Strategy implementation
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Transcript of Strategy implementation
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Strategy Implementation Presenter : Haim Srur
11 July 2015
SlideShare
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Today’s Agenda
• Strategy formulation
• Strategy implementation
• Why strategy implementation fails?
• Strategy implementation models
• Best practices
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WHAT IS STRATEGY FORMULATION ?
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Strategy Typology
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Growth Cost
Leadership Diversification
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Strategy Formulation Process
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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
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WHAT IS STRATEGY IMPLEMENTATION ?
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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)
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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
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If it is not a rocket science, it doesn’t mean that it is easy
(xxx xxxx, 2001)
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Reasons for strategy Implementation Failure 10
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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
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Failure Causes
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Strategy related
External factors
Internal factors
Reasons
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2
Unclear strategy and conflicting priorities
Bad strategy/ poorly conceived business models
Strategy Related
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EXTERNAL FACTORS R e a s o n s
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2
Competition/Disruptive
Economics cycle/ down turn
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Internal Factors
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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
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Components of successful strategy Implementation 7
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Components of Successful SI
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Translation
Resource allocation
Communication
Coordination
Successful implementation
Adoption
Stra
tegy Form
ulation
Execution
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Components of Successful SI
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• 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
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Components of Successful SI
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• 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
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Components of Successful SI
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• 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
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Components of Successful SI
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Components of Successful SI
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• 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
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Components of Successful SI
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• 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
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7 Best practices for strategy implementation
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Implementation never goes according to plan
(Murphy’s law of strategy)
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2Create STOP To Do List
• STOP traveling countries lists
• Review all approved recruitments
• Be aware to personal initiations
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3 Review THE POOREST PERFORMING AREA OF LEADERS TODAY
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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
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Heart and Head
SEE FEEL CHANGE
ANALYZING THINK CHANGE
Is more effective than
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• 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:
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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
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6 Measurement CHANGE YOUR
STRATEGY, CHANGE YOUR
MEASURES New Strategy Old Strategy
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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
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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
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