The Secrets to Successful Strategy Execution According to the article, The Secrets to Successful Strategy Execution, there are four building blocks to successful strategy execution. The blocks are: 1. Clarifying decision rights (setting expectations) 2. Designing information flows (making sure people are on the same page, have the right information to do their jobs) 3. Aligning motivators (recognition and rewards consistent with attitudes, behaviours) 4.
Making changes to organisational structure to support effective execution The authors say that it’s much more effective to clarify decision rights and improve the flow of information both up the line of command and across the organisation. The authors have distilled and ranked in order of importance the top 17 traits exhibited by the organisations that are most effective at executing strategy. Decision rights and information are clearly the most important factors for effective strategy execution, with all of the top eight traits in those areas.
Only three of the 17 traits relate to structure, none of them ranks higher than 13th. The most outstanding attribute of companies that excel at executing strategy is that their employees are clear about which decisions and actions they are responsible for. Few decisions are second-guessed, and accurate competitive information quickly finds its way up the hierarchy and across organisational boundaries. In these companies, field and line employees usually have the information they need to understand the bottom-line impact of their day-to-day choices.
Although motivators such as performance appraisals that distinguish high, adequate, and low performers and rewards for fulfilling particular commitments do matter, they work better when applied after decision rights and information flows have been addressed. Structural changes will also be more effective if the top two traits are first strengthened. Of those structural moves, the survey revealed the most effective to be promoting people laterally and more slowly.
Because decision rights, information, structure, and motivators are closely interrelated, it can be difficult for managers to know how to make the most educated and cost-efficient decisions about which change initiatives to implement. In addition, each company’s situation will be unique. The authors have addressed this problem by developing an online organisational-change simulator that can help you test the effectiveness of various approaches virtually, without risking significant amounts of time and money.
Using the Balanced Scorecard as a Strategic Management System In this article, the authors describe how the balanced scorecard can fill in that gap by enabling managers to introduce four new processes that help make tha12t critical link. 1. Translating the vision — helps managers build a consensus concerning a company’s strategy and express it in terms that can guide action at the local level. 2. Communicating and linking — calls for communicating a strategy at all levels of the organization and linking it with unit and individual goals. 3.
Business planning — enables companies to integrate their business plans with their financial plans. 4. Feedback and learning — gives companies the capacity for strategic learning, which consists of gathering feedback, testing the hypotheses on which a strategy is based, and making necessary adjustments. The balanced scorecard facilitates an organisation’s plan to align management processes and focuses with the long-term strategy of the company. Without the scorecard it would be nearly impossible to maintain a consistency of vision and action while attempting to introduce new strategies and processes.
The balanced scorecard provides a framework for managing the implementation of a strategy, while also allowing the strategy to evolve in response to changes in the company’s competitive, market, and technological environments. Transforming Corner-Office Strategy into Frontline Action In this article the authors argued that organisations today are operating at a very fast pace and many are not able to dedicate the time and resources required to build a strategy using a traditional process.
The authors also stated that, in such organisations, the real need is to develop a simplified approach based on strategic principles. In essence a strategic principle is a statement that articulates the organisational leadership’s direction to help the management team apply resources, plan activities, prioritise initiatives, and navigate through the market. Strategic principles can be in categories such as the following: Boundary Principles: identify which opportunities an organization should capitalize on.
Priority Principles: determine the order in which opportunities should be pursued. Timing Principles: address organizational time requirements. Exit Principles: detail circumstances in which to discontinue products or activities. How-To Principles: outline management expectations related to processes. The idea behind this categorisation is not to force organisational leadership to draft strategic principles in each category but rather to offer a frame of reference to help management understand the type of guidance they are handing down to the deployment teams.