Hello. This is Ned Wasniewski, and I'm a partner with Insight Experience. Over the past 15 years, I've worked with a variety of clients on the topic of executing strategy. These clients span the globe and represent industries ranging from financial services to high-tech to telecommunications. Our clients have all faced a similar challenge: It's not enough to have a well-crafted strategy. An organization also needs the capabilities, skills, and discipline to effectively execute their strategy.
In this module, I'll be introducing the Strategy Execution Cycle, which is the primary and anchoring model for Insight Experience's virtual strategy execution program. The Strategy Execution Cycle is based on years of client work, as well as our own research on the topic. This cycle identifies the many different skills, behaviors, and activities required to successfully execute strategy. In this module, I will provide a brief description and summary of each activity. In later modules, we will explore each element of the Strategy Execution Cycle in greater detail.
Before I introduce the cycle to you, let me share an important observation: The cycle implies that the activities within it occur chronologically. Many companies will set their strategies and translate them during a specific time of year. However, the star within the cycle is designed to indicate that the different activities can and should occur at any time during the year. Many may take place concurrently, depending on a company's market and organizational circumstances.
With this background, let me walk you through the cycle.
-
The Strategy Execution Cycle begins with understanding the strategies that you support and contribute to. Without understanding broader company strategy, a leader can't be confident that they are working on the correct priorities and initiatives. Understanding strategy requires two things: First, a leader must be in tune with the markets in which their business participates. Second, they need to understand both the vertical and horizontal strategies they support. We will discuss the difference between vertical and horizontal strategies in a later module.
-
Translate is the next element of the cycle. Here, a leader translates the broader strategies they support into aligned local goals and activities. It's important to note that local goals are the goals that you and your team own and are accountable for. Translation requires the leader to focus on their organization's most important priorities. This requires discipline, as leaders and companies often identify and pursue more priorities than they have the capabilities or capacity to take on. A best practice during the translation process is to engage and align with company stakeholders in the development of your local goals and activities. Finally, translation involves identifying key success metrics for the priorities and initiatives you define, allowing you to measure progress and hold others accountable.
-
After the translation activity is completed, implementation or execution begins. This is where a leader and their organization deliver against the priorities established during translation. Successful implementation requires a broad array of capabilities, including the systems, processes, and human capital required to execute strategy. A leader needs to assess, plan for, and develop the capabilities necessary to execute their strategy. Without these capabilities, a company faces an uphill battle in executing and achieving its strategy.
-
Measurement is the next element of the Strategy Execution Cycle. Measurement allows the leader to do two things: First, it enables the leader to measure progress toward the metrics identified during translation, allowing for adjustments and mid-course corrections. Second, measurement allows the leader to hold stakeholders accountable to the commitments they agreed to. Accountability is critical to successful strategy execution.
-
Adapt is the last element of the cycle. It acknowledges the need for leaders to make adjustments as market and organizational conditions change. In today's world, markets and organizations are dynamic and ever-changing, and the adapt element recognizes this. It's important for any leader to be vigilant about identifying and anticipating changes in their business and to make adjustments accordingly. This should not be left to annual adjustments but done on an ongoing basis as conditions warrant.
At the heart of the Strategy Execution Cycle lies communication, represented by the star at the center of the model. Each step in the cycle is greatly improved by active communication and involving others. As we explore each element in future modules, we will discuss the importance of communication in each one.
Let me share a final word about executing strategy: Though we believe the Strategy Execution Cycle provides a useful blueprint for leaders, it does not guarantee success. Based on our experience, companies that excel at executing strategy are disciplined, rigorous, and persistent in applying the activities reflected in the model.
That's it for now. We look forward to taking a deeper look at each of these activities in future sessions.
