We interviewed around 91 Strategy, PMO and Business Performance Heads to understand what actually it takes to actually implement the strategy? While companies will do internal brainstorming or will take the help of consultants to define the strategic direction of the company. But when it comes to execution and actual implementation of the plan that will help them to achieve that strategy, things move terribly slow.
And we didn’t conduct a typical survey but talked to them 1:On:1 to understand the challenges they face. And did analysis after converting our conversations into text and doing text and sentiment analysis on top of that text.
Here are the top 5 reasons which came out of this analysis that leads to the delay in achieving the required revenue growth expected because of strategic direction are:
- Managing Change
- Missing implementation plan
- Resource Allocation
- Existing company culture
- Lack of Agile Process to think, act & refine the execution plans
1. Managing Change
Why change management is required? Because you are dealing with humans. Humans which are at top most senior positions with big egos and “know it all” attitudes. The main aim of a strategic plan is to change the way people are doing things and building new habits; with the hopes that it will enable the change in process and see better results from operating in a new way. But things dont move and people struggle to change their habits.
Solution: When you introduce your strategic plan (or operational plan, or merger & acquisition plan, or cost reduction plan – you get the idea – any plan that introduces new initiatives), it’s important to remember that most people aren’t involved in the planning process. The way the plan is initially introduced needs to be carefully crafted so as to address concerns and the what’s-in-it-for-me right away to start out on the positive path to change adoption.
2.Missing implementation plan
You won’t believe, but apart from the sales number plan for the next 3 or 5 years, the plans to achieve the sales targets are not there. For me, it was a surprise; why? Because
(a) Creating the plan is difficult
(b) No one likes to take the ownership of taking the action items
(c) There is no standard, easy & repeatable way to creating the plans linked with strategic directions/goals.
Solution: Implement frameworks like OKR to create a recipe for defining the implementation plan. OKR as framework helps your teams to think, plan, execute the plans every quarter to achieve your strategic goals.
3. Resource Allocation
Doing the resource allocation is one of the toughest jobs for business heads who are ultimately responsible for allocating people to programs and projects created to achieve the strategic objectives. There is no visibility at the strategy head and business unit head level where their people are actually busy and who are the people who can be allocated.
Solution: Take the help of tools and technology to determine the people who can be allocated to the initiatives, programs, and projects.
4.Existing company culture
Company culture cannot be quantified, but you can feel it. Most of the organizations over the years have become bureaucratic, hierarchical and lacks the speed, agility & candor to achieve the required execution.
Solution: Involve an awesome Organizational Behaviour & Development Professional in your strategic planning and implementation phases.
5. Lack of Agile Process to think, act & refine the execution plans
Now, this is where almost all companies struggle. Strategy heads own agenda of strategy, don’t own the people who do the required execution on initiatives, programs, and projects that help us to achieve the strategic goals. Teams(people from different functions) who are execution the plans don’t come together enough on their own and do the required review and course correction of the action plan, which results in the delay of execution.
Solution: Take the help of a habit-forming technology tool that helps you apply the agile process of execution in your teams.
The future of strategy execution is about how you can implement a simple, repeatable process that can be applied at scale to get execution done on your strategic goals.