Despite a strategy formulated to look 3-5 years into the future, CEOs’ major concern remains the lack of execution of this strategy. The main drivers linked to performance have been defined, the management team is well-equipped with competent, committed members and the strategy has been formalized and communicated, so why does execution remain a failure?
CEOs often feel that there are significant dysfunctions putting a brake on the proper execution of their strategy, yet they do not succeed in identifying the root causes of the problems. They acknowledge that the business is not sufficiently agile, that changes are slow in coming and that the decision-making process is taking too long – all source elements putting the business performance in jeopardy.
These managers then commit themselves to a round of annual “roadshows”, they invest personally by taking part in steering committees for projects to support the strategy, they surround themselves with a management team that monitors the projects and relies on dashboards and they are convinced that in doing so, they have taken all steps necessary to carry out execution properly.
However, faced with competition, which is becoming increasingly agile, this way of leading is outmoded.
STRATEGY DYNAMIC AND ANTICIPATORY: definitions
Strategy
On the one hand, the “run of the activity” also called “Business As Usual” will ensure the current outcome. On the other hand, formulating the strategy makes it possible to define the means of attaining high-performing objectives and brings together everything that the business wishes to do differently (new processes, new products, new markets, etc…).
Dynamic strategy
However, the strategy being used at any given moment is “battered” by external changes (competitors, clients, markets, etc…) and by initial results obtained in the first implementation phase (positive or negative).
As a result, the reality “on the ground” is indeed far removed from those assumptions made when the strategy was first formalized. Even if the CEO and the management team are convinced that they have defined the best possible strategy which has been cascaded down through the organization, it is still no longer completely suited to the current situation. The danger lies in continuing to make decisions and following an action plan based on a strategy that has not been updated regularly. The focus is directed towards strategic objectives that are no longer a priority and this is currently the explanation for the majority of failures in achieving objectives. Consequently, execution does not deliver the desired results.
So, it follows that executing a strategy needs to be steered like a change program and must be continuously adapted.
Anticipatory strategy
If the strategy is not reviewed on a regular basis, decisions are not taken early enough and actions for change will not be implemented in time!
With a short sales cycle product, changes occur very rapidly and so changes in strategy are often understood and accepted, making implementation relatively straightforward. But let’s look at long sales cycle products, management often thinks that adapting the strategy once a year is enough (at the time of the annual strategic seminar); this is a mistake. For example, when a tanker needs to change course, the maneuver has to be prepared for in order to be able to change course at the desired moment… It is the same in business, where the concept of anticipation within the strategy is fundamental.
The aim of an anticipatory strategy is to eliminate the maximum number of dysfunctions (so much time being wasted in resolving them) and to implement action earlier (avoiding inadvertent delays).
Leading differently
Making the strategy dynamic – so that we learn how to re-adapt it continuously to adapt to change – is a necessity to maintain competitive advantage and to ensure the sustainability of the company.
How to ensure agility and coordination in execution of the strategy?
This is where the role of the management team is key. His or her role is to face those changes impacting on strategy and to adapt it continuously in line with events.
All changes will be rapidly implemented if the management team has taken the decision on the basis of a consensus. This consensus only occurs following conversations based on total transparency, open communication and clear feedback in the course of meetings dedicated to the steering of strategy execution. These meetings relate to effective decision-making by taking into account all problems and those weak signals coming back from “the field”.
Consequently, the efficiency of the management team will be optimized if a management system linked to strategy indicators is implemented.
The solution that enables a dynamic strategy with agility in the execution should also be completed by an anticipative solution; this will provide a reading of “projections” upon the steering of actions and strategic objectives. The complete solution is known by the name of Steervision Center (2), providing an ease of decision-making and quick implementation for CEOs and their management team.
We now understand that the aim of these solutions is for CEOs and their management team to work with agility and a greater precision in the steering of their strategy, so that it then becomes dynamic and anticipatory!