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How to Keep Lettuce Crunchy and Other Strategy Execution Lessons

How to Keep Lettuce Crunchy and Other Strategy Execution Lessons

I learned two lessons in college that I still think about – one in the kitchen and one as a strategy execution consultant. My professor claimed during a cell biology lesson that if you leave iceberg lettuce in water for about 20 minutes its cells expand as they soak up the water. He said that many chefs knew that soaking lettuce in cold water made it seem fresher and crunchier but few understood that it was because the cells were packed to the bursting point.

I went home for the holidays eager to share this new lesson with my mother. This is where I learned the consulting lesson.

My mother had been taught that in order to keep salad crisp, you should throw a slice of bread into the salad as you are making it and then pull the bread out just before serving. The thinking was that the bread soaked up the excess moisture that would otherwise lead to wilting.

When I shared my professor’s theory with her, I assumed that we would immediately begin saving a nickel per month due to all that saved bread. Instead I was surprised to find that my mother was not about to change the way she made salad because of something her son’s biology professor said, not even after I showed her that the lettuce didn’t wilt.

Strategy execution is about transformation. It is about the systematic implementation of the changes needed to move an organization forward. Unfortunately, as you try to convince people to change the way they do things, many of them react exactly like my mother did.

The change management field is built around several general principles in how to manage people through change: thoroughly communicate how/why/what change is happening, look for the “what’s-in-it-for-me” for employees, communicate using two-way dialog, remove barriers to change, celebrate success, describe a “burning platform”, etc. Strategy execution specialists bring a few more key approaches to these basic doctrines.

Engage Around the Big Picture. A simple business case (e.g. this initiative will help us improve process efficiency and lower operating costs) often isn’t enough. To embrace change it helps to understand how a particular initiative is aligned with the overall strategy of the organization (e.g. we want to bring low cost healthcare solutions to those suffering from an ailment. If we can improve this process, the solution could be better, more consistent, and cheaper than anyone else in the market). Employees will be far more motivated to change if they believe in the strategy. Strategy professionals typically have the skills needed to articulate and communicate that story.

Make Strategy Everyone’s Job. Strategy is a team sport. Too many strategy professionals think that because they are good at it they should do all of the work themselves. But good strategy execution relies on others to implement. I can tell my mother that this is a better way or (if she were an employee) order her to follow a new process, but as long as she can dismiss the idea as an outsider’s, change will be painful. Good strategy execution professionals understand that their job is to facilitate a consensus around a shared vision rather than simply dream up a vision in a vacuum.

Pick Your Battles. Strategy is about focus and strategic thinkers should be good at prioritizing. The worst thing you can do is overwhelm employees with dozens of major changes at the same time and then when things go badly decide that it’s not worth the trouble. Better is to pick the most important changes and implement them at a pace that the organization can handle. Then think through and communicate the timeline, action steps, and resource changes that will happen as the change is rolled out.

Facilitate a Sense of Inevitability. The weakest client outcomes in my career happened when there was uncertainty about whether or not the senior-most executives were on board. A well-meaning strategic planning director that isn’t visibly supported by the executive team will struggle to move an organization forward even if they do everything else right. On the other hand, if the executive team has thoroughly and repeatedly communicated that this change is going to happen with or without you, the inertia of inevitability will convince people to jump on the bandwagon even if other change management mistakes are made.

Is Your Business Transformation Strategy Going Down the Drain?

Is Your Business Transformation Strategy Going Down the Drain?

How many times have you heard the term “Business Transformation?”  Have you ever wondered about the exact meaning of this widely used term?  I have.  Basically it is a change management strategy which has the aim to align people, process and technology initiatives of a company more closely with its business strategy and vision.

Assuming we can generally agree with this definition, I’m wondering why so many transformational strategies fail.  More specifically, why is that only 9% of companies are rated excellent at execution and only 56% of strategic initiatives are successful? [i] Why do only 11% of managers believe that all their company’s strategic priorities have the financial & human resources needed for success and 30% of managers cite failure to coordinate across units as their greatest challenge to executing their company’s strategy? [ii]

The answer to these complex questions lies at the juncture of two fundamental realities:

  • Reality 1 – Management often does not recognize execution as a formal management discipline. Recognizing this reality is absolutely integral to strategy execution.  When management does not understand the critical role it plays in breaking down silos to lead and communicate transformational change, the swirling sound of the drain can be heard. [iii]
  • Reality 2 – Portfolio and project management professionals too often do not have a comprehensive view into the thinking behind the organization’s overall strategy, nor a mature strategy mindset required to drive transformational change.[iv]

 To make sure your organization’s transformational strategy doesn’t go down the drain, there are 2 solutions that will help unplug these realities and keep your organization’s strategy clear.

