GUINNESS CAMEROON SA

Translating Strategy To Operational Excellence

Ekwunife Okoli MD, Guinness Cameroon SA

Chartered Institute of personnel Management of Nigeria (CIPMN) 2007 Annual conference, Calabar

October 2007

1. Common misconceptions around strategy and execution

Strategy formulation is more important than execution More intelligent and fast rising managers on strategy formulation not execution. Senior leadership develops the strategy, whilst junior Managers and staff execute. If your job does not involve strategy development, you Are not important in the organisation

The most damning comment to a manager is not Strategic, whilst the most exhilerating is very strategic

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Therefore

Everyone is joining the strategy band wagon in todays organisations.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

 and Execution has been left to the underdogs.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Hence, there is a big gap between strategy and execution In todays organisations

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Businesses that understand the reasons for this Gap, and able to bridge it, enjoy a major competitive advantage.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

WHY POOR EXECUTION TODAY?

1. Managers are trained to plan, not execute.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

WHY POOR EXECUTION TODAY?

2. Corruption/Lack of integrity leads to wrong decisions and actions

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Why Poor Execution Today?

3. Strategy is disconnected from execution.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Why Poor Execution Today?

4. Things do not always go according to Plans

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Why Poor Execution Today?

5. Execution is hard Work

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

FROM STRATEGY TO EXECUTION:- What does it take?

Leadership! More Leadership! Even more Leadership!

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

 and a little bit more

Leadership
Structure Process & Systems Content Change Mgmt.
Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

People

1.Role of Leadership in Execution

1.Bring the strategy to life for everyone through compelling vision and communication.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

2. Align the entire organisation to the Strategy and goals.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

3. Build and inspire the team towards executing the strategy

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

4. Prioritise, define roles, allocate resources, and remove executional obstacles.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

5. Integrate short and long term plans and goals; business and individual goals; functional and business goals etc.
Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

6. Set clear milestones, identify and celebrate quick wins to keep morale high.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

7. Tie team and individual rewards to performance

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

1.Role of Leadership in Execution

8. Create the right organisational culture and values that supports execution.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

2. The Role of Organisational structure

Business structure should reflect, and be driven primarily by, the business strategy.

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

3. Processes and systems

Efficient processes and systems enable consistently high standards of execution

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

4. Content of Strategy

Bad strategy begets poor execution and results, so its important to have a sound strategy

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

5. Change Management

Strategy execution often Involves managing change

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

Conclusion

Most organisations are very good at developing effective strategies, but only a few can execute effectively Businesses that are good at execution, consistently Outperform others, even when they have better strategies. The strategic process is not complete until the strategy has been successfully executed and the goals realised. Execution is not taught in schools, hence businesses should train their managers to execute effectively Executional capability is perhaps the most valuable Competitive advantage of today, and organisations should reward managers who are good at it
Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine

IF YOU FORGET EVERYTHING ELSE, PLEASE REMEMBER:

EXECUTION IS ABOUT PEOPLE, SO THE BOTTOMLINE IS LEADERSHIP

Less than 10% of strategies effectively formulated are effectively executed Fortune Magazine