After formulating your strategy and having a clear understanding of where you are going and what your priorities are, it’s time for Strategy Execution; translating the vision and goals into actions.
Strategy Execution is a result of daily decisions made by employees at all levels based on the information they have. To translate strategic goals into actions, people in the organization need to understand what are they trying to achieve; what are they responsible for; what tools to use; and know who makes what decision. In other words, your people and your environment influence your strategy execution and organization’s performance.
According to the Organizational Health Index (OHI) conducted by Mckenzie, two highly correlated, unique factors, play a strong role in an organization’s performance: Speed and Stability (Agility). Speed is the ability to respond fast to the rapid changes in economies caused by globalization and digitization. Stability deals with structure, processes, and governance.
How can you execute your strategy successfully? Where is the sweet spot or, the balance between speed and stability? It all comes down to how information flows in your organization and how it is governed. To start, three key elements in your organization must be assessed:
- Culture: Build a culture where everyone has a clear and consistent understanding of the organization’s vision and values. To do this, a knowledge of the organization’s strategic goals must be part of everyone’s conversation. Employees must be provided with access to the tools and information they need to do their job, they must be empowered to contribute their knowledge and ideas, and their performance must be amplified and rewarded.
- Structure and Governance: This is more than boxes and lines on an organizational chart. It’s about understanding how you do your business; how to make decisions; and, understanding who does what. Clear roles and responsibilities must be defined so everyone has a common understanding of where their accountability begins and someone else’s ends. Assess how information flows throughout the organization so you can respond faster. Does the information get delivered to the right decision maker or does it fall through the crack?
- Alignment: Increase communication and collaboration between different business units across the organization. This must include building cross-functional teams that communicate regularly, integrate business goals, and share information to enable informative decisions.
The bottom line, if you are aiming to successfully execute your strategy and build a high performing organization, you need to look at the environment in which the information flows across the organization. Build a culture that understands the strategic vision and goals, build a structure with clear roles and responsibilities and finally build an alignment between all business units and remove barriers. This is how you achieve stability in the organizational structure and speed in making informative decisions.
This post was previously posted to LinkedIn.