the nine vital components for successful strategy execution in the public sector dr. anton olivier...
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PMI AFRICA CONFERENCE 2015
The Nine Vital Components for Successful Strategy
Execution in the Public Sector
Dr. Anton Olivier
Strategic Plan
Execution = Journey
“Strategy does not separate the good from the great, but execution does”
(Collins 2001)
“Execution is the great unaddressed issue in the business world today”
(Bossidy & Charan 2002)
“In business, execution is everything. If an organization can’t execute, nothing else matters:
not the most solid, well thought-out strategy, not the most innovative business model,
not even technology that could transform an industry.” (OnPoint Consulting, 2006)
“The No 1 challenge facing managers in the 21st century is strategy implementation”
(Muell & Cronje 2008)
“60% of strategies are not successfully implemented” (Barrows 2009)
“strategy execution evolved … to a top priority in most organisations
… companies continue to lose 40 to 60 percent of their strategic potential while trying to execute it.”
(Schreurs 2010)
Vision
O
IIIII II
Theme
I I
O O OO O
ThemeTheme
StrategyFocussedBalancedLogical
IntegratedUnderstood & Accepted
SMART Objectives Clear accountabilities
Clear initiatives Realistic/executable
Programs / Projects / Activities
Vision
Theme
Theme
Theme
OOO
O
O
O
O
O
OO
O
II
I
I I I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
IIII
I
I
I
I
Theme
O
Theme A
Objective Acc PI Target Initiative Resp Cost ScheduleYr 1-5
A1. Objective name & description
HoD PI 1
PI 2
BL =Yr1=Yr2=Yr3=Yr4=Yr5=
BL =Yr1=Yr2=Yr3=Yr4=Yr5=
A1.1 Project AB 1,000 X X
A1.2 Project CD 4,000 X X X X
A1.3 Project CD 500 X X
A1.4 Project CD 3,000 X X
Theme A
A1 A
2
A3
I
IIIA1.4
A1.3
IA1.2
A1.1
I
I
Strategy is mostly executed through Projects
…. therefore the need for Project Management
…. 5 Process Groups & 10 Knowledge Areas
Project Management
RESEARCH QUESTION:
“What does the ideal strategy execution model for the
public sector look like?”• What is the current practice? main problems? main gaps?
• What are the main components of such a model?
• How can these key components best be integrated?
• How can this model best be applied in the public sector?
RESEARCH HYPOTHESIS:Strategy execution will significantly improve by using a simplified, dynamically integrated conceptual model as guide in tailoring strategy execution in each public sector organisation.”
RESEARCH METHODOLOGY:Literature Research
Participative Action Research [PAR]
10 Case Studies in Namibia
Research
1. Kaplan and Norton (2001) 2. Bossidy and Charan (2002) 3. Hrebiniak (2005) 4. Fogg (2006) 5. Paladino (2007) 6. Morgan, Levitt and Malek (2007) 7. Spitzer (2007)8. Kaplan and Norton (2008) 9. Harbst (2008) 10. Marr (2009) 11. Mukherjee (2009) 12. Active Strategy (2009) 13. Strickland (2010) 14. De Flander (2010) 15. McKnight, Kaney and Breuer (2010) 16. Lepsinger (2010) 17. Cohen (2011) 18. McChesney, Covey & Huling (2012) 19. Childress (2013)
7 Vital Strategy Execution Components:
1. Leadership2. Strategic planning 3. Project management 4. Alignment5. PMS6. Drive7. Engagement
Leading Sources on Strategy Execution
1. Purpose2. Governance 3. Leadership4. Culture, values and guiding principles5. Decision-making6. ESTLE influences and challenges7. Political influences8. Planning and execution cycle9. Funding and budgeting10.Stakeholders, complexity and transparency11.Strategic objectives12.Structure and human resources13.Flexibility and change14.Project management15.Costs and productivity16.Performance management
1. Description: nature & importance
2. Differences: key differences between the two sectors
3. Implications & Actions
Difference between Private and Public Sectors
+2 Components for Public Sector:
8. Risk Management9. Stakeholder Management
1. Leadership ☼↑ [Driver]
2. Strategic Planning [Road Map]
3. Project Management [Wheels]
4. Alignment Structure, People, Culture, Processes, Technology, Funding [Chassis & Body]
5. MERIL PMS [Dashboard, Dialogue, Steering wheel]
6. Drive PAAMAA [Engine & Fuel]
7. Engagement [Gears engaging & Lubricant]
8. Risk Management [4X4 modifications for obstacles]
9. Stakeholder Management ↑↓
[Owners, sponsors, customers, partners]
NINE VITAL STRATEGY EXECUTION COMPONENTS
5. MERIL - Improve
Steering wheel
6. DriveEngine &
Fuel
5. MERIL - Measure
Dashboard
3. PMWheels
4. AlignmentChassis & Body
7. Engagement
Gears engaging & Lubrication
8. Risk4X4
modifications for bigger obstacles
Stratexwe deliver
service
Public Sector Road
2. Strategic Plan
Road Map
1. Leadership
Driver5. MERIL -Evaluate &
Learn Discussions
9. StakeholdersOwners, Customers,
Partners
Measure[SENSE]
Drive[MOTIVATE] Focus on Indiv
& Groups
Evaluate[MAKE
SENSE]
Report[COMMUNI-
CATE]
Improve[RESPOND]
Learn[GET WISER]Leadersh
i
pA
lig
nm
en
t
Risk Mgt[ESTLE,
Competition, etc.]
SH Mgt[COLLABO-
RATE]
Politics
[DIRECT]
Follow the Plan
Respond to Change
Listen to your
People
Dem
and
acco
unta
bilit
y &
Rew
ard
Hindsight & Foresight
Project
Management[EXECUTE]
Strategic
Planning[PLAN]
Review the Plan
Component Weight [W] Rating [R] Score
[S=WXR]1. Leadership 0.077 6.0 4.62 2. Strategic Planning 0.077 7.5 5.77 3. Project Management 0.077 3.0 2.31 4. Alignment 0.077 5.5 4.23 5.1 Measure 0.077 7.5 5.77 5.2 Evaluate 0.077 3.5 2.69 5.3 Report 0.077 6.0 4.62 5.4 Improve 0.077 4.5 3.46 5.5 Learn 0.077 3.5 2.69 6. Drive 0.077 3.0 2.31 7. Engage 0.077 5.0 3.85 8. Risk Management 0.077 4.5 3.46 9. Stakeholder Management 0.077 6.0 4.62
1.000
50.4 TOTAL SCORE [TSEC]
0%
10%
20%
30%
40%
50%
60%
70%
80%
Stratex Assessment Framework
[SAF]
Total Strategy Execution Capacity
[TSEC]
Hypothesis: Strategy execution will significantly improve by using a simplified, dynamically integrated conceptual model as guide in tailoring strategy execution in each public sector organisation.
Further research
CONCLUSIONS
