Seven out of ten organisations fail to execute strategic change successfully, according to the management literature. So what do the successful three out of ten organisations do which makes them stand out? To find out exactly what these organisations do differently, we identified ten management elements for successful strategy execution as well as seven business benefits that could be realised if these elements are performed effectively.
Using this information, we then surveyed 93 organisations and followed it up by focus group meetings with senior managers. What emerged was that while mastery of formal methodologies and development of business cases are important, successful strategy execution is critically dependent on having a culture conducive to change and a harmonised strategic leadership team that actively supports the execution of strategic change. Further, it requires having a portfolio of change programmes that are explicitly aligned with the organisation’s strategy and is managed on an ongoing basis. Additionally, individuals accept accountability for delivery of these change programmes.
There are specific actions that organisations should take to identify which elements of their strategy execution capability need to improve in order to take their performance to the next level.
Four Critical Elements for Successful Change
There are four success elements which stand out:
1. A good understanding of why change is necessary
The first is people that have to execute change must have a good understanding of why change is necessary, but also what the direction of change is, because without it people don’t have a guide to move forward in the right direction.
2. Business leaders must walk their talk
The second is that business leaders must walk their talk. They must demonstrate what it is that is important to achieve success and properly support it with resources.
3. People must be accountable for change
Linked to that is the third element: people must be accountable for change. And again, business leaders must provide the example.
4. Change portfolio must be managed
Fourthly, the portfolio of change initiatives must be managed on an ongoing basis. It must be very clear what the priority of each of these change initiatives is and each needs to be adequately resourced.
Importantly, all of these four elements must be managed in an integrated fashion and on an ongoing basis. Our research indicates that this is not at all easy to accomplish. To take your organisation’s strategy execution to a new level, we suggest you start by examining your current performance and take steps to focus on key changes and put them into practice:
Four Action Steps to Take Your Organisation’s Strategy Execution to the Next Level
1. Assess your strategy execution performance
- Assess the organisation’s performance by discussing with knowledgeable colleagues the organisation’s recent performance in executing strategic change programmes.
2. Harmonise the strategic leadership team to agree the need to improve the strategic execution capability
- Convince the strategic leadership team of the need to improve the organisation’s strategy execution capability
- Obtain support as to which business benefits to focus upon
- Secure resources to fund the initial stages for achieving improvement.
3. Determine and assess your critical elements
- Identify which elements of strategy execution are most influential to the realisation of each of the prioritised business benefits.
- Determine the major weaknesses of the identified elements of strategy execution in your organisation.
4. Create your change portfolio to improve your strategic execution capability
- Analyse each element to identify an outline improvement programme
- Prioritise these improvement programmes within a change portfolio
- Commence implementation an put it into practice.
Our approach for successful strategy execution integrates and harmonises the key success elements that have been identified in the management literature. The four steps to achieve improvement will assist practitioners in taking their organisation’s strategy execution to the next level. This approach will enable practitioners to assess the performance of their organisation in executing strategy and to identify focused interventions for improvement.
1 komentar:
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Yessica Intan Kumala
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