18 January 5 Secrets of Successfully Implementing Strategy January 18, 2014 By Administrator Account Communication, Methodology, Project Management Ideas, Strategy benefits, business, business case, execution, implementation, issues, methodology, outcome, planning, risk, strategy 0 cultural divide between the strategy folks and the implementation folks It is common to find a cultural divide between the strategy folks and the implementation folks inside an organization. As comparison, Strategy thinking is intellectual. Strategy development is sophisticated and often done off-site by executives. A completed Strategy is polished and presented by the top executives. The Strategy is locked for the year. And, Implementation thinking is practical. Plan development messy and done by managers. Planning assumes that all the tasks and dependencies can be identified and solved. The plan will change every day based on progress and issues that occur. How can the organization ensure the outcomes from the implementation meet the needs of the strategy? The Strategists include the implementers in the strategy development process. One of the strategists assumes accountability for the successful initiation, planning, execution, and closure of each of the plans as well as active involvement in selected risk mitigation and issue resolution. The implementers ensure that a business case is provided that links the forecast benefits and risks of the strategy to the forecast resources and constraints. Viability of the business case should be validated periodically during and after implementation. The implementers select appropriate tools and methodology to plan and execute the detailed tasks necessary to achieve the plan. The implementers ensure the accountable strategist is aware of progress and risks and engaged for collaboration and assistance on all unresolved issues. Increased collaboration between Strategists and Implementers is low-hanging fruit for improving outcomes. Leaders among the strategists and leaders among the implementers who reach across to each other and increase their mutual overlap will see desired outcomes increase significantly. Stephen Wise www.IntegrationProfessionals.com Related Articles Delivering Business Transformation Strategy | Stephen Wise Michael Porter’s books on Competitive Strategy and Competitive Advantage led me to embrace Project Management. That is, I have frequently said, a company that invests in Project Management is making an investment in their competitive advantage. Less frustration delivering value, less disruption to teams, improved engagement, etc. Porter’s Five Forces and the SWOT analysis are now inadequate as concrete underpinnings for strategy design. Strategy is still important, but the amount of change driven by disruption, innovation, and transformation means that the interpretation and implementation of Strategy – which occurs during the delivery – requires a high-touch feedback loop. An increased importance in the strategy delivery does not mean that strategy design is less important – it means that executives must give equal personal priority and attention to designing the right strategy as to delivering. Here are three key tips for executives to stay engaged in the delivery phase of business transformation strategy. Governance – Decision Making – Planning & Re-planning. Governance – Build a governance structure that reinforces the accountability and responsibilities for the vision. Ensure the team is adequality resourced in terms of experience and availability. Review and address risks and interdependencies at the beginning and periodically and through the realization of accumulated benefits. Insist on a complete set of regularly reported metrics and milestones. Decision Making - Move quickly to re-prioritize and remove roadblocks that are uncovered despite a lack of complete information or analysis. Accept changes to time and budget milestones based on new information from the working team. Planning & Re-planning – The less time you have available – the more important it is to have a robust plan. Don’t forgo detailed planning, but in today’s business environment planning and re-planning must be rapid and agile. Documenting tasks, task owner, and interdependencies are as important as schedule and budget. Issues impeding success should be discussed regularly and recommendations to tweak the plan fed up to the executive team in order to ensure alignment and ongoing support. Delivering strategy is like going on an expedition through a deep jungle. Every so often you will get to a hilltop and be able to asses how things went so far and what new landscape is coming in to view. An executive that spends time and money crafting the strategy needs to protect her investment by staying available and engaged for those hilltop moments. Stephen Wise Integration Professionals Dramatically Improve Traction How to be a great leader | Stephen Wise | Integration Colin Powell, the retired US Four-Star General says to remain calm and be kind. He also has a rule - to have a demanding vision. Vision, he says, is our destination. Have a Vision of the future Vision, what is it? Where do I find it? Vision is not “Establishing vaccination guidelines and agreements, activating a network of furloughed retail workers, and implementing a military supply-chain technology