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I  have  been  on  a  continuous  journey  of  learning  and  it  
has  been  8  years  since  my  book  was  published  (2007).    
The  domain  of  knowledge  about  “Strategy  Execution”  
continues  to  grow  rapidly.    
©  Strategy2Reality  LLC  and  VenkatNarayanan  
Version  2.0  May  2015
Copyrights  owned  by  others  have  been  called  out  where  
relevant.    
Please  email  me:  william@strategy2reality.comto  learn  
more  about  how  your  organization  can  apply  these  
2
To  get  more  work  done,  you  have  to  know  and  focus  on  
several  principles  and  act  consistently  on  them:
You  can  never  reach  something  that  is  never  defined.    If  
you  can’t  name  it,  you  can’t  have  it.    Defining  clear  
outcomes  (not  outputs)  is  critical.
You  need  to  believe  it  to  achieve  it.    This  drives  the  need  
to  understand  ‘why’  before  ‘how’.  
Focus  saves  time  and  you  have  to  constantly  repeat  what  
the  priorities  are  and  agree  to  the  backlog.
3
Know  why  you  are  doing  the  work;  discover  your  
purpose  within  the  purpose  of  the  work.    Your  purpose  is  
your  story!
Visual  representation  has  more  impact  and  transfers  
more  profound  knowledge  quicker  than  a  picture  that  
show  the  “system”  or  the  relations  of  parts.
Clarity  precedes  success  because  it  will  drive  your  focus.    
People  can  act  faster  on  clarity  versus  abstraction.    Keep  
the  message  simple;  build  a  strategy  execution  map  to  
communicate  the  important  stuff.
4
Visual  management  has  become  an  essential  discipline.  
One  reason  Agile  tools  are  becoming  popular.
Graphic  depiction  of  complex  ideas  and  systems  of  cause  
and  effect  enable  workers  to  see  how  their  works  fits  
into  a  value  stream  flowing  directly  to  customers.
Communicating  strategy  and  execution  visually  can  
readily  convert  organizational  knowledge  into  action.    
This  gives  the  most  information  in  the  shortest  time  to  
generate  team  creativity  and  shared  coherence.
5
Every  employee  must  know  the  key  strategic  metrics  that  
drive  profitability.
Competent  people  will  know  the  drivers  of  the  business  
that  create  value  for  customers.
Know  the  leading  indicators  that  drive  execution  
performance  of  both  operational  processes  and  the  
strategic  projects  and  initiatives.    
With  execution  objectives,  measure  what  you  want  to  
manage.    You  can’t  manage  what  you  don’t  measure.
6
Three  charts  are  critical:  
1. Have  decision  rights  to  define  who  is  responsible  and  
accountable  for  key  decisions;  this  includes  who  is  
accountable,  those  responsible,  those  who  need  to  
be  consulted  and  informed.
2. Have  your  core  processes  mapped  using  a  SIPOC  
(SupplierèInputèProcessèOutputèCustomer).
3. The  organization  needs  to  understand  the  interfaces  
between  functions  collaborating  to  deliver  solutions  
7
Portfolio  management  is  about  having  the  right  people  
on  the  right  projects  at  the  right  time.
Ensure  that  people  are  on  the  right  position  on  the  team  
and  that  you  allow  only  people  who  will  fit  the  culture  of  
the  team.
The  right  projects  are  the  by-­‐product  of  effective  
prioritization  and  clarity  of  knowing  how  your  value  
creating  activities  create  value  for  your  customers.
8
Habit  #1:  A  portfolio  of  resource  investment  has  to  be  
driven  by  the  top  goals  that  are  shared  at  the  top.
Habit  #2:  Performance  information  must  be  made  
available  dynamically  so  people  know  where  they  stand.
Habit  #3:  Rhythm  can  be  achieved  by  managing  the  
regularity  of  the  conversations  of  the  organization  and  
the  time-­‐to-­‐decisions  when  change  is  required.
Habit  #4:  Execution  is  everything;  it  must  be  learned  and  
modeled;  build  a  strategy  execution  office.
9
These  questions  have  been  added  to  and  adapted  from  
the  ‘Rockefeller  Habits’.
