Strategy Execution and Culture – The Glue that Binds.
June 03, 2021 l L.J. Macko (Founder/Owner, Navigator Strategic Leadership Solutions) Chess is often used as a symbol or example of strategy, and for good reason. The metaphor for chess goes beyond the level of the game as a format for strategy. Chess is also a metaphor for strategy execution, and can be used to explain the importance of culture in the execution of strategy.“The heart of execution lies in three processes: the people process, the strategy process, and the operations process.” (Bossidy L., Charan R.; Execution)
The “people process” quoted above is one of the most critical elements in execution, since organizations are comprised of people who embody the organization’s culture.
In the game of chess two players start with the same pieces and options for movement on the game board. Both players want to win and have the same resources, including (theoretically) the same standard strategies used in the chess world. Players execute their strategy by thinking one or more moves ahead, with each move aligned with the one before and the one to come, while also considering their opponent’s options. If all things were equal, winning a match would be much more difficult, with stalemates or draws occurring more frequently.
This raises the question, what gives competitors the edge to win when they have the same level of technical knowledge and material resources? What helps one competitor handle the pressure of taking the right action at the right time? Why does a particular business make a better decision as to when to use a certain strategy? In business, two competing companies in the same industry with similar resources may have equal chances of success, yet time after time one business outperforms the other. One reason? The successful organization executes their strategy more effectively. But how?
That differentiator is culture. Culture is the driving force within an organization comprised of the attitudes, attributes and ability of the people executing the strategy.
To those who may view strategy as merely a static “thing” developed by senior corporate officials in large organizations, then consider this brief “thumbnail” to fully understand the impact of culture on the organization:
“Strategy is defined as a plan of action to achieve a goal or goal set” (Rollinson R., Young E.; Strategy in the 21st Century)
So, once you have developed a strategy, what do you do with it? Keeping the definition above in mind, you/your team should develop a list of the objectives to be accomplished to realize the strategy. That list can be referred to as the strategic operating plan.
All right, now that you have an operating plan, you need to execute. To do that, you have to communicate what the strategy means to your organization, influence the team on the importance of the strategy, and ensure alignment so that each member understands to do the right things at the right time.
Once execution of the operating plan begins, it will be important to measure performance of the execution activities to make sure it, (the operating plan) stays on track. Are the right tasks are being done by the right people at the right time? Does the team have the right materials for the right job? It is critical to ensure that the actions to ensure alignment are performed consistently at all the levels of the organization.
For the Project Management Professionals reading this blog, these objectives are most likely the priorities that you would be working on. Many of the factors that make culture important to strategy execution , apply to project management, especially the requirement to engage at all levels of the organization. Successful engagement is critical to maintaining alignment of execution activities and dependent on a strong and consistent culture.
In the best selling book “Execution”, the authors Bossidy and Charan highlight the importance of having a culture of execution excellence:
“To understand execution, you have to keep three key points in mind:
* Execution is a discipline, and integral to strategy.
* Execution is the major job of the business leader.
* Execution must be a core element of an organization’s culture.”
Like in Chess winning in business depends on how each competitor uses their resources. In chess there are known strategies, offensive and defensive moves that are known and studied by chess players at all levels. Yet even in a game between two players on relatively equal footing one of them will win while the other will lose.
How players use their resource’s is determined by how well they are equipped to handle stress, react to opponents’ moves or seize the initiative. These elements make players unique, and so their playing style is their “culture”.
Differences in the business world are, in part, what constitutes organizational culture. Culture is the foundation; It is the essence of the company is demonstrated by the actions of its employees at all levels. The bottom line is that culture is about people and their beliefs. If those beliefs or sense of purpose is not in line with the organization then executing the strategy becomes difficult.
So, what makes the difference between winning and losing? Is it the difference in the chess experience level of the two? Is it that one player handles the stress of decision-making better than the other? Or can it be one player recognizes what the other player is doing? The answer is yes to all the above. How each player uses the strategies and move possibilities available to them is what makes the difference in the game. The same idea applies to how businesses with access to the same range of resources utilize their individual resources. This can make the difference between a failed business and a successful one.
Success is measured by how you accomplish your objectives…be it in life or in business. Accomplishing objectives is what successful strategy execution is all about. This applies to both a large corporation with a formal strategy or a small business with just one strategic objective that is critical to the survival of that business. And culture is the glue that binds the commitment of the team to the strategy execution.
Future articles will explain critical elements of strategy execution and provide additional details on how to develop a culture for a new business or shape the existing culture in your business to adapt to the changing world around you/your organization. If you have any questions about the material presented above or would like to learn more about strategy execution or Navigator Strategic Leadership Solutions send an email to:
lj.macko@navigatorstrategicleadership.com.
