Monday, August 31, 2009

Making Sure Your Strategy Fails - Eight Global Worst Practices of Strategy Implementation



It is time to reveal the secrets of failed implementation. With more books being published in the last 24 months than there had been to date on strategy implementation (including my own, Beyond Strategy – The Leaders Role in Successful Implementation, by John Wiley this week) it is no longer a secret what nine out of ten companies do to make sure that their corporate strategy fails. In sharing the eight global “worst practices” I appeal to all strategy saboteurs around the world.


Eight Global Worst Practices of Strategy Implementation

1. Underestimate the implementation challenge

Strategy is the key responsibility of leaders and implementation is the key responsibility of staff members. After spending 18 months developing the strategy you have earned that long overdue break. You have delivered on your key responsibility of identifying the company’s future and how to get there. Now it is up to the staff members to deliver on their responsibilities. Tell them what needs to be done and they will deliver.


2. Don’t think through the impact on each vertical business line

When developing strategy it is essential that leaders adopt a helicopter view and look horizontally across the businesses and even more importantly consider how the strategic objectives impact each other. After considering this, each leader can then be expected to return to their office and drill down the strategy into their division and departments. Corporate wide strategies, goals and measures will be translated at departmental level and everyone will have a clear sense of responsibility with regards to the new strategy and the actions they need to take to make it come alive.


3. Use change management methodology

For the last 40 years we have used been using change management methodologies as a sure fire way to execute strategy and there is no reason to change our current approach.


4. Don’t use a strategy implementation framework

When leaders return to their office after the board has signed off on the new strategy they have a strong understanding of what they need to not only do next but also over the long-term to deliver on the promises they have made. They will immediately set about ensuring measures are changed to track the new strategy and eliminate the old ones. They will initiate process redesign groups, communicate the strategy and align the implementation with the culture. They will also support the people who support the strategy, change reward and recognition to align it with the desired behaviors and actions of the new strategy and every two week review the implementation to make sure it is on course. All of this is second nature to a leader and there is no need to waste money adopting an implementation framework or hiring a consultant.


5. Do not reinforce staff members for taking specific actions

It is a given that staff members will adopt the new desired behaviors and actions of the new strategy as this is their responsibility. They understand that it is the collective action of every member that takes the company forward (or backward). They know that everyone is responsible for strategy.


6. Allow communications to fizzle out after the initial launch

It is essential to launch the strategy and the most popular methods include town hall meetings, newsletters and email campaigns. After the initial launch the staff members will have a clear understanding about why the company requires a new strategy, the actions they need to take and will be motivated to take them. Even more, the understanding and motivation will last for the full period of time it takes to implement the strategy and will not falter or rescind.


7. Don’t worry about the work that is no longer adding value

Staff members are amazingly intuitive and self starters. As the strategy is rolled out they will constantly be able to step back and reflect on what needs to be done differently. Even more impressive is that they will overcome the juxtaposition of the work that needs to be done and that, that is no longer adding value.


8. Implementation of strategy is a serious subject, not fun

When implementing strategy we are talking about the future of the company and this is not a time for light hearted comments, discussions or actions. Everyone in the company understands the importance and their responsibility. This is not a time for being frivolous.