See  ‘Mastering  the  Rockefeller  Habits:  What  you  must  do  
to  Increase  the  Value  of  Your  Growing  Firm’  by  Verne  
Harnish (2002)  Select  Books  (NY).
10
Good  to  Great  by  Jim  Collins  (2001)  Collins  Business,  
says  you  need  to  know  the  Big  Hairy  Audacious  Goal  that  
drives,  motivates  people  to  achieve  great  things.    Is  your  
BHAG  clear  and  how  do  you  communicate  it  
consistently?
“A  true  BHAG  is  clear  and  compelling,  serves  as  unifying  
focal  point  of  effort,  and  acts  as  a  clear  catalyst  for  team  
spirit.  It  has  a  clear  finish  line,  so  the  organization  can  
know  when  it  has  achieved  the  goal;  people  like  to  shoot  
for  finish  lines.”
11
Know  the  sweet  spot  that  you  play  in  so  that  the  ability  
to  differentiate  creates  value  in  the  market.    
Understand  your  sandbox  in  terms  of  what  you  will  not  
do;  define  what  is  on  the  outside  of  the  box.
Know  the  greatest  need  inside  the  sandbox  and  be  clear  
about  your  unique  selling  proposition.
12
Define  the  “pain  chain”  or  opportunity  to  solve  a  specific  
problem  to  create  value  is  critical  to  any  business  model.
The  question  is:  do  you  know  this  as  a  fact  or  is  it  an  
opinion?    You  have  to  know  the  expected  outcome  of  
your  customers  to  manage  the  business  model  your  are  
executing.
Also,  customers  can’t  always  define  the  things  they  
need;  know  as  latent  needs…this  where  the  game  is  
played  for  extra  value-­‐add  creation.
13
The  first  point  of  reference  is  your  BHAG.
Identify  the  single  most  important  measure  in  building  
value.    This  defines  your  organization  in  the  minds  of  the  
public.
You  need  to  be  able  to  execute  on  the  promise  internally  
and  then  protect  your  position  in  the  market.
14
Technology  is  many  times  the  X  factor  for  both  cost  
efficiency  as  well  as  creating  value.
You  need  people  to  help  you  understand  what  and  how  
to  apply  technology  in  your  context.
Buyer  beware:  a  fool  with  a  tool  is  still  a  fool!
In  order,  1.  People  2.  Process  3.  Tools
15
Probably  the  most  defining  question  of  the  management  
team:    Do  you  have  a  process  that  defines  how  you  
execute?
How  do  you  know  how  it  is  working?
What  are  the  skills  and  systems  you  need  to  be  better  at  
execution?
Do  your  planning  processes  include  ‘executability’  
analysis?
16
Eli  Goldratt,  Theory  of  Constraints,  has  paved  the  way.    
Identify  the  primary  organizational  constraint  that  is  an  
obstacle  to  continued  growth  and  success.
Is  it  internal  in  the  company  or  external  in  the  market?    
How  do  you  know?
The  a  new  constraint  emerges  as  the  primary  one  is  
resolved.
What  are  the  realities  of  the  conditions  that  must  be  
changed  or  overcome  to  release  performance  
17
1. Why  are  you  here?
2. Are  you  committed  to  raising  your  own  
performance?
3. Do  you  consult  with  others  to  challenge  your  
assumptions?
4. Do  you  know  the  top  3  constraints  of  your  business  
or  project?
5. Do  you  assess  the  talent  of  those  around  you?
6. Are  you  committed  to  a  continuous  improvement  of  
your  core  processes  and  people?
7. Do  you  understand  how  your  business  model  creates  
value  and  profitability?
18
It  can  be  observed  that  just  as  a  diamond  requires  3  
properties  for  its  formation:  carbon,  heat  and  pressure,  
leadership  requires  character,  knowledge  and  
application.    
We  propose  that  those  executing  strategy  can  learn  from  
the  ‘Be,  Know,  Do’  paradigm  to  train  its  leaders.    Strategy  
Execution  requires  everyone  in  the  organization  to  
demonstrate  leadership.  
Use  this  paradigm  to  find  the  right  balance  between  
thought  and  action  to  influence  the  right  behaviors  
19
The  Toyota  Production  System  has  mastered  the  
leadership  and  culture  of  Kaizen:  the  ability  to  rapidly  
respond  to  employee  suggestions  for  improvement  of  
performance.
