ValuExecBlog

10 Questions you have just got to ask!

As I sat across the table from the MD of a large global beverage organization, I realized that the door of opportunity was slowly closing and that it was only a matter of time before I was shown the elevator. The MD was adamant that they were executing their plans effectively; that everyone was aligned behind strategy and although he confessed to having some issues (hey! no-one's perfect) they were not related to execution. But, the whisperings around the corridors told me a different story. Morale was down; there was confusion as to what their strategy really was; and they were losing people. And still, I could see that door closing. And then, I asked the 10 questions! 10 questions that you should be asking of your company.

1. On a scale of 1:10, with 1 being 'Not very important' and 10 being 'Extremely important' - where would you rate 'Execution of Strategy?'
2. On a scale of 1:10, with 1 being 'Not at all well' and 10 being 'Excellent' - where would you rate your company on the 'Execution of Strategy?'
3. If your company were to move just 2 points on that scale, what impact would that have on revenues?
4. How do you monitor/measure how well strategy is being executed (i.e., what mechanism do you use?)
5. How often do you measure it?
6. On a scale of 1:10, with 1 being 'Not very important' and 10 being 'Extremely important' - how important is it that people throughout the whole organization are aligned behind strategy?
7. How do you measure alignment and how often?
8. What is the biggest challenge that you face regarding, a). the execution of strategy and b). getting people, resources and systems aligned behind strategy?
9. How do these challenges affect your profitability/performance?
10. If you could create the ideal solution, what would you like to improve or change?

After each question and his corresponding answers, I noticed a shift in his posture and his approach. He was now engaged. We were beginning to confront the real issues - the tangible issues of execution excellence and he could see the numbers. The door was beginning to open wider.   

ian

Jumping Through Hoops

I thought I had 'died and gone to heaven!' There sitting in my in-box were two articles on Strategy and Strategy Execution that were a good read and which I now share with you.

The first was an article from The Sunday Times dated March 23, 2008 by Andrew Stone entitled 'Keep sight of your vision' and the second was from the Toledo Free Press dated March 22, 2008 written by Eric Kurjan entitled 'Jump-start your plan of strategy.'

Stone highlights a number pertinent points that should be followed when formulating a strategic vision - a few of which are:

• Have a clear vision around which the whole business (i.e., every department) is designed
• The vision should be able to be communicated simply to everyone (employees and suppliers)
• Have a strong group of people around you to help you achieve your strategy (vision)
• Have an understanding of what the vision means for every level of the business
• Revisit the vision often
• Remain true to your vision.

Stone points to a recent survey that found that nine out of ten companies said that they had a strategic vision, but that fewer than half of them had managed to turn that into success. There is a big gap between the vision statement and the execution; and as Stone notes, success in business is 25% strategy but 75% execution. According to Stone, businesses that do best are those with clear aims and objectives; that let everyone know what they are supposed to be doing and that have dashboards that track progress through key performance indicators.

The second article by Kurjan is also interesting and again provides some valuable insight into strategy planning and strategy execution. I did chuckle though when Kurjan recalled a time when he was presenting to a group of CEOs and he happened to ask one CEO what he had done with the strategic plan that had been developed after a great deal of effort and bound into a notebook - to which the CEO replied "I put it on my bookshelf next to 2007, 2006 and 2005 notebooks." Kurjan then asked the CEO "Did you use any of those notebooks to lead the company - to set direction, measure results, and focus team member's activities?" The CEO response - "I meant to, we just got too busy."

Again, Kurjan quotes from a 2007 survey by the American Management Association that found that 'only 3% of executives said that their companies are successful at executing strategy.' Notebooks aside - why am I not surprised!

Two articles that offer some sound advice and through the surveys quoted, point to the dire state of strategy execution in companies today. Both are well worth a read. Enjoy.

ian