Strategy to Execution: Tips to Execute Your Strategy With Excellence.
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Transcript of Strategy to Execution: Tips to Execute Your Strategy With Excellence.
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What is Strategy?Building a Strategy
Costs of Poor Strategy
Execution
Successful Transitions
5 Steps Tools Summary Questions
Agenda
At the end of this presentation you will be better equipped to face the single biggest challenge facing today’s organizations:
1 2 3 4 5
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What is Strategy?
• There are many definitions, but at the core, strategy is: a coordinated set of actions to accomplish a goal
• Designed to leverage your core competencies to gain a competitive advantage over your industry peers
Sidney Crosby, Vancouver 2010 Dyson: Innovating mature business categories Clara Hughes: Canadian cyclist & speed skater
Canadian Tire Corporation: Evolving Sporting Goods retail leader Steve Jobs & Apple: Redefining consumer electronics (market creation)
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Lululemon: High quality Yoga clothing that makes you look great!
A strategy answers three fundamental questions.
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How will you get there?
How will you know that you have arrived?
Where do you want to go?
• Differentiation• Low Cost• Strategic Alliance• Acquisition• Innovation pipeline• Market creation
• What does success look, feel, and smell like?
• What metrics will you have achieved?
• What will be different?
• To have the most accessible retail locations
• To be the top 5 in revenues
• To deliver the best service
Strategy is created by building a data driven situational analysis.
Situational Analysis
Macro Scan (PESTe)
Market/ Industry
Assessment
Customer Research
Competitive Intelligence
Supplier Evaluation
Financial Performance
Value Chain Analysis
Strategy & Structure
Assessment
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Externally Fo
cused
Inte
rnal
ly F
ocu
sed
Information is turned into insights that inform the creation of strategy.
External Summary: Industry assessment, Opportunities & Threats, Key Success Factors (KSF)
Internal Summary: Strengths and Weaknesses, Core Competencies
Strategic Gap: What capabilities can we leverage to deliver on the KSFs and fill our internal gaps?
Developing Strategic Options: Differentiation vs. Cost strategy, ROI of options, option selection
Strategic Plan: Vision, Strategic Priorities, Tactics, Objectives, Project Plan & Resources, Risks and Mitigation, Success Measures
Situational Analysis
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My strategy is complete, now what?
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The organizational costs of poor execution are too important to ignore!
Why is execution so difficult?• Strategic change is often behavioural • Behavioral change requires people to do
things differently• However, people are most often not the
reason for poor execution– The real enemy of execution is your day job!
(AKA: The Whirlwind)
Source: The 4 Disciplines of Execution, McChesney, Covey, Huling
Wasted ResourcesUnclear Goals
Politics
Shifting Priorities
Frustration
Lack of Company Focus
No Accountability
Poor Productivity
Low commitment to Objectives
Little Faith in Leadership
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“To achieve a goal you have never achieved before, you must start doing things you have never done before.” – Stephen R. Covey
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So how do we improve our chances of successful execution?
Get teams to act on Lead measures in
order to achieve goals
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Source: The 4 Disciplines of Execution, McChesney, Covey, Huling and Personal Experience
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• To build a strategy designed for execution:– Solicit feedback from those who will be doing
the work and let them be part of the strategy design process. It will build buy-in and commitment to it.
– Create an aspirational vision statement that articulates what the look and feel will be once you have arrived at this new destination
– Articulate specific points of differentiation –What will be different from the current state? Paint that picture: what will it look like, smell like, feel like for your customers and your employees?
– Create detailed plans on how you will deliver on the points of differentiation
– Include financial goals by year. If there are no goals (Rev, Expense, Risk, Customer) how do you know if you are successful?
1 - Redesign the strategy development process: keep it simple!
We will a destination for X, Y & Z; based on A, B, & C in order to
encourage sports participation and build customer connections in
communities.
Key
Init
iati
ves
$392$355
$365
$7 $9$12
$15
$250
$300
$350
$400
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2011 2012 2013 2014 2015 2016
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• The more you try to do, the less you will accomplish: stick to 1-3 goals
• Include SMART (Specific, Measurable, Achievable, Realistic, Time Sensitive) objectives where possible. It will enable greater understanding and commitment.
