Saturday, April 12, 2008

Moving Strategy to Implementation

The usual problem is that strategy sessions are isolated from implementation planning, i.e. strategy is decided upon with a later date set for designing implementation. Implementation schedules must be set in the same session as strategy. Another problem is that "strategy" is often identified as a list of tasks to be completed, missing the most important part of strategic planning, which is Purpose. The third thing that fails in strategic plans is lack of designated quantifiable Outcomes. Last you need Buy-In.

Here is how I approach strategy. First identify what Outcomes you want to achieve. This is often as simple as pairing a number with a rather simple business concept, e.g. increase product margin by 5%, or reduce delivery time by 10%, etc. Your strategy may include up to five such Outcomes. Outcomes must always have a number attached, otherwise they can not be acted upon as there is no goal to reach. This creates Purpose.

Once you've identified Outcomes, identify which departments can impact that outcome (usually ALL departments can impact outcomes in some way), and how those departments will go about contributing. Set Milestones (a time schedule with quantifiable results) for contributions. This is all a part of the original strategic planning process. Milestones should be short period in which real results can be accomplished (2-4 weeks).

Next, set two weeks for the Milestone verification phase. No longer. In this phase the identified milestones are pushed downwards for verification on their feasibility. Feasibility must be verified and signed-off every level in the chain. This should be an open process. The original Outcomes will not change, but the Milestones may. Incentivize departments for completed Milestones quickly and effectively (no patches!). Once this verification process is complete, you should have Buy-In. Effectively everyone in the organization has verified that the Outcomes are achievable and have recognized how it is good for them to do so.

At this point all you have left to do is to check in on Milestones on a monthly basis and track results. When one set of Milestones fall behind, devote more resources. When a set of Milestones is ahead, reward. Report results organization-wide on a monthly basis (driving competition and rewarding success).

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