To implement a strategy successfully, you have to put time and thought into the added value for the customer, putting the right people at the right place and how you innovate and add value. These three elements are part of the so-called design strategy and can, when well aligned, enforce the implementation of your strategy. This is one of the most important conclusions from Jeannette Droog’s research into the successful implementation of strategy. Today she graduates at Nyenrode Business University.
Why is it that one organization can launch new products and services or innovate, while others cannot? “Approximately 63% of strategies fail, 24% of management is ill-informed and 95% of the employees do not know or understand the strategy”, explains Droog. “Between formulating a strategy and an executional design plan, that is where things often go wrong. Which is a shame, since it can save a lot of time and money when you pay attention to the interjacent process.”
Organizations try many different things to make their strategy a success: a new IT system, new policy, adjustments to the business model, etc. Often these are adjustments in different areas that are being implemented at the same time. As a result, focus is lost and a pile of spaghetti of projects is the result, which begs the question whether they lead to the correct execution of the plans made. “The different actions alone are not the problem, but they become the problem when they are not aligned. So it is very important to work together and to steer clear of silo mentality”, adds Droog.
Droog formulates three variables: “If you, as an organization, are aware of these three variables and how they are interconnected, you will be able to close the gap between strategy and implementation.” In the first place it is about the business model in which you determine the added value for the customer. Then you check the process model on how you add value, and finally, you assess in accordance with the organizational model whether you have the right people selected for the implementation. The three variables mentioned form together the so-called 'design strategy', which can be applied to any organization. This means that for each of the variables you need to have crystal clear what the situation is like: which decisions do we make, which priorities do we set? The answers build the roadmap for the execution of your strategy. Long story short: “take your time and take a good look at the three variables as a whole, make sure that they are embedded throughout your entire organization, draw a roadmap, don’t be afraid to set priorities and have the courage to say ‘no’ to decisions that do not contribute to reaching your goal.”
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