It’s true, Strategy execution is not rocket science. The problem is that consulting companies who want to own the keyword “strategy”; wants to show this as a big complex thing in this world that they can bill their clients with millions of dollars by putting the army of consultants.
In a nutshell, Strategy its about “where you will earn money from” and “how you will earn it” in present and future. Your strategy largely depends on the stage of your company. As Ried Hoffman puts in, every company goes through the following stages:
1) Family 2) Tribe (3) Village (4) City (5) Nation
When you are family or at the tribe stage, your strategy is to
(a) Validate that your product or service has demand in the market
(b) Generate revenue to survive OR raise the money from bank/VC to survive for the next 12 to 24 months.
(c) Try to find the repeatable sales & operational model for your product/service
When you are at the village stage, your strategy is to
(a) Create a repeatable model to do sales and service your customer
(b) Keep doing it faster and better
And when you are at the later stage of company growth, ie at “City” stage or “Nation” stage, your strategy is not just to generate the cash from existing product/service, its also about creating new products/services adjustment to your existing market OR to creating new products/services that will diversify your business.
But, is there a guarantee that your strategy will help you to become the market leader. No, because it also depends on the market/economic cycle and conditions. But if your execution cycle matches with the market/economic cycle(means your timing is right), your company will be the part of the those few success stories.
To deliver your strategy at any particular stage, you have a model with 4 standard steps:
1) You identify your vision(the big-arrow) for 12 months(when you are at “Family”, “Tribe” or “Village” state) or next 36 months vision(when you are at “City” or “Nation” state)
2) Once you define your vision, you identify the 3 to 5 major company-level goals(also called focus areas or strategic objectives) that will help you to achieve our vision(the big-arrow)
3) The 3rd step is to identify the major project/programs/objectives that will help you to achieve either of our company-level goals. And define metrics & milestones that will help us to achieve those project/programs/objectives.
4) And the 4th and last step is to follow the review cadence(process) to make sure that work gets done on the defined milestones under the defined project/programs/objectives.
In most of the companies today I talk to or work with at qilo, the above stated 4 simple steps are not followed or followed partially. Coming from the software development background, where today software is delivered in Agile fashion; its a surprise for me. If a small to complex piece of software can be delivered nowadays with high predictability; what stops companies from delivering their annual or 3-year strategy in the agile fashion?
I see 3 major reasons for it:
1. The CEO, Strategy Head/PMO/Chief of Staff is unaware that there could be a better way to deliver the 12 months or 36-month strategy.
2. The CEO, Strategy Head/PMO/Chief of Staff knows there is a better way, but reluctant to try and do the required change management.
3. The CEO, Strategy Head/PMO/Chief of Staff knows there is a better way, but don’t know the exact know-how.
In case of option 2 & 3, companies either hire an independent consultant or hire a big consulting firm to help them. Today with the help of technology backed solution, companies can deliver their strategy on a year-on-year basis without much external help. The only thing which is required is the willingness to change and try – because “if you will not change, nothing will change”.