EXECUTING YOUR STRATEGY. How to Break It Down & Get It Done. Mark Morgan. Author and Consultant. StratEx Advisors, Inc. aracer.mobi Why do businesses consistently fail to execute their competitive strategies? Because leaders don't identify and invest in the full range of projects and programs. A book review of Executing Your Strategy by Mark Morgan, William A. Malek, Raymond E. Levitt, recommended for the serious practitioner.
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The global business landscape is littered with expensive, well-intended strategies that failed in the execution phase. Some of these doomed. Why do businesses consistently fail to execute their competitive strategies? Because leaders don't identify and invest in the full range of. Doing the right projects means actively deciding not to undertake the wrong projects. Executing Your Strategy - Morgan, Levitt, Malek. Strategic Focus.
It involves assembling assortments of products to promote, merchandising them to retailers, arranging in-store displays and online promotions, adjusting prices and discounts to test demand, and assessing the results. A great TPE capability consistently attracts customers and compels them to seek out the same products for months after the campaign ends. In both enterprises, this executive took the time to go up and down the organization, making a case for why the specific mechanics of trade promotion matter to the value proposition of the company and, ultimately, to its survival.
Otherwise, they will just get in your way. Consider, for example, the metrics used to track the results delivered by call center employees. Danaher , a conglomerate of more than 25 companies specializing in environmental science, life sciences, dental technologies, and industrial manufacturing technologies, is intensely focused on creating value through operational excellence. The financial metrics core growth, operating margin expansion, working capital returns, and return on invested capital are used not just by investors but also by managers to evaluate the value of their own activities.
Danaher also tracks two customer-facing metrics on-time delivery and quality as perceived by customers , and two metrics related to employees retention rates and the percentage of managerial positions filled by internal candidates. Lengthy in-person operating reviews, conducted monthly, are very data driven, focusing on solving problems and improving current practices.
The meetings are constructive: People feel accountable and challenged, but also encouraged to rise to the challenges. Data analytics is evolving to the point where it can help revitalize metrics and incentives. A spreadsheet is no longer enough to capture and analyze this body of material; you can use large information management systems programmed to deliver carefully crafted performance data.
No matter how complex the input, the final incentives and metrics need to be simple enough to drive clear, consistent behavior. Transcend Functional Barriers Great capabilities always transcend functional barriers. These companies all bring people from different functions to work together informally and creatively. Most companies have some experience with this.
For example, any effective TPE capability brings together marketing, sales, design, finance, and analytics professionals, all working closely together and learning from one another. When their narrow priorities conflict, the teams end up stuck in cycles of internal competition.
The bigger a company gets, the harder it becomes to resolve these problems. You can break this cycle by putting together cross-functional teams to blueprint, build, and roll out capabilities. Appoint a single executive for each capability team, accountable for fully developing the capability.
Ensure this person has credibility at all levels of the organization. Tap high-quality people from each function for this team, and give the leader the authority to set incentives for performance.
To guard against this risk, you need a strong dotted line from each team member back to the original function. Sooner or later, the capabilities orientation will probably become habitual, affecting the way people including functional leaders see their roles: not as gatekeepers of their expertise, but as contributors to a larger whole. Become a Fully Digital Enterprise The seventh principle should affect every technological investment you make — and with luck, it will prevent you from making some outdated ones.
For example, Under Armour began as a technologically enabled sports apparel company, specializing in microfiber-based synthetic fabrics that felt comfortable under all conditions.
To keep its value proposition as an innovator, it aggressively expanded into fitness trackers and the development of smart apparel. The company is now developing clothing that will provide data that can both help athletes raise their game and point the way to design improvements.
Adopting digital technology may mean abandoning expensive legacy IT systems, perhaps more rapidly than you had planned. Customers and employees have come to expect the companies they deal with to be digitally sophisticated. They now take instant access, seamless interoperability, smartphone connectivity, and an intuitively obvious user experience for granted.
