Getting it Done! The Art and Science of Strategy Execution. Scott Stuecher. September 30, 2016

Transcription

1 Getting it Done! The Art and Science of Strategy Execution Scott Stuecher September 30, 2016

2 Agenda Introductions Why Such Dissonance Strategy Impediments Improved Strategy Execution: Six Steps Implications for Finance Executives Q&A 2

3 Strategy is important; execution is everything J.P. Garnier, CEO Glaxo Smith-Kline 3

4 Execution is the missing link between aspirations and results Larry Bossidy and Ram Charan 4

5 Most companies strategies deliver only 63% of their promised financial value Michael C. Mankins and Richard Steele 5

6 Implementation of strategic plans is the least effective aspect of strategic planning Veralon observation 6

7 There s so much emphasis on execution and action in the business world. I try to convey that action and reflection are not mutually exclusive Dr. Kerry Sulkowicz New York University 7

8 Real-Time Info Gathering/Polling Tool Before we begin, please download the FREE app for Android or iphone - OR - Open your web browser (e.g., Chrome, Explorer, Safari) and go to Enter session ID: WVHFMA No need to create account or sign-up 8

9 Why Such Dissonance? 9

10 Why Such Dissonance? Execution is harder than strategy setting Executives don t know much about it Good execution is only infrequently part of the organization s culture Execution takes longer than strategy design Good execution involves working with lots of (disinterested? disengaged?) people 10

11 What Gets in the Way of Effective Strategy Execution? 11

12 What Gets in the Way of Effective Strategy Execution? Culture Thinking it is below the role of real leaders CEOs, VPs, etc. Professional macho-ism no need for priorities here; we can do anything When strategy is seen as just more work A culture that says the plan isn t really important (vs. operations) Culture trumps strategy 12

13 What Gets in the Way of Effective Strategy Execution? The Plan Itself Lack of clarity in the final plan Lack of personal incentives to get the work done rewarding the non-doers as much as the doers Insufficient resources to get it done Lack of contingency planning If you don't know where you're going, you might not get there. Yogi Berra 13

14 What Gets in the Way of Effective Strategy Execution? An Ineffective Process Before, During, and After the Plan Horribly inadequate communications plans; lack of real and consistent executive attention Lack of staff engagement and failure to identify/deal with organizational resistance Failure to connect strategy to operations and talent management systems Limited board and physician commitment Strategy shift over time Failure to track; failure to measure results Loss of energy and focus Managing the process is perhaps more important than the plan itself 14

15 Six Steps to Improved Strategy Execution (Keeping in mind this is pretty difficult stuff) 15

16 Six Steps to Improved Strategy Execution 1. Assess both talent and operating systems early This is big Consider and address o Degree of engagement o Sense of realism o Goal setting practices o Commitment to follow through o Comfort with change o Quality of reward systems 16

17 Six Steps to Improved Strategy Execution (continued) 1. Assess both talent and operating systems early (continued) Put resources (talent and improved systems) where they are needed early on o Identify the leverage people o Make sure you have the right people with the right skills Don t forget the board and the medical staff Put the CEO in charge of execution 17

18 Six Steps to Improved Strategy Execution (continued) 2. Prepare the culture for change Debate assumptions o Robust dialogue is the essence of a positive culture about the plan Clarify accountability Will the organizational structure support effective implementation? o If not, start changing the structure 18

19 Six Steps to Improved Strategy Execution (continued) 3. Be realistic - prioritize Mandate realistic goals Ask how are we going to accomplish this? Have separate executive meetings for strategy discussions Differentiate strategic priorities and operational priorities, and have a process to address purely operational issues 19

20 Six Steps to Improved Strategy Execution (continued) 4. Over - communicate By a factor of at least 10 Like you are selling the company It has to be clear use the audience s language What s in it for me? How will the plan impact each audience? Communicate the plan s priorities Drive the plan throughout the organization 20

21 Six Steps to Improved Strategy Execution (continued) 5. Motivate for tangible results Incentivize for the desired results and then publicize good efforts o Imbed goals/metrics into management and leadership performance evaluation Segment the employee base and appeal to their specific interests o Matters of loyalty, career paths or skills gained, work/life balance, etc. 21

22 Six Steps to Improved Strategy Execution (continued) 6. Metrics and Monitoring Certainly, balanced scorecards and the like Choose metrics wisely (e.g., easy to access) Imbed monitoring into pre-existing meeting structure Consider strategy mapping (Kaplan and Norton) o Financial performance o Value proposition o Internal processes o Learning and growth Periodic plan review and update Ongoing process management review, revise, reward 22

23 Implications for Finance Executives 23

24 Implications for Finance Executives Demonstrate an interest in execution and push for attention to it Managing the uncertainty of FFS to value-based payment transition Force selection of fewer priorities, but Avoid the Just Say No mentality 24

25 Q & A 25

26 Scott Stuecher Manager ext