Planning for future growth

Having a bright idea but no plan for its execution will most likely result in business disaster, so it’s crucial to have a sound implementation strategy to follow up on your corporate vision. As Frances Davies finds out, you can’t have one without the other.

Businesses across the globe have come to a stark realisation: in today’s competitive environment, creating a well-constructed business is not enough – it’s just stage one in a complex process. Sound strategies will fail if they are not properly implemented.

Executive boardrooms around the world now place strategy implementation high on their corporate agendas. Often C-level executives have ambitious ideas to improve the company, but actually turning ideas into reality may prove problematic or simply unrealistic. Research by Fortune has shown that seven out of 10 CEOs who fail do so not because their ideas are poor, but because the execution of their grand plan is not up to scratch. Execution is just as important as strategy development itself.

“We believe that there should be no distinction between setting a strategy and the ongoing process of ensuring the aims are actually realised – they can and must be part of a natural cycle of events – the organisational equivalent of breathing,” says Haydn Rees, Director, Accourt Limited. “We often see even major organisations who, over time, have divorced the setting of strategic direction from the active management and measurement of achieving their ambition. This leads to a feeling of unreality within the organisation and, ultimately, a disengaged and demoralised workforce.”

Rees is keen to stress that those companies that are successful are those that realise the importance of the actual execution of the plan. “Most high performing organisations regard execution as a key discipline and devote significant management time, resources and attention to the development and continuous improvement of good plans and simple techniques to drive their execution,” he adds.

It all boils down to having strong leadership, knowledge, direction and skill; without these there is possibility of failure, which is where those at the top of the organisational tree need to step up to the plate. “Overseeing strategy implementation is an important responsibility for any board,” argues Scott McAllister, Senior Performance Excellence Consultant at Breakthrough Management Group. “A great strategy will not deliver the desired results if it is not executed effectively. Often, there are gaps in the leadership and technical skills necessary to drive new strategies to fruition.”

Tools of the trade

Many tools are now available to steer directors and managers through the maze of implementation. One of the main hindrances to strategy implementation is that executives may have difficulties gaining an accurate picture of their business. “At present, executives are often reliant on a combination of quarterly PowerPoint presentations, e-mail, competitive intelligence, market news or internal resources. This means they may be unable to access the right content in a timely way,” suggests Michael Kuhn, Accenture’s Portal and Management Practice Lead for EMEA. “Being able to proactively assess enterprise performance data and access mission-critical information in a fraction of the time is key to effective business management and strategy implementation.”

One-way of managing this, suggests Kuhn, is to use an executive portal so senior executives have unlimited access to an accurate picture of their business. “An executive portal provides senior executives with a tool that aggregates enterprise performance data, allowing them to access the success of strategy implementation at a glance,” he says. “By using predictive technologies, executives can even circumvent problems before they take hold. For the busy chief executive officer, deluged by data, perhaps running the business is no longer a case of ‘keeping your eye on the ball’; a more pertinent recommendation might be to ‘keep your focus on the screen’.”

Before implementing a technology such as a portal, there are a number of considerations executives should consider to ensure that the technology is utilised to its best potential. “First and foremost, portal initiatives should not start without an agreement between all company stakeholders on the direction of the portal,” advises Kuhn. “To be effective, a portal strategy must encompass each part of the organisation, linking them together through a sound content management approach. It is also recommended that organisations develop a standardised approach to integrate applications and content.”

Choosing a solution can be difficult, therefore getting the right advice first is a must. Contrary to popular belief, rushing to a well-known seller for guidance on a best-of-breed may not be the wisest option. Searching for a solution that can ultimately meet your needs is the priority. “The consultancy marketplace is crowded with stalls offering change tools; are you attracted to the biggest most colourful stall? What about the vendor who shouts loudest or has a really good patter?” asks Andy Neal, Director of change management consultancy ChangeMaker. “Try searching out the smaller dedicated stallholders who have been in the business a long time, who are committed to and directly involved with their products, who have the enthusiasm of a specialist and are keen to introduce you to other satisfied customers. Someone who you can relate to, who fits your lifestyle and who will tell you if what they have to offer is not for you. There is no magic solution; you may feel reassured by resorting to the well-known, but whatever you do, it is best to make a timely decision and then be absolutely clear about the direction, process, outputs and roles and responsibility.”