SOLUTION 1:  Effectively and efficiently implementing an organization-wide strategy requires many factors to come into alignment before successful implementation can occur.

  • An accountability model must be clearly defined and embraced for each element of the organization’s strategy.
  • The organization-wide strategy must be effectively cascaded down into the business units, support functions, teams and individuals down through the organization.
  • Adequate resources (time, budget, skills and capacities) must be available. It does great harm to an organization to spend valuable time and money to develop a going forward strategy, only to find out it does not have sufficient resources to implement the plan.
  • Managing transformational change on a consistent and professional basis is vital. Change management is the primary responsibility of the executive leadership team and involves the understanding and managing of internal and external change and understanding the influencers of change.
  • Establishing a performance culture is a fundamental requirement for effective implementation and a frequent failure point in many strategic planning and management processes.

SOLUTION 2:  Even with SOLUTION 1 in place, transformational strategies often times fail because the project management professionals who lead implementation all too often have a tactical perspective, rather than a strategic one.

  • An increase in the Project Management Professionals® (PMP®s) strategic management knowledge and competencies will increase the strategic thinking behind the initiative or project. A clear understanding by project management professionals of organization’s strategic environment, longer term strategic direction, enterprise level strategic operating plan, and the portfolio of initiatives and investments being made to achieve success is fundamental.
  • An investment by project management professionals in adopting an enterprise wide strategic mindset will reduce the frequency of gaps in understanding as strategy flows from the top of the management hierarchy down through the project professionals who are so vital to execution.

In summary, there is growing awareness as strategy comes down from the top of the organization that a problematic gap occurs for those who are charged with implementing strategy.  Absent a clear understanding of the who, what, where, when and how of strategy, project management professionals are left to execute strategic initiatives and projects by making assumptions and optimizing tactical considerations versus understanding the strategic thinking behind the initiative or project.

Clear strategic thinking, deliberate communications and attention to detail from the management team, and strategic management competency building by the middle management/project management team will go a very long way towards making sure your organization’s transformational strategy doesn’t go down the drain.



[i] PMI Pulse of the Profession: The High Cost of Low Performance, February 2014
[ii] Harvard Business Review. Why Strategy Execution Unravels – and What to Do About It, by Donald Sull, Rebecca Homkes and Charles Sull, March 2015
[iii] Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan, 2002
[iv]Projects at Work. Gartner Insights: PPM’s Role in Driving Real Business Transformation, Vlad Vecerzan – June 21, 2016

 

What I Learned About KPIs from My Six-Year-Old

What I Learned About KPIs from My Six-Year-Old

I arrived to pick up my daughter on the last day of art camp just in time for program evaluations. Since we at the Balanced Scorecard Institute (BSI) use evaluation data for course improvement, I was intrigued to watch a room full of six- to nine-year-olds randomly fill in bubbles and then quickly improve their scores when the teacher noted that if any of the scores were less than three they’d have to write an explanation. 

In the car on the way home, I asked my daughter why she rated the beautiful facilities only a 3 out of 5. She said, “well, it didn’t look like a porta-potty. And it didn’t look like a palace.” She also said she scored the snack low because she didn’t like the fish crackers and wished they’d had more pretzels. As I giggled at the thought of some poor City program planner or instructional designer trying to make course redesign decisions based on the data, I reflected on the basic principles that we try to follow that would have helped the city avoid some of the mistakes they had made.

The first is to know your customer. Obviously, giving small children a subjective course evaluation standardized for adults was ill advised. Better would have been to ask the students about their experience using their language: did they have fun? Which activities were their favorite? Which did they not like as much?

Further, the children aren’t really the customer in this scenario. Since it is the parents that are selecting (and paying for) the after-school education for their children, their perspective should have been the focus of the survey. Were they satisfied with the course curriculum? The price? The scheduling? Would they recommend the course to others?

