Strategy is King: Process, KPI’s and Accountability
By Milena M. Szporek
Many leaders are struggling with translating the strategy into tangible results. According to a Harvard Business Review study, a staggering 61% of leaders admit they struggle with strategy execution. The good news is that there is a recipe that consists of simple principles that will generate the results you desire and the motivation your team needs.
1. State the Strategy
Once the strategy of your company is defined, it has to be communicated opportunely. This will create the alignment between the different departments that is crucial to sense the common direction of where the business is heading.
With that common direction, everyone should know what, and how to contribute. Therefore each team or individual participating in the initiative, should have a specific target they commit themselves to.
Effective communication involves regular meetings, detailed documentation, and possibly workshops to ensure everyone understands the strategy and its importance.
2. Define Specific Targets
If your company has not yet implemented a data-driven culture, this is a great place to start and initiate the cultural change in your organization.
With a common direction established, each team or individual should know what and how to contribute. Specific targets, usually managed as KPIs, must align with the strategic objectives. These targets create a sense of commitment and clarity for everyone involved. For instance, sales teams might focus on increasing customer acquisition rates, while production teams might aim to improve manufacturing efficiency.
Define SMART KPIs
The KPIs can be validated using the following method:
Now, if you applied the SMART principle correctly, you should be left with a target formulated in the following manner:
“Reduce the sickness rate of the factory workers from 12% to 7% by the end of 2024.“
“Improve the resolution time for the customer claims from 30 days to 20 days by the end of 2024.”
As you may have noticed, this exercise requires operational data in order to establish the baseline and define a challenging, although reachable end-target.
3. Find Leading Metrics
We need to find the variables that influence the end result, known as leading metrics. These measurements of daily, critical activities can be acted upon and controlled, ultimately leading to the desired outcomes.
Amid all work activities, it is challenging to distinguish the strategically important tasks from day-to-day operations. Everyday tasks are often associated with putting out fires, while a strategic approach derives tangible results. Focusing on the strategically important, we recommend allocating energy to no more than 2-3 KPIs.
KPIs can have various predictive indicators with differing magnitudes of influence. Some predictors are more effective than others. Reviewing available data and generating insights can validate predictions. Sometimes, data must be collected first to evaluate relationships between predictive indicators and KPIs. We recommend piloting various scenarios and measuring several leading metrics to identify the best predictors.
4. Display the Scoreboard
Implementing a clear scoreboard is vital for tracking progress. Regularly updated scoreboards provide visibility into how well the strategy is being executed, creating transparency and focus. This visibility helps everyone stay aligned with the strategic goals and makes it easier to adjust tactics as needed. The scoreboard should be accessible to all relevant stakeholders and updated frequently to reflect progress.
Tools like dashboards and spreadsheets can visualize this data effectively, allowing for quick assessments and adjustments. These tools can also integrate with other systems to automate data collection and reporting, reducing manual effort and increasing accuracy.
5. Cultivate Accountability
The final, most important principle, and the key to a successful strategy execution is Accountability.
We want everyone on the team to contribute, ideally equally, and from their own perspective, scope and expertise. By having regular, weekly meetings and having everyone on that meeting take one task or activity they committed themselves to will create the sense of ownership and contribution. Both of these qualities are expected both from oneself and from the entire team.
Accountability can be further reinforced by setting up peer review systems, where colleagues provide feedback on each other’s progress, and by celebrating successes, no matter how small. Recognizing and rewarding contributions helps maintain motivation and reinforces a culture of accountability.
Mission.One – Your Path to Strategic Excellence
Effective strategy execution is essential for translating your company’s vision into tangible results. By following these five principles it can help make sure that your strategic objectives are met and your team remains motivated and aligned.
Implementing these steps will drive company growth and improve employee satisfaction and operational efficiency. Clear communication, specific targets, data-driven decision-making, transparency through scoreboards, and a culture of accountability are the cornerstones of successful strategy deployment.
For more information on mastering strategy execution or to learn about our services, please visit our services pages or contact us directly.