3 Secrets of successful Excution Webinar

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3 SECRETS OF SUCCESSFUL STRATEGY EXECUTION
Paul Docherty Founder and Executive Director,
i-nexus
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KEY TOPICS
Why is Strategy Execution the 1 CEO Priority?
Why is Strategy Execution Difficult?
What Are the 3 Secrets to Executing Well?
1. Stay Focused Reinforce The Right Behaviors
2. Close the Loop View Planning/Execution as an
Integrated Process
3. Follow-up Relentlessly Leverage Strategy
Execution Software
Summary/Key Take-aways
Copyright i-nexus 2013. All rights reserved.
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GOOD STRATEGY IS NOT ENOUGH
Good Strategy x Good Execution Superior Results
Good execution is the critical determinant of
superior results

• You can beat expectations with good execution of
  a mediocre strategy
• 
  But...
• You can miss expectations with poor execution of
  a brilliant strategy

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WHILST MANY ORGANISATIONS CRAFT GREAT STRATEGIES,
FEW EXCUTE WELL
70 of companies believe they select the right
business strategy, but fail to execute it due to
short-comings in their management system
Accenture Report
In the majority of cases we estimate 70 - the
problem isnt bad strategy but bad execution
Fortune Magazine
ex-e-cu-tion (ek si kyoo shun), n 1. The missing
link. 2. The main reason companies fall short of
their promises. 3. The gap between what a
companys leaders want to achieve and the ability
of their organisations to deliver it Larry
Bossidy and Ram Charan, Execution The discipline
of getting things done
only 11 of companies employ a fully fledged
strategic control system Ashridge Strategic
Management Centre
over 66 companies with over 500M in revenue
set targets that exceeded 9 real growth, yet
less than one company in ten achieved this level
of success. Chris Zook, Havard Business Review
90 of organisations fail to execute their
strategy David Norton, Balanced Scorecard
Report
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i-nexus Solves a Big Problem
THE CEO PERSPECTIVE
Execution is the 1 CEO Priority

• Key Execution Problems CEO Perspective
• Poorly Communicated Strategy
• Unclear Accountability
• Poorly Defined Roles/Responsibilities
• Inadequate Execution and Performance Monitoring

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Current Approaches and Tools Simply Dont Work...
THERE ARE SEVERAL UNDERLYING CHALLENGES
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Some interesting numbers... Help shine a light on
the root causes of poor execution...
THE EVIDENCE BACKS-UP THESE HYPOTHESES
lt15 of companies routinely track how they
perform over how they thought they were going to
perform Marakon Associates/Economist
Intelligence Unit
95 Employees dont understand their companies
strategy Kaplan and Norton, Harvard Business
Report
lt27 employees have access to their companys
strategic plan Kaplan and Norton, Harvard
Business Report
86 of executive teams spend less than one hour
a month reviewing strategy Kaplan and Norton,
Harvard Business Report
70 of organisations do not link middle
management incentives to strategy Kaplan and
Norton, Harvard Business Report
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STRATEGY EXECUTION - WHAT HAPPENS IN REALITY
The Off-site Strategy Day
Projects
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VALUE OF AN EFFECTIVE EXECUTION SYSTEM - IMPACT
OF THE DANAHER BUSINESS SYSTEM
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3 SECRETS TO SUCCESSFUL EXECUTION

• STAY FOCUSED
• FOCUS ON 1-3 BREAKTHROUGH/WILDLY IMPORTANT GOALS
  ONLY
• Actively decide what not to do, not just what to
  do
• Ensure there is absolute goal clarity make sure
  the finish line is clear
• Ensure every employee understands what winning
  means

• CLOSE THE LOOP
• LOOK FORWARD, NOT JUST BACKWARD, ON AN REGULAR
  BASIS
• View planning and execution as an integrated
  process
• Define the leading measures that predict
  achievement of the goals
• Set targets based on expected impact of actions
  and review progress periodically
• Continually test assumptions and act quickly if
  hypothesis is wrong

• FOLLOW-UP RELENTLESSLY
• USE STRATEGY EXECUTION SOFTWARE TO DRIVE
  RELENTLESS FOLLOW-UP
• Ensure every employee can easily see, understand
  and update their progress against the plan
• Leverage automated exception reporting to
  reinforce monthly heartbeat
• Create focus on action by taking the heavy
  lifting out of preparing for execution reviews
• Create accountability for results through clarity
  and transparency