Another important principle is to make sure that your measures provide objective evidence of improvement of a desired performance result. My daughter’s teacher used descriptive scenarios (porta-potty versus palace) to help the young children understand the scoring scale, but those descriptions heavily influenced the results. Plus a child’s focus on pretzels versus crackers misses the mark in terms of the likely desired performance result.

Similarly, it is important not to get fooled by false precision. Between some participants superficially filling in bubbles and others changing their answers because they don’t want to do any extra work, the city is simply not collecting data that is verifiable enough to be meaningful.

These might seem like a silly mistakes, but they are common problems. We have had education clients that wanted to measure the satisfaction of a key stakeholders (politicians and unions) while ignoring their actual customers (parents and students). We see training departments that measure whether their participants enjoyed the class, but never ask if their companies are seeing any application of the learning. And we see companies making important decisions based on trends they are only imagining due to overly precise metrics and poor analysis practices.

Even the evaluations for BSI certification programs require an explanation for an answer of 3 or less. I wonder how many of our students ever gave us a 4 because they didn’t want to write an answer. I have also seen evaluations go south simply because of someone’s individual food tastes.

At least I can take solace in the fact that no one ever compared our facilities to a porta-potty.

How Did I Get an MBA Without Learning This?

How Did I Get an MBA Without Learning This?

Most MBA programs pride themselves as being the ”practical” degree that will best prepare its students for any number of management roles. And I have to admit that I can point to that degree as a true turning point in my career. But it wasn’t until I became a Balanced Scorecard Professional (BSP) that I learned several principles that I have found to be key to being a good manager and leader.

Help your team articulate a shared vision
Many managers and leaders think that the key to success is to have a clear vision. But vision that is poorly articulated (or not at all) is just a dream. And simply dictating the vision to employees usually doesn’t work either. Change doesn’t happen because “I said so” or by assigning tasks without any context. Employees engage when they understand what we are trying to accomplish and why. Shared vision and change management happen through dialog, facilitation, and the development of a logical business case.

Connect the dots between what employees are working on and desired outcomes
A good supervisor makes sure that employees are completing their tasks. A good leader makes sure that employees are working on and completing tasks that move the organization toward a shared vision of the future. BSPs have been taught to articulate the difference between mission, vision, and strategy. They know how to organize their energy, measurements, and initiatives around a set of coherent strategic objectives. They know that many people are visual learners and so they use a strategy map to communicate how the dots connect. They know how to align department objectives with high level strategy and communicate to employees where they fit.

Measure results (not just actions)
Most managers know to measure project milestones as indicators of success, and unfortunately many strategic planners use this basic principle for KPI development. They define a handful of goals (e.g. Improve Brand Awareness), list all of the projects needed to reach those goals (e.g. website redesign), and then measure the completion of those projects as a measure of success (e.g. percentage of website redesign completed). Good leaders measure results. A redesigned website is nice, but I should be much more interested in whether or not it led to improved brand awareness.

Develop strategy before KPIs
The best KPIs in the world won’t help if they are designed to measure a half-baked strategy. The good news is that you don’t have to be a Steve Jobs-type visionary to develop an intuitive strategy by formally assessing your strategic situation and identifying a path forward using common methods like a SWOT, PESTEL, Customer Value Proposition, Blue Ocean Strategy, and other methods.

There are other such principles, such as how to identify drivers of future performance using Perspectives, how to use strategy to prioritize, how to set and reach reasonable performance targets, and many more. If you can think of any others, please add them in the comments section below.

If you are unsure about what a balanced scorecard or a Balanced Scorecard Professional is, please visit our website.

 

The 5 Most Important Factors to Successfully Implement Strategy

The 5 Most Important Factors to Successfully Implement Strategy

To effectively and efficiently implement an organization-wide strategy requires many factors come into alignment before successful implementation can occur.

First, an accountability model must be clearly defined and embraced for each element of the strategy.

  • Who owns each objective in the plan?
  • Who is responsible for each of the organization’s strategic initiatives?
  • Who is responsible for defining, collecting and reporting on the organization’s key performance indicators?

