Cascade the strategy through the workforce from the management to the people that actually do the work.
Every organization has a strategy, but strategy implementation has a very low success rate. In fact, there are a variety of potential points of failure. Many business leaders have the silo mindset, only representing their specialized area to compete for the business resource or spend most of the time at the operational managed autonomy. Or the speed of change is increasing, the strategic planning needs to be adjusted timely to adapt to the changing environment.
Organizational capability in assessing the business environment and setting/resetting of strategic direction: Now, for various reasons such as VUCA factors (Volatility, Uncertainty, Complexity, and Ambiguity), both the organization and the environment change over time. The industrial silos and old boundaries have been broken down, it’s no surprise that we will envision the future of the organization, leverage a cross-disciplinary approach to solve complex problems and overcome common change challenges.
Change is a given, organizations need to be able to assess the dynamic business environment, steer the business in the right direction. “VUCA” is the new normal of the digital era, within this context; the organization must stay compatible and evolve in a compatible manner with its environment. Metaphorically, every organization is like the switch that connects into its ecosystem environment. If the organization understands itself in relation to its context, it should be able to determine whether it requires changing something to become viable, how to improve agility and build a sustainable digital organization.
Organizational capability in the management of multi-project programs that translate strategic direction into real changes within the organization: You can have the greatest strategic plan in the world, but it will be worthless if the organizations are not accountable to anyone for execution of their tasks. Capabilities underpin business strategy; a healthy portfolio management improves business effectiveness, focus on delivering a tangible outcome from the prioritized business initiatives. In practice, sometimes, organizations deliver projects on time and within budget, but the value delivered from those projects is not optimized or aligned to the organization’s strategy.
With silo mentality and cultural frictions, the ineffective management discipline enlarges silos, wastes resources, causes revenue leak. Any misfits will not succeed long for lack of collaborating partners, without taking sufficient energy and time on holistic thinking of business’s long-term strategy and growth. Some businesses shared their experience. A weak portfolio management practice of time, resources, requirements or customer expectations encourages shortcuts that increase design weaknesses that drive higher maintenance and support costs.
Organizational capability in the governance of programs that is needed to maintain strategic fit: In many lagging organizations, there is a lack of active involvement in strategy execution management and governance practices at the executive and organizational leader level. Strong governance disciplines enforce the ability to revisit and reinforce what you have put into place at the start of the program consistently before moving on to new phases. Management should be concerned with budget and resource provisioning while governance should ensure proper execution as per the best practice to use the resources optimally. They mutually reinforce each other. Standards, templates, rules, organizational structure, and review structure exist, not for their own sake; but to provide alignment across the pieces and across layers to lubricate frictions, bridge silos, maintain strategic fit, and improve business management coherence,
Effective governance should oversee the business components and ensure the organization as a whole is more effective and efficient than the sum of pieces, to optimize the usage of resources (including, time and information) and enhance business Plan, System, Process, Executive Drive (including culture). A failure to fully integrate governance mechanisms into management processes results in the issues not being caught early, and so it is a good candidate for the ultimate cause of failures. Under strong governance, the well-defined KPIs will help to measure business performance both qualitatively and quantitatively.
Nowadays, strategy management is not a linear step, but an iterative continuum. Organizations need to build advanced foresight and scenarios by focusing on key success factors. A comprehensive approach is required to improve agility in strategic planning by increased frequency of planning cycles. Cycle time needs to be reduced to develop rapid response capabilities across all organizational levels. Cascade the strategy through the workforce from the management to the people that actually do the work. Always ensure that objectives, actions, tasks, are aimed at the appropriate level in the organization, so that everyone understands their role and responsibility. Collaboratively, organizations can achieve high performance business results at an accelerated speed.