Strategy Execution and the Power of Three
The Question of Execution Companies today do a pretty good job of developing sound strategies to exploit opportunities and solve problems. However, they typically do not implement these strategies very well. In fact, 7 out of 10 major business initiatives fail. As a result, critical endeavors take longer, cost more, and deliver less. They also inflict unanticipated damage on people and profit. How do you beat the odds? Starting with the right goal is critical.
an initiative’s ultimate goals, you won’t achieve those goals when installation becomes the end rather than the means.
INSTALLATION VS. REALIZATION
The underlying cause of many business initiative failures is a tendency to apply resources toward installing business solutions rather than toward realizing the true benefits of the solutions. Installation is primarily about physically inserting an initiative into the work environment: announcing, placing, and setting up the new solution, as well as training people in its appropriate use. As important as this phase is to achieving
Realization is achieved when an organization goes beyond simple deployment and engages in the Intent, People, and Delivery activities necessary to accomplish the initiative’s full set of goals and objectives. This requires a certain level of “implementation integrity.” Realization occurs when you observe the sought-after behaviors consistently demonstrated in a quality manner over a sufficient period of time. The issues executives wrestle with today have little to do with whether solutions can be deployed and people trained. The real problem centers more on whether their desired business outcomes can ever be fully realized and sustained over time.
TRANSFORMATIONAL LEADERS
The need for deep expertise in managing complex, transformational change is seldom understood or even recognized by company leaders. Executives who possess the right combination of leadership skills, operational focus, program management, change management, and business knowledge required to lead such transformational change are a rare breed. But increasingly, identifying transformational changes and addressing them with a proven approach and the right skill set is crucial to long-term business success.
Indicators of Transformational Change • Intent driven; designed from the future (leap; innovate)
• Different, unrecognizable, challenging
• Modifies behaviors, beliefs, and assumptions
• A significant number of changes required across a large span of the organization
• No right answer; many right answers
• Major disruption of people’s expectations
• Customer focus
• Planned from an outcome perspective
• Multiple interdependent components to integrate • Major shift in the politics of the organization • A significant number of people will not complete the journey
Indicators of Incremental Change • Enhancement driven; designed from the current state (improvement)
• Familiar, improvement, better
• More linear path • Minimal change to existing politics
• Modifies methods, systems, and behaviors
• Fewer changes required and/or a smaller span of the organization affected
• Clear direction
• Minor disruption of people’s expectations
• Process focus
• Planned from a start point
• Most people will be able and willing to complete the journey
The Unique Challenge of Transformational Change
Most organizations don’t recognize the distinct challenges created by transformational change. At the core of Strategy Execution is a sharp focus on addressing these challenges in a comprehensive and systematic manner to help companies succeed. Today, leaders must guide organizations through an incessant flow of overlapping opportunities and problems. Many of these initiatives require major alterations in strategy and company direction. They also involve the invention of new futures rather than a simple update of the old way of doing things. These changes are transformational for the organization and the people in it. Transformational changes are inherently different from other types of change. They can result in layoffs, large-scale reorganizations, and major shifts in political alignment. They disrupt individuals’ expectations and can require them to
shift their beliefs, behaviors, and the way they perform their jobs. And they can be the basis for significant innovation. There are key differences between transformational change and incremental changes. Most change initiatives have both incremental and transformational elements; the more indicators of transformational change that apply to a given strategy or initiative, the higher the risk to successful change and the greater the cost of failure. Transformational changes are inherently dangerous undertakings. Successful execution requires: • Preparation—Being ready for everything that can be anticipated; getting ready for what cannot be anticipated • Courage—Acknowledging to oneself and others what successful change truly requires (what it really takes to fully realize
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intended outcomes); taking the appropriate actions despite whatever fears, concerns, opposition, adversity, etc. are encountered • Discipline—Living up to the standards of what must be done each and every time those standards are required Not all of your projects are critical—not all of your projects are business imperatives. What is the price you pay when your most critical business requirements fail? Frustration is high and palpable and the only option is success. You need a robust, disciplined, and proven approach to the complexity of execution. Conner Partners’ Execution Engineering™ framework offers just this kind of approach.
The Context for Strategy Execution Strategy Execution is an emerging category of skills and competencies related to the successful management of complex, transformational change. It is an important element of management that has been largely overlooked. Much attention has been focused on the leadership competencies required to develop business strategies and to drive continuous, incremental business improvement. Strategy Execution is related to but different from these two domains, and serves as an important bridge between them.