To be sure, it is expensive and risky to shift digital systems wholesale, and therefore you need to be judicious; some companies are applying the Fit for Growth approach to IT, in which they reconsider every expense, investing more only in those that are directly linked to their most important capabilities. Fortunately, cloud-based technologies provide many more options than were available before.
To boost agility and reduce costs, you can outsource some tech activities, while keeping others that are distinctive to your business. The biggest constraint is no longer the cost and difficulty of implementation. Keep It Simple, Sometimes Many company leaders wish for more simplicity: just a few products, a clear and simple value chain, and not too many projects on the schedule.
Unfortunately, it rarely works out that way. In a large, mainstream company, execution is by nature complex.
Capabilities are multifaceted. Different customers want different things. Internal groups design new products or processes without consulting one another. Malek Raymond E.
Format Hardcover Book. Language English. Number of Copyright Permissions. downloading for your team? Add to Cart.
January 07, Why do businesses consistently fail to execute their competitive strategies? Related Topics:.
How to Download. Summaries and excerpts of the latest books, special offers, and more from Harvard Business Review Press. Sign up. Signed up. This Month's Special Offers. Unable to locate your subscription account? Performance coaching is a relatively new, but rapidly growing, knowledge field. The leading authority is Sir John Whitmore. Evaluate Performance Most organizations conduct a formal performance evaluation at the end of the individual performance management cycle.
Ideally, the evaluation should answer the question: have the individual performance goals been achieved? Be sure you make an honest assessment. There are several techniques that can help you. One of the best known is the STAR technique. Strategy execution PDF Now, more than ever, we need a different way of thinking, a useful way to focus and turn our business strategy into success.
In the book, six senior executives from different fields and industries share their vision of Strategy Implementation. Strategy Communication Reach for the head, heart and hands The communication of business strategy and its execution comes in different shapes and forms: from individual conversations during objective setting over group interactions around the Balanced Scorecard, and from intranet postings to writing a memo regarding a strategy shift. Strategy communication is crucial to strategy implementation success.
Communication of the business strategy and its execution is an essential, ongoing component of your strategy implementation efforts.
And although some elements might seem trivial and simplistic on the surface as everyone can communicate to some degree, the reality shows that it demands substantial skill and knowledge to communicate the relevant information to the desired person that results in the required action.
Look beyond the send button and shift your focus to the receiving end. Why do people talk about your business strategy?
I will talk about the corporate business strategy… …because I feel smart showing others what I know. Everybody else is talking about it. But if we are honest, we all talk too much and do too little. It might cost us our next promotion. A great strategy story needs: … a compelling business case that creates enthusiasm and inspires people.
Stick to the message and make sure others do too. People need to see how they fit in. The Balanced Scorecard is the best-known technique to do so.
Here are some Balanced Scorecard facts and figures: 5. Kaplan and Dr David P. Norton, but by Art Schneiderman — a fact that I was unaware of until a few years ago. At the time of its conception, Schneiderman worked as an independent consultant for Analog Devices, a mid-sized semi-conductor company.
Subsequently, Kaplan and Norton included anonymous details of this use of the Balanced Scorecard in their article on the Balanced Scorecard. The initial high-profile articles and this highly successful book have made the BSC well-known, but perhaps also wrongly led to Kaplan and Norton being seen as the creators of the Balanced Scorecard concept. So if you are a Scorecard fan, give credit to Robert Kaplan and David Norton, the founding fathers of modern strategy implementation thinking, for making it common knowledge.
But thank Art Schneiderman for conceptualizing the Balanced Scorecard itself. Foundations of the Balanced Scorecard While the term and the concept of the Balanced Scorecard was invented by Art Schneiderman and made famous by Kaplan and Norton, the roots of performance management as an activity go further back in time.
Management historian Alfred Chandler points out that early performance management practices go right back to the early 19th century and the emergence of complex organizations.
Did you know that the Balanced Scorecard is the sixth most used management instrument in organizations today? The Scorecard provides a framework for translating an abstract strategy into specific, concrete objectives, measures, indicators and actions.