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STAY FOCUSED THE CONFLICTING FORCES
The Whirlwind
Goals
or The Day Job
New Activities
URGENT
IMPORTANT
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STAY FOCUSED AVOID THE URGENT NOT IMPORTANT TRAP
URGENT NOT IMPORTANT
URGENT AND IMPORTANT
HIGH
URGENT
NOT URGENT NOT IMPORTANT
IMPORTANT NOT URGENT
LOW
LOW
HIGH
IMPORTANT
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STAY FOCUSED CREATING CLARITY AND FOCUS
Less Structure
More Structure
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CLOSETHE LOOP CHANGE VS. RUN THE BUSINESS
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CLOSE THE LOOP WHATS THE REAL QUESTION?
Translate Business Goals into Executable
Initiatives and Create Clear Accountability for
Delivery

1. Are we on track?
2. If we are not on track are we doing something
   about it?
3. In aggregate, will the actions underway get us
   where we want to go?

Measure and Forecast the Impact of Those
Initiatives on Performance
Drive and Review Execution of The Resulting
Initiatives
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CLOSETHE LOOP HOSHIN AS BEST PRACTICE
1. Establish Vision
Hoshin Process in Concept
Develop 3-5 Year Breakthrough Objectives
2.
Catch-ball Planning
Develop Annual Objectives
3.
Deploy Annual Objectives
4.
P
5. Implement Annual Objectives
D
C
6. Monthly Review
A
Reflection
7. Annual Review
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CLOSETHE LOOP HOSHIN BOWLING CHARTS/
COUNTERMEASURES
Bowling Chart
Countermeasure Plan
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RELENTLESS FOLLOW-UP ESTABLISHING AN EXECUTION
HEART BEAT
Monthly Business Execution Review Meeting
Monthly Business Execution Review Meeting
F
T
F
T
W
T
M
T
W
T
M
W
W
Week 4
Week 1
Week 2
Week 3
Week 4
Month 1
Month 2
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RELENTLESS FOLLOW-UP - EXISTING PROCESSES AND
TOOLS MAKE FOLLOW-UP CHALLENGING.
i-solutions Global Ltd. 2007
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Solving this problem disrupts three big software
markets...
RELENTLESS FOLLOW-UP A NEW BREED OF CLOUD-BASED
STRATEGY EXECUTION SOFTWARE IS EMERGING
The fundamental problem with traditional
performance management software is that it fails
to close the loop it helps you identify the
action to take but doesnt help you understand if
the action you have taken has had any
effect. Martin Butler, CEO, Butler Research
Business Execution software is emerging as the
answer to two questions - how are we as an
organisation going to do that? And how does it
specifically apply to me? Business Execution
software brings together people, projects and
corporate performance into a single
system. Bruce Richardson, Chief Research
Officer, AMR Research
Translate Business Goals into Executable Actions
and Create Clear Accountability for Delivery
Measure and Forecast the Impact of Those Actions
on Performance
Drive and Review Execution of Those Actions
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RELENTLESS FOLLOW-UP A NEW BREED OF CLOUD-BASED
STRATEGY EXECUTION SOFTWARE IS EMERGING

1. Translate business goals into executable actions
2. Tie in the people who need to execute those
   actions
3. Drive and monitor execution of those actions
4. Understand if the actions are actually moving, or
   are likely to move, the dials that measure
   achievement of business goals.

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RELENTLESS FOLLOW-UP THE RIGHT STRATEGY
EXECUTION SOFTWARE CAN ACTIVELY DRIVE FOLLOW-UP
Are My Team On Track?
Reminder Time to Focus on the Important!
What Actions Are We Taking and Are We Doing
Enough?
Where Do We Need to Focus Our Attention?
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SUMMARY KEY POINTS
Strategy Execution is the 1 CXO Priority
Current Fragmented Approach Makes Strategy
Execution Difficult
Success is Function of Right Behaviors, Right
Process and Right Tool
Focus Requires Tough Choices, Catch-ball and
Absolute Clarity
The Key is to Look Forward, Not Backward and
Course-correct Early
Strategy Execution Software Makes Follow-up a
Realistic Proposition
Stay Focused, Close the Loop and Follow-up
Relentlessly!
Copyright i-nexus 2013. All rights reserved.
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COMPANIES USING HOSHIN TODAY
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ANY QUESTIONS?
Paul Docherty paul.docherty_at_i-nexus.com Skype
pauldocherty 44 (0) 7985 117784 For a copy of
the slides please contact richard.valentine_at_i-nex
us.com
Patrick Pecorilli ppecorilli_at_virtual-process.com S
kype patrick.pecorilli 1 514-816-0618