Strategy Implementation Presenter : Haim Srur

11 July 2015

SlideShare

Today’s Agenda

• Strategy formulation

• Strategy implementation

• Why strategy implementation fails?

• Strategy implementation models

• Best practices

2

WHAT IS STRATEGY FORMULATION ?

Strategy Typology

5

Growth Cost

Leadership Diversification

Strategy Formulation Process

6

Define the business

Create the business’s

vision, mission &

values

Determine the key

issues of the

business

Formulate the

strategy

Industry

Eco system

PESTEL model

SWOT analysis

Five forces model

Target customers

Competencies

Competitive advantages

Disruptive technology

WHAT IS STRATEGY IMPLEMENTATION ?

Achieve

Implement

Revised

Adapt

Strategy Implementation

This is a process by which

a business implements

and revises the formulated

strategy to adapt changes

in order to achieve its

goals

(Anthony W. Ulwick)

Strategy Implementation

Implementation is the gap between what a company promises to the results is actually achieve (Larry bossidy and Ram Charam,

Execution, 2007)

75%

55%

25% 20%

25% 45%

75% 80%

1980 1992 2000 2010

Unexplained market value

Explain Market Value

10

If it is not a rocket science, it doesn’t mean that it is easy

(xxx xxxx, 2001)

Reasons for strategy Implementation Failure 10

A failure Phenomena

Employees at 60% of the companies rated their companies as weak in strategic

execution

5% of all organizations succeed; 70% of all fail

and 25% of all have some middling success

Of the strategic initiation fail to achieve

their desired results

Nielson, Martin & Powers, 2008

Harvard Business School

Dr. Kotter

60% 75% 9/10

Failure Causes

13

Strategy related

External factors

Internal factors

Reasons

1

2

Unclear strategy and conflicting priorities

Bad strategy/ poorly conceived business models

Strategy Related

EXTERNAL FACTORS R e a s o n s

1

2

Competition/Disruptive

Economics cycle/ down turn

Internal Factors

16

1

2

4

5

3 6

Translation of ideas into actions

Failures in coordination

Failures in resources allocation

Adopting of new reward system

Weak employee engagement

Failures in risks, changes anticipation & management

Components of successful strategy Implementation 7

Components of Successful SI

18

Translation

Resource allocation

Communication

Coordination

Successful implementation

Adoption

Stra

tegy Form

ulation

Execution

Components of Successful SI

19

•  Turning Ideas, Vision into workable plan, and metrics.

•  Each plan should be by unit, division, department, team and individual

•  The plan should include: •  purpose-to remind the

“WHY” •  Outcomes – “WHAT” –

goals, priorities, resources, milestones, team

•  Values – “HOW”-

Translation

Resource allocation

Communication

Coordination

Adoption

Stra

tegy Form

ulation

Components of Successful SI

20

•  65% of the companies failed to allocate the right resources – the reasons are: •  Factors that related to

quality of translation •  Internal conflicts, bad

planning •  Resources dispute

between units •  Missing capabilities/

competencies derived from the new direction

Stra

tegy Form

ulation

Translation

Resource allocation

Communication

Coordination

Adoption

Components of Successful SI

21

•  95% of the employees in an organization typically are unaware of or do not understand the company’s strategy

•  Ensuring that all key employees are aware of and understand the “what”, “why”, “how”, “when” and “who” of the strategy

•  Internal communication campaigns: branding, briefing, meetings, discussion in groups, manuals

Translation

Resource allocation

Communication

Coordination

Adoption

Strategy Formulation

Components of Successful SI

Components of Successful SI

23

•  Passing on both responsibility and accountability to key personnel for a specific action or goal in the process

•  Making sure that everyone knows what to do in the strategy execution process is therefore also a key factor in the endeavor

•  3 interdependencies Pooled Sequential Reciprocal

Translation

Resource allocation

Communication

Coordination

Adoption

Stra

tegy Form

ulation

Components of Successful SI

24

•  Monitoring the process & making adjustments to the strategy, in order to create a better fit to the real world

•  Constantly be ready, willing and able to change parts of other entire strategy

•  Risks management

Translation

Resource allocation

Communication

Coordination

Adoption

Stra

tegy Form

ulation

7 Best practices for strategy implementation

1 26

Implementation never goes according to plan

(Murphy’s law of strategy)

27

2Create STOP To Do List

•  STOP traveling countries lists

•  Review all approved recruitments

•  Be aware to personal initiations

28

3 Review THE POOREST PERFORMING AREA OF LEADERS TODAY

29

4Branding your strategy

Vision Conception

Design

Production

Launch Brand

Strategy

Create Campaigns

•  Have fun creating the branding

•  Involve employees and first line manager – It is not role of marketing department

Rational and emotional

•  Combine rational messages with emotional images

•  Use social activities as a platform for a change

30

Heart and Head

SEE FEEL CHANGE

ANALYZING THINK CHANGE

Is more effective than

31

•  Is bold but achievable

•  Paints a vivid picture of the future

•  Appeals to employees’ hearts (and minds)

•  Is specific enough to help individuals make decisions and trade-offs

•  Is flexible enough to adapt to changing conditions

•  Is easy to communicate quickly—in 60 seconds

Extracted from J. Kotter articles

6 things that make a vision effective:

32

5 Manage Change Step 8: incorporate change into culture

Step 7: never let-up

Step 6: generate short term wins

Step 5: Empowered broad based action

Step 4: Communicate the vision for buy-in

Step 3: develop a change vision

Step 2: create the guiding coalition

Step 1: establish sense of urgency

Create climate for change

Engage and enable

Implement and sustain

33

6 Measurement CHANGE YOUR

STRATEGY, CHANGE YOUR

MEASURES New Strategy Old Strategy

34

7 Engage Alignment

Strategy Clarification

Roles and Expectations

Governance and Decision Rights

Engagement Capability

Value Proposition Development

Talent Management

Accountability

Goals and Metrics

Rewards and Recognition

Performance Management

35

Engagement Matrix

Feel motivated

by the message

Taking Action in

concert with the

message

Heard the message

Understand the

message

Heart

Low

High

Mind High Low

Thank You ! We’d Love to Hear From You, Get In Touch With Us!

16 Shoham St., , Tel Aviv, Israel 69359

info@srur.net

www. srur.net

+972-54- 5225777

0773180189