WHY DOES BUSINESS STRATEGY EXECUTION?
Posted by StrategyPlanning on April 18th, 2020
The execution of business strategy execution is essential for the success of companies. Many of these processes, in turn, end up falling apart because companies simply don't have something that is really worth doing.
Strategy X Goals
A real strategy execution involves a clear set of choices that define what the company is going to do and what it is not going to do.Many of the so-called strategies are, in fact, goals. A goal says only what the company wants to achieve. To achieve it, you need a path, and that is where strategy comes in.
Other goals may represent some of the company's priorities and choices, but they do not form a coherent strategy when considered together.
For this reason, we will target Europe, the Middle East and Africa and we will divest business X ”. These can be excellent decisions and priorities, but together, they do not form a strategy execution .
Another example, which makes this divergence a little clearer, is the case of the British toy company Hornby Railways. The company found itself in crisis and, to get around the situation, decided to change the style of its products. Focusing on collectors and collectible toys for adults, Hornby Railways has managed to significantly increase its shares.
The company created a set of three actions that fit together to form a clear strategic direction for the company. These actions were:
Communicate your logic
Instead of spending so much time explaining what options to choose to create the strategy, start focusing on explaining the logic behind them.
You can't go through a very long list of stock options because the team just won't remember all of them. So, remember that communicating choices is not enough. It is important to communicate all of your logic, have effective communication in the company , and explain why it makes sense.
Following the example of the toy store, its product designers and technical engineers, for example, could simply tell the company's new choices. But they could also tell the logic behind those choices.
The main point of this story is: employees understood the reasoning behind the choices made by the company's CEO. That way, they put the strategy to work because they believed it.
How to develop a good execution of the business strategy uniting the work of implementers and strategists?
"Execution" is an interesting word for its ambiguity. It means executing a plan or action, but at the same time it can also mean a death sentence.
Well, when leaders execute a strategy, they usually refer to the first sense of the word. But when their efforts do not go as necessary, the execution of the business strategy ends up going down the drain and approaching the second sense of the word.
One of the major problems in executing business strategy is the relationship between strategists and implementers. These teams are equally essential, but they tend to have very divergent points of view.
Therein lies the danger that the strategy will not work.
What determines the life or death of your strategy?
For a start, it's not what you think about. It's about how you think. The type of thinking that guides the strategy is often different from what determines the implementation. To close the gap between strategy and execution, leaders need to close several other smaller gaps.
This strategy is usually developed by people who have a comprehensive view, while the execution of the business strategy is usually done by those with a focus on more detailed areas.
In addition, the strategy is usually made by people who focus on ideas and connections, while implementation is done by those who focus on processes and actions .
This difference in thinking styles becomes an issue when the strategy execution becomes execution. Those who create the strategy are often thinking about the destination, the opportunities and the intended results.
In the meantime, those responsible for implementation are more focused on reality, on what will be really necessary for these objectives to be achieved.
When the strategy is presented, implementers naturally ask questions about risks and possible blockages - which is a natural consequence of having a detail-oriented thinking style.
But for strategists focused on the big picture, this attitude from the other side looks like resistance. In this way, they end up on the defensive, which can result in conflicts of thought.Also See: Business Strategy, Strategy Execution, Logic Behind, Hornby Railways, Strategy, Execution, Business
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