Keeping things simple

The wealth of tools available can make the decision a confusing one, therefore keeping things simply is a priority –complexity only encourages misunderstanding and poor interpretation of plans throughout an organisation. “The key must be simplicity first and foremost – stop and think,” advises Rees. “Creating an environment in which the most appropriate tools are used by everyone in the company in a uniform manner is just one dimension to successful execution. This includes establishing a common language used by everyone involved in the process right the way from top to bottom. Often, the tools that are the most effective are the simplest and this is especially true of those that can be understood by everyone that uses them.”

Clarity across the business is crucial to achieving the firm’s objectives. According to Rees, using a common language, vocabulary and a set of practices at all levels across a business “ensures that every person in an organisation understands the wider plan for the coming period and what their part within that is, so they are poised and ready to deal with the inevitable friction and related change that the external environment, as well as the internal, will inflict.”

A change for the best

Change is often unavoidable if a new strategy is to be successfully implemented. Adapting to change may sometimes be lengthy and inconvenient, but it is usually necessary in order to achieve a greater goal for the business. Often it can bring new opportunities and growth to a business, but sometimes it can be met with resentment and hostility if its purpose is not fully understood. Change management consists of tackling a change following a planned approach and is essentially crucial for progress. “Without effective change management a new strategy will remain an idealistic and expensive dream in the minds of the board,” argues Neal. “Change management involves the journey you will need to take everyone on to reach this destination.”

A well-crafted change program will convey clearly the change to take place and why, and ensure that workers are supported at each stage of the change. Change management in strategy implementation is therefore an important aspect. “The role of leadership is to inspire and enable others to achieve individual and organisational success,” explains McAllister. “If the leadership determines that success requires the implementation of new strategy, change is inevitable. It’s important to understand that change is a process and it doesn’t happen if you don’t capture the hearts and minds of the individuals. Strategic change also takes time, so to be successful, leaders must be prepared to lead by example and stay the course. I’ve seen many strategies fail due to lack of focus on change management in favour of a focus on the technical elements.” Indeed, often the most successful businesses are those that constantly change and evolve. “Truly high performance organisations are institutionally open to continuous change,” says Rees. “It is not a one-off forced event that is managed externally but a natural part of the business life of the organisation.”

Resistance to change is, however, often an inevitable drawback and, according to Neal, there are usually three reactions. “20 percent say ‘fantastic, when do we start, what do you need me to do?’ 60 percent are nervous, uncertain of the future, unsure of what it means. The remaining 20 percent say (although probably not openly) ‘over my dead body’.” A company must therefore ensure that it listens to the concerns of its employees at all levels to prevent any disaffection and to motivate them to work towards the company’s aims. People deal with change in different ways. Fear of change is often a normal reaction and can produce insecurity amongst staff. Reassurance through constant communication and involving staff throughout can dampen any concerns. And remember, despite your best efforts there will always be those who still need persuading.

“Stakeholder management is essential in large-scale change and stakeholder analysis tools can go a long way in identifying resisters and saboteurs,” advises McAllister. “Once identified, there are several techniques that can be employed to gain their support. Leveraging interpersonal networks is often an effective approach. Another key is to defuse emotional behaviours and seek to understand the underlying issues causing resistance. Reducing defensiveness from registers will often allow them to explain the real reasons for resisting and it’s surprising how rarely they have to do with the specific change itself.”

Strong leadership is essential to handle potential saboteurs and resistors and steer them to the company’s way of thinking. “Above all, the leadership needs to demonstrate commitment; they must communicate openly, and devote their efforts to keeping the vision simple to understand and clearly reinforced in everything they do,” explains Neal.

Future fortunes

Successfully implementing a strategy has always been one of a host of key criteria for CEOs. But faced with increasing competition, a company’s ability to innovate and smoothly carry out projects and changes is more important than ever before and will ensure they attain and retain a strategic edge. “Strategy implementation rather than creation will become one of the key measures for CXOs in the future,” foresees Neal. “They will be measured on reaching the destination with the whole organisation on board, not just creating an attractive route-map. The implications of this include potentially longer terms with shareholders, anxious for a return on their investment, keen to see the changes through to a profitable conclusion.”

Companies will gradually come to realise that involving all levels of the organisation with the implementation of a strategy is the key to success. “Strategy management will have much more engagement with the operational side of the business in the future and be much more straightforward and pragmatic,” says Rees. “Currently it is sometimes divorced from reality. Over the last five years there has been a tendency for it to be seen as rather academic and detached from the coalface. The organisations that have strategy decided by senior management who do not then necessarily share it with those they want to deliver it often struggle to achieve their goals. Companies need to engage their workforce in a unified purpose better than they have been doing if they are to succeed.”