It is one of the most cited metrics in boardrooms – over two thirds of organisations fail to reap the full benefits of their strategies and change efforts. Paul Lalovich, a partner at Agile Dynamics, shares an approach for how leaders can execute their strategies effectively.
Developed in tandem with other leaders within the management consulting firm, the 5-stage enterprise transformation process framework by Agile Dynamics offers a proven and integrated framework for successful strategy execution.
The framework
The enterprise transformation process framework entails five stages: Interpreting Strategy, Initiation, Definition, Adoption and Transition, and Performance Management.
Stage 1: Interpreting Strategy involves understanding how organisations generate value for consumers and establishing a view based on competitive advantage. The strategy-to-execution procedure offers an organised tactic for managing, elucidating, implementing, and communicating.
Both internal and external analysis is required for a comprehensive organisation and sector review. The objective is to certify that the organisation creates valuable competencies and provides outlays that enhance value. Through interpretation, the strategy is contextualised in terms of the value generated while adhering to environmental, social and governance (ESG) priorities and at the same time providing targeted levels of shareholder returns in line with employees, clients, customers, and society expectations.
Stage 2: Initiation is about launching preliminary actions in strategy execution, which marks the beginning of a proactive transformation process. During Initiation, the scope and magnitude of the change are identified. Strategy execution starts through various practical processes aimed at fulfilling the strategy.
Strategy execution as a process is a systematic way or discipline of exposing actuality by performing it. The bedrock of the transformative change is based on distinctive business capabilities and defined best-in-class business capability targets aligned to value streams.
This will bring clarity and focus on the differentiating business capabilities required to add value to a customer from the initial request through realisation of value by the customer. Beside the hard elements Initiation stage involves assessment of the top team effectiveness and organisational culture. As two critical success factors team effectiveness and organisational culture are considered as the price of the movie tickets; without it there is no show!
Therefore, organisations must create an execution strategy accounting for multiple business scenarios, invest in people, and facilitate specific operations to execute a strategy effectively.
Stage 3: Definition brings clarity about the strategy in the execution process must be provided. This serves to eradicate confusion by heralding a clear vision for the organisation. The modern business environment is fast-paced, and organisations find it difficult to formulate their strategy. In a perfect world, managers could formulate a lasting strategy by considering what the organisation requires and then systematically executing it. However, additional efforts are required.
In the Definition phase of the enterprise transformation process, action items required to execute the strategy in full effect are clearly defined. The strategy is delineated from other aspects of the organisation, enhancing its clarity. The solution is designed so it facilitates the change and then articulated through a business transformation implementation plan.
Stage 4: Adoption and Transition is a major stage in strategy execution. The strategy is integrated into the organisation’s routine operations, thus building a transition from the old to the new. Since strategy execution introduces a new direction throughout the organisation, its adoption marks a new era. A transition is necessary to facilitate the practical role of the strategy in transforming the organisation.
Stage 5: Performance Management involves measuring the results of strategy execution and integrating the insight for remedial actions. In strategy execution, performance management supports the development, implementation, and execution of projects that enhance an organisation’s performance and strategy.
The focus should be on the bigger picture by examining the project’s effect on the organisation’s long-term performance. Strategy execution is considered successful if it positively contributes to the organisations long-term performance.
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March 08, 2021 at 11:44AM
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