This is the blog for StrategyLink Consulting.
(http://www.strategylinkconsulting.com)
Tuesday, September 15, 2009
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.
Having trouble getting your strategy to give you a bang for the buck?
Welcome to the STRATEGYLink blog. Here we will discuss issues relevant to Strategy Execution Management and help you to gain a strong understanding of the elements involved.
In this issue we will discuss your first key to effective Strategy Execution Management: improving organizational alignment to strategic initiatives.
Improving Organizational Alignment
Successful organizational alignment occurs when an organization finds congruence between its rational elements (strategies, goals, processes, systems) and its cultural elements (artifacts, legends, rituals, heroes, mental models, symbols, values) and connects them in such a way as to navigate efficiently towards its vision.
Graphic courtesy of Vanguard Consulting.
As a child you probably played this game: A group stood in a line and a child at one end would begin by whispering a phrase to the child next to him or her. That child then whispered what he or she heard into the ear of the next child, and so on down the line. The first and last in line then stated what he or she heard out loud and likely everyone had a good laugh - shocked at how very different the statements were!
Unfortunately, the same ineffective communication problem occurs while attempting to implement strategic initiatives in many organizations and in these cases the outcome is usually not funny to anybody but your competitors.
Okay, so let’s get to it. Here’s the STRATEGYLink methodology to increase organizational alignment.
Step 1: Start REAL communications early. Once the senior management team agrees on the new initiatives to strengthen the organization, they begin open communications surrounding the initiatives and encourage this open communication through the entire organization. Don’t try to tone down the message of how ‘bad’ things really are or whitewash messages into PR speak. Say it as it is. Be honest about the organization’s present situation and the need to improve performance. As a leader you must communicate directly with as many employees as possible creating hundreds of conversations about the need for improved focus, and don’t forget to continually demonstrate your own personal alignment to the organization’s strategic initiatives. Ultimately you should be able to walk down the hall and ask any employee what the organization’s vision, strategy, and key initiatives are. If you are doing your job, a vibrant true sense of urgency to improve the organization, survive and win will resonate from every office.
Step 2: Squelch complacency. Some employees and managers will see the need for change as “over in that other department, but not here,” or that “we are doing fine as is and don’t need to change how things work.” Many past initiatives and changes have likely failed or had limited successes so why get worked up about this one? Naturally it is those past failures we are trying not to repeat through improved alignment.
Step 3: Identify false urgency and turn it into true urgency. False urgency can be more difficult to identify than complacency. False urgency often leads to anxiety, anger, and generally busyness of activity without the corresponding results necessary to achieve the organizational goals. It can manifest in meeting after meeting with no time to get high priority work done, forming more committees to solve problems, and getting bogged down in day to day low value added tasks that seem to take priority over headway towards the new organizational initiatives.
The sooner false urgency is uprooted, the sooner a TRUE sense of urgency can arise in your organizational culture. Once true urgency is the prevalent force, you will find employees naturally beginning to align with, and drive, organizational initiatives.
Step 4: Engage! With honest communications underway, complacency and false urgency identified and under attack, you are now ready to begin to motivate employees and focus on alignment to the strategic objectives.
Learned from Mr. John Kotter, the best strategy we have found that the way to undertake effective engagement is to use a heart/head combination approach. Managers must appeal to employees in more than the common sense, rational way. Yes, some elements of logic and rational explanation are still needed, but humans are motivated largely through the heart. Personal stories of triumph or failure, direct discussion rather than hiding behind a desk or podium, and sharing the message that we are in this together and we need you, the employee, on board to be successful can be extremely powerful and engaging. Management needs to further build employee confidence that they can, and will, make a difference in the success of these initiatives.
Past failures, bad breaks, and personal weaknesses need to be addressed openly, accepted, and then moved past in order to further build confidence in your staff.
Step 5: Solidify alignment. With a sense of urgency vibrating through the organization and employee engagement high, it’s time to tie organizational initiatives to personal employee goals. Tying personal goals to larger initiatives creates individual accountability to organizational success. Most organizations use such tactics for sales staff, but with some tweaking the methodology and a cheap monitoring system, it can be applied throughout the organization. Nothing motivates and hones attention quite like it.
Do NOT confuse this undertaking with performance management and farm these duties out to your HR team. As a default all things people related seem to get pushed to HR. Do NOT do this. HR has not proven to play a role in creating alignment between strategic intent and operational reality. True alignment needs to be demonstrated from the top. Senior management must show leadership; then individual managers who understand their department’s culture best will align and demonstrate a personal sense of urgency to achieve the strategic initiatives. These managers know how to deliver messages most effectively and can hold employees accountable to individual goals.
Step 6: Sustain momentum. Finally, it is vitally important to sustain the momentum obtained. Do not drop back and leave employee goals for the end of year review. Holding one-on-one, off site meetings every 6-8 weeks to track progress and discuss concerns will help keep a high sense of urgency and focus. The STRATEGYLink methodology utilizes an effective tool that allows both employees and managers to pre-score goal progress and organizational alignment prior to the meetings which we have found encourages an open, honest discussion. These pre-scored, one-on-one meetings help to maintain top down alignment and further increase management’s downward visibility. The meetings also allow for quick modifications to course direction to be communicated, understood, and ultimately implemented.
David Gordon
david@strategylinkconsulting.com
David Gordon is the Managing Partner of STRATEGYLink Consulting
References:
Tosti, Donald T. And Jackson, Stephanie F. Organizational Alignment. Vanguard Consulting. www.vanguardc.com.
Kotter, John. A Sense of Urgency. Harvard Business Press. September 2008.
Kaplan, Robert S and Norton, David P. The Execution Premium. Harvard Business Press. 2008.