for transportation and storage.” That is the strategy. Vision is not “Vaccinating all the citizens against COVID by September 2021”. That is a goal, that will be driven by the Strategy. Vision is higher than that. Vision is not something that exists today. It is something that is imagined that could be created in the future. Developing a compelling vision is done by looking into yourself. What are your beliefs? What do you believe is possible? Figuring out who you are, why you are here, and what is most valuable to you. Cultivating vision is a process. It does not emerge during an off-site, or from reading leadership philosophies, or watching an inspiring movie. To be visionary you need to set aside significant time to percolate these questions. Provide Clarity of desired results Bruce Lee may have said, “The successful warrior is the average person, with laser-like focus.” Results require change. Without change there is no result. Motivating anyone to change is expecting them to work towards the unseen and unknown. At every level of challenge this is a fundamental issue that needs an answer every day. Giving your team the answer they need is not difficult, your job is to provide clarity. You need to communicate to your team the information they need to risk working on the unseen and unknown. Explain to your team what is most important. Work with them so they understand why the choices made are the best choices. When the team is aligned on what is most important they will have clarity on the desired results. Demonstrate effective Decision making Nelson Mandela said that “Action without vision is only passing time. Vision without action is merely daydreaming. But vision with action can change the world.” Standing on the shoulders of giants, I say the sum of the actions will not be productive without a robust decision-making process. The problem with change is that, only after starting, on the way to achieving results, does the solution emerge. The detail is previously unknown on what is required, how it will come together, and what is needed. Leaders who make the mistake of communicating their vision from on high, hiring the best team, and delegating all responsibility for results will be in for a surprise. Leaders need to reserve time to develop vision and they need to be effective at engaging others to deliver lofty goals. However, do not let go of the steering wheel and don’t look away from the dashboard. You need to ensure that everyone is aware of and reliant on a process for obtaining your decisions on how the strategy and goals are to being met. You need to ensure that you are aware of and broadly communicating key decisions to all stakeholders. If you miss this – you will more than likely not recognise the final product. Questions for you to ponder. What would be an example of a Vision that is supported by the vaccination goal and strategy mentioned above? How have great leaders from demonstrated these three skills of Vision, Clarity, and Decision-making? (e.g., George Washington, Martin Luther King Jr., Captain Kirk) STEPHEN D WISE INTEGRATION PROFESSIONALS DRAMATICALLY IMPROVE TRACTION Derivatives Trading Situation This engagement was based on a referral from a colleague. Stephen held a series of phone meetings with the London based Head, Funds Strategy & Global Fund products. The client described the International joint venture for management of funds on behalf of institutional clients. A $30 Million project to implement a new derivatives trading system was stalled. Unknown to the executive at the time, the project team had hit the wall. The subject matter expertise was highly specialised (Derivatives Trading) and staff were dropping everyone. Sick leave, quitting, and asking to be moved. Morale was at an all time low. Intervention First of all, within a few weeks Stephen’s recommendation to temporarily halt project work was accepted. Job postings were developed, previous team members were asked to return, the vendor was asked to bring additional full-time support, and leadership within the project was tweaked. The leadership team was in Toronto, London, Paris, and Luxembourg. Cultural awareness and communication skills were important for re-building team morale. Effectively taking the reins of the project required a hi degree of sensitivity and careful learning on the job. Stephen coached executives in advance of difficult meetings and eventually the differing norms of accountability, styles of communicating issues, and general leadership across the regions became less and less causes of impediments. The turning point was three months in. A built up team created a productive meeting cadence. Developers, testers, and the Executive identified and agreed on the priority work areas. Derivatives Workflow, Reporting, Trade capture, Pricing, and Accounting all had significant gaps or critical issues. Daily team meetings were held. Co-location was intensified, and team recognition events were held every two months. Accountability was still critical to forward progress – gaining everyone’s trust was a daily effort and this also meant that continuing to weed out poor performers or negative influences enabled the overall team to grow stronger and perform better. Results Implementing the new system was critical to adding new products to the offerings and retaining existing