Strategy Execution framework - The 8 ModelYou can look at performance from an organisational perspective or an individual perspective. And the two must be linked in order to realise your strategy. Most will agree with this statement, but few actually make it happen. There are plenty of reasons why companies fail, but the three major ones are: the fragmented views from finance, HR and -- if present -- the strategy department; a lack of ownership by middle management; and the absence of a simple methodology.Everyone -- from the CEO to the blue-collar worker -- is involved in strategy execution. Their roles might be different, but each individual contributes to the organisation’s overall performance. Successful Strategy Execution includes both top-down as well as bottom-up processes. The Performance FactoryTPF_b0bfb2f0-100d-11e6-9552-3a345b52ebadJeroen De FlanderThe Strategy Execution ambassadorManagersThe manager is a key Strategy Execution actor. He/She participates in all activities, including: strategy communication, translating the strategy to department, division or team, setting his/her own objectives, defining objectives for the team, coaching for performance, and evaluating performance. The quality of your Strategy Execution is strongly linked to the effectiveness of your managers. The better your managers carry out their Strategy Execution role, the better the results you will achieve. Strategy is realised._b0bfb430-100d-11e6-9552-3a345b52ebadTo link organisational and individual performance._b0bfb4ee-100d-11e6-9552-3a345b52ebadUpdatingUpdate strategy regularly, based upon feedback and changes in the competitive environment._b0bfb660-100d-11e6-9552-3a345b52ebad1Your strategy is your long-term action plan designed to achieve your vision. Each strategy is unique, and it should also be measurable and easy to understand. Depending on the industry you are in, it maps the road your company should take for the next 3 to 10 years. On a regular basis -- most companies should do this annually -- a company needs (and wants) to update its strategy based on changes in its competitive environment and on the Strategy Execution feedback from the previous cycle. We include strategy updates in our execution framework as they take place on a regular, recurring basis at all levels of the organisation. The real strategy work, conducted only once every 3 to 5 years at the top of an organisation, is excluded._b0bfb714-100d-11e6-9552-3a345b52ebadCommunicationCommunicate strategy_b0bfb7be-100d-11e6-9552-3a345b52ebad2As soon as your strategy (or strategy update) is finalised and approved by all stakeholders, you should focus on strategy communication. Transparent and easy-to-understand communication creates the necessary understanding and engagement for the new/adapted strategy.PlatformsUse all available platforms to communicate the strategy._b0bfb87c-100d-11e6-9552-3a345b52ebad2.1It is essential to use all available communication platforms. One big strategy event and a single strategy e-mail are not nearly enough. Use other meeting platforms, discussion groups, informal and formal encounters, performance management sessions, intranets, websites, screensavers, coffee corners, billboards, etc. to communicate the strategy. You cannot over-communicate your vision and strategy!QualityEnsure high-quality of communication about the strategy._b0bfb93a-100d-11e6-9552-3a345b52ebad2.2Senior ManagersSenior managers, in particular -- as strategy ambassadors -- should be especially careful about how they communicate.Pay attention to the quality of your strategy communication... In addition to the content itself, tone of voice and presentation skills are essential elements in transferring content and creating the necessary enthusiasm for others to pass on the message. Make sure you don't kill your strategy by lousy, uninspiring communication.CascadingBreak down objectives into smaller chunks for the next organisational level._b0bfb9ee-100d-11e6-9552-3a345b52ebad3When you cascade your company's strategy, you break down objectives into smaller chunks for the next organisational level. The process stops at the smallest unit level -- these are often teams. In the end, the size of your organisation will define the size of the cascade.Strategic AlignmentAlignment the objectives, horizontally and vertically, within the organisation._b0bfbac0-100d-11e6-9552-3a345b52ebad3.1It is crucial to achieve macro alignment between all the objectives -- horizontally and vertically -- in your organisation. We call this MECE...PerspectivesBalance the objectives across four perspectives -- financial, customer, internal processes, and people._b0bfbb7e-100d-11e6-9552-3a345b52ebad3.2On a micro level, you need to balance your objectives across perspectives. The 4 traditional perspectives are: financial, customer, internal processes, and people. You can add other dimensions, as appropriate.IndicatorsSelect performance indicators._b0bfbc3c-100d-11e6-9552-3a345b52ebad3.3In addition to the balancing act on the macro and micro levels, you need to select the right indicators -- often