Strategy Execution

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Description of Strategy Execution. Explanation.




Execution of StrategyDefinition Strategy Execution. Description.

Strategy implementation is the part of strategic management that deals with the managerial exercise of supervising the ongoing pursuit of strategy, making it work, improving the competence with which it is executed, and showing measurable progress in achieving the targeted results. According to some people, Strategy Execution is more important for the success of any firm than the actual strategic choices that are made.

Perhaps the traditional distinction between top level managers formulating the strategy and the lower levels implementing the strategy should be abandoned, and the key to good strategy execution is getting the executors to participate and think out of the box or out of their normal working mode.

Leading the drive for good strategy execution calls for several actions on part of the managers in charge:

  • Staying on top of what is happening, ferreting out issues, closely monitoring progress and learning what obstacles lies in the path of good execution.

  • Leading the development of stronger core competencies and competitive capabilities.

  • Putting constructive pressure on the organization to achieve good results and operating excellence.

  • Pushing corrective actions in order to improve strategy execution and achieve the targeted results.

  • Displaying ethical integrity and leading social responsibility initiatives.

In an HBR article (June 2008, p. 61-70), Gary L. Neilson, Karla L. Martin and Elizabeth Powers from Booz & Company report some interesting findings from a large scale internet assessment. The 4 inextricably linked things that turn out to matter most to successful strategy execution are:

  1. Make sure information flows where it needs to go (up, down and lateral)(54 out of 100 relative strength)

  2. Clarify decision rights (50 out of 100)

  3. Align motivators (incentives) (26 out of 100)

  4. Make changes to the organization structure (25 out of 100)

The authors recommend to start the strategy execution process with clarifying the decision rights and improving the information flow. Then the right organizational structures and motivators will tend to fall into place.

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Compare also: Change Management Iceberg  |  Appreciative Inquiry  |  Management By Objectives  |  Strategic Management

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