Turning Great Strategy into Great PerformanceCrux of the article:

Most companies strategies deliver only 63% of their promised financial value. Why? Leaders press for better execution when they really need a sounder strategy. Or they craft a new strategy when execution is the true weak point

How to avoid these errors? View strategic planning and execution as inextricably linked – then raise the bar for both simultaneously. Start by applying seven deceptively straightforward rules, including keeping your strategy simple and concrete, making resources-allocation decision early in the planning process, and continuously monitoringperformance as you roll out your strategic plan

By following these rules, you reduce the likelihood of performance shortfalls. And even if your strategy still stumbles, you quickly determine whether the fault lies with the strategy itself, you plan for pursuing it, or the execution process. The payoff? You make the right midcourse corrections-promptly.

Presented by: Tarun Aggarwal

The Strategy to Performance Gap…. Companies rarely track performance against long term planMultiyear results rarely meet projections A lot of value is lost in translation Performance bottlenecks are frequently invisible to top management The strategy to performance gap fosters a culture of underperformance

Closing the Strategy-to-Performance Gap

Keep it Simple, Make it Concrete.

Avoid long, drawn out descriptions of lofty goals and instead stick to clear language describing what your company will and won’t do.

Rule 1

Rule 2

Debate Assumptions, Not forecasts.

Create cross-functional teams drawn from strategy, marketing, and finance to ensure the assumptions underlying your long term plans reflect both real economics of your company’s markets and its actual performance relative to competitors.

..cont.

...cont.

Rule 3

Use a Rigorous Framework, Speak a Common language.Ensure that the dialogue between the corporate center and the business units about market trends and assumptions is conducted within a rigorous framework, such as that of “profit pools”.

..cont.

Rule 4

Discuss Resource Deployments early.Create more realistic forecasts and more executable plans by discussing up front the level and timing of critical deployments

Rule 5

Clearly Identify Priorities.Prioritize tactics so that employees have a clear sense of where to direct their efforts.

..cont.

Rule 6

Continuously Monitor Performance. Track resource development and results against plan, using continuous feedback to reset assumptions and reallocate resources.

..cont.

Rule 7

Reward and develop execution capabilities.Motivate and develop staff so as to create a culture of over-performance within the entire organization.

As a Manager – what should be done…..1..These critical questions are to be dwelled upon

Are managers within the organization able to articulate how their employees goalsdirectly link to the organization's priorities

Do managers within the organization support employees though the goal setting process

Cont…

Goal setting outcome

As a Manager – what should be done..2..These critical questions are to be dwelled upon as well.. Do managers think that development is just about sending employees on training courses

Do managers understand the difference between a ‘ performance discussion’ and a ‘ development discussion ‘

Are all employees clear on the steps they need to take to be ready for their next role

Successful development should Involve:

Conclusion

The prize for closing the strategy to performance gap is huge- an increase in performance of anywhere from 60% to 100% for most companies.

Companies that create tight link between their strategies, their plans, and ultimately, their performance often experience a cultural multiplier effect. Over time as they turn their strategies into great performance, leaders in these organizations become:

• Much more confident in their own capabilities and• Much more willing to make the stretch commitments that inspire and transform large

companies

Individual Managers:

• Who keep their commitments are rewarded with faster progression and fatter paychecks