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Average rating: 0 out of 5 stars, based on 0 reviews Write a review. Walmart Tell us if something is incorrect. The dynamic approach addresses the translation problem on multiple fronts, beginning with articulating actionable design principles figure 3.

Why Employee Engagement ≠ Effective Strategy Execution

Design principles provide direction to implementation teams without being overly prescriptive; they represent an intermediate level of detail about what is meant by some aspect of the strategic ambition. Thus, the implementation team has sufficient direction but maintains the freedom to be creative and adaptive. Staffing the implementation effort with people who have appropriate strategic perspective is also a key to translation. For an organization to make downstream implementation decisions that align with strategy, the individuals coordinating and guiding those decisions should be able to think both strategically and operationally.

They should be able to translate abstract conceptual ideas and intentions into practical, concrete decisions and choices, and be entrusted to make good judgment calls in response to what they learn along the way. Such leaders may ask, not only if they are tracking according to plan, but also whether what they are building looks like what the organization aspires to and whether any particular implementation choice will lead to the desired strategic outcomes. Dynamic strategy implementation demands a different kind of leadership attention as well, with consistent focus on managing for outcomes, not managing to milestones.

This requires the leaders who devise the strategy to play expanded roles in implementation, from effectively influencing upstream strategic choices with a knowledge of the implied implementation challenges, to demonstrating judgment in when to engage senior executives for strategic input in key downstream implementation choices. It demands that leaders intervene when employees revert to old behaviors, and provide clarity and support to help employees learn new skills.

A dynamic approach to strategy implementation further emphasizes the use of visualization tools such as scenario development, storytelling, simulation, and prototyping to translate intangible strategy ideas into concrete guidelines for action. Similarly, simulation or prototyping may help employees visualize key risks and barriers when planning an implementation in an uncertain or unknown environment—for example, when a company with predominantly North American experience plans a global expansion.

Dynamic strategy implementation: Delivering on your strategic ambition | Deloitte Insights

Finally, a dynamic approach requires the use of metrics that specify a clear line of sight between program deliverables and the desired strategic outcomes. Moreover, line-of-sight metrics may provide a clear measurement vehicle for assessing and preventing loss of value throughout implementation by enabling more real-time tracking through the implementation process.

Adapt to rapidly changing conditions. Conditions change, both internally and externally. Thus, companies should be prepared to course-correct and sometimes even change course as they implement strategy. A dynamic approach to strategy implementation enables such flexibility by emphasizing learning throughout implementation figure 4.

It leverages scenario-planning and environment-scanning tools to anticipate changes on the horizon. And it emphasizes the importance of productive conversation techniques to facilitate more effective collaboration, more efficient decision making, and stronger partnerships with key constituents. Dynamic strategy implementation also requires a different response to problems that arise in implementation. Ingersoll Rand, a global diversified equipment manufacturer, illustrates how companies may overcome the challenge of adapting their strategy to changing conditions.

To achieve these goals, the company launched a program focused on intelligent, adaptive pricing strategies.

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After carefully analyzing trends related to its key direct inputs, Ingersoll Rand estimated the amount of inflation the company likely would face in coming years, and then put in place a new approach to value management and pricing that would cover this predicted amount while generating more value for customers.

The company also built a diverse portfolio of cost-saving opportunities that it could pursue if and when inflation exceeded its estimates.

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Despite this well-designed, well-executed program, leaders still found it difficult to address the key nonstatic variables of direct material inflation, improved customer value, and sustained market share. The CEO held steady to his goals, but realized that he and his team would have to adapt their approach if they were to succeed.

1. Engagement

After an extensive objective assessment of their situation, they determined that the company would need to transform its value management and pricing capabilities. In particular, the management team determined that the company needed to improve its capabilities in three areas: customer segmentation and pricing analytics, customized market segment and customer value management strategies, and effective program management. Acting on these insights, they found new individuals to fill key roles, including the global program executive role. They assigned experienced resources to all priority market segments and customer relationships and launched a centralized analytics team to provide upgraded support to prioritized businesses around the world.

7 Steps to Successful Strategy and Implementation

And they did all this while holding steady to their original performance objectives. With this highly adaptive strategy in place, Ingersoll Rand was able to keep up with inflation and improve the value delivered to customers. In addition, the company took a giant step forward in building pockets of sustainable capability in value management, including strategic pricing, market segment and customer awareness, and customer-focused product management. Sustain the strategy by building organizational capabilities.

Sustaining implementation changes over the long term requires investment in organizational capabilities. As can be observed by the decisions of some companies, the behavioral changes required by a new strategy may not stick until they are embedded into a company as enduring organizational capabilities. By investing in helping individuals develop the new skills and competencies required by the strategy, the dynamic approach increases the likelihood that the strategy implementation effort will not be a temporary, isolated event.

Building organizational capabilities requires significant effort, from clearly defining the desired capabilities at a level of precision that links those capabilities to strategic outcomes, enables effective measurement, and guides individual actions to diagnosing the current level of organizational capabilities to designing the integrated system of assets and activities that builds and sustains these capabilities.

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Capability-building efforts may also include experiential learning programs focused on improving individual competencies and incentive redesign efforts that encourage employees to adopt new working behaviors. Dynamic strategy implementation can also help address the organizational resistance that often torpedoes implementation efforts. Whereas traditional approaches typically require significant up-front investment over many months before showing results, the dynamic approach adopts a different mix of implementation activities in the initial stages, emphasizing activities that set the stage for organizational learning for example, demonstration projects, pilot programs, and applied learning programs.

By experimenting with small-scale actions that may later be scaled across the organization, the dynamic approach produces concrete deliverables and value in the early stages of an implementation effort, increasing learning, buy-in, alignment, and enthusiasm across the organization. PNC Bank illustrates how a dynamic approach to implementation can sustain a strategy. For consumer-facing companies in particular, a strong brand is a key foundation of lasting differentiation and customer loyalty.

PNC launched a two-part strategy to achieve this goal. First, the bank developed a comprehensive blueprint outlining the structure of the brand organization, the tools it would use to disseminate the brand message, the skills it would need to do this effectively, the processes it would use, and the ways it would interact with the rest of the organization. Leverage our strategic planning software to build your plan faster than Excel or Word. Make the year it happens!

Organizations tend to underestimate and under-measure the effect that employee engagement has on their strategic planning outcomes. The writer speaks much about all the reasons why HR action and activity need to align with strategic goals yet omits perspective of how to do this — other than people should perform as smoothly, productively and frictionless as possible. The reality though is that many companies do not commit to measuring employee engagement over time. Linking approaches like these to strategy requires an acknowledgment that the culture people operate within and the tools they are given to do their jobs matters.

Indeed, this is the very base of the Balanced Scorecard approach to organizational health.