"the fundamental difference between success and failure depends on which projects top management decides to invest in and how those projects are executed.
In other words, finding ways to achieve the strategic goals is what today is known as 'strategic planning,' while 'strategy execution' is the method used to achieve those goals. The three most important elements of successful strategy execution are:
- Identifying the company's core competencies that will differentiate it from the competition.
- Selecting and prioritizing the initiatives that will exploit those core competencies and create sustainable growth via the company's strategic plan.
- Organizing company resources so as to optimally execute the chosen strategy.
Once a company's structure and resources are aligned to its chosen strategy, the key question is whether the organization is focused enough to deliver the intended result. If the answer is no chances are that the strategy will not be successfully executed. This will be discussed later, but successful strategy execution is not so much about how well the strategy is defined; instead, success depends on project selection, effective organizational alignment, relentless execution and focus.
Being unfocused means that strategy objectives have not been clearly articulated or communicated to the entire organization. Often, there are too many objectives or even worse, the objectives are not prioritized. Top management wants to do too many things and does not involve employees in the strategy formulation. Thus, employees neither understand nor buy into the long-term mission.
If the strategy is poorly executed, the financial objectives will be difficult to achieve. Unfocused companies typically generate significant costs over the years. They often run too many projects, not recognizing that projects are expensive and consume both financial and staff resources. In addition, they frequently lack a clear, transparent and objective project selection process (or investment committee). Investment decisions are made on partial information and the tendency is to start all projects whose business case 'looks good on paper."
sexta-feira, abril 12, 2019
"Poorly executed strategy"
Trechos retirados de "The Focused Organization: How Concentrating on a Few Key Initiatives Can Dramatically Improve Strategy Execution".