Secrets to Successful

Strategy Execution
Md Rezaul Akhlak (ZR11)
Anika Rahman (RQ 53)
Batch 52D
 Building Blocks of Crafting and
Executing Strategy

Developing Monitoring
Vision, Setting Crafting and Taking
Mission and Execution correction
Objectives Strategy
Values action

Transitioning from Strategy to Execution

 Strategy guides few Fundamental Questions

Where does • Market leader

the company • Top be top 3 in revenue
• Deliver the best service
want to go?

How will the • Cost Leadership

company reach • Merger & Acquisition
• Differentiation
there?

How does the

company know that • Balanced Scorecard
they have achieved • Monitoring
what they strategized?
Facts outlined from HBR
Assessment of Organizational Capabilities

• 1,25,000 profiles representing executives

• 3 out of every 5 rated company as weak in execution

 Why Strategy Fails to Execute?
Case: Global Consumer Packaged goods company

Strategy fails because

employees don’t know what
responsibilities
they are entitled to do?
 Why Strategy Fails to Execute?
Case: Global Consumer Durables Company

Functional Leader
vs.
Divisional & Geographic Leaders

Strong execution Organization: 71%

Weak execution Organization: 32%

Source: Harvard Business Review

 Why Strategy Fails to Execute?

Case: Caterpillar Company

Important Information
about competitive
environment doesn’t get to Whitewashed
or Vanished Poor
the headquarter quickly? along the way understanding of
regional pricing
Strong execution Organization: 77%
Weak execution Organization: 45%

Source: Harvard Business Review

 Why Strategy Fails to Execute?
Case: Global Charitable Organization

Manager’s
Decisions are frequently Delegation

second-guessed
Lack
of
accountability
Decision
Strong execution Organization: 45%
vetted by
Weak execution Organization: 71% many
Parties

Source: Harvard
Business Review
 Why Strategy Fails to Execute?
Case: B2B company

Information doesn’t flow • Lack of

freely across organization collaboration
• No report to
product Unit
• Minimal effort
assumed by
Strong execution Organization: 55%
Weak execution Organization: 21%
customer
Customer vs
Product Unit
Source: Harvard Business Review
 Why Strategy Fails to Execute?
Case: Merger of regional Banks
Placing differently
frond and back
bank officers
Field and line employees
don’t have the information Competing
goals between them
they need to understand the
bottom line impact of Failed to provide
necessary information
decisions

Strong execution Organization: 61%

Weak execution Organization: 28%
Increase in Operational
Source: Harvard Business Review Costs
 Good strategy is never enough…

Good strategy + Good execution=

Superior Performance
4 Building Blocks to Influence Execution

Decision Information
Rights Flows

Motivators Structures
Mapping Improvement to the Building Blocks
Focus corporate
Introducing staff on
differentiating supporting
Performance awards business Unit
Decision

Reinforce
Create Focus
Accountability
cross headquarters
functional and on Strategic
teams Encourage Issues
Performance

Improve
Establish
Field to
individual
Headquarter
Performance
information
measures
flow
STARTEGY EXECUTION
A COMPETENCY THAT CREATES COMPETITIVE
ADVANTAGE
STATS REGARDING EXECUTION OF STARTEGY

 60% organizations don’t link their budgets to their business

strategy.
 67% organizations have no link between their priorities and
business strategy.
 75% middle managers don’t have incentives linked with their
business strategy.
 95% of the typical workforce has no clue about what a
strategy is!
Source: SHRM/BSCol Research Study 67-17052 “Aligning HR with Organization Strategy”, 2002
THE UPSHOTS OF STRATEGIC EXECUTION

 Companies who successfully execute their strategies

experience dramatic benefits. Example: KeyCorp.
 From a Palladium Group Inc. Survey, it was found that 70% of
the organizations with a formal strategy execution process
reported superior performance.
 These organizations were also 8 times more likely to use
technology solutions.
 STRATEGY EXECUTION ROADMAP

Describe and Take

Prioritize
Measure Feedback

Coordinate & Link with

Communicate
Integrate Budget
STEP 1: DESCRIBE & MEASURE

Convert the Come up with

Translate the
strategic measures that
Do the strategic strategy to
objectives into can be clearly
mapping operational
balance communicated
terms
scorecard and acted upon
STEP 2: PRIORITIZE

Create Break down

Identify the “Theme the
strategic key Teams” if frequently
processes required found silos

Give them Manage the

special initiative in
attention a cross-
business
basis
STEP 3: TAKE FEEDBACK

Conduct
Review the
regular
strategies
meeting

Test all the

theories with Adapt with
feedback from the strategies
the real world.
STEP 4: COMMUNICATE

 Got to communicate the strategies to all levels of employees.

 Knowledge workers make decisions on a routine basis.
 Newsletters and brochures can be good ways to maintain
communication.
 Include strategic awareness in the formal training program
 Walk the talk.
 Use quarterly meeting, the email Q & A etc. as a medium to
communicate directly with the frontline workers
STEP 5: COORDINATE & INTEGRATE

 Align all the business units and support units to the

strategy.
 Create an organized process to achieve the synergies of a
better strategic alignment.
 Take help from strategy Maps and Balance Scorecards.
 Enable the support units to focus their initiatives on the
strategic priorities.
STEP 6: LINK WITH BUDGET

 Create structural consistency between planning and budgeting

process.
 Come up with creative new approaches if possible
 Elcoteq created Stratex (Strategic Expenditure) to differentiate
certain expenses from the conventional Opex (Operating
Expense) and Capex (Capital Expense)
 Create a separate process that removes strategic investments
from the system used to manage routine operations.
 Make strategy
execution a core
competency

Achieve
dramatic Create a
benefits for competitive
the advantage
shareholders
Thank You!