Thought to Action: Signals of Strategy Implementation
At a presentation for the Canterbury Institute of Directors, I delved into the intriguing world surrounding "The Signals of Strategy Implementation." It was a deep dive into the visible and hidden hurdles that can stymie an organisation's strategic ambitions. The crux of the discussion? How Boards of Directors can spot these obstacles early and navigate around them, ensuring the company's strategic objectives are met whilst enabling the CEO & Management team to take action. In the fast-paced business arena, growth, scalability, and perpetual change are very much business as usual, requiring teamwork and alignment between the Board and management.
Having worked in this space for 16 years, I've observed boards wrestling with strategic foresight—juggling their many responsibilities while trying to keep the strategic plan on track. Crafting a Vision and Strategic plan might seem straightforward with the right mix of minds, data, and foresight, but the real challenge kicks in post-planning. The reality of the market and daily operational demands can sidetrack the best-laid plans. Thus, strategic planning must be a living process, evolving and adapting to remain on track and relevant.
Beware the telltale warning signs of strategy implementation roadblocks. These include:
A lack of strategic acumen on the board, crucial for supporting the organisation's future strategic needs. This includes skills, experience and diversity of thought and a directors succession plan.
An emphasis on strategic refreshes and board contributions to critical dialogues that ensure key decisions are made with trackable actions.
Staying a step ahead of the CEO to create stretch beyond the annual business plan, looking 6-12 months into the future and ensuring strategic discussions contribute to & shape the implementation of strategy.
Outdated organisational structures that don't reflect the current or future needs of the CEO role, including KPIs and incentive schemes, nor anticipate the structural and managerial system requirements for achieving strategic goals.
A disjointed management team, marred by departmental silos and a lack of collective pursuit of the broader strategic objectives.
The absence of a strategic framework that bridges the board and management team, allowing for input into annual strategic deep dives and the regular review and adjustment of strategic action plans.
So, how can Boards dismantle these barriers?
The Strategy Implementation Success Equation
Clarity: Dive deep into strategic reflection to achieve unmistakable clarity. A staggering 61% of 1500 NZ businesses we recently surveyed confessed to a strategic vision blur. Boards should contribute to and ensure the transparency and communicability of the strategy, laying a solid foundation for implementation. A clear and simple plan wins the day.
Cadence: The strategic blueprint must be fluid, adapting to market shifts and competitor moves. Instituting a rhythm of annual strategic reviews and interim 90 day sprints ensures continuous reevaluation and adaptation, much like the operational cadence of meetings and reviews drives operations of the business, there should be a similar cadence of strategic reviews and action meetings.
Consistency: Implementing strategy is challenging relentless & easy to lose in the churn of business as usual. Persisting through challenges with grit and determination is vital. Consistency lays the groundwork for success. Boards must consistently prioritise the strategic agenda and support the CEO to prioritise the important strategic goals.
Accountability: The board's active engagement in crafting and prioritising the strategic plan alongside the CEO & management team fosters accountability. The CEO bears the ultimate responsibility for executing the plan, but it starts with the board's maintaining a vigilant oversight through agendas, strategic discussions and measurement reporting.
Agility: Strategy Implementation is critical to ensure the future success of the organisation. Agility ensures resilience & there must be an acceptance that the plan will need to constantly iterate, evolve and change. A growth mindset and leaders who can lead change, alongside ongoing regular reviews and resets creates agility through momentum. Both the board and management team play a critical role in this.
Focus: Synthesising all these elements demands unwavering focus. Prioritising strategic initiatives, warding off distractions, and maintaining the course is crucial. Regular strategic discussions, performance tracking, and celebrating milestones spotlight strategy execution and progress. Focus precedes success.
The culture and structures required that allows an organisation to consistently implement the strategy start at the very top - with the board. Too many allow static strategic plans to prevail and do not overcome the barriers for implementation which creates significant risk. Those organisations that are curious and build success through momentum and action tend to be the ones who grow to influence and lead their market over time.
This blog was contributed by Kendall Langston, Partner.