At either end of this sequence, a great deal of guidance is available: Traditional strategy consulting firms have offered their services to business leaders to help them carve out differentiated business strategies. They focus primarily on strategy creation, typically leaving the conundrum of execution to those running the company. And in the area of day-to-day business operations, there are multiple
business process improvement approaches and many firms that specialize in teaching and applying those methodologies and general management skills. However, most leaders have not yet systemized their approach to the execution of major transformational change in a way that ensures the accomplishment of intended results. It’s challenging work. It’s important to simultaneously create an image of the future and design the processes and systems needed to support it (Intent), manage the range of resources
and moving parts (Delivery), and help people shift their behaviors and mindsets to ensure that the full results are realized (People). Although these components of implementation have been addressed before, they have been treated as building blocks to be dealt with independently.
Portfolio
Strategy Formulation
Realization
Strategy Execution
Operational Excellence
STRATEGY FORMULATION
STRATEGY EXECUTION
OPERATIONAL EXCELLENCE
Leaders must be able to make the right strategic business decisions, positioning their organization to win in the marketplace (strategy formulation).
The work of Strategy Execution begins with the effective management of this portfolio—leaders must understand how various initiatives affect each other and how they combine to affect the organization through the transformation process.
Once the new way of operating is stable, leaders must ensure operational excellence through day-to-day management and the application of systematic approaches to ensure continuous improvement.
As strategy is formulated, it results in the creation of a portfolio of initiatives.
Strategy Execution work continues with the application of structured approaches to design the desired future, plan the transition, and move the organization through the transformation process. The ultimate goal is realization—delivering business results by going beyond the installation of new approaches and ensuring they are fully and effectively integrated into the ongoing operations of the organization and the behaviors and mindsets of everyone involved.
Strategy Execution
Intent Clarify, design, and maintain the integrity of the end result
Intent
People
People Shift individual attitudes and behaviors to bring the solution to life
Delivery
Delivery Take the necessary steps to deliver the intended value on time and within budget
The Power Of Three
The emerging category of Strategy Execution involves the need to look holistically at major business change and simultaneously address the critical elements of Intent, People, and Delivery so that all three areas are completely interconnected and focused on achieving the intended business results.
Tackling transformational change and achieving successful execution require deep expertise in three key disciplines:
• Intent—clarity around what is to be accomplished • People—the ability to foster commitment, minimize resistance, and guard against change overload • Delivery—a consistent framework and set of tools to plan and orchestrate implementation activities The complete integration of these three areas is what makes Strategy Execution so effective. While many approaches address each of these three components, the work happens in parallel as separate streams of activity. Strategy Execution is different because it starts with the assumption that all three components are completely dependent on each other and none of them alone can help an organization beat the odds against successful execution.
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Whether you are a CEO struggling with the realization of an essential strategy, a business leader responsible for the full realization of a single critical initiative, or an organizational effectiveness leader searching for support in building the internal capability to better manage major disruptive change, Strategy Execution skills help you deliver on the professional commitments you’ve made.
Strategies Intent
Initiatives
Clarity • Is the intent clearly defined?
Expression • Is the design detailed enough to act on?
Integrity • Are we staying true to the intent?
• Is there a compelling reason to make the change?
• Is the design well-documented?
• Are we achieving realization?
• Have we cascaded buy-in and alignment?
• Are we capturing shifts in our thinking?
• Is the intent shared by all key people?
• Does the design support the desired intent?
• Have we articulated measurable goals?
People
Capability • Is superior execution a strategic goal?
Capacity • Does demand for change exceed our capacity to absorb it?
Landscape • Where are the human risks?
• Are we managing our change capacity effectively?
• Are we building commitment?
Architecture • Do we have the structures we need to execute change effectively?
Portfolio • Are all major projects on our radar screen?
Implementation • Are we on track?
• Are the right governance processes in place?
• Do we understand project interdependencies?
• Are we using our resources effectively?
• Do we have a resilient culture? • Do we have the right leadership for change? • Do we have the skills we need?
Delivery
Projects
• Do we have a system in place for measuring progress? • Do our relationships with external parties support our intent?
Within this framework, there is a range of Execution Engineering elements that suit varied situations and a range of Conner Partners consulting services to best meet your needs. These include:
• Do our priorities maximize our overall return? • Are we effectively tracking progress?
