging your core competencies not only makes it more defendable but also makes it more executable. Execution of a strategy not only comes from the alignment with the core competencies of the organisation but also the alignment with the people who will execute it. This is where the leadership comes into play to engage and energize people around the strategy and the storytelling of the narrative around it that promises a better outcome for all stakeholders which is worth the effort.

There is no way to steep the sigmoid curve's slope and maximize the growth trajectory to have enough time to figure out the next curve without executing the strategy of the existing curve with excellence.

Aligning People, Processes, and Resources:

1. People Alignment:

Bossidy and Charan emphasize the importance of aligning people with strategic objectives. This involves not only having the right individuals in key positions but also ensuring that their skills, capabilities, and motivations align with the strategic direction of the organization. Leaders must foster a shared understanding of the strategic goals, creating a culture of accountability and ownership among the workforce.

2. Process Alignment:

Efficient processes are essential for successful execution. The authors argue that organizations must have clear, streamlined processes that support strategic objectives. This includes everything from decision-making processes to workflow structures. Well-defined processes contribute to organizational agility, enabling quick adaptation to changing circumstances and market dynamics.

3. Resource Alignment:

Allocation of resources is a crucial aspect of execution. Bossidy and Charan stress the need for aligning financial, human, and technological resources with the strategic plan. This involves prioritizing initiatives, investing in key capabilities, and ensuring that resources are deployed to maximize their impact on strategic goals. Resource alignment requires a dynamic and flexible approach to resource allocation based on changing priorities.

Key Principles of Execution:

1. Clarity of Objectives:

A central theme of the book is the importance of clarity in setting objectives. Leaders must articulate clear and measurable goals that everyone can understand. This clarity helps in aligning efforts and resources toward common outcomes. Ambiguity, the authors argue, can lead to confusion and hinder effective execution.

2. Rigorous Implementation:

Execution is a discipline that requires a commitment to rigorous implementation. The authors stress the need for a systematic approach to implementation, which involves setting priorities, assigning responsibilities, and establishing timelines. Rigorous implementation ensures that strategic plans are not just lofty aspirations but practical roadmaps with actionable steps.

3. Feedback and Adjustment:

Bossidy and Charan advocate for a continuous feedback loop in the execution process. This involves regularly assessing progress, identifying challenges, and making necessary adjustments. Organizations must be agile in responding to changing circumstances and market dynamics. The ability to course-correct based on real-time feedback is crucial for successful execution.

4. Accountability:

Creating a culture of accountability is a fundamental aspect of execution. Leaders must hold individuals and teams accountable for their roles in the execution process. This accountability extends from the top leadership down to the frontline employees. When individuals feel a sense of ownership and accountability for the organization's success, execution becomes a collective effort.

5. Leadership Involvement:

Leadership plays a pivotal role in execution. Bossidy and Charan argue that leaders cannot delegate execution; they must be actively involved. Leaders set the tone, provide direction, and ensure the organization stays on course. Leadership involvement includes making tough decisions, addressing obstacles, and demonstrating a commitment to the disciplined execution of the strategy.

Challenges and Overcoming Resistance:

The authors acknowledge that execution is not without challenges. Resistance to change, internal politics, and a lack of discipline are common hurdles. Overcoming these challenges requires strong leadership, effective communication, and a commitment to the principles of execution. Leaders must address resistance proactively and create an environment that encourages collaboration and a shared commitment to the strategic objectives.

"Execution: The Discipline of Getting Things Done" by Larry Bossidy and Ram Charan provides a comprehensive framework for organizations to bridge the gap between strategy and results. By emphasizing the alignment of people, processes, and resources with strategic objectives and promoting key principles such as clarity, rigorous implementation, feedback, accountability, and leadership involvement, the book serves as a guide for building a culture of execution excellence within organizations.

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Cheers,

C.Firat Caliskan