How to Develop Strategy for Execution
Guidelines
link to the corporate vision
focus on what matters most
identify critical vulnerabilities
Implement the strategy
Commit to company objectives that clarify the important choices
Prioritize
Organizations must move o the same direction
Strategic priorities are a tool to execute the strategy
Not one big bet but a series of trade-Offs
Don´t cut to the chase
Corporate or business unit?
Management must address three main questions
What is our vision?
What are our critical vulnerabilities?
What should we prioritize?
Linking strategic priorities to a long-term aspiration
vision of a better future
corporate mission
Leadership team get trapped in the present
Legacy business
Companies trapped in the present
Predictable
comfortable
often profitable
Executives doesn't prepare for the future
The objectives that add the most value are often novel or non-routine
launching disruptive innovations
embedding digital capabilities
Corporate visions can help managers step out of their status quo mindset and force them to think more broadly and creatively about the steps required to achieve their desired future
Corporate visions or missions should describe the future they aspire to in bold and vivid terms.
Strategies that try to implement everything are to complicated
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Some teams get drowned in detail due to the complexity of the strategy
Some teams ignore the complexity and work based on the intuition
Strategy complexity must make teams to work on simple solutions
Make a Map of the key choices
identify critical vulnerabilities making connections
Identify point with the most connections*
See the business with different perspective
Apocalyptic /bankrupt vision
How to address the vulnerabilities?
Uncertainty of how many resource and when to implement the solution
If the diversification is too much there will be no more available resources for the important initiatives
Uncertainty to implement the solution
When to implement it?
How many resources?
Whats the competitive response?
Whats the technical feasibility?
What are the odds of success?
Lack of resources is one of the most common reasons of why strategic priorities fail
Leader must do some trade-Offs