Six Ways to Win at Strategy Infographic

Six Ways to Win at Strategy. Strategy development can be complex and challenging. Here’s six things that can help you get it right. Seventy percent of strategic initiatives fail to meet their objectives [1] Top three reasons for strategic failure. [2] Misinterpreting the market opportunity. twenty three percent. Undertaking initiatives that don’t align with organization’s core competences. twenty percent. Failure to explain the strategy to key stakeholders and secure their buy-in. nineteen percent. Understand and engage your stakeholders. Your organization’s stakeholders can wield considerable power and influence. So be clear about who your stakeholders are and what they expect. Stakeholders can include. Employees. Customers. Suppliers. The local community. For each stakeholder group, consider. [3] What financial or emotional interest do they have in the organization’s strategic direction. What is each group’s biggest motivating factor, e.g. rapid growth, job security. Which stakeholder groups are likely to oppose your strategy, and how might you win them round. Check out the competitive environment. Be aware of what’s going on in your organization’s internal and external environment. SWOT Analysis. Use SWOT Analysis to analyze your organization’s internal Strengths and Weaknesses and external Opportunities and Threats. PEST Analysis. Use PEST Analysis to assess external forces which might impact your strategy. Political factors, e.g. changes to government policies and legislation. Economic influences e.g. economic growth, interest and exchange rates. Social factors such as changing demographics and shifting consumer attitudes. Technological changes, e.g. impact of emerging technologies, prevalence of social media. Communicate, communicate, communicate. Eighty eight percent of strategists say effective communication is critical to the success of their strategic initiatives. [4] But it’s also the fourth most cited barrier to strategic success. [5] It’s essential to. make your strategic vision clear and meaningful for everyone. communicate regularly to your stakeholders, not just at the start. encourage and enable feedback on your strategy from employees at all levels. Recognize and manage risks to your strategy. Eighty one percent of organizations are now actively managing strategic risks. [6] Reputational risk is now cited as the number one risk to business strategy. [7]Ensure a robust risk management process by. [8] One. Identifying potential risks. Two. Assessing probability and potential impact for each identified risk. Three. Deciding how to manage each risk, i.e. try to prevent, reduce, limit or transfer it. Four. Monitoring risks on an ongoing basis. Question your plan. Strategy development normally involves the creation of a formal strategic plan. Its contents should be debated and discussed. Key questions to ask include. [9] What top two or three things must go right for this strategy to work If we pursue this strategy, what are we deciding not to do. What capabilities must we develop for this plan to succeed. Make your move. Sixty one percent of organizations said they struggled with the day-to-day implementation of strategy. [10] Follow the five Cs for successful strategy execution. [11] One. Causality. Focus everyone on the activities that will achieve the organization’s strategic objectives. Two. Criticality. Decide on which of these activities matter the most. Three. Compatibility. Make sure these activities are compatible with each other. Four. Continuity. Ensure accountability at all levels for making the strategy happen. Five. Clarity. Help employees link their contribution to the organization’s strategic objectives.

[1] Randy Ottinger, ‘Failed Strategy Due to Oversight by Corporate Boards.’. Available at: http://www.forbes.com/sites/johnkotter/2012/10/24/failed-strategy-execution-oversight-by-corporate-boards/) (accessed 18 December 2014).
[2] FD/Forbes Insights, ‘Strategic Initiatives Study: Adapting Corporate Strategy to the Changing Economy’ (2010). Available at: http://images.forbes.com/forbesinsights/StudyPDFs/FD_AdaptingCorporateStrategy.pdf (accessed 18 December 2014).
[3] Adapted from ‘Stakeholder Analysis: Winning Support for Your Projects’. Available at: http://www.mindtools.com/pages/article/newPPM_07.htm (accessed 5 January 2014).
[4] FD/Forbes Insights, ‘Strategic Initiatives Study: Adapting Corporate Strategy to the Changing Economy’ (2010). Available at: http://images.forbes.com/forbesinsights/StudyPDFs/FD_AdaptingCorporateStrategy.pdf (accessed 18 December 2014).
[5] The Economist Intelligence Unit, ‘Why Good Strategies Fail: Lessons for the C-Suite’ (2013). Available at: http://www.pmi.org/~/media/PDF/Publications/WhyGoodStrategiesFail_Report_EIU_PMI.ashx (accessed 18 December 2014).
[6] Deloitte, ‘Exploring Strategic Risk: a Global Survey’ (2013). Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Governance-Risk-Compliance/dttl-grc-

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