In their book The Execution Premium, Harvard’s Norton and Kaplan stated that 80% of companies never achieve the full value of their strategy. That is a frightening statistic. In our experience, the greatest reason is that short term needs take precedence over long term strategic choices. So, what can leaders do differently to be among the 20% that achieve all your strategic objectives? Embrace the discipline of strategy management.
Consider these four principles of strategy management:
- Focus – Strategy provides focus to make the complex more manageable. It helps to manage the allocation of resources toward the most promising opportunities.
- Alignment – Focus results in organizational alignment. A clearly articulated strategy brings everyone together—owners, family, management, and employees—to work collaboratively to achieve the strategic objectives.
- Commitment – Alignment results in commitment to achieving the Mission, Vision, and Objectives. Commitment builds confidence and drives excitement about the future.
- Accountability – Commitment creates an environment where employees will hold each other accountable to deliver on their personal responsibilities.
By embracing strategy management, you can become part of the 20% of companies to achieve the full value of your strategic plan. Do you have an explicit strategy that you can clearly communicate to all your employees? Does everyone understand their role in making strategy happen? Are you holding everyone responsible and accountable to achieving the full value of your strategic plan? Let us know what you are doing to make strategy happen. Please share this newsletter with your friends and associates as you see fit.
Quote: “Without strategy, execution is aimless. Without execution, strategy is useless.”
— Morris Chang, CEO of TSMC