making strategy a reality jwilliamson
TRANSCRIPT
Making strategy a reality
From management vision to engaged employees
By Jane Williamson , MBA AIMM
Elements for strategy success
Clear Goals
Planned actions
Engaged Staff
Success
Create clear goals
Strategy defines where you
want to be in the future
Use a three, five or ten year
cycle depending on the
volatility of your industry
Big changes may require a longer
time period to achieve
Shorter times suit newer firms
Change is incremental
The yearly plan is designed to
achieve a further step toward
the goals
Mapping the future
• Use research to look 4-5 years ahead
• Look at new technologies to alter services delivery
• Look at changes in consumer sentiment and/or government regulation
• Consider new offshore/online competitors
Know your environment
and competitors
• Be realistic about your strengths and weaknesses
• Understand the staff/capital implications of growth
• Address your weaknesses or you may be opening gaps for competitors
Know yourself –the good and
bad
• Look at several options to provide flexibility
• Don’t lock yourself in to a model or investment that may become redundant
• Be realistic on what can be done in 12 months
A good direction may
not achieved in a straight line
Know your environment & competitors
You
INDUSTRY : How will your industry and it’s customers change?
GOVERNMENT: What future
regulation & tax changes could affect
you?
CURRENT COMPETITORS: Who are they and what can they do
TECHNOLOGY: How will this change the way you operate
or sell or what you do?
NEW COMPETITORS: Where will the new competitors come
from?
Planned actions
Understand your own strengths/ opportunities/
weaknesses
What is the core of your business that cannot be copied? It
may not be what you think.
For instance, GE thought they made whitegoods until they saw that
they main advantage was the finance for products.
Do you have significant market advantages over your
competitors and how are they managed?
This is often where your opportunities for growth lie
Weaknesses are areas where you are vulnerable to others and
should be shored up or improved
Know yourself – the good and bad
STRENGTHS +
Things that will continue to make this organisation succeed
Protect and retain them
WEAKNESS –
Things we don’t do as well as our competitors
Improve or eliminate them
OPPORTUNITIES +
Things we could do that would add value
Identify and act on them
THREATS –
Things that may prevent us succeeding or cause us
problems
Address and prepare for them
Flexible direction
Your strategy is an end goal
Your
Goal
You
are
here
Flexibility will leave you less exposed to risk as the
environment and your competitors respond to you and any
other industry and environment changes
The goal is more important than the course to get there
Annual business planning allows you
to adjust your course and tactics.
Always have a plan (b)
Option 2 : Indirect
Option 1 : Direct
Option 3 : Responsive
& Flexible
Putting the pieces together
Plan the changes
A strategy by itself is not a plan
A strategy is a ‘wish list’ . To make it happen you need a
plan with clear and detailed directions
• Be clear on what you need to change or do to achieve your goals. Be precise about the specific elements involved.
What
• What business unit is to make the changes. Then nominate a senior manager to take accountability for making it happen on time.
Who
• Nominate when you will see the changes and how you can measure the improvement. Again be precise and use customer or business measures –if the change is to improve the customer experience then use a complaints measure.
When
Incremental plans lead to success
• Start the journey by putting in place the necessary people, process and technology needed
• Be practical about what is achievable in 12mthsYear 1
• Revise what you achieved so far
• If needed make adjustments to your plans
• Results should now be visibleYear 2
• Maintain the momentum and action happening
• Keep focussed on the goalYear 3
Example
Increase our market share of XYZ’s by 20%STRATEGY
a) Introduce a campaign to replace or reduce volume
of competitor products with existing B2B clients
and resellers
b) Increase XYZ marketing in business media
c) Provide incentives to resellers to reduce
competitor items
d) Provide incentives to customers to replace existing
competitor units
WHAT
Responsibility of Sales and Marketing Unit and
accountability is Director, B2B Sales
WHO
Percentage increase in excess of standard 7.5% year
on year growth for XYZ
WHEN
Sustainable corporate growth
Yr1 Yr 2 Yr 3 Yr 4 Yr 5
Time
Mark
et G
row
th %
-5
0
5
1
0
15
20
2
5
30
3
5
4
0
Slow &
steady
growth
Rapid growth
from new
markets or
products
Consolidation
period and
planning for
next stage
Be prepared for
lethargy. Take time to
revitalise your goals
and reinvigorate the
company
You have
created a
workforce who
thrive on
challenge and
will seek it out!
