Putting Strategy Execution Management (SEM) In Context

In the field of management consulting every so often a new buzz phrase emerges, sputters to life and then is gone. One enduring concept is that of a strategic approach to organizational planning, what has been missing is a cohesive and widely implemented approach to executing a strategy. Strategy Execution Management provides just that, a framework for the execution of strategy within an organization. This blog entry places SEM in context with regard to the strategy development process and ultimately the organizational value chain that is the ultimate recipient.

The description centers around the following diagram which can be broadly divided up into three categories, change strategists, change implementers and change recipients.

(for a look at a more detailed version right click on the diagram and open in a new tab/window)

The change strategists consider a number of elements, both internal to the organization and external such as industry structure and attractiveness , a choice of generic strategies amongst a host of other considerations. The strategy is developed into various components such as vision, mission and an overarching strategic plan which is further decomposed into specific initiatives. At this point, assuming budgets are in place to support the strategic plan and the resulting project portfolio, the change implementers take over and deliver the change via projects to the change recipients in the organisation, effectively changing the organizational value chain.

Assuming the core competencies exist, reward systems are in place and the organization has the capacity to change, then it would seem that projects as a delivery mechanism would suffice. However, to ensure ongoing CEO-driven alignment, further tools are required. STRATEGYLink SEM tools and processes are used to achieve the necessary initial agreement and accountability, and to monitor the ongoing alignment of projects and activities with the objectives of the strategic plan. SEM ensures on an ongoing basis that the activities of the CEO’s direct reports, and further into the organisation as SEM is rolled out, remain aligned with the strategic plan. This is achieved by; reaching a bilateral agreement on the initiatives and goals to be achieved, assigning accountability, and monitoring progress through regular reporting and meetings. One of the important pieces to recognise in SEM is that the process for monitoring is ongoing, it is not carried out in one mad rush at the end of the year when there is a flurry of activity to try and understand what has actually been done in working towards strategic initiatives.

True, ongoing strategy execution management is the key to achieving the initiatives and value in your strategic plan.

References:
Jick, Todd D. and Maury A. Peiperl, Managing Change: cases and concepts, 2nd ed. McGraw-Hill, 2003, p. 174.
Porter, Michael E. On Competition, Harvard Business Review, 2008, p.5.
Porter, Michael E. On Competition, Harvard Business Review, 2008, p.53.