I regularly teach, consult and write about strategy development. But in this article, I’ll focus on strategy execution; a topic sometimes omitted in business strategy books. As always, I’ll keep it concise, borrow from the ‘greats’, and present some timeless fundamentals.
Executing strategy usually requires change, for example in resource allocations. Prof. John Kotter is the world’s leading authority on change management. So, let me take three key themes from his celebrated change management article, published in the Harvard Business Review’s ‘10 Must Reads’, and adapt them to strategy execution.
One theme, and first step, is the formation of a virtual team to urgently (change takes time!) and relentlessly execute strategic changes. A diverse network (not hierarchy) of colleagues can support the strategy development process (e.g. by gathering and sharing decision support information like market data). Those same colleagues, with an empowered capable leader, should then guide and drive the strategic alignment of critical activities (marketing campaigns, sales enablement, technical training etc.). Think well beyond your direct reports and close peers when forming this team. And encourage experiments to test strategic choices.
A second theme is continuous, consistent communication via as many channels as possible. In another HBR ‘Must Read’, Michael Mankins and Richard Steele argue that strategy execution must include simple communication, with clear and consistent language, of what the firm will and will not do. To achieve this, I recommend McKinsey’s Three Horizons to initially develop and then visually communicate the strategy. (See my separate article). And do explain the strategy development process so that colleagues understand the analysis, market opportunities, reasons for change, and risks of not changing. Colleagues will better execute a strategy if they trust it as well as understand it. Finally, ensure that all communication activities are 2-way. You/the strategy team must monitor progress and threats to the success of the strategy. Threats should be gathered and considered in the next cycle of strategy development.
Finally, constantly explore and seize opportunities to add momentum to the changes that the strategy execution requires. Look for, drive, celebrate, reward, and communicate wins that demonstrate that the strategy is working. Consider and carefully manage any negative impact to the changes. And demand that potential new hires and internal promotions understand the strategy and commit to actively supporting it.
So, please keep good change management fundamentals in mind when both developing and executing your strategy.