Introduction:
Why does the implementation of organic growth strategies often doesn’t lead to the desired results? Inefficiencies can arise when moving from the development phase into the implementation phase, the so called disconnect. Is this caused by e.g. ineffective governance, inefficient communication, separation of corporate development and “the business”?
“The Disconnect”
Hypothesis: Significant added value is being created once a strategy is adopted by the departments & persons who have to work with it and when the strategy is integrated within the actual activities (i.e. focus on organic growth strategies, not M&A strategies).
This hypothesis probably sounds quite straightforward however in practice it turns out that connecting the strategy development phase with the implementation phase is often not as simple and/or successful as initially envisaged. The so called disconnect emerges containing several challenges.
Challenges:
- “The not invented here” challenge: The strategy has been developed by a dedicated strategy team and the people who are supposed to implement & deliver the strategy are not or not sufficiently involved during the process which can create a (cultural) challenge which can result in inefficient and non-constructive behaviour.
- “The tangibility” challenge: The strategy has been developed at a conceptual level but has not been made specific & recognizable enough for the business teams to start the implementation process. This can lead to frustrations and significant communication challenges. Initial reactions from the business can be “but what do you exactly mean” or “this is not specific enough to communicate with my teams”.
- “The governance” challenge: Often the strategy is developed by a dedicated project team/structure and governed as such. Once the strategy is developed the project ceases to exist and the dedicated governance ends as well. Executive management is requested to integrate the strategy & activities next to many on-going challenges & priorities.
Solution: “The Translation Phase”
The above mentioned challenges can be managed by introducing the so called “translation” phase.
The following key elements are part of the translation phase:
- Engage: Ideally from the start of the strategy development phase a strategy team is a mix of strategy and business people. However this is often not feasible due to for example resource & time constraints / different priorities on the business side. In this situation it is recommended to make sure that after the strategy is being developed the “translation” phase is organized in which business people are involved. The aim is that business people take ownership of this phase while the strategy development people are facilitating and gradually phasing out. By doing this engagement & commitment can be created and “not invented here” behaviour will be avoided.
- Be specific: During the “translation” phase the developed strategy should be made tangible and recognizable for the business teams to be able to start implementing the strategy e.g. via the selection of objectives, targets & key initiatives. Communication is an important topic to take in account in this process. Being able to communicate the strategy in such a manner that it resonates throughout the entire organization is an art in itself.
- Follow-up: An outcome of the translation phase should be a focused and measurable agenda for executive management. This agenda should be a translation of the strategic ambitions & goals into selected strategic initiatives which can be measured and monitored. This strategic agenda should be managed on a frequent basis as part of the management team’s regular responsibilities and not be treated as an on the side activity which can be performed once or twice a year. Obviously the strategic agenda should be managed in an agile manner by taking in account market dynamics, organizational changes and the constantly changing landscape.
The above mentioned elements are not an exclusive list. They are meant as suggestions which can significantly improve the process of going from the strategy development phase towards a successful implementation.
Looking forward to discuss your thoughts & ideas.
T. Lens