LEARN ABOUT STRATEGY EXECUTION
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Strategy execution focuses specifically on how the implementation component of a business strategy is optimized in order to attain organizational goals.
Corporate leaders and business leaders in general know and uphold Strategy Execution in the corporate setting. Bain & Company reiterates the importance of creating and executing strategies in the business setting, ranging from small startups to large corporations with numerous global branches. Both small startups and large corporation operating worldwide implement various strategic plans to attain organizational goals or objectives. It assists businesses in translating strategic organization initiatives into sustainable action. Various chief executives of multiple companies find implementing a suitable strategy for executing business initiatives very challenging. However, the majority regard it as successful implementation of a specific strategic plan of an organization. In short strategy execution is a critical component of strategic change.
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Strategic Change and Its Relation to Strategy Execution
Business strategy refers to a set of specific decisions that help business leaders achieve particular business objectives. Essentially, it is a master plan that the Company’s managerial team implements for the Company to secure a competitive advantage in the market of operation. These are competitive moves, which a business would wish to implement to attract customers, successfully compete in the market, and reinforce its performance in the market. These strategies established by a company illustrate how operations of a particular business ought to be carried out to achieve specifically defined goals. Business strategy equips the managerial top of any organization with a valuable integrated framework in discovery, analysis, and exploitation of opportunities within the market that are beneficial to the organization, to make maximum use of resources and strengths, in order counterbalance with existing weakness. Strategic change is far more effective if strategy execution is considered even during the strategy planning stage.
Strategic change entails a shift of a company away from its current or recent state towards a state that it desires in the future to accelerate its competitive advantage in the market of operation. When a company is underdoing strategic changes, its business strategies that were previous implemented are being reformed to accomplish a particular future objective. It involves having a pre-existing system and then making changes to it. As previously mentioned, a strategy is a long-term plan to accomplish a particular set of objectives in the future, therefore to comprehensively have an understanding of a strategic change, the goals established by a business are often changed based on various factors in the market. The changes made on an already existing strategy is what is called a strategic change and focusing on effective strategy execution makes the change smoother and in less time.
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Basic overview of Strategy Execution
Strategy execution focuses specifically on how the implementation of a specific strategy is optimized in order to attain organizational goals. Strategy execution encompasses structures, plans of operation, and systems that set a corporate team up for success. According to Harvard Business Review, there exist critical steps necessary for the proper execution of strategies. First, the statement has to be made imperative. For instance, “train employees in the new customer relationship system of management.” The illustration given is an action that can be assigned to someone for completion in a particular date and time. In contrast, the use of wording such as, “training employees” does not seem to address any person, so its completion might not be as simple as the first illustration. Within an effective strategy execution plan the action to train employees is completed as made in the first statement, it will be deemed executed. In this very basic example the strategy is, training employees, and steps taken to train employees effectively is strategy execution. The statements ought to be given to real owners. Strategic statements are established at an organizational level, but their implementation in the organization involve persons in a particular department is the start of strategy execution. The persons to whom the mandate for execution are granted are accountable directly to the organization’s chief executive officer. For instance, if a strategy states, “manage safety and health in accordance with best practices at global level,” in such a circumstance, relevant employees bestowed with the mandate to execute the strategy are a human resource. When thinking about strategy execution, they are the executor of the strategy and are accountable to the managers.
The primary problem encountered in strategy execution is translating more extraordinary ideas concerning that which makes an organization competitive at the organizational level into concrete actions for progress at the personal level. To overcome the challenges, the previously mentioned steps are worth overriding the challenges. Change management initiatives are challenging and strategy execution often needs strong focus and tools that help convert the strategy into reality.
Why Strategy Execution is important
Strategy execution is a critical part of effective strategic change initiatives. A corporate entity might develop a strategy, but if such a strategy does not produce results, its significance has not been achieved. The essence of any strategy is to look towards the future and identify a favored position, then the corporate work backward to achieve the set goal. A great strategy can position a corporate entity in sport-light, but without a solid execution, such a corporate will not last. The existing gap between planning and performance can be what’s keeping corporates from a proper strategic execution. A corporate role in any business setup is to successfully move an organization forward by improving business performances in the operation market. Strategy execution is a continuous reflection process, analysis, and reapplication. Successful strategy execution serves the purpose of improving the performance of the business. In addition, strategic implementation assists a corporate in identifying barriers to its compelling performances in the market. For example, if a strategy is to enhance the quality of goods and services being offered by the corporate by 15% in the next three months, execution of such a strategy plays a role in identifying barriers that were in existence before the targeted goal of improving quality of goods and services by the corporation.
Strategy execution is crucial to an organization’s success. Being committed to a specific strategic plan before the start of implementation serves the purpose of ensuring that all individuals involved in decision-making are aligned on similar goals or objectives. In addition, strategy execution establishes a shared understanding of the more comprehensive strategic plan throughout the corporation. In every business, there are rapidly changing threats and opportunities in the market. Overcoming such threats and opportunities in the market requires an organization to establish a strategic plan and execute the plan properly. Strategy execution thus assists corporations in addressing the rapidly changing threats and opportunities in the market of operation.