• Lower level objectives should ‘ladder’ up to the highest level objectives and be tied to a benefit (financial, brand building, customer loyalty, etc)
2 - Clearly define, then focus on a small set of very important goals
Be the market share leader
Grow top line sales by 3% ($3 million) in the ABC Division
Create promotional events in the March to October timeframe to drive $2 million in incremental sales at last year’s profit margin rates.
Build a themed promotional event for Fire Safety month (October) that will earn $X.
Meet with smoke detector vendors in
May/June to get special products and
costing to support Fire Safety month.
Work with Flyer creative to promote
the event.
Request Digital and Media teams to create a campaign to support
Fire Safety Month.
Outcome B
Complete for each business unit!
Focus on small set (1-3)of very important goals down to the month or weekly level
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3 - Get teams to act on Lead measures in order to achieve goals
• Lead measures are more important than Lag measures! Why?
– Lag measures have happened in the past and are easier to report on
– Lead measures are virtually in your control and will help you to accomplish your goal: you act on these to influence your Lag measures
Strategic Objective Lead Measure Lag Measure
Increase customer satisfaction Improve account management Customer Satisfaction Score
Create innovative products Change product development New product/service revenue
Broaden revenue portfolio Add 3 more products this year Revenue growth
Examples:
How? What are some actions you can take to influence this Lead measure?
• Increased calls and scheduled site visits
• Learn more about your customer(s) and add value first
• Ask users of your products about how products could be improved. Then, work on improving the product to meet this need.
13Source: The 4 Disciplines of Execution, McChesney, Covey, Huling
4 - Create and monitor a clearly defined scoreboard
• A scoreboard helps you AND your team see how you are doing against your small set of important goals by using your lag and lead measures
• There are four guiding principles when it comes to keeping score:
•Easy to understand metrics•Use visuals (colors, symbols) that resonate
Simplicity
•Engaging your team to draw players in•Make it FUN
Engagement
•Review regularly (weekly) with all team members•Post scoreboard in public
Routine
•Celebrate success •Support the resolution of challenges
Celebrate
Status: Line of Business Initiatives
3%19%
55%
6%17%
Red: Will notbe acheivedas planned
Yellow: Atrisk of beingcompleted
Green: On-track
Complete Not Started
Breakdown of Initiatives by Status:
61%
On-Track & Complete Initiatives
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Focus on small set of goals
Act on lead measures to achieve goals
Use a scoreboard to view progress
Regular and frequent
reviews with team
Team members set own
commitments in front of
peers
Deliver results/address challenges and
celebrate success
5 - Integrate an accountability routine: a virtuous cycle of success!
An accountability routine creates
an execution culture!
Reinforces accountability and
encourages performance!
15Source: The 4 Disciplines of Execution, McChesney, Covey, Huling and Personal Experience
Template Sample – Defining and focusing on a small set of goals
• Through this iterative process, you can easily define a core set of actions and tasks that can be managed on a weekly or monthly basis
• Notice that these are all lead measures• This process takes time, you must make important trade-offs and prioritize
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Goals Outcomes Strategies Actions Tasks
Be the Market Share
Leader
Goal 2
Goal 3
Increase revenue by
3%
Outcome 2
Create promotional events btwn. June and Oct
Action 2
Fire Safety Event (Oct)
Meet w/Vendors
Flyer Theme
Digital & Media
Introduce new brand to grow
sales
Strategy 3
Summary
• Strategy development is ‘sexy’ and what most leaders think they need to focus on. However, strategy must be fine tuned for execution!
• Execution is strategy’s unattractive cousin and gets low priority from people if it is not carefully threaded into day to day operations
• Supporting a Strategy through its Execution IS A LEADER’s Job!
• The following best practices will help you: 1. Redesign your strategy development process
2. Clearly define and then focus on a small set of very important goals
3. Get teams to act on Lead measures in order to achieve goals
4. Create and monitor a clearly defined scoreboard
5. Integrate an accountability routine
• Integrating these proven techniques will greatly improve your chances to successfully execute your important strategies!
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QUESTIONS?
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THANK YOU!
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