Some  say  that  this  is  the  greatest  competitive  advantage  
you  can  create.    This  requires  a  leadership  team  
committed  to  organization  learning.
20
You  need  to  define  your  strategy  in  a  framework  that  is  
understandable.    Read  “Living  on  the  Fault  Line”  by  
Geoffrey  A.  Moore  (2002)  Collins  Business.
You  need  to  have  standard  definitions  that  expresses  
your  strategy  so  you  can  scale  the  message  through  your  
employees.    Read  Executing  Your  Strategy  by  Mark  
Morgan,  Raymond  E.  Levitt  and  William  A.  Malek (2008)  
Harvard  Business  School  Press.
You  need  to  build  a  Strategy  Execution  Office  to  facilitate  
the  learning  gained  by  taking  action!    See  
21
Management  techniques  come  and  go.    Organizations  
are  getting  wary  of  adopting  the  latest  and  greatest  
methodology  designed  to  be  a  ‘silver  bullet’.    Therefore,  
we  are  proposing  that  organizations  start  by  examining  
their  vision,  mission,  goals  and  values  and  study  the  
underlying  principles  and  characteristics  of  successful  
strategy  execution.    
This  implies  that  organizations  may  have  to  give  up  the  
notion  of  a  ‘cookie  cutter’  “best  practices”  solution  that  
can  be  applied  ‘out-­‐of-­‐the-­‐box’  to  improve  their  strategy  
execution.
22
The  only  useful  framework  is  one  that  WORKS  for  YOU.    
All  organizations  have  many  things  in  common,  allowing  
creation  of  guiding  principles,  heuristics  and  rules  of  
thumb.    
Every  organization  has  characteristics  that  make  it  
unique.    Understanding  their  unique  characteristics  is  
the  first  step  to  developing  customized  solutions.    
These  characteristics  can  be  found  in  the  vision  and  
mission  statements  and  in  the  values  of  the  organization.    
23
24
Access  to  knowledge  and  information  has  never  been  
easier.    The  first  step  is  always  to  understand  who  you  
are  and  what  you  want.    
As  new  techniques  are  discovered  and  invented,  there  is  
a  tendency  to  reach  out  for  the  ‘next,  new,  shiny  toy’  
hoping  to  find  a  ‘silver  bullet’.    Even  the  most  thorough  
research  cannot  foresee  every  implementation  glitch.    
Only  a  clear  understanding  of  who  you  are  and  what  you  
want  will  enable  creative  adaptation  of  universal  
principles.    Always  change  the  ‘solution’  to  fit  the  
25
To  avoid  starting  with  a  ‘solution’  that  is  looking  for  a  
‘problem’,  begin  by  seeking  to  understand  where  the  
organization  is  today.    
Dissatisfaction  with  current  performance  is  usually  the  
trigger  for  action  to  improve  strategy  execution.    
Enlightened  companies  seek  to  go  to  the  next  level  in  
times  of  success  by  using  the  very  same  techniques.    
Performing  a  diagnostics  provides  data  about  where  the  
organization  needs  to  improve  its  ‘on  the  business’  
processes  to  guide  specific  interventions  to  improve  ‘in  
26
A  disciplined  approach  includes  structured,  semi-­‐ or  
unstructured  methods.    It  refers  to  the  use  of  systematic  
methods.    ‘Discipline’  does  not  imply  coercion  or  the  use  
of  threats.    
A  disciplined  approach  involves  self-­‐control;  the  
willingness  to  do  what  is  ‘right’  as  opposed  to  what  is  
convenient;  it  refers  to  the  ability  to  stick  to  a  decision  
and  not  deviate  for  the  sake  of  convenience.    
‘Discipline’  also  implies  the  use  of  a  body  of  knowledge,  
i.e.  formal  techniques  that  have  proven  to  work  but  are  
27
Contact  us  for:
1.  Speaking  engagements  to  educate  your  leadership  
team  on  the  art  and  science  of  strategy  execution
2.  Diagnostics  to  understand  your  organization’s  strategy  
execution  capabilities
3.  Strategic  planning  facilitation  for  your  leadership  team  
to  learn  by  ‘doing’
4.  Coaching  for  senior  executives  who  seek  to  execute  
strategy  through  high  profile  initiatives
28

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Good habits of strategy execution!

