Sustainable Organization Growth and Profitability through Strategy Driven Organizational Change
What is Strategy Execution?
Strategy execution is a disciplined and systematic process of managing - directing and controlling, and facilitating - the day-to-day decisions and activities undertaken at all levels in the organization involving top management through middle management, and front-line managers and workers that contribute to making the implemented strategy work as intended, and turn implemented strategy into commercial/social success. Execution involves both top-down and bottoms-up approaches. The top-down approach involves flows of corporate level strategy decisions through business level strategy decisions to strategy implementation decision and actions, and participation and communication down and across operating units. The bottom up flows of participation and communication of information up the organization managers through feedback mechanisms. The actual strategy realized from execution is the combination of the executed part of the intended strategy - what managers have set out in advance and intend to do - as part of some important strategic plan, and the executed as-needed reactions to unanticipated developments and fresh competitive pressures.
Strategy Execution Process
The execution process flow involves both top-down flows of decisions and actions and bottom up flows of participation and communication information up the organization. The strategy execution is a process of managing people, strategy and operations and demands ownership at all levels of management and workers at customer touch points. People must commit to and own the process and actions to control effective execution. Execution management facilitates and guides a complex mix of decisions and actions on in doing what it takes to make the strategy work as intended.
Execution also involves more people at all levels in the organization than strategy formulation, this creates a challenge in communicating down the organization and/or across different functions relevant to the effective implementation of the strategy.
Factors Influencing Strategy Execution Success/Failure
Strategy execution involves change that typically takes over a long period of time, longer than the formulation of strategy, this makes it more likely that the conditions under which the strategy formulation took place will change and unforeseen circumstances may arise to derail the execution.
Effective strategy execution involves closing the execution gap by creating "fits" between the way things are done and what it takes for effective execution, to make the strategy work as intended. To understand successful execution, we need to understand the interactions among key execution decisions and actions, and contextual forces that create significant and persistent execution gap. These factors include:
All these factors are interdependent and their influences are non-deterministic; this typically, makes it very difficult for managers to comprehend the contribution of each of the factors to successful outcomes of strategy execution. Each of the factors influences execution success/failure in a different way; if an organization fails to pay proper attention to one of these factors, it can result in execution failure, therefore an organization needs a system and approach to support management in successful execution.
Closing The Strategy Execution Gap
changes to certain elements of the organization's Operating Model such as governance, accountability, or culture, and in some cases overhauling the whole structure, when a company's strategy changes. These decisions about change take place within an organizational context of power, culture, leadership, and ability to manage change. This makes it more difficult for managers to control execution.
Successful strategy execution involves decisions about managing elements of the Operating Model which is concerned with how resources are organized and operated to get critical work done
I am a computer scientist interested in modeling complex business systems, and strategic management processes to drive analysis and evaluation of strategic decision making and decisions. Specifically, I am interested in the use of modeling to improve organization managers shared understanding of strategy and its influence of organizational behavior and change. And how this understanding informs management's decisions and actions in effectively managing strategy formulation, implementation and execution,