called Key Performance Indicators or KPI's -- to track the objectives and define appropriate targets. The best know technique to cascade strategy is the Balanced Scorecard. Comparison & LearningAt the end of a cycle to go back and check your hypothesis to compare your initial strategic assumptions with what you have learned from the reality of the Strategy Execution cycle that is being completed._b0bfbd36-100d-11e6-9552-3a345b52ebad4Your strategy is a hypothesis. It's your best estimate of the route to success … but it's still an estimation. It’s crucial to take some time at the end of a cycle to go back and check your hypothesis, to compare your initial strategic assumptions with what you have learned from the reality of the Strategy Execution cycle that is being completed. By doing this, you will put yourself in the forefront -- research shows that only 15% of companies take this step. But at the same time, make sure you don't just look back at your strategy: take a look at your Strategy Execution capability as well. All too often, we see companies jumping automatically to change their strategy, because they did not reach their projected performance. But, upon examination, there is nothing wrong with their strategy. The problem is in executing it. So, make sure you evaluate your execution capabilities as well! This 'compare & learn' step will help you verify your hypothesis, update your strategy, and fine-tune your execution capabilities accordingly.HypothesisVerify your hypothesis._b0bfbdfe-100d-11e6-9552-3a345b52ebad4.1StrategyUpdate your strategy._b0bfbec6-100d-11e6-9552-3a345b52ebad4.2CapabilitiesFine-tune your execution capabilities._b0bfbfa2-100d-11e6-9552-3a345b52ebad4.3InitiativesManage initiatives_b0bfc06a-100d-11e6-9552-3a345b52ebad5Initiative management is the activity in which your dreams run up against reality, your strategy meets operations, and resources are added to the strategy formula. This is one of the most difficult steps in Strategy Execution -- and so it's also where execution quite often goes wrong. Initiative management is about selecting, prioritising and executing the right initiatives: those actions that will lead to the realisation of your objectives...SelectionSelect the right initiatives._b0bfc132-100d-11e6-9552-3a345b52ebad5.1PrioritisationPrioritise the initiatives._b0bfc1f0-100d-11e6-9552-3a345b52ebad5.2ExecutionExecuting the initiatives._b0bfc2a4-100d-11e6-9552-3a345b52ebad5.3Personal ObjectivesSet Objectives / personal goals._b0bfc34e-100d-11e6-9552-3a345b52ebad6Setting individual objectives is one of the best things you can do to improve performance -- your own performance, and (if you have them) your team members' performance. The positive impact of goal-setting is one of the most widely researched and scientifically validated aspects of today's organisational science. Two key researchers of goal-setting and task motivation theory are: Edwin A. Locke (University of Maryland) and Gary P. Latham (University of Toronto).Strategic AlignmentLink individual objectives with the strategy at the organisational level._b0bfc416-100d-11e6-9552-3a345b52ebad6.1Make sure you link all individual objectives with the strategy at the organisational level. If you don't, you might have a great objective … but it's of no use to the organisation! AgreementFocus on the way you secure agreement on the objectives._b0bfc4ca-100d-11e6-9552-3a345b52ebad6.2Also, make sure you focus on the way you secure agreement on the objectives. It's the quality of the objectives -- including the link with the overall company objectives -- AND the acceptance of the objectives that will make your individual objective-setting a success.Monitoring & CoachingMonitor & Coach_b0bfc588-100d-11e6-9552-3a345b52ebad7Regular coaching motivates people and increases their chances of success dramatically. It also simplifies the final performance evaluation. In fact, regular coaching is far more important than the formal review meeting somewhere around the middle of the year.FeedbackProvide feedback._b0bfc650-100d-11e6-9552-3a345b52ebad7.1John WhitmorePerformance coaching is a relatively new, but rapidly growing, knowledge field. The leading authority is Sir John Whitmore. The best know coaching model is the GROW Model.Providing feedback in the right way -- which is a key coaching skill -- is a crucial step in boosting performance!EvaluationEvaluate Performance_b0bfc70e-100d-11e6-9552-3a345b52ebad8Most organisations conduct a formal performance evaluation at the end of the individual performance management cycle. Ideally, the evaluation should answer the question: have the individual performance objectives been achieved? Be sure you make an honest assessment. There are several techniques that can help you. One of the best known is the STAR technique. Although many organisations link performance to remuneration, performance evaluation is -- and should be -- a separate process._b0bfc7cc-100d-11e6-9552-3a345b52ebad2016-05-01http://www.the-performance-factory.com/en/free-performance-library/the-8-a-unique-framework/OwenAmburOwen.Ambur@verizon.net