As phrases such as ‘expected marginal returns' and 'doing more with less' continue to define the economic climate, many organizations have taken to strategic planning as a means to weather the storm. However, with a majority of companies embarking on this journey, only a fraction seem to be successful in keeping the strategy alive through till execution.
It leaves one to wonder, 'What are these result-achieving organizations doing that others are missing?’
A popular notion is that successful execution is rooted in having the most technically-sound workforce. Therefore, top preforming companies, such as those above, naturally attract elite academic talent; enabling a brainpower advantage.
An interesting theory. However, even more interesting is that this may not necessarily be the case. Studies suggest that corporate culture and opportunities for career growth better attract academic talent. Moreover, it’s quite generally accepted that technical proficiency is most effective only when paired with experience (and vice versa). Or best said by modern philosopher Immanuel Kant, "Experience without theory is blind, but theory without experience is mere intellectual play.”
So with this in mind, we return back to the question at hand. How does one keep corporate strategy alive?
I propose five underlying principles any business strategist, planner or leader, should have within their arsenal.
#1: Avoid closing the door and emerging with 'The Plan'.
"When it comes to strategic planning, steel must sharpen steel."
An effective leader possesses a solid understanding of the business and looks to enable the best outcomes for their staff. However, despite having the greatest intentions, the enclosed confine of an office is the last place a corporate strategy should be drafted. This is a classic ‘heroic leadership’ mistake. When it comes to strategic planning, steel must sharpen steel. Strategy requires buy-in that can only be forged through collaboration and constructive review.
It’s important to also make the distinction between strategic facilitation and being the 'corporate voice' behind the strategy. Both are needed, but seldom should the same person fulfil these roles. Much how recommendations coming from a consultant can at times hold greater perceived value, stakeholders will respond to the strategic planning process differently depending on who’s seen at the helm. Understanding and leveraging the ‘corporate voice’ is a critical, and often, overlooked piece.
#2: Communicate, communicate and communicate again.
Investing time and resources to effectively communicate the strategy across the organization is an ongoing effort that shouldn’t be taken lightly. After all, why go through the onerous process of getting the right strategy in place if awareness of what must be done begins and ends at the executive level?
All employees across the organization need to have an understanding of the corporate strategy both in general terms, as well as individual. Looking at the latter, there must be clear / purposeful communication in terms of how staff directly contribute and why they should be motivated to do so. But remember, the desired outcome here is to gain understanding. We’re just using methods of communication as a means to this end.
#3: Manage expectations. Seek c-suite endorsement.
"Strategy is a 'long game' where the returns may not be realized in the first year..."
We see it quite often. An outside executive is brought onboard during a turbulent time and charged with the mandate of embarking on a new strategic direction. Adding urgency to this already volatile situation, there’s often a strong expectation placed on the exec. to immediately start producing results.
Here's the problem. Strategy is a 'long game' where the returns may not be realized in the first year, let alone by the end of the next financial quarter. Such a disconnect rarely ends well for the executive.
What’s the lesson? Expectations surrounding the scope and timing of strategic work must be negotiated, agreed upon and endorsed by senior leadership early on. There's no sense embarking on a strategic journey if the situation only allows for a short-term tactical play.
#4: Avoid separating strategy from execution.
Avoid compartmentalizing where senior management develops the strategy and operational staff is left to implement. Frontline employees are fundamental to the planning process as they offer on-the-ground insights and perspectives that just can’t be directly accessed by senior leadership. Formulating and rolling out a corporate strategy is both a top-down and bottom-up process.
A notable share of companies these days are taking an integrated approach and view strategy and execution as the same thing - according to a recent article in Harvard Business Review.
#5: Be willing to kill the strategy to keep it alive.
"One must find comfort in that there’s no such thing as 'the perfect plan’."
I hold this principle closest to my heart. Too often, we find ourselves overly attached to the strategic plans that we create, missing those cues to adapt. One must find comfort in that there’s no such thing as 'the perfect plan’. Or as commonly said, 'No plan fully survives its collision with reality.’ Organizations that internalize this approach are often better positioned to adapt and capitalize in the face of changing circumstance.
Let these five principles guide your success and keep your corporate strategy alive. After all, a bookshelf is no place for a plan in action.
Guy Kawasaki notes that a good idea is only about 10% of the journey. The remaining 90% consists of implementation, hard work and a bit of luck. Such a view fits quite well, wouldn’t you say?