  • 1. I  have  been  on  a  continuous  journey  of  learning  and  it   has  been  8  years  since  my  book  was  published  (2007).     The  domain  of  knowledge  about  “Strategy  Execution”   continues  to  grow  rapidly.     ©  Strategy2Reality  LLC  and  VenkatNarayanan   Version  2.0  May  2015 Copyrights  owned  by  others  have  been  called  out  where   relevant.     Please  email  me:  william@strategy2reality.comto  learn   more  about  how  your  organization  can  apply  these  
  • 2. 2
  • 3. To  get  more  work  done,  you  have  to  know  and  focus  on   several  principles  and  act  consistently  on  them: You  can  never  reach  something  that  is  never  defined.    If   you  can’t  name  it,  you  can’t  have  it.    Defining  clear   outcomes  (not  outputs)  is  critical. You  need  to  believe  it  to  achieve  it.    This  drives  the  need   to  understand  ‘why’  before  ‘how’.   Focus  saves  time  and  you  have  to  constantly  repeat  what   the  priorities  are  and  agree  to  the  backlog. 3
  • 4. Know  why  you  are  doing  the  work;  discover  your   purpose  within  the  purpose  of  the  work.    Your  purpose  is   your  story! Visual  representation  has  more  impact  and  transfers   more  profound  knowledge  quicker  than  a  picture  that   show  the  “system”  or  the  relations  of  parts. Clarity  precedes  success  because  it  will  drive  your  focus.     People  can  act  faster  on  clarity  versus  abstraction.    Keep   the  message  simple;  build  a  strategy  execution  map  to   communicate  the  important  stuff. 4
  • 5. Visual  management  has  become  an  essential  discipline.   One  reason  Agile  tools  are  becoming  popular. Graphic  depiction  of  complex  ideas  and  systems  of  cause   and  effect  enable  workers  to  see  how  their  works  fits   into  a  value  stream  flowing  directly  to  customers. Communicating  strategy  and  execution  visually  can   readily  convert  organizational  knowledge  into  action.     This  gives  the  most  information  in  the  shortest  time  to   generate  team  creativity  and  shared  coherence. 5
  • 6. Every  employee  must  know  the  key  strategic  metrics  that   drive  profitability. Competent  people  will  know  the  drivers  of  the  business   that  create  value  for  customers. Know  the  leading  indicators  that  drive  execution   performance  of  both  operational  processes  and  the   strategic  projects  and  initiatives.     With  execution  objectives,  measure  what  you  want  to   manage.    You  can’t  manage  what  you  don’t  measure. 6
  • 7. Three  charts  are  critical:   1. Have  decision  rights  to  define  who  is  responsible  and   accountable  for  key  decisions;  this  includes  who  is   accountable,  those  responsible,  those  who  need  to   be  consulted  and  informed. 2. Have  your  core  processes  mapped  using  a  SIPOC   (SupplierèInputèProcessèOutputèCustomer). 3. The  organization  needs  to  understand  the  interfaces   between  functions  collaborating  to  deliver  solutions   7
  • 8. Portfolio  management  is  about  having  the  right  people   on  the  right  projects  at  the  right  time. Ensure  that  people  are  on  the  right  position  on  the  team   and  that  you  allow  only  people  who  will  fit  the  culture  of   the  team. The  right  projects  are  the  by-­‐product  of  effective   prioritization  and  clarity  of  knowing  how  your  value   creating  activities  create  value  for  your  customers. 8
  • 9. Habit  #1:  A  portfolio  of  resource  investment  has  to  be   driven  by  the  top  goals  that  are  shared  at  the  top. Habit  #2:  Performance  information  must  be  made   available  dynamically  so  people  know  where  they  stand. Habit  #3:  Rhythm  can  be  achieved  by  managing  the   regularity  of  the  conversations  of  the  organization  and   the  time-­‐to-­‐decisions  when  change  is  required. Habit  #4:  Execution  is  everything;  it  must  be  learned  and   modeled;  build  a  strategy  execution  office. 9
  • 10. These  questions  have  been  added  to  and  adapted  from   the  ‘Rockefeller  Habits’. See  ‘Mastering  the  Rockefeller  Habits:  What  you  must  do   to  Increase  the  Value  of  Your  Growing  Firm’  by  Verne   Harnish (2002)  Select  Books  (NY). 10
