Strategy - More Difficult to Deploy Than Develop

[00:00:01] Transformation Professionals

[00:00:02] [SPEAKER_00]: Welcome to another episode of Transformation Professionals, sponsored by CXO Transform.

[00:00:09] [SPEAKER_00]: Crafted to enhance the strategic acumen of ambitious managers, leaders and consultants,

[00:00:15] [SPEAKER_00]: we hope you enjoy this episode about Strategy – More Difficult to Deploy Than Develop.

[00:00:21] [SPEAKER_00]: Here's Rob Llewellyn.

[00:00:25] [SPEAKER_01]: When an exceptional strategy is matched with first-rate execution, the leaders responsible

[00:00:31] [SPEAKER_01]: for the transformation receive a claim from both within and outside the organization.

[00:00:37] [SPEAKER_01]: Stakeholders are thrilled, and the company, along with its employees, reaps the rewards

[00:00:43] [SPEAKER_01]: of their hard work.

[00:00:45] [SPEAKER_01]: However, a common issue faced by numerous companies is that their leaders craft a

[00:00:50] [SPEAKER_01]: strategy that is commendable, yet they significantly undervalue the importance

[00:00:54] [SPEAKER_01]: of its execution.

[00:00:55] [SPEAKER_01]: It's often said that strategy is three times more difficult to deploy than develop, which

[00:01:02] [SPEAKER_01]: explains why so many strategies result in painful execution journeys for everyone involved.

[00:01:08] [SPEAKER_01]: Many surveys have sought to identify the gap between strategy and execution, and

[00:01:13] [SPEAKER_01]: while their results differ, they all reveal that the gap is big.

[00:01:18] [SPEAKER_01]: The results of one such survey even suggest that only 8% of leaders are very effective

[00:01:24] [SPEAKER_01]: at both strategy and execution, and that 35% of leaders are neutral or worse at both.

[00:01:31] [SPEAKER_01]: Another survey by PWC revealed that leaders in nearly half of all organizations are not

[00:01:36] [SPEAKER_01]: ready to execute new business strategies in response to transformation, and that

[00:01:41] [SPEAKER_01]: the gap between strategic intent and strategy execution creates a drag on performance and

[00:01:47] [SPEAKER_01]: morale while increasing risk exposure.

[00:01:50] [SPEAKER_01]: When it comes to the execution of strategy, budgets and timelines are frequently exceeded

[00:01:55] [SPEAKER_01]: and stakeholders get tired of the noise found coming from projects and programs because

[00:02:00] [SPEAKER_01]: of inadequate orchestration of the transformation.

[00:02:05] [SPEAKER_01]: The colorful benefits on display in the business case begin to fade as it becomes

[00:02:09] [SPEAKER_01]: clear that the planned return on investment is diminishing as more time and resources

[00:02:15] [SPEAKER_01]: are sucked into the initiative.

[00:02:17] [SPEAKER_01]: This is not to mention the fact that the people and business areas that will live

[00:02:21] [SPEAKER_01]: in the new world are not sufficiently involved with or prepared for what's coming.

[00:02:27] [SPEAKER_01]: This is a reality in many companies because they lack the right transformation tools

[00:02:31] [SPEAKER_01]: and transformation management capabilities.

[00:02:35] [SPEAKER_01]: Thousands of troubled transformation initiatives are swept under the carpets of companies

[00:02:39] [SPEAKER_01]: which thrive on operational excellence, but discover to their cost that transformation

[00:02:45] [SPEAKER_01]: and excellence requires a very different set of capabilities.

[00:02:49] [SPEAKER_01]: So this is nothing new, and yet very relevant to the popular theme of business transformation

[00:02:54] [SPEAKER_01]: where most of the talk is around strategy but not so much on an organization's ability

[00:03:00] [SPEAKER_01]: to transform that strategy into reality through effective transformation execution.

[00:03:05] [SPEAKER_01]: While companies are keen to evolve their strategies to become more digital, they

[00:03:10] [SPEAKER_01]: the fact that strategy could be three times more difficult to deploy than develop.

[00:03:17] [SPEAKER_01]: If you can't successfully execute, good strategy is quite frankly an unattainable

[00:03:22] [SPEAKER_01]: goal that will remain a pipe dream until leaders step up to the challenge of execution.

[00:03:27] [SPEAKER_01]: So what can you do to be better prepared when it comes to transforming strategy into

[00:03:32] [SPEAKER_01]: reality?