customers. Based on the original business case, the objective met included: Improved competitive offering relative to BONY, J.P. Morgan and State Street; Improved reliability of pricing; and, Improved straight through processing. However, the big win for the client was the re-building and assembly of a working team that would also transition to operational support once in production. Unlock the Power of Project Management: for Business Leaders 1. Stewardship Acting as a diligent and responsible guardian of the project's resources and interests, prioritizing ethical considerations and the welfare of all stakeholders. Good Practices to Implement Regularly review and optimize resource allocation. Uphold ethical standards and transparency in all project activities. Foster an environment of mutual respect and integrity. How to Measure Conduct stakeholder satisfaction surveys. Monitor resource utilization rates against benchmarks. Track ethical compliance through internal audits. Real World Example A project manager at a construction firm ensures that all materials are sourced ethically, labour is fairly compensated, and the environmental impact is minimized, reflecting stewardship in action. 2. Team Building a culture that promotes accountability and respect among team members, enhancing collaboration and project success. Good Practices to Implement Encourage open communication and feedback. Define clear roles, responsibilities, and expectations. Recognize and celebrate team achievements. How to Measure Evaluate team performance through regular reviews. Measure team morale and engagement through surveys. Assess the clarity of roles and responsibilities via feedback. Real World Example A software development team implements agile methodologies, fostering a collaborative environment where each member's contributions are valued, leading to innovative solutions and high team satisfaction. 3. Stakeholders Actively engaging and collaborating with all parties impacted by the project to understand their needs and align expectations. Good Practices to Implement Identify and map all stakeholders early in the project. Establish regular communication channels and updates. Involve stakeholders in decision-making processes. How to Measure Track stakeholder engagement levels and feedback. Monitor the alignment of project outcomes with stakeholder expectations. Evaluate the effectiveness of communication strategies. Real World Example In launching a new product, a company conducts focus groups with potential customers (stakeholders) to gather insights, ensuring the final product meets the market’s needs and expectations. 4. Value Ensuring that the project delivers outcomes that are beneficial and offer tangible value to the organization and its stakeholders. Good Practices to Implement Align project objectives with organizational strategy. Implement value management practices to prioritize features based on their return on investment. Regularly review project deliverables to ensure they meet user needs and business objectives. How to Measure Use performance metrics to assess the project's impact on business goals. Conduct post-implementation reviews to evaluate the realization of benefits. Gather feedback from end-users and stakeholders on the value received. Real World Example A healthcare provider implements a new patient management system to improve service delivery. The system reduces wait times, improves patient satisfaction, and streamlines operations, demonstrating clear value to both the organization and its patients. 5. Holistic Thinking Recognizing and managing the interdependencies within the project and its environment to make informed, comprehensive decisions. Good Practices to Implement Employ systems thinking to understand the project's context and interrelated components. Facilitate cross-functional collaboration to leverage diverse perspectives. Conduct regular risk and impact assessments to anticipate and mitigate systemic issues. How to Measure Evaluate the effectiveness of decision-making processes through outcome analysis. Track the frequency and impact of unintended consequences or systemic issues. Assess the level of cross-functional collaboration and integration. Real World Example A multinational corporation launching a global marketing campaign uses holistic thinking to consider cultural sensitivities, legal requirements, and market conditions in different regions, ensuring a cohesive and effective strategy across borders. 6. Leadership Inspiring, guiding, and fostering an environment where the project team can achieve their best work through effective leadership. Good Practices to Implement Develop leadership skills such as empathy, communication, and problem-solving. Set clear visions and goals for the project team. Provide support and resources for professional development and problem resolution. How to Measure Assess leadership effectiveness through team feedback and performance metrics. Monitor the achievement of project milestones and team objectives. Evaluate the growth and development of team members over the project lifecycle. Real World Example The project manager of a software development project leads by example, actively resolving impediments, facilitating knowledge sharing sessions, and encouraging innovation, leading to the timely delivery of a high-quality software product. 