By Jeri T Denniston, Chief Marketing Strategist, Denner Group International 2-20-2013
Takeaways: The area where most companies fall short is in strategy execution by not tying individual performance to the key strategies they need to implement. Y-Change provides an organization-wide tool to track projects and strategies across the enterprise, including individual performance.
We’ve heard it time and again – the area where most companies fall short is in strategy execution. They spend countless hours up front planning and engaging their staff in providing solutions and getting their input on the key strategies. But then when they begin to implement them, they usually fall short of plan. Why?
Many companies do a lot of things right. They dig deep to find what’s working and what’s not. They involve their key stakeholders both within and outside the organization. They ask for and integrate feedback into the plan. They streamline processes, create new structures to improve communications and work flow. Yet, the old habits still creep in and it’s back to business as usual.
A June 2008 Harvard Business Review article by Gary L. Neilson, Karla L. Martin, and Elizabeth Powers of Booz & Company, shares the case of “a global consumer packaged-goods company that lurched down the reorganization path in the early 1990s.” It’s a perfect example of where many firms fall short on the execution side. They overlook the key ingredient – the people in the organization who have to execute the strategies.
Tie annual reviews to strategy execution
By not tying individual performance to the key strategies, the company found that their people weren’t being held accountable for executing the strategies well and effectively. People do what you “inspect” not what you “expect”, as our former mentor Stephen Haines liked to say. In addition to creating the right structures and providing people with adequate resources to do their work, it is critical to tie their annual reviews and the rewards system to the key strategies you want everyone to focus on. Without that, they will naturally revert to doing the work that generates the rewards. It’s human nature.
A key tool for managing strategy execution at all levels is Y-Change. This online software tool tracks all the strategies and key actions at every level in an organization, along with accountabilities and project deadlines. It’s even possible to tie in each individual’s performance review plan to the high level organizational strategies so you can see the chain and interrelationships from the lowest level all the way up to the CEO’s office. This powerful tool is used by many organizations of all sizes and in any industry because it is fully customizable to the needs of the organization.
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