A strategic plan only works if implemented. Seems obvious but according to a Fortune magazine, nine out of ten organizations fail to implement their strategic plan. Don’t become a statistic.
Implementation is the phase that turns a strategic plan into action. Implementing the strategic plan is as important as – or even more important than – the strategy itself. A successful strategic plan, however, starts before any pen hits paper or slide meets screen. It starts in the office in the weeks leading up to the event.
Fortune magazine says…
- 9 out 10 businesses fail to implement their strategic plan
- 60% build a strategy that doesn’t fit the budget.
- 75% don’t link employee incentives to strategy
- 86% of managers spend less than one hour per month discussing strategy with staff
- 95% of employees don’t understand the organization’s strategy.
1. Culture. Preparing your culture is first priority. Create an environment that promotes inclusivity.
Connect employees to the organization’s mission and their role in the strategic planning process. Include employees in the goals and actions of the plan from the beginning. If employees are encouraged to take ownership of their role, they will have buy-in and be more accountable.
If people don’t have a stake and responsibility in the plan, it’ll be business as usual for all but a frustrated few. Develop an incentive program from the beginning to sustain the plan. Outline both
positive consequences for achieving the strategy as well as negative consequences for not.
2. People. Inventory personnel and make sure the right people are on board and in the right positions. Identify a strategic manager who will monitor the implementation process and keep the plan on track. Adjust their job description if necessary so they are empowered to execute their role effectively. In other words, don’t bog down already busy employees without assessing their duties or compensating accordingly. The strategic plan will most likely require new skill sets. Invest in training and possible new hires to give employees the tools to succeed.
• Everyone knows what
they are accountable for.
• Accountability = ability +
empowered + resource
• Strategic management process has an owner.
3. Resources. A strategic plan can come with the best of intentions but if sufficient funds, adequate staff and time to implement are not available, the plan will die before it leaves the board room. Assess true costs associated with the implementation and don’t underestimate or be conservative in your estimates. True costs can include a realistic time commitment from staff, a clear identification of expenses associated with a tactic or unexpected cost overruns by a vendor.
4. Structure. Have a clear management structure with understood lines of authority so that communication flows efficiently. Strategic structure is built on communication starting at the top with strong leadership. The strategic manager will act as a liaison between upper management and staff measuring deliverables and rewarding performance. Regular strategy meetings hold the structure in place and assesses the plan’s effectiveness. Monthly, or quarterly, reviews help employees conceptualize the plan’s implementation keeping morale high for the project.
More importantly, frequent review keeps the strategy dynamic. Unforeseen changes will emerge which will require the plan to be adjusted. Otherwise, plans can become static if shelved for only annual reviews.
5. Systems. Where would we be without our systems? Both management and technology systems help track the progress of the plan and make it easier to adapt to changes. As part of the system, build milestones into the plan to help achieve goals within a specific time frame. An online scorecard is a great tool used to measure performance. It lives in real time and is constantly updated for staff to follow. It keeps staff accountable because the strategic plan is a living document they can relate to and measure up to.
Strategy execution is the management process
From the start, understand the difference between the strategic and implementation phases…the strategic plan addresses the what and why of activities. The implementation addresses the who, where, when and how. Both the plan and the implementation are critical to success. Success is measured in the competitive edge a company can gain if the implementation is done effectively. Visualize the strategic plan as the map that will drive the management process through the implementation phase
Get your game on!
It’s fun to brainstorm and map out ideas during a strategic planning process creating a business’ blue sky for tomorrow. Implementation on the other hand can seem daunting and overwhelming. But the implementation process can be made to be as energetic and inspiring as the strategic planning process. It is the muscle that makes the plan work. Preparation on the front end breeds a climate of communication bringing companies from strategy all the way through the implementation process.
- Completed plan cascaded to the individual level (possibly).
- Scheduled monthly/quarterly reviews.
- Update/adapt the plan at the review session
Implementation pitfalls
Here are the most common reasons strategic management fails:
- Annual strategy: Strategy is discussed only at yearly weekend retreats.
- Lack of communication: The plan and progress against the plan doesn’t get communicated to employees often enough.
- Lack of empowerment: Although accountability may provide strong motivation for improving performance, employees must also have the authority, responsibility, and tools necessary
- to impact relevant measures. Otherwise, they may resist involvement and ownership.
- Lack of ownership: The most common reason a plan fails is lack of ownership. If people don’t have a stake and responsibility in the plan, it’s business as usual for all but a frustrated few.
- No accountability: Accountability and high visibility help drive change, which means that each measure, objective, data source, and initiative must have an owner.
- A meaningless plan: The vision, mission and values statements are viewed as fluff, not supported by actions, or don’t have staff buy-in.
- No progress report: No method is in place to track progress, and the plan only measures what’s easy, not what’s important. No one feels any forward momentum.
- Not considering implementation: Implementation isn’t discussed in the strategic planning process. The planning document is seen as an end in itself.
- Out of the ordinary: The plan is treated as something separate and removed from the management process.
- An overwhelming plan: The goals and actions generated in the strategic planning session are too numerous because the team failed to make tough choices to eliminate non-critical actions. Employees don’t know where to begin.
Avoiding pitfalls is easier when they’re clearly identified. Now that you know what they are, you’re more likely to jump right over them.
To Your Greater Success,
Peter C. Mclees, Principal
Mobile: 323-854-1713
Email: petercmclees@gmail.com
I design and facilitate strategic planning, organizational effectiveness and team building off-site retreats. These retreats enable organizations and teams to:
• Bridge organizational silos
• Create organizational accountability.
• Foster a winning culture.
• Establish a strategic direction for the organization.
• Create a line of sight, so everyone sees his or her role in fulfilling the organization’s vision, mission and values.
• Improve the execution of plans and priorities.
• Respond better to rapid change.
• Create a competitive advantage for the organization.
• Improve employee and customer engagement
• Save time and money.
• Improve communication and team work among staff members
• Employ new problem solving skills.
• Meet cross-functional challenges.
• Find and leverage the hidden talents of a generationally diverse workforce.
• Renew and recharge team members.
• Create impact learning.
• Help retain and develop the best people.
I have a proven track record helping organizations create a strong culture, leadership bench strength and the teamwork necessary to achieve vital outcomes.
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