Imagine this, you’ve created the perfect business strategy for your organisation. You’ve spent time working through what you want to achieve and you’ve included your people in the planning process. Sounds perfect, doesn’t it? But have you thought about your business strategy execution plan too?
It’s all well and good having the perfect strategy, but if you don’t know how you’re going to execute it, it’s not worth the paper it’s written on. In fact, research shows that around 90% of businesses fail to reach their strategic goals. So, how can you be part of the 10% that successfully execute their business strategy? We’re here to show you.
What is business strategy execution?
Put simply, business strategy execution is the ‘doing’ part of your strategic plan. It’s the implementation phase of your plan that comprises the goals, structures and systems that will help your teams achieve success.
There are several factors that will influence the success of your business strategy execution. When these elements are under control, you’ll have all the tools you need to bring your long-term business plans to life. We’ve explained the top 5 influences in detail below.
Company-wide commitment to the business strategy is essential. This means that all stakeholders, within all levels of the business, should be on the same page and committed to the strategic plan. If this commitment isn’t there, it is likely that individuals and teams will start to pull in different directions.
To execute a strategic business plan, it is imperative that team tasks are aligned with the overall vision of the company, but also that organisational goals are aligned with the strategy too.
This is where it’s important to translate your strategy into 12-month and 3-month strategic business goals. Your teams will have visibility on these goals and can therefore innovate and align their projects to fit into the business’s long-term plans.
When it comes to business strategy execution, communicating with your team and including them in the process is vital. Your teams will be the ones that deliver the strategy, so you’ll need them to be informed and confident in their actions to boost your chances of successful strategy implementation.
An increasing number of employees value purpose over simply collecting a paycheque. We recently wrote about this topic and how open communication is such an important part of most successful businesses.
Goal tracking and measurement are also important. Otherwise, how do you know if you’re hitting your strategic business goals? The key result element of OKRs allows you to set stretch goals and measure your progress along the way. You can also assign confidence ratings to objectives and key results. These detail whether teams think they will meet the key result by the end of the quarter.
KPIs work perfectly alongside OKRs and should be used for business as usual activity. OKRs, in contrast, should be used to align teams behind any projects that stimulate growth, innovation or change. Both need to be working successfully to ensure you execute your strategic business plans. It’s no good excelling at growth projects if your daily run rate activity is failing – this is a recipe for unsustainable growth.
To execute growth successfully you need to encourage innovation within your organisation. Why? When your team thinks outside the box and takes risks, that’s when you’ll reap the largest rewards when it comes to business strategy execution.
But a word of warning, innovation must be measured and combined with regular business as usual activity. Fortunately, implementing the OKR framework within your organisation can help you with this process.
OKRs and business strategy execution
The OKR framework provides a spotlight on the strategic growth priorities for your business. The framework also encourages teams to think innovatively to meet the stretch objectives they have set.
The mantra of test, learn and adapt is very important when it comes to fostering an environment of innovation and executing your business strategy successfully. Give your teams the space to innovate and test projects, learning from the successes and the failures and making improvements to help execute the organisation’s strategic plans.
Get in touch with a Giant today
OKRs are a fantastic way to align your people behind a strategic business plan. If OKRs sound like what you need, then we’re here to help. Book a call with the team and take the first steps to smash your strategic plans with OKRs.