7. Tailoring Customizing the project management approach to best suit the project's unique context, ensuring methods and practices are appropriate and effective. Good Practices to Implement Assess the project environment to determine the most suitable methodologies (e.g., Agile, Waterfall). Adapt processes and tools to meet the project's specific needs and challenges. Involve the team in the tailoring process to leverage their insights and buy-in. How to Measure Review project outcomes to assess the fit and effectiveness of the chosen approach. Conduct retrospectives to gather team feedback on processes and methodologies. Measure project performance against initial expectations and adjustments. Real World Example A project manager leading a complex software integration project combines Agile practices for development with traditional Waterfall methods for client approvals, tailoring the approach to balance flexibility with necessary controls. 8. Quality Integrating quality into both the project processes and outcomes, ensuring that deliverables meet the required standards and expectations. Good Practices to Implement Define quality standards and criteria at the project's outset. Implement continuous quality assurance and control measures throughout the project lifecycle. Engage in regular reviews and testing to ensure deliverables meet established standards. How to Measure Track and analyze defects or non-conformance issues. Conduct stakeholder surveys to gauge satisfaction with the project’s outcomes. Measure the effectiveness of quality improvement initiatives over time. Real World Example An automotive manufacturer implements a zero-defect program for a new vehicle launch, incorporating rigorous testing and quality checks at every production stage, resulting in a product that exceeds industry safety standards. 9. Complexity Navigating and managing the various complexities within the project, using knowledge, experience, and agile responses to ensure success. Good Practices to Implement Apply complexity assessment tools to understand the project's complexity dimensions. Use adaptive and flexible project management approaches to respond to changing conditions. Cultivate an environment of learning and improvement within the project team. How to Measure Evaluate project performance in relation to its complexity factors. Monitor the team’s ability to adapt to and manage unforeseen challenges. Assess the effectiveness of problem-solving and decision-making processes. Real World Example A technology firm managing a large-scale IT infrastructure overhaul uses an adaptive project management approach to navigate technical, organizational, and operational complexities, achieving milestones through flexible planning and problem-solving. 10. Risk Identifying, analyzing, and managing potential project risks proactively to minimize their impact and capitalize on opportunities. Good Practices to Implement Develop a comprehensive risk management plan. Regularly identify and assess new risks as the project progresses. Implement risk response strategies and monitor their effectiveness. How to Measure Track the number and severity of risks that materialize. Measure the success of risk response actions in mitigating impact. Evaluate the return on investment for opportunities pursued. Real World Example During the construction of a new office building, the project manager implements early weather-related risk assessments and contingency planning, avoiding delays and cost overruns through proactive measures. 11. Adaptability and Resilience Maintaining flexibility and a capacity to respond effectively to change and challenges, ensuring the project's ongoing viability and success. Good Practices to Implement Encourage a mindset of flexibility and openness to change among the project team. Implement agile project management techniques to allow for rapid adaptation. Build contingency planning into the project's strategic planning processes. How to Measure Assess the project's ability to adapt to significant changes without derailing. Monitor recovery times from setbacks or challenges. Evaluate the effectiveness of contingency plans when activated. Real World Example A global event planning company swiftly adapts to the COVID-19 pandemic by transitioning to virtual events, leveraging technology to maintain engagement and deliver value to clients amidst unprecedented challenges. 12. Change Management Effectively managing and facilitating change within the project and organization to achieve the desired outcomes and future state. Good Practices to Implement Establish clear communication plans for all change initiatives. Involve key stakeholders in the change process to gain support and mitigate resistance. Regularly review and adjust strategies in response to feedback and outcomes. How to Measure Monitor the speed and effectiveness of change implementation. Track stakeholder engagement and support levels throughout the change process. Assess the achievement of change objectives and overall impact on the project. Real World Example A software company implements a new project management tool across its development teams, using structured change management processes to ensure smooth adoption, with training sessions, feedback mechanisms, and ongoing support facilitating the transition. References