ValuExecBlog

Is Strategy Execution Losing its Juice ? (Part 2)

In Part 1 we suggested that there was an element of 'creeping conservatism' invading strategies and to that point, I came across a wonderful blog posted by Ken Bator of btcsmallbusiness entitled 'Be Daring with Your Strategy,' and is well worth a read (Be Daring with Your Strategy.) However, there is yet another reason that will add to strategy execution losing its juice and that is the tendency of companies to develop strategies by formula.

Now there are a number of reasons for this but the most common that I have come across has as its foundation what I call 'strategy by powerpoint template.' The need for business units to present their strategic plans within the confines of a template that was developed by Head Office. We all know why Head Office wants to confine business unit presentations to the same format - it is easier to follow particularly when they have to sit through a number of presentations over a 3 day period; and it also ensures that they (Head Office) can direct the information that is presented to them. However, templates have a tendency to restrict both strategic and creative thinking but also to tempt managers to consider 'dusting off' past presentations and simply change the numbers. This just doesn't work in today's economic climate.

Apart from the obvious 'strategy by template', there is yet another reason why we revert to the 'strategy by formula' mindset. And that is because we have been taught that there is a logical hiearchy to strategy formulation i.e., from setting objectives to developing initiatives followed by tactics etc - you know the formula. The process is logical, clear and as history has shown, it works (in the main, that is). But where it loses its edge, is when people spend more time thinking and arguing about the flow rather than having robust discussions on the actual strategy itself.

So, let us drop the powerpoint templates and allow business units the freedom to be creative; let us have robust discussions on where you are today, where you want to get to and how you are going to get there, and let the flow come together how it will.

Yours in execution.

ian

Is Strategy Execution Losing its Juice? (Part 1)

Well is it? Is strategy execution losing its juice? I certainly think that it is in great danger of doing so and one of the reasons for this is because strategies are being smothered by creeping conservatism. Strategies seem to have morphed into the 'annual budget process' where numbers rule and creativity is for the foolhardy.

When exactly this 'conservatism' began to vester, I am not sure - but it was probably when companies stopped employing real leaders to fill its ranks and decided instead to focus on short term numbers. It probably started when companies were driven by pleasing its Board of Directors rather than its customers. It probably started when those in leadership roles felt it necessary to lock themselves away in their corner offices rather than visit their customers in the real world. Well, ladies and gentlemen - this orange has been squeezed dry. If we are to get fresh juice, we need to look elsewhere. We need to break from conservatism, we need to be creative. We need to step back from past practices and ask 'what do we need to do differently?'

Don't get me wrong - there are many, many companies out there whose approach to strategy and strategy execution is both refreshing and creative. These are the companies that are bucking the trend. These are the companies who have continued to grow despite the gloom. And would you believe it - these are the companies whose employees are engaged, passionate, and enthused. I don't believe strategy is a science - it is an art. Sun Tzu's classic was not called 'The Science of War' but 'The Art of War', and yet our business schools are trying to make strategy a 'science' by defining what is and isn't a good strategy by a common set of rules.

I ask you - no - I beg you - take a look at your strategy and ask yourself 'where's the juice? Is it creative or is it a little too conservative?'

Yours in execution.

ian