Strategic Success by Eliminating Execution Failures

Strategic Success by Eliminating Execution Failures

Almost without reservation, businesses have had to face one of their most difficult times in modern history due to the Global Financial Crisis. And, politicians have never had it so easy to explain away inadequate performance.

Now is the time for organisations to be seriously setting their future strategy for 2010-2013. Setting strategy is neglected by many business owners and CEOs because execution failures have given the process of a negative stigma.

Through observation of many organizations around the world over many years, the most frequent and obvious reasons for failure are identified below. Avoid these mistakes and you will be far more successful.

1) Where's your research? Numerous times while consulting to organizations, we find that the most current research on their target markets, customers, competitors, suppliers and alike, are out of date or even worse, doesn't exist. Obtaining factual research for your planning is vital. To not get it, can be fatal.

2) Failing to challenge the data. Be certain to carefully question and debate the conclusions you draw from the data collected. Imperfect analysis will be just as harmful to your strategy as inaccurate data. Build your strategy on firm ground.

3) Not enlisting the best people. Leaders must recruit the best and most appropriate people for strategic projects and for strategy execution. Not infrequently, I've witnessed managers nominate names for a strategic project that were obviously inadequate. The reason being those managers don't want to take their best people out of the field or off the floor. Strategy is too important not to afford the best people.

4) Lacking Involvement. Strategy is always best served when created in consultation with the people who have to execute. Having the CEO/business owner in a closed room with the CFO and a consultant write a strategic plan and then disseminate this to the management team is destined for disappointment. Involve those that matter such as: sales, warehousing, distribution, HR, IT, accounts, and marketing in the process. There is an enormous depth of talent already residing in your organisation.

5) Too little for too many. Having too many initiatives on the board at any one time will dilute attention and the propensity for success. Move a few things forward a mile rather than a thousand things forward an inch. Prioritize your strategic projects. If there are not three "stand-outs" to focus on, brainstorm some better ideas!

6) Resource-lack. All execution plans for strategic initiatives must necessarily include specific resource details. Resources such as: people, time, infrastructure, capital equipment and money. The resource details need to be explicit, encompass all relevant business units and the managers of those units must have buy-in prior to launch.

7) Mis-alignment. Get everyone personally behind the corporate objective. Having developed a purposeful pricing strategy for a new service or product offering is not assisted by sales people who are pitching discounts in the marketplace. This is not the fault of the sales team or their manager. It is witnessed that this is happening because sales bonuses are paid without considering the consequences on the strategic initiative.

8) Mis-communication. Or even worse, no communication. People tell how they admire leaders who share the vision and paint a picture for the future. Communicate with clarity, passion and sincerity the strategic initiatives to everyone, regularly.

Side bar: Bullet points in the company newsletter doesn't cut it!

9) Failure to check the instruments. Good pilots understand that even though they have submitted their flight plan, run the pre-flight checks, taken-off in the right direction and have engaged the auto-pilot, they must diligently check their instruments to ensure that the flight is proceeding as planned and on course to reach their destination.

Leaders in business need to constantly check and measure progress. Review the strategy monthly or quarterly with management and ensure that milestones are being met along the way

10) Unwillingness for the 3 A's. Adopt - Adapt - Accept. Shift happens, change is constant and you must be agile in coping with this.

Adopt a philosophic mentality where you cope with the reality that from time to time the best laid plans go awry. Uncontrollable events intervene in the successful achievement of your goals.

Adapt to the environment and accept a new set of challenges by modifying your strategy.

11) Uncommitted leadership. When the owner/CEO places the bound strategic plan in the bookshelf, so does the team.

Strategic initiatives must be passionately driven from the bridge by the captain in charge of the controls. You must be so convinced of the strategy that it is obvious to everyone you are committed to it and you will maintain persistent focus until it's successful.