Strategy is nothing without execution
A well-formulated strategy is worthless if not implemented and communicated correctly. The purpose of strategy is to create a reference framework for everyone at the company in order to set priorities, make investment decisions and align activities. This is even more important in a VUCA world where many decisions cannot – and should not – be made top-down. On the contrary, fast, agile decision-making is a prerequisite to success.
Strategy needs to be put in action. We are convinced that precise and easily-understood goals are key to creating a reference framework for any organization. Strategy is a product and needs to be marketed internally. Otherwise it will be difficult to set things in motion.
In addition to strategic goals, we believe in the power of OKR and KPI systems. They need to be well-defined and rolled out effectively to ensure achievement of strategic goals.
The right set of KPIs tracks progress with regard to the strategy, and the business and scaling model. This is not about dashboards with 100s of statistics and metrics. It is about identifying the right set of strategic KPIs that should be regularly reviewed by top management teams. Strategic goals should typically be designed to significantly improve one of the core metrics.
A system of objectives and key results is a proven way of translating business strategy into measurable goals. While strategy and KPIs provide the reference framework, OKRs are the tool that drives execution, focus, transparency and organizational alignment.
This often ignites powerful cultural change. OKRs can overcome siloed thinking and promote teamwork. For management teams, OKRs create an opportunity to regularly communicate and adjust strategic goals. People who define OKRs periodically reflect on strategic goals and how their work should contribute to their achievement.
Commercial Due Diligence for technology investment
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OKR as a strategic management framework
Situation The client was a leading European financial services provider, with products including credit scoring, debt collection and accounting services. The company had identified the need to increase transparency, speed and alignment with regard to strategy execution. The management board had identified the advantages of the agile Objectives and Key Results (OKR)” framework and wanted ….
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