  • 11. Good  to  Great  by  Jim  Collins  (2001)  Collins  Business,   says  you  need  to  know  the  Big  Hairy  Audacious  Goal  that   drives,  motivates  people  to  achieve  great  things.    Is  your   BHAG  clear  and  how  do  you  communicate  it   consistently? “A  true  BHAG  is  clear  and  compelling,  serves  as  unifying   focal  point  of  effort,  and  acts  as  a  clear  catalyst  for  team   spirit.  It  has  a  clear  finish  line,  so  the  organization  can   know  when  it  has  achieved  the  goal;  people  like  to  shoot   for  finish  lines.” 11
  • 12. Know  the  sweet  spot  that  you  play  in  so  that  the  ability   to  differentiate  creates  value  in  the  market.     Understand  your  sandbox  in  terms  of  what  you  will  not   do;  define  what  is  on  the  outside  of  the  box. Know  the  greatest  need  inside  the  sandbox  and  be  clear   about  your  unique  selling  proposition. 12
  • 13. Define  the  “pain  chain”  or  opportunity  to  solve  a  specific   problem  to  create  value  is  critical  to  any  business  model. The  question  is:  do  you  know  this  as  a  fact  or  is  it  an   opinion?    You  have  to  know  the  expected  outcome  of   your  customers  to  manage  the  business  model  your  are   executing. Also,  customers  can’t  always  define  the  things  they   need;  know  as  latent  needs…this  where  the  game  is   played  for  extra  value-­‐add  creation. 13
  • 14. The  first  point  of  reference  is  your  BHAG. Identify  the  single  most  important  measure  in  building   value.    This  defines  your  organization  in  the  minds  of  the   public. You  need  to  be  able  to  execute  on  the  promise  internally   and  then  protect  your  position  in  the  market. 14
  • 15. Technology  is  many  times  the  X  factor  for  both  cost   efficiency  as  well  as  creating  value. You  need  people  to  help  you  understand  what  and  how   to  apply  technology  in  your  context. Buyer  beware:  a  fool  with  a  tool  is  still  a  fool! In  order,  1.  People  2.  Process  3.  Tools 15
  • 16. Probably  the  most  defining  question  of  the  management   team:    Do  you  have  a  process  that  defines  how  you   execute? How  do  you  know  how  it  is  working? What  are  the  skills  and  systems  you  need  to  be  better  at   execution? Do  your  planning  processes  include  ‘executability’   analysis? 16
  • 17. Eli  Goldratt,  Theory  of  Constraints,  has  paved  the  way.     Identify  the  primary  organizational  constraint  that  is  an   obstacle  to  continued  growth  and  success. Is  it  internal  in  the  company  or  external  in  the  market?     How  do  you  know? The  a  new  constraint  emerges  as  the  primary  one  is   resolved. What  are  the  realities  of  the  conditions  that  must  be   changed  or  overcome  to  release  performance   17
  • 18. 1. Why  are  you  here? 2. Are  you  committed  to  raising  your  own   performance? 3. Do  you  consult  with  others  to  challenge  your   assumptions? 4. Do  you  know  the  top  3  constraints  of  your  business   or  project? 5. Do  you  assess  the  talent  of  those  around  you? 6. Are  you  committed  to  a  continuous  improvement  of   your  core  processes  and  people? 7. Do  you  understand  how  your  business  model  creates   value  and  profitability? 18
  • 19. It  can  be  observed  that  just  as  a  diamond  requires  3   properties  for  its  formation:  carbon,  heat  and  pressure,   leadership  requires  character,  knowledge  and   application.     We  propose  that  those  executing  strategy  can  learn  from   the  ‘Be,  Know,  Do’  paradigm  to  train  its  leaders.    Strategy   Execution  requires  everyone  in  the  organization  to   demonstrate  leadership.   Use  this  paradigm  to  find  the  right  balance  between   thought  and  action  to  influence  the  right  behaviors   19