[00:03:34] [SPEAKER_01]: Firstly, as a leader, you need to become the architect of the capabilities you need

[00:03:38] [SPEAKER_01]: both to define and execute strategy.

[00:03:42] [SPEAKER_01]: You need to ensure you have the right transformation management capabilities on board to execute.

[00:03:48] [SPEAKER_01]: And remember, the capabilities required to manage and lead operations are quite different

[00:03:53] [SPEAKER_01]: from the capabilities required to manage and lead transformation, which means your

[00:03:58] [SPEAKER_01]: best operational managers and leaders might not be the best managers and leaders of

[00:04:02] [SPEAKER_01]: transformation.

[00:04:03] [SPEAKER_01]: It's like comparing project managers and program managers.

[00:04:06] [SPEAKER_01]: They're not the same.

[00:04:09] [SPEAKER_01]: Good strategy is only part of the equation in business transformation.

[00:04:13] [SPEAKER_01]: You must have adequate transformation management execution capabilities on board to

[00:04:18] [SPEAKER_01]: project and program management, business process management, technology management,

[00:04:24] [SPEAKER_01]: organizational change management are all prerequisites for successful transformation,

[00:04:29] [SPEAKER_01]: all of which need to be well orchestrated.

[00:04:32] [SPEAKER_01]: This orchestration, the harmonious arrangement of these distinct yet interconnected

[00:04:37] [SPEAKER_01]: disciplines is what distinguishes a truly effective leader in the realm of business

[00:04:43] [SPEAKER_01]: transformation.

[00:04:45] [SPEAKER_01]: Let's consider the concept of an orchestra.

[00:04:47] [SPEAKER_01]: Each musician is a master of their own instrument, but it is the conductor who

[00:04:52] [SPEAKER_01]: ensures they play in unison to create a symphony.

[00:04:56] [SPEAKER_01]: Similarly, in business transformation, you may have experts in project and program

[00:05:01] [SPEAKER_01]: management, adept technology managers, process maestros and change agents.

[00:05:06] [SPEAKER_01]: But as a leader, you must unite them to play the symphony of successful

[00:05:10] [SPEAKER_01]: transformation.

[00:05:12] [SPEAKER_01]: What's more, it's essential to foster a culture that is resilient to change.

[00:05:17] [SPEAKER_01]: This resilience is cultivated not through rigid structures, but through flexible,

[00:05:22] [SPEAKER_01]: agile practices that empower teams to respond swiftly and effectively to the

[00:05:28] [SPEAKER_01]: changing dynamics of a transformation journey.

[00:05:31] [SPEAKER_01]: It's also about engaging the right talent.

[00:05:34] [SPEAKER_01]: As a leader, your role is to scout for and nurture the individuals whose skills

[00:05:41] [SPEAKER_01]: and mindsets align with the transformation objectives.

[00:05:45] [SPEAKER_01]: These are the professionals who don't just execute tasks, but also contribute to

[00:05:49] [SPEAKER_01]: shaping the transformation narrative.

[00:05:51] [SPEAKER_01]: And let's not forget about communication, the lifeline of any successful

[00:05:56] [SPEAKER_01]: transformation.

[00:05:58] [SPEAKER_01]: Clear, consistent and compelling communication not only aligns your team,

[00:06:03] [SPEAKER_01]: but also keeps stakeholders engaged and informed throughout the transformation

[00:06:08] [SPEAKER_01]: process.

[00:06:09] [SPEAKER_01]: It builds trust, mitigates resistance and ensures that everyone is moving

[00:06:14] [SPEAKER_01]: towards a common goal.

[00:06:17] [SPEAKER_01]: Remember, in the world of business transformation, the adage fail to prepare,

[00:06:23] [SPEAKER_01]: prepare to fail has never been more true.

[00:06:26] [SPEAKER_01]: The preparation is not just in crafting a visionary strategy, but in equipping

[00:06:30] [SPEAKER_01]: yourself and your organization with the robust capabilities to execute it.

[00:06:35] [SPEAKER_01]: The journey from strategy to successful execution is one of learning, adapting

[00:06:39] [SPEAKER_01]: and leading.

[00:06:41] [SPEAKER_00]: This podcast is sponsored by CXOTransform, professional development

[00:06:46] [SPEAKER_00]: for managers, leaders and consultants who strive for excellence.

[00:06:50] [SPEAKER_00]: If you want to perform at your very best in the most sought after

[00:06:54] [SPEAKER_00]: transformation roles, visit cxotransform.com.