Project Management Institute. (2021). A guide to the project management body of knowledge (PMBOK® guide) (7th ed.). Project Management Institute Re-Frame Project Success for the Strategic Business Project success is most often measured by answering two questions. (A) Did we meet the schedule goal? And (B) Did we meet the budget goal? A good indicator project success will improve over time is periodic review of the Time and Budget Dashboard by management. This approach is valid but not sufficient for framing project success over the long-term. Time and Budget Dashboard[/caption] It is very common that once a project is closed, it falls off management reporting dashboards. This is a serious mistake! Strategic success is dependent on the outputs of the project, not the inputs of Time and Budget. The outputs / benefits of the project are measured after project close and take the dimensions of customer satisfaction and business success. It will take several months or quarters after the project is finished until customer satisfaction can be measured. It will take even longer until business success can be measured. By re-framing the measurement time-horizons for projects and their outputs, we can provide more effective visibility and accountability at the management level for the strategic success of projects. The re-frame is to include medium-term and long-term results as part of project tracking and reporting. Team success can be measured in the Short-term. That is Time, Budget and other metrics such as scope, quality, stakeholder engagement, and others. Customer success can be measured in the Medium-term. Customer success is the metrics that indicate how well the product is meeting actual needs and how well the product is providing customer net benefits. Business/Strategy success can be measured in the long-term. Business success is the metrics that indicate how well the overall strategy is benefiting the enterprise, such as market development and risk profile. Measurement Time Horizons[/caption] Organizations have made great strides implementing project methodology and management reporting on time and budget. However a systemic flaw is introduced by reporting only short-term project success measures. There is correlation between success in short-term and success in the long-term but there is more to the picture. We need to re-frame and extend the time horizon for tracking project success to include medium and long-term measures. By linking Customer (medium-term) and Business (long-term) actual measures to project reporting we will gain improved insights on the projects that have either advanced or held-back the realization of strategic objectives. Stephen Wise http://www.IntegrationProfessionals.com/ M&A: Top Ten Drivers | Stephen Wise | Integration Professionals I believe that under-estimation of the importance of the post-merger integration planning is the single greatest factor leading to this high failure-rate phenomenon. The preventative action is development of a robust post-merger integration plan that aligns stakeholders’ activities with the deal thesis. Objectives, Measures, and Benefits A critical first step to creating this plan is for leaders to communicate a deal thesis with clear success criteria. The objectives, measures, and benefits must be detailed and well defined. For example, if they are not tangible or they are vague, it is highly likely they will lose gravitas as they timeline moves forward. As a starting point, to creating a robust deal thesis, here are the top ten drivers of M&A acquisitions[1]. I believe that under-estimation of the importance of the post-merger integration planning is the single greatest factor leading to this high failure-rate phenomenon. The preventative action is development of a robust post-merger integration plan that aligns stakeholders’ activities with the deal thesis. Top-Ten Drivers of M&A acquisitions 1.Industry Synergy Achieve economies of scale by buying customer / supplier, or competitor. Acquisition of a competitor is horizontal, and acquisition of a customer or supplier is vertical. 2.Strategic Planning Accomplish strategic goals more quickly and more successfully such as entering new markets or acquiring technology or people assets. 3.Differential efficiency Realize a return on investment by buying a company with less efficient processes and making them more efficient. 4.Inefficient Management Realize a return by buying a company with inefficient managers and replacing them. 5.Market Power Increase market share and ability to increase price/profit. 6.Financial Synergy Lower cost of capital by smoothing cash flow and increasing debt capacity. 7.Under valuation Take advantage of a price that is low in comparison to past stock prices and/or estimated future prices, or in relation to the cost the buyer would incurs if it built the company from scratch. 8.Corporate Governance Assert control at the board of directors’ level in an underperforming company with dispersed stakeholder ownership. 9.Tax Efficiency Obtain a more favorable tax status. 10.Managerialism Increase the pay and/or power of managers. STEPHEN D WISE INTEGRATION PROFESSIONALS DRAMATICALLY IMPROVE TRACTION [1] Lajoux, Alexandra Reed (2019). The art of M & A : a merger, acquisition, and buyout guide. New York: McGraw-Hill Education. Comments are closed.