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How Things Fall Without Focusing on Strategy Execution
In the existence of multiple distractions, corporations must have a focus on execution of strategy to align the organization with the goals set in strategy, without proper focus on the execution, things might highly fall, and the organization will be stagnant in the state it previously was in. it is not a secret that majority of companies struggle so much at execution stage having ejected immense resources, both capital and human resources in the vision to align the Company with its objectives or goals. All the resources spent on the plan go to waste if the plan is not executed correctly. This may either backdrop, or force the company to mark time in one level for long. After implementing a strategy, various challenges are often encountered. Without a concrete focus on the goals or objectives to be achieved by the strategy, the organization risks losing much more than completing. A strategy without execution is of no use in the Company, and time spent on drafting the plan can be used to handle other Company plans. Without proper strategic performance, a company cannot level up with competitors in the market. To advance in competitive advantage in the market, ahead of other competitors, a company has first to develop a proper strategy and properly execute the strategy execution plan, failure to which competitors will still possess a more considerable competitive advantage.
Lack of focus on execution renders the Company unable to improve its services to their clients, which would mean the number of customers and potential consumers will decrease, as most people will tend to seek services that are improved. Firms experience just several results due to a lack of focus on strategt execution, and the majority tend to affect the Company adversely.
How Business Simulations are Effectively Used in Leadership Development
When properly used within a strategy execution initiative, business simulation plays a critical role within leadership development. The keyword is when “properly used.” Leaders who have gone through proper business simulation in corporate training will be part of a strong leadership bench. Business simulation enables individuals to improve their business acumen and various business skills, which are geared towards enhancing leaders’ performances in discharging their duties. Plus, Business simulations instill skills and knowledge crucial in strategy execution. Leaders in managerial positions require specific skills and expertise to monitor operations of businesses they must manage; to enlighten them of the current trends in management, business simulations play that role. Simulations targets are ensuring though in training are equipped with strategic thinking, decision making, financial analysis, analysis of the market, and the significance of team in the operations of corporations. It is, therefore, a valuable tool in strategy execution and within leadership development as it instills knowledge on the leaders of corporations on how they can analyze the market in which their corporation is operating more critically as opposed to the fundamental analysis previously used. Every successful business or corporation must have a managerial team equipped with a comprehensive understanding of all aspects of business operations, including risks and opportunities. Without this strategy execution will fail.
Business simulations within strategy execution enlighten corporate leaders with the necessary skills required for drafting a realistic strategic plan and implementing the plan by overcoming various challenges encountered in the process of execution of strategic plans. The success of the performance of a strategic plan solely depends on the skills of leaders.
- Leaders within the business allocate duties during the implementation of strategic plans based on their understanding of the plan and the type of employee best suited in each task. This activity requires skills and knowledge, which are provided in business simulations and applied to the strategy execution initiative.
- Training of corporate leaders annually on global trends in corporate markets ensures that business leaders comply with recent reforms and trends in the market. They are also equipped with criteria to best implement the directions in the businesses in which they lead within the strategy execution initiative.
It is evident that indeed business simulations play a critical role in leadership development and strategy execution through instilling skills and knowledge on how activities within the corporation can be well.
The Benefits of Using a Business Simulation with Strategy Execution Initiative
Business simulation accelerates strategy execution. Leadership training equips corporate leaders with polished new skills and professional muscles to handle complex corporate issues, such as corporate strategy execution. However, business simulation provides future leaders with critical skills, which transform them from fundamental upbeat leaders into leaders who are modernized with current skills and knowledge on how to execute strategic plans efficiently. According to Harvard Business Review, strategy execution is regarded as a gamble in which an average of ninety percent of corporations fails. The mere existence of the strategy execution is not sufficient.
The execution phase ought to be carried out after adequate preparation and with the certainty of the plan’s success. The trial is about oscillating around training, particularly leadership development, which is laced with modern business simulation. This will increase the probability of success of the strategy in fighting against threats that might deter proper strategy execution. Skills attained during simulation play a critical role in helping corporates to face challenges during execution in a more professional and skilled way, which increases chances of success.
Strategy execution is not just like any other decision-makers in the business. Still, instead, it requires the involvement of the Entire Corporation, from the top management to the newest employees, including entire departments within the Company. So it is through business simulations, through training of departmental heads and senior employees on how to manage junior employees to achieve goals hoped for. Business simulation act as a catalyst in the execution of strategy, thereby increasing the chances of success of the plan.
Strategy Execution: Summary
Strategy Execution, if understood and adopted well may create the perfect turnaround for your corporation. It is the one step which corporate leaders have to get right every time, and its lack thereof spells prolonged struggle in the business arena. Thus, every visionary corporate leader will seek to understand, and implement strategy execution in their corporations’ strategic initiatives, strategic plan, and business acumen. The benefits harbored in perfect strategy execution are worth the time, the funds and the struggle.