Second, the organization-wide strategy must be effectively cascaded down into the business units, support functions, teams and individuals down through the organization.

Third, adequate resources (time, budget, skills and capacities) must be available. It does great harm to an organization to spend value time and money to develop a going forward strategy, only to find out it does not have sufficient resources to implement the plan.

Fourth, managing change on a consistent and professional basis is vital. Change management is the primary responsibility of the executive leadership team and involves the understanding and managing of internal and external change and understanding the influencers of change.

However, as the process of implementing change becomes a continuous effort growing in scope and complexity (both strategically and operationally), a set of change management roles begin to emerge that require recognition, training, and development.

Change management roles are not formally included on the organization chart, they are ones that must be filled to manage any significant process related to change. They include the following:

  • Sponsors—the leaders, executives and managers with the authority to make changes in the current strategic direction, the organization structure, and/or the processes required to implement and manage it.
  • Champions—the individuals throughout the organization that identify strongly with the need for given changes. They are self-appointed and need the unwavering support of management to be recognized by other managers and staff members.
  • Change agents—the individuals responsible for any part of the implementation process. They can also be sponsors and champions of change, as well as targets of change themselves, but primarily they understand change, know how to manage change, and deal with the people involved in the changes they undertake.
  • Targets of change—the people within the organization directly impacted by implementation of the operating plan and the changes it brings about. Those who will be affected must be identified to assess how they will be affected, what changes they can expect, and why. Since people vary dramatically in how they react to change, their potential for resistance needs to be understood and dealt with constructively.

Fifth, establishing a performance culture is a fundamental requirement for effective implementation and a frequent failure point in many strategic planning and management processes. Larry Bossidy and Ram Charan in their book entitled Execution: The Discipline of Getting Things Done point out the following:

  • “Execution is not only the biggest issue facing business today; it is something nobody has explained satisfactorily” (see Bossidy and Charan, p.6)
  • “Strategies most often fail because they aren’t executed well. Things that are supposed to happen don’t happen. Either the organizations aren’t capable of making them happen, or the leaders of the business misjudge the challenges their companies face in the business environment, or both” (Ibid, p.15).
  • An organization can execute only if the leader’s heart and soul are immersed in the company…The leader is the only person in a position to achieve that understanding. And only the leader can make execution happen, through his or her deep personal involvement in the substance and even the details of execution” (Ibid, p.24).

Another key insight comes from Darryl Conner in his work on the notion of a “Burning Platform.” Conner maintains the key to successful implementation of change is for the team to conclude that failure to execute the strategy (or make the change) is better than the status quo.

Strategy professionals have an important role to play in helping top executives and their leadership teams understand and embrace these fundamental requirements.

How and Where to Begin a Strategic Planning Project

How and Where to Begin a Strategic Planning Project

To create an effective strategic plan and management system is a major challenge for any organization. To do so without the necessary preparatory steps will, in all probability, result in wasted time, energy, misdirected efforts and can even lead to the resulting plan failing. Having a clear understanding of where your organization’s journey begins is vitally important and too often a missed step in many strategic planning processes.

So what are the first few steps?  While there is no one answer, as circumstances and needs very from situation to situation, there are some guidelines to follow, including gaining a thorough understanding your organization’s current strategy, whether it is working or not, and importantly understanding the capabilities of your team.  If your organization has done little or no strategic planning and management, the scope of the program should early on include efforts to strengthen your team’s understanding of these tools and techniques.

In any situation a gap analysis exercise can be helpful too. Begin by listing the elements of a first class strategic planning and management system.  For example, SWOT Analysis, vision/mission/core values statements, a high level goal statement(s), a customer value proposition, a balanced set of objectives, a strategy map with cause and effect relationships identified, a valid and valuable set of key performance indicators, a small set of high level cross functional initiatives, and a strategy management calendar linked to the annual budgeting process.

Once the elements of the system have been identified, every effort should be made to accurately assess each element to see if 1) it needs to be developed from scratch; 2) it only needs refinement and updating; and 3) it exists, it is valid and it requires no further attention.  This initial assessment, in large measure, will determine the basis for how best to organize the process.

In summary, much can be learned by taking time to understand the starting point for any strategic planning effort.  Success comes to those who avoid “ready, fire, aim.”

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