Webinar - Strategy: Dont Just Plan...EXECUTE!

Are you Bridging Your
Strategy Execution Gap?

Strategy: Don’t Just Plan…EXECUTE!

discover • plan • execute • succeed

Are you executing your strategy?


Are You Executing Your Strategy?

"82% of Fortune 500 CEO's feel their
organization did an effective job of strategic
planning. Only 14% of the same CEO's indicated
that their organization did an effective job of
implementing the strategy.“



“62% of more than 1,500 executives describe
their organizations as mediocre – or worse – at
strategy execution”



"90% of organizations fail to execute their
strategies successfully."

“95% of a typical workforce doesn't
understand its organization's strategy"


Poll Question

Our business strategy is integrated throughout the
organization, not just with the executive team.


Its About Execution
Top CEO Concerns


What It Means

Make It Happen vs. Let It Happen

It’s About Execution!

Traditional Strategic Planning is DEAD!

• You can’t plan 3 – 5 years into the
future R.I.P.

TRADITIONAL
• Strategy is not just role of Executive STRATEGIC
Team PLANNING

• Most companies can create a strategy
in 3 days that is 90% as good as one it
might create in 90 days


Traditional Strategic Planning
Strategic Analysis &
BSC / Strategy Maps Prioritization

CEO Communication to
Management Team

Source: Alignment, Kaplan & Norton

Source: Alignment, Kaplan, Norton


Integrate Strategic Planning into Organization

• Strategy Review

• Environmental Assessment

• Strategy Formulation

• Strategy Management


The Strategy-Execution Gap
The Strategy Execution Gap is the variance between management's strategic
plans and the organization's actual execution or implementation of those plans.
Alignment Maturity Model

High

Medium

Strategy Execution
Low Gap

Strategy Gap Execution
• Vision • Knowledge • Alignment
• Strategies • Strategic Change • Measurement
• Activities • Ability to Execute • Accountability


Strategy Execution Gap

• Business is constantly changing
– Competitive Landscape
– New Information & technologies
– Changing Worker Habits/Needs

• Companies must adapt and drive

• How much do you consider your internal
and external environment when
formulating strategy?


External Forces


Did You Know?

• Top 10 in-demand Jobs in
2010 did not exist in 2004

• US Department of Labor
estimates today’s learner
will have 10-14 jobs by age
38

• 1-4 employees have been
with their current employer
for less than a year

Years to Reach Market Audience of 50 Million

Radio - 38 Years

TV - 13 Years

Internet - 4 Years

iPod - 3 Years

Facebook - 2 Years


Did You Know?

• Amount of new technical
information is doubling
every 2 years


Did You Know?


Poll Question

How concerned are you about the speed of change
and its effect on your business environment?


Does Your Organization Have a Pulse?

• How in-tuned is your organization to these
forces?

• Is IT Keeping up?

• How prepared is HR?

• What about other business functions?

• What about the Management Team?

Changes in Fortune 1000 Top 20

Are You Built To
Change?
?
60%
2003 - 2013
45% 1993 – 2003

1983 - 1993
35%
1973 - 1983

Source: Built to Change, Lawler, Worley, 2006


Execute or Die

Vs.


Executing and Dictating Outcomes


Are You Bridging Your Strategy Execution Gap?

• Will you be in business in 1 – 3
years?

• How will your business change?

• Do you have a strategy?

• Are you executing?


Is Your Organization Able to Execute?

• Do you have the strategic assets to execute?
– Financial Capital
– Human Capital
– Information Capital

• Are your business processes converting your strategic
assets into customer/shareholder value?

• How relevant, timely and accurate is your information?

• When was the last capability assessment performed in
your organization?


Strategic Alignment
Strategic Alignment is the coordinated deployment of strategic
assets (human, financial, & information capital) to achieve
corporate strategies and is the foundation of strategy execution.

Strategy Execution

Human

Financial

Information


Alignment – Horizontal & Vertical
Organizational Units fail to coordinate, have conflicting goals and
priorities, and often compete for resources, resulting in poor
strategy execution.

Without With
• Horizontal Alignment
breaks down silos
across functions

• Vertical Alignment
keeps every level of
organization focused
on corporate strategies


Poll Question

How would you characterize the alignment of your
organization?