  • 20. The  Toyota  Production  System  has  mastered  the   leadership  and  culture  of  Kaizen:  the  ability  to  rapidly   respond  to  employee  suggestions  for  improvement  of   performance. Some  say  that  this  is  the  greatest  competitive  advantage   you  can  create.    This  requires  a  leadership  team   committed  to  organization  learning. 20
  • 21. You  need  to  define  your  strategy  in  a  framework  that  is   understandable.    Read  “Living  on  the  Fault  Line”  by   Geoffrey  A.  Moore  (2002)  Collins  Business. You  need  to  have  standard  definitions  that  expresses   your  strategy  so  you  can  scale  the  message  through  your   employees.    Read  Executing  Your  Strategy  by  Mark   Morgan,  Raymond  E.  Levitt  and  William  A.  Malek (2008)   Harvard  Business  School  Press. You  need  to  build  a  Strategy  Execution  Office  to  facilitate   the  learning  gained  by  taking  action!    See   21
  • 22. Management  techniques  come  and  go.    Organizations   are  getting  wary  of  adopting  the  latest  and  greatest   methodology  designed  to  be  a  ‘silver  bullet’.    Therefore,   we  are  proposing  that  organizations  start  by  examining   their  vision,  mission,  goals  and  values  and  study  the   underlying  principles  and  characteristics  of  successful   strategy  execution.     This  implies  that  organizations  may  have  to  give  up  the   notion  of  a  ‘cookie  cutter’  “best  practices”  solution  that   can  be  applied  ‘out-­‐of-­‐the-­‐box’  to  improve  their  strategy   execution. 22
  • 23. The  only  useful  framework  is  one  that  WORKS  for  YOU.     All  organizations  have  many  things  in  common,  allowing   creation  of  guiding  principles,  heuristics  and  rules  of   thumb.     Every  organization  has  characteristics  that  make  it   unique.    Understanding  their  unique  characteristics  is   the  first  step  to  developing  customized  solutions.     These  characteristics  can  be  found  in  the  vision  and   mission  statements  and  in  the  values  of  the  organization.     23
  • 24. 24
  • 25. Access  to  knowledge  and  information  has  never  been   easier.    The  first  step  is  always  to  understand  who  you   are  and  what  you  want.     As  new  techniques  are  discovered  and  invented,  there  is   a  tendency  to  reach  out  for  the  ‘next,  new,  shiny  toy’   hoping  to  find  a  ‘silver  bullet’.    Even  the  most  thorough   research  cannot  foresee  every  implementation  glitch.     Only  a  clear  understanding  of  who  you  are  and  what  you   want  will  enable  creative  adaptation  of  universal   principles.    Always  change  the  ‘solution’  to  fit  the   25
  • 26. To  avoid  starting  with  a  ‘solution’  that  is  looking  for  a   ‘problem’,  begin  by  seeking  to  understand  where  the   organization  is  today.     Dissatisfaction  with  current  performance  is  usually  the   trigger  for  action  to  improve  strategy  execution.     Enlightened  companies  seek  to  go  to  the  next  level  in   times  of  success  by  using  the  very  same  techniques.     Performing  a  diagnostics  provides  data  about  where  the   organization  needs  to  improve  its  ‘on  the  business’   processes  to  guide  specific  interventions  to  improve  ‘in   26
  • 27. A  disciplined  approach  includes  structured,  semi-­‐ or   unstructured  methods.    It  refers  to  the  use  of  systematic   methods.    ‘Discipline’  does  not  imply  coercion  or  the  use   of  threats.     A  disciplined  approach  involves  self-­‐control;  the   willingness  to  do  what  is  ‘right’  as  opposed  to  what  is   convenient;  it  refers  to  the  ability  to  stick  to  a  decision   and  not  deviate  for  the  sake  of  convenience.     ‘Discipline’  also  implies  the  use  of  a  body  of  knowledge,   i.e.  formal  techniques  that  have  proven  to  work  but  are   27
  • 28. Contact  us  for: 1.  Speaking  engagements  to  educate  your  leadership   team  on  the  art  and  science  of  strategy  execution 2.  Diagnostics  to  understand  your  organization’s  strategy   execution  capabilities 3.  Strategic  planning  facilitation  for  your  leadership  team   to  learn  by  ‘doing’ 4.  Coaching  for  senior  executives  who  seek  to  execute   strategy  through  high  profile  initiatives 28