Steering the Ship: Managing Your Organisation for Effective Strategy Implementation

Effective strategy implementation is a formidable challenge, with failure rates ranging from 60 to 90 percent. Simply formulating a brilliant strategy is insufficient; the real work lies in managing the organisation to bring that strategy to life. Several key elements emerge from the sources as crucial for navigating this process successfully.

Firstly, strategy implementation must be a central concern for the CEO and top leadership. Without their visible and unwavering commitment, the strategy is unlikely to gain traction. Leaders must champion the strategy and actively participate in its delivery, not just its design. This includes dedicating time to discuss strategy; worryingly, 85 percent of executive leadership teams spend less than one hour per month on such discussions. In my organisations, strategy drove SMT meeting agendas.

Secondly, crystal-clear and consistent communication of the strategy throughout the organisation is paramount. Astonishingly, fewer than 10 percent of employees often understand their organisation's strategy. Leaders must translate "lofty rhetoric" into concrete actions and explain to each employee how the strategy impacts their daily work, answering the "What's in it for me?" (WIIFM) question. Various channels should be used for this communication, and the message needs to be repeated often.

Thirdly, the organisation must be aligned with the strategy. This involves ensuring that corporate roles, business units, support functions, and even external partners are all working towards the same strategic objectives. Crucially, each employee must understand how their job needs to change to achieve the strategy. If this alignment is absent, the strategy will not become "business as usual". This alignment extends to human resources, ensuring that employee incentives, competency development, and performance reviews are consistent with strategic goals.

Fourthly, organisations need to establish robust management processes that are integrated with the strategy. Traditional planning, budgeting, resource allocation, and reporting cycles often operate in silos, disconnected from the strategic objectives. A central resource reporting directly to the CEO can address this by linking strategy planning to execution and overseeing key strategy management processes. They can facilitate the development and cascading of tools like the Balanced Scorecard to translate strategy into operational terms. It also plays a role in managing strategic initiatives, ensuring they receive the necessary resources and attention.

Fifthly, monitoring progress and ensuring accountability are essential. Regular strategy review meetings, where progress against strategic objectives is discussed and action plans are monitored, are crucial. The resource above can play a key role in shaping the agenda of these meetings and following up on action items. Furthermore, learning from missteps and adapting the strategy based on feedback and new information is vital for navigating the dynamic business environment.

Finally, fostering a culture that supports strategy execution is critical. This involves empowering employees, encouraging open dialogue about barriers, and acknowledging the importance of delivery alongside design. Embedding strategic thinking into "business as usual" is the ultimate goal, where every decision and action is guided by the overarching strategy.

By focusing on these key aspects of organisational management – leadership commitment, clear communication, strategic alignment, integrated processes, diligent monitoring, and a supportive culture – organisations can significantly improve their ability to translate strategic plans into tangible and lasting success.