Translating Strategy into Action.
It's estimated that up to 40% of the potential value of a strategic plan is
lost through poor execution. This directly impacts cashflows and lost profitability.
Generally there are three barriers to effective strategy execution.
- Misaligned performance management systems. 'Compensation drives behaviour'
- Inadequate resource allocation
- Unengaged employees not supporting the strategy
Methods for imporoving the execution of strategy:
- Performance goals must be allocated and owned at an individual level.
- Performance goals must be measureable, achievable and with an end date
- Performance gaols must directly effect compensation and bonus plans
- Bookend the execution planning process, otherwise you will find yourself
in 'scope creep' suffering from a severe case of 'analysis paralysis'.
- Communicate the strategy
- Communicate the performance goals
- Complete any required training
- Continally review and communicate the progress on the performance goals.
'What gets measured - gets done!'
- Communicate the achievement of the goals
- Celebrate your success
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