Strategy Execution - Vlerick MBA course lecture

Strategy Execution:
From Powerpoint to Practice

“A strategy, even a great one, doesn’t implement itself ”

MBA course | 16.03.2010 | Jeroen De Flander

From PowerPoint to Practice > Material Page 2

This presentation is available on Linked|SE, the official Strategy Execution
Group on LinkedIn

Select “Search Groups” and
type “Strategy Execution”

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Go to news

Click on „MBA slides‟

From PowerPoint to Practice > Agenda Page 3

Agenda

1 The execution challenge

2 The Strategy Execution formula

3 12 insights from the best-in-class

4 Strategy Execution Heroes

5 Strategy Execution Barometer®

6 Questions & Answers


Agenda







From PowerPoint to Practice > Challenge Page 5

The execution challenge - 3 crucial questions every managers should ask

“Did you know that companies loose
between 40 to 60% of their strategy
during implementation?“



“Do I know exactly where my
company, department or team is
losing performance?”



What can I do to close
the execution gap?


The execution challenge – experts and senior executives join forces

Experts Senior Executives

Dr. Peter Scott-Morgan Michael Smith
VP Group Strategy Coca-Cola
Sir John Whitmore Shane Dempsey
VP HR & Comm. Novo Nordisk
Douglas Johnson-Poensgen
Volker Voigt
VP Business Development BT
Alan Maxwell
Prof. Vincent Lion VP HR Lockheed Martin
Jean-Francois Van Kerckhove
Koen Schreurs VP Corporate Strategy eBay
Hervé Borensztejn
Sr VP HR EADS


The execution challenge – our contribution

Actionable, up-to-date 250+ useful
benchmark information implementation tips


Agenda







From PowerPoint to Practice > Formula Page 11

The Strategy Execution Formula: Framework + Heroes = Performance

Framework Heroes

From PowerPoint to Practice > Formula Page 12

The 8


Agenda







From PowerPoint to Practice > Insights Page 14

12 insights from the best-in-class: Strategy Execution …

1. … is a discipline of its own
2. … is a vast area with blurred borders
3. … is on its way to maturity
4. … requires a great strategy
5. … requires your attention from the start
6. … has a strong timing sequence
7. … requests a integration between organisational and individual performance
8. … demands clear responsibilities
9. … requires horizontal alignment
10. … asks for measurement
11. … is a resident
12. … needs heroes


Agenda







From PowerPoint to Practice > Heroes Page 16

The leadership challenge

“Strategy Execution isn’t something others are doing while you are
working on something more important.”




“Your Strategy Execution role is part of your overall leadership role.”





“A good leader is a strategist as well as an implementer.
It’s not a question of either/or.”






“Most managers find it easier to define a new strategy than
it is to implement the existing one.”







“Execution is part of your management job. It may sound boring,
but nevertheless it is your job.”







“Execution is part of your management job. It may sound boring,
but nevertheless it is your job.”

“Don’t mix execution with operations/tactics.”


Agenda







From PowerPoint to Practice > Barometer Page 23

The Strategy Execution Barometer®: actionable, fact-based Strategy
Execution benchmarking data


The Strategy Execution Barometer®: participants


The strategy Execution Barometer® looks at Strategy Execution from eight
different perspectives

I. Strategy Focus

VIII. Support for Managers II. Strategy Communication

VII. Performance-Related Pay
Strategy III. Initiative Management
Execution

Engaged People and
VI.
Performance-Driven Culture IV. Individual Objective Setting

V. Skilled Managers


Initiative Management and Strategy Communication rank at the bottom
when comparing all eight perspectives

V. Skilled Managers

VI. Engaged People and Performance-Driven Culture

I. Strategy Focus

IV. Individual Objective Setting

VIII. Support for Managers

VII. Performance-Related Pay

II. Strategy Communication

III. Initiative Management


Three striking conclusions on the biggest challenge, Initiative Management

Strategic initiatives are poorly staffed and inadequately budgeted for
Only 61 percent believe that initiatives are adequately budgeted and staffed.
Only 6 to 8 percent of respondents are happy with resource allocation

Strategic projects lack transparent accountabilities
26 percent have no clue who is responsible for several strategic projects
Only 21 percent find the project accountabilities transparent

There is often a mismatch between the project portfolio and the overall strategy
21 percent of all projects fail to support the strategy
Only 15 percent is convinced that all projects are aligned with the strategy


Three striking conclusions on Strategy Communication, the second priority

Senior management is ignorant of managers‟ understanding of the strategy
33 percent of participating managers are never actually asked the question
Measurement of strategy understanding receives the worst scores of all communication
elements surveyed

Managers lack information on their colleagues‟ goals
Just 17 percent are happy with the strategy intelligence received from colleagues
And 24 percent don‟t receive anything at all

Managers lack a clear view of the overall Strategy Execution process
Just 66 percent indicate that they receive information on the Strategy Execution process
Of all the 15 elements that determine the quality of the strategy communication, this one
scores poorly and ends up in 14th place


Agenda







From PowerPoint to Practice > Q&A Page 30

From PowerPoint to Practice > Takeway Page 31

Performance takeaways for this session

1. Sound Strategy Execution creates competitive advantage

2. Most companies loose 40 to 60% of their strategic potential

3. You need to know exactly where you loose performance

4. Use the concept of the 8 to link individual and organisational performance

5. Remember the managers‟ crucial role to get it done

6. Take on the challenge and be a hero!

Strategy Execution - Vlerick MBA course lecture

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