Make your motor roar
ENHANCED STAFF
ENGAGEMENT
Targeted & Regular
Communication
Relevant Information
Create a clear and simple message describing the goal
It should take no more than 30secs to state
Can be used in various communications
Make it relevant to all levels of staff and even customers
Reinforce the message often and through all available
communications and interactions
Highly engaged and committed employees believe in the
message and want to be part of achieving it.
That they are providing a valuable contribution and will
produce 38% more than average staff.
Targeted & regular communication
Actively seek and use
‘many minds’ of staff to
solve problems and tackle
opportunities
Support real two-way
communication
Users should be involved in
new or changed processes
Staff who know your
competitors can provide
critical information
Engaged staff
A firm with enthusiastic and engaged staff will achieve
their goals
Great companies have great staff cultures e.g. Apple, Ikea,
Hewlett Packard, Google
Each one has a ‘wow’ factor that makes staff want to come in
and work every day
It remains attractive to
new & existing employees
Engaged staff equal
a) Lower employee replacement costs
b) Improved bottom line
Change starts at the top
The leader defines the change required
It needs to define what stops/drops in priority and where we
now are putting our focus
Make the message simple and easy to understand
Continue for several years to derive maximum benefit
Exemplify the change you want. Make certain that it is
seen as well as heard in order to be effective.
To become an innovator in your industry show this by
introducing innovative processes inside the firm now.
If your vision is to be customer focussed then spend time on
the front counter to exemplify this to staff
Become a messiah of the new way and enlist your senior
team as committed disciples of the change.
Action and words together
Change your actions and words to align to the changes
you seek and make sure this is clear to staff.
If becoming ‘green’ show this by replacing executive cars with
hybrids, stop excess paper waste and only use china cups.
Make all communications mirror the desired strategy
Change the intranet to feature the main elements and have
information about the actions underway and how this relates
to various work teams
Communicate using online and print publications and keep
managing the message to reinforce how ongoing actions align
to the strategy
Open a dialogue to allow staff to discuss/ complain/
recommend new ideas and they can help you succeed!
Staff on your team
Engagement is more than being part of the
journey
In order to follow staff must see that they can believe in
the goal and that it is more than words to the senior
management team
If exceptional customer service is the aim then actively
monitor and reward staff who achieve it on a regular weekly or
monthly basis.
Rewards for motivation
Everyone loves to be recognised for their work but take
care that you recognise effort that is outstanding or else
you may de-motivate your team
Use visible and tangible rewards- the value is not as
important as the nexus to the action e.g. Coffee, lunch or
movie vouchers
Remember outcomes may be the result of a team
working together so make some rewards team based and
be part of the celebration e.g. morning tea or lunches
Example
Reward Type Basis
Ad-Hoc Individual These reward the behaviours you need for
the future
Goal Achievement Team Based on meeting or exceeding
time/cost/quality parameters based on the
monthly targets in a plan.
Yearly Achievement Team Recognition for achievement of the teams
meeting or exceeding time/cost/quality
parameters based on the annual targets in
a plan.
Engagement Individual/
Team
Individuals and/or Teams whose ideas or
actions will make it easier to achieve
future targets.
Celebrate achievements
Great strategies are multi-year.
Each year it helps to close the previous year and commence
the new strategy period
Use staff rewards as an opportunity to recognise the
implemented strategy and its achievements
Celebrate with a cross-section of staff
Recognise all those who have achieved or exceeded their goals
for the year
Use the opportunity to re-sell your message to staff.
Reiterate the message
Refine any nuances that relate to the new period
Reinforce the importance
