Creating a robust strategy is a critical first step for any organization, but executing that strategy is where the real work begins. A systematic approach to strategy execution is vital to converting visions into outcomes. This guide introduces the three stages of strategy execution, focusing on their essential role in ensuring business success amidst continual digital disruption.
Strategy to Executing in 3 Steps
To overcome the common trap of failing to execute strategy, organizations need to proceed through three critical stages: Envision, Create, and Operate. Each stage ensures that strategic plans are effectively translated into practical outcomes, transforming businesses from version 1.0 to 2.0 and beyond.
1. Envision
The Envision phase is the foundation of successful strategy execution. It involves aligning the organization’s strategy on a single page using Objectives and Key Results (OKRs), as detailed by John Doerr in his seminal book Measure What Matters. The Envision phase entails creating a clear, concise, and compelling strategic plan that everyone in the organization can understand and follow.
Key Components of the Envision Phase:
- Defining OKRs: Objectives and Key Results are critical for setting clear and measurable goals. Objectives define what you want to achieve. Key Results specify how you will measure progress toward those objectives. By setting OKRs, organizations can help everyone align and work towards the same outcomes. To learn more about OKRs, watch our video, Turbo Charged OKRs. It’s A Process Problem!
- Articulating the Value Proposition: The value proposition outlines the organization’s unique value to its customers. Communicating this clearly within the high-definition operating model, which includes people, processes, technology, and governance, is essential. This model ensures that all aspects of the organization align with the strategic goals.
- Creating a High-Definition Operating Model: The high-definition operating model addresses a critical gap in many organizations’ strategic frameworks. Traditional organization charts focus solely on the people aspect–outline roles and reporting lines. However, this is only part of the picture. The operating model definition takes a more comprehensive approach, incorporating processes, technology, governance, and people. It shows how technology is applied to core business processes, ensuring all elements seamlessly support the goals.
2. Create
The Create phase translates the strategic plan into actionable projects and initiatives. This phase involves identifying projects that both run and improve the existing value proposition while transforming the organization into business 2.0.
Key Components of the Create Phase:
- Linking ORKs to Project Portfolios: By linking OKRs to a portfolio of projects, organizations can ensure that every project aligns with the strategic goals. This linkage allows the organization to measure the success of each project using defined OKRs.
- Using Prescriptive Design: Prescriptive design is a key aspect of the Create phase. It involves technologists playing an integral role in defining how projects will be designed and delivered. Unlike the traditional passive role, technologists actively shape the future value proposition, ensuring that technological solutions are effectively integrated to meet strategic goals.
- Managing Project Portfolios: Effective project portfolio management is critical to the success of the Create phase. This involves prioritizing projects, allocating resources, and managing risks to ensure that the organization can deliver on its strategic goals.
3. Operate
The Operate phase focuses on implementing the projects identified in the Create phase. This phase is about running and improving the existing value proposition while transforming the organization to meet new value propositions.
Key Components of the Operate Phase:
- Implementing Projects: Projects identified and designed in the Create phase must be executed during the Operate phase. Effective implementation requires careful planning, resource allocation, and risk management.
- Measuring Outcomes: It is essential to measure the projects’ outcomes against the OKRs set in the Envision phase. This allows the organization to assess whether the projects have been successful and whether they have achieved the desired strategic goals.
- Incorporating the Operating Model into Budgeting: The high-definition operating model should be integrated into the budgeting process. Traditionally, budgeting involves departments listing projects that need funding. In the new framework, the value proposition is treated like constantly updated and refined software. By incorporating the operating model into budgeting, organizations can ensure that their strategic goals are fully funded and supported.
Accelare’s Strategy Execution Consulting
Organizations must adopt a structured method for executing their strategic plans to maintain competitiveness and adaptability in a business environment full of digital disruptions.
Accelare’s consulting services support organizations through each stage of strategy execution. Our tailored approach ensures alignment with client-specific strategic goals and industry dynamics. We help organizations develop and implement strategies to drive success and fulfill customer needs.
Begin your digital transformation journey with Accelare by taking our quick, online, 4-minute Digital Disruption assessment. Once you complete the assessment, you’ll receive an evaluation of your organization’s business model exposure to the disruptive forces introduced by new technology like AI, IoT, Big Data, and more. With this information, you can begin your journey toward digital transformation and maximize the three critical elements of Strategy Execution–Envision, Create, and Operate.