Complexity Handicaps Execution

• Simplify the management of strategy

• Streamline decision making

• Must compress strategy cycle time

• Measure deployment of strategic assets

• Common Terminology & Communication


Business Simplicity
Value Chain
Vision Balanced Scorecard
Mission SWOT Analysis
Corporate Strategy
Porter’s Five Forces
Business Strategy Strategies
Competitive Advantage
Strategy Maps Strategic Planning
Strategy Portfolio Grand Strategy Activities

Values
Seven ‘S’ Framework Goals


Vision

• How do you want to be perceived by customers?

• What do you seek to create as a company?

• Vision serves as north star to guide the company


Strategies

• Strategy is the course we chart, the journey
we imagine, and at the same time, it is the
course we steer, and the trip we actually
make

• Strategies are the overall themes of
activities we engage in to achieve our vision

• Strategic initiatives are defined to support
the strategies of the organization


Activities

• What we engage in on a daily basis as an
organization, department, individuals that
support the implementation of strategic
initiatives and overall corporate strategies

• Activities link your human, financial, and
information capital (Strategic Assets) to
your strategies and vision


Poll Question

We have a dynamic strategic management process
that facilitates flexibility, adaptability, and execution.


Strategy Learning Cycle

Quality and Velocity


Strategic Management Systems


Traditional Strategic Planning

BSC / Strategy Maps Do you have time for
protracted strategy cycles?

Source: Alignment, Kaplan & Norton

Source: Alignment, Kaplan, Norton


BSC Strategy Map – Confusing?
Financial Enhance Organizational Capability Enhance effectiveness of HR
Vision
Performance
Provide operational excellence
through efficient HR practices
contributions to business
performance

Sr. Executives Managers Employees

Strategies
Internal
Customer
Get the right people in
the right place at the
Be knowledgeable &
trusted advisor
Support achievement of
business objectives
Promote a
global diverse
Provide
competitive
Provide
opportunity to
right time culture rewards advance career

Activities
Internal •
Attract , Develop, & Retain Talent

Develop leadership pipeline
Drive Organizational Performance
• Align individual performance objectives to
business outcomes •
Transform HR into Strategic Asset

Understand & anticipate business needs
Processes • Attract MDs into R&D • Transform performance management process • Consult on talent solutions
• Facilitate movement of talent across org into business performance tool • Improve HR best-practices awareness
• Manage contingent workforce effectively • Align/leverage reward system with strategy • Develop efficient & effective HR processes
• Attract & develop employees/leaders • Make innovation & customer satisfaction part of aligned to business outcomes
every job • Manage change initiatives effectively

Create Alignment Create Capability
•Identify HR activities that drive business performance
•Identify required KSAs, behaviors, values required
•Link people and processes to organizational strategy
•Identify strategic job families that deliver results
•Identify actionable metrics to measure effectiveness
•Define competency model for job families
•Partner with IT to execute HR technology strategy

Human Capital Information Capital Organizational Capital
Assets
Learning &
•Knowledge, skills, abilities & values
•Improve business acumen
•Global Core HRIS system
•Talent Management System
•Know business needs
•Strategic identity
•Develop strategic HR competencies •HR data warehouse •Manage change
Growth •Enhance and communicate EVP •Digital HR •Align workforce to strategy


Simplify Strategic Management

Vision Your Vision

Strategies

Initiatives

Activities

Alignment & Capability
Assets Human Financial Information


Strategy Execution Lifecycle
Strategic Horizontal
Planning Alignment

Environmental Vertical
Analysis Alignment
Strategy Strategic
Formulation Alignment

Strategy Strategy Strategic
Review Change
Execution

Measurement Empowerment

Accountability


Simplified Strategic Solutions (S3)

Business
Execution
Strategic
Strategy Framework
Initiative
Workshops
Portfolio

Strategy
Capability Risk
Assessment Management

2 Plan

Simplified
Alignment 3 Execute Strategic
Debrief
1 Discover Strategic Change
Solutions

Strategic 4 Succeed Strategic
Alignment Alignment
Questionnaire Scorecard


Thank You!

The Strategy Snapshot

Next Webinar: Tuesday, December 1, 2009

Rick Hayes Mitch Ellner
rick.hayes@cncstrategy.com mitch.ellner@cncstrategy.com


Webinar - Strategy: Dont Just Plan...EXECUTE!

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