• Advising senior leaders on Strategy Execution challenges • Executing strategic initiatives jointly with client teams • Transferring Strategy Execution expertise • Assessing and mitigating risks to successful realization • Conducting strategic initiative “health checks” for governing bodies • Providing execution governance structure and process
• How are we managing human risks?
• Are behaviors shifting?
• Do we have the resources we need?
• Do we understand the risks we face?
Conner Partners’ ™ Execution Engineering Framework
The Execution Engineering framework is a comprehensive approach to Strategy Execution. It clearly defines the elements required for successful execution, enables leaders to distinguish strong from weak execution, and provides a set of effective practices and techniques that allow a replicable model for achieving realization. It was designed to help leaders and their organizations accomplish critically important business initiatives.
The Execution Engineering framework provides:
• Structure for clarifying and staying true to the original business intent • Easy-to-grasp explanations of change dynamics • Best-practices learning from organizations successful in implementing change • Practical road maps that leaders and employees can relate to • Diagnostic tools • Reliable metrics • Initiative/project-level dashboards for easy status checks • Proven risk-mitigation strategies • Effective techniques and procedures
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All major change efforts can be viewed through the perspective the Execution Engineering framework offers: Intent, People, and Delivery are relevant focal points at the strategy, initiative, and project levels of any endeavor.
Conner Partners—The Foremost Authority on Defining and Refining Best Practices in Strategy Execution
Conner Partners’ innovative approach to Strategy Execution delivers a proven and completely integrated framework to successfully manage your most strategic and critical change initiatives.
THOUGHT LEADERSHIP
We were the first company to combine the disciplines of strategic intent alignment, change management, and program management to offer a methodology for realizing the true business goals of major transformational change. DEEP EXPERIENCE
Based on more than 30 years of applied research and intellectual property development, Conner Partners’ Execution Engineering™ methodologies are rock solid. We have identified the key
elements and patterns that differentiate organizations that succeed at transformational change from those that fail. We apply a proven risk framework to help our clients assess their vulnerabilities and adjust their approaches. We help you successfully navigate the inevitable challenges to achieve full realization of your intended results. OUR CONSULTING PHILOSOPHY
Our approach to consulting is unique. We are not in the business of telling our clients what to do; instead, we facilitate the process of finding the right path. With candid, constructive communication, we help you work through the tough decisions with a consistent focus on the realization of your strategic intent. We help you deliver the results you have promised.
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And we back it all with a Promise Partnership. We are the only firm to share in our client’s financial risk by placing 20% of our fees contingent on a client’s acknowledgement that execution objectives have been met. CONNER PARTNERS:
• Dedicated to the successful execution and realization of major transformational change • Creator of a proven methodology and tools • A group of professionals passionate about the ethical practice of their specialized discipline • A trusted business advisor to our clients
Today’s Competitive Advantage
Conner Partners believes that Strategy Execution is a new category of professional services that fills the need for unbiased, independent business counsel focused on executing strategic change.
The skills required to successfully execute strategic change can be built and enhanced over time within your organization— creating a capability to out execute your competition. The process of developing Strategy Execution competency can be difficult, lengthy, and complex. It requires a serious commitment. However, it offers the first real approach to the successful realization of your strategic goals and for creating a sustainable source of competitive advantage.
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The execution of your most critical initiatives is our only business. Through our work in Strategy Execution, we deliver on the promise of what management consulting should provide: lasting results, stronger leaders, and more successful organizations.
Strategy Executed...Results Realized
Our clients have applied Conner Partners’ Execution Engineering framework to accomplish an average 98.2% realization success rate with their strategic initiatives including these examples:
• Global shared services strategy resulting in better service levels at lower cost • New healthcare delivery model resulting in better quality care, increased market share, and revenue growth
• Competitive advantage strategy resulting in increased internal capability to execute change and significant improvements in the organization’s realization rates
• Technology strategy resulting in a paperless environment, improved customer • Strategic supply strategy resulting in service, increased market share, and increased flexibility, improved dependability, sustainable savings higher quality, and significantly lower cost • Paradigm shifting sales model resulting in increased market share, higher sales, and revenue growth • Transformational growth strategy resulting in achievement of company growth targets
Conner Partners is a firm of specialized professionals dedicated to bringing out the best in you and your teams. Let Conner Partners help you be as skillful in executing your strategies as you are visionary in developing them.
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