Strategy formulation and execution

Are you executing your strategy? Planning is cheap, because anyone can have a plan. Effective execution requires rewarding behaviors that support strategy execution NOT focusing too much on the numbers. That is what great executives do.

Anyone can have a document and call it a strategic plan. However, having a document that aligns all company resources (capabilities and systems) towards a common aspiration is not easy. The measure of a great strategy is in the ease in its implementation.

Fact: over 530 executives I have interacted with during strategy execution review sessions admit that they achieved results they had even not planned for, and over 40% of the projects they implemented during the year had not been planned for! They did not follow their strategic plan. Are you one of them?

Today’s tip for effective strategy execution:

Focus on behaviors that support strategy execution. This promotes free thinking and innovation. Don’t reward people only when they hit the targets. Reward people who do things consistently that have potential to deliver the results you want as per strategy. E.g.

Do not say: “you attained 100% of our annual sales targets, so you are doing great. I give you Ugx. 20m bonus.”

Say: “The sales team consistently responded to customer enquiries within two (2) hours. They also ensured they called to ask whether the customer was satisfied, as indicated in the complements messages on our ticketing system. They also organized 10 events as agreed. The sales team demonstrates our values and behaviors key for our growth. You get Ugx. 20m bonus.”

Why?

The results could have come by luck. However, rewarding the behaviors empowers people well.

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