Marc's Blog

There are four strategic plans that need to be defined and integrated in order to create superior business execution, they are: The business strategy, the people strategy, the leadership strategy, and the organizational change strategy.  Integrating these four strategic plans will create momentum in the direction of the realization of the key business objectives, and allow the organization to tap into its workforce’s strengths and innovation.

I define superior business execution as…
… proactively creating consistent results and movement in the direction of the key organizational objectives—no matter what the circumstances are (thriving or sinking markets, changing business landscapes, increased competition, dramatic or unforeseen events, etc.), and doing it with the lowest amount of effort (and thus the greatest ROI).

This definition implies a complete and proactive adaptability of the workforce and organization.  It also implies that the organization is constantly innovating, in all of its aspects. 

In order to be achieved, superior business execution demands a decentralization of the organization’s decision power and innovation accountability.

From a shot gun to a strategic approach to organizational development
Many organizations seem to use a shot gun approach to their organization development.  This means that each of the strategic plans are developed and deployed in isolation from each other.  This is why organizations spend massive amounts of money each year on training and development programs that are never used, and are sometimes even working against the realization of the organization’s key business objectives.  This leads employees and middle management to be confused, overwhelmed and unproductive.

The strategic plans that need to be defined and integrated
The four strategic plans, that once integrated, will create a business environment that is supportive of superior business execution are:

• The business strategy—What needs to be done to reach the key business objectives.
• The leadership strategy—What leaders have to do to support the business vision, to lead to the realization of the business objectives
• The people strategy—What people need to become in order to deliver on the business vision
• The organizational change strategy—the steps that must be taken to shape the organization to be aligned with the business vision

The strategic progress momentum is increased by integrating the four strategies.  The four strategies work together and build on each other, increasing direction, congruence, productivity and sustainability. 

The results of the lack of definition (or under-definition) of each of the strategic plans are the following:

Any Integration work has to have the business strategy at its center
The ultimate purpose of the four strategies is to create the most momentum in the direction of the organization’s key objectives, at the lowest cost possible.  There is a hierarchy in the four strategies.  The business strategy’s goal is to fulfill the organization’s key objectives, and the leadership, people and change strategies’ goal is to allow the business strategy to come to life and be realized. 

Integrating the strategies to meet the organization’s key objectives faster
To deploy these strategic plans in a productive way, the leadership team needs to assign the different leadership, people, and change strategies to the various business strategies they support.  Once the assignment is completed, each of the assigned strategies has to be evaluated in relation to the momentum they create in the realization of the key business objectives.   The strategies generating the most strategic progress should be selected and then deployed.  All other strategies should be postponed or simply eliminated. 

The result: Increased alignment, accountability and momentum,  …while generating the best ROI
The integration process generates three things.  It first creates a complete understanding and alignment on how the leadership, people, and change strategies support the business objectives (and thus increase the motivation and accountability to carry them out).  Secondly, it reduces the amount of strategies to work on, making it more manageable and increasing ROI.  Thirdly, it creates synergy between the integrated strategies, which dramatically increases the organization strategic progress.
 
The next step: Streamline your strategic plans
Take some time to document all of the leadership, people and change strategic plans of your organization.  Once documented, integrate (assignment and evaluation) these strategic plans with your business strategic plan.  A good chance is that you’ll be surprised at how much energy and money your organization spends on initiatives that create little or no momentum in the direction of your key business objectives.  

This vital exercise will give you and your organization a clear path to success.  It will streamline and focus organizational development efforts.  It will also dramatically increase your workforce performance, and boost your organization’s bottom line.

Please send me your questions or comments at efactor@strategy-driven.com  

Next week, the subject of the article will be: "The 3 essential components of a performing executive coaching program."  Stay tuned!