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Building the Right Execution System
Most companies are not great at executing complex goals. Many leaders think their strategy is good but complain that implementation is the problem. One study showed that three out of five companies rate their organisation as weak on strategy execution.
This is because of a general lack of understanding of the various factors at play.
Three steps can build the right execution system.
- Achieving strategic clarity
- Achieving organisational clarity
- Building a management system
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67 reads
Achieving Strategic Clarity
It's vital to have a strategy that can and should be executed. A well-executed strategy will match your aspirations and your capabilities.
- Is your strategy set at the right level of ambition? Two problems exist: Inaccurate optimism "How can this possibly work?" and irrational pessimism.
- Do you know what capabilities are essential for your strategy? First, identify the essential organizational capabilities the new strategy will require, and then know if these capabilities are something you can build.
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51 reads
Achieving Organizational Clarity
Once you select the right level of ambition and understand the key capabilities required to achieve it, you can align your organization towards the key challenges for executing it.
- Have you specified which unit owns which part of your strategy? Group key choices around two axes: Find the key subset of strategic goals, and consider the strategic capabilities to cut across these groups.
- Have you built the right interactions between these key units?
- Have you assigned the right talent to the right roles? Build the right roles, then map the executive talent onto the key roles.
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41 reads
Building A Management System
The key custodians of the execution become the managers. The approach combines management hierarchy with two key conditions to allow for the successful adaptation of strategy.
- How have you empowered your staff? How can they be supported to achieve what they need?
- How have you built self-corrective feedback into your system? It should allow executives to quickly understand what is working well and what is not in the fastest and clearest way possible.
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41 reads
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