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Getting it Done! The Art and Science of Strategy Execution Scott Stuecher September 30, 2016
Transcript of Getting it Done! - Home | WV HFMA · Getting it Done! The Art and Science of Strategy Execution...
Getting it Done!
The Art and Science of Strategy Execution Scott Stuecher
September 30, 2016
Agenda
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● Introductions
● Why Such Dissonance
● Strategy Impediments
● Improved Strategy Execution: Six Steps
● Implications for Finance Executives
● Q&A
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“Strategy is important; execution is everything”
J.P. Garnier, CEO Glaxo Smith-Kline
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“Execution is the missing link between
aspirations and results”
Larry Bossidy and Ram Charan
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“Most companies’ strategies deliver only 63% of their promised
financial value”
Michael C. Mankins and Richard Steele
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“Implementation of strategic plans is the
least effective aspect of strategic planning”
Veralon observation
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“There’s so much emphasis on execution and action in the business world. I try to
convey that action and reflection are not mutually
exclusive”
Dr. Kerry Sulkowicz New York University
Real-Time Info Gathering/Polling Tool
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Why Such Dissonance?
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Why Such Dissonance?
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Execution is harder than strategy setting
Executives don’t know much about it
Good execution is only infrequently
part of the organization’s
culture
Execution takes longer than strategy
design
Good execution involves working
with lots of (disinterested?
disengaged?) people
What Gets in the Way of Effective Strategy Execution?
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What Gets in the Way of Effective Strategy Execution?
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• Thinking it is “below” the role of real leaders—CEOs, VPs, etc.
• “Professional macho-ism”— “no need for priorities here; we can do anything”
• When strategy is seen as just more work
• A culture that says the plan isn’t really important (vs. operations)
Culture
“Culture trumps strategy”
What Gets in the Way of Effective Strategy Execution?
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• Lack of clarity in the final plan
• Lack of personal incentives to get the work done—rewarding the non-doers as much as the doers
• Insufficient resources to get it done
• Lack of contingency planning
The Plan Itself
“If you don't know where you're going, you might not get there.” – Yogi Berra
What Gets in the Way of Effective Strategy Execution?
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• Horribly inadequate communications plans; lack of real and consistent executive attention
• Lack of staff engagement and failure to identify/deal with organizational resistance
• Failure to connect strategy to operations and talent management systems
• Limited board and physician commitment
• Strategy “shift” over time
• Failure to track; failure to measure results
• Loss of energy and focus
An Ineffective Process Before, During, and After the Plan
Managing the process is perhaps more important than the plan itself
Six Steps to Improved Strategy Execution
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(Keeping in mind this is pretty difficult stuff)
Six Steps to Improved Strategy Execution
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1. Assess both talent and operating systems early
• This is big
• Consider and address
o Degree of engagement
o Sense of realism
o Goal setting practices
o Commitment to follow through
o Comfort with change
o Quality of reward systems
Six Steps to Improved Strategy Execution (continued)
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1. Assess both talent and operating systems early (continued)
• Put resources (talent and improved systems) where they are needed – early on
o Identify the leverage people
o Make sure you have the right people with the right skills
• Don’t forget the board and the medical staff
• Put the CEO in charge of execution
Six Steps to Improved Strategy Execution (continued)
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2. Prepare the culture for change • Debate assumptions
o Robust dialogue is the essence of a positive culture about the plan
• Clarify accountability
• Will the organizational structure support effective implementation?
o If not, start changing the structure
Six Steps to Improved Strategy Execution (continued)
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3. Be realistic - prioritize • Mandate realistic goals
• Ask “how are we going to accomplish this?”
• Have separate executive meetings for strategy discussions
• Differentiate strategic priorities and operational priorities, and have a process to address purely operational issues
Six Steps to Improved Strategy Execution (continued)
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4. Over - communicate • By a factor of at least 10
• Like you are selling the company
• It has to be clear – use the audience’s language
• What’s in it for me?
• How will the plan impact each audience?
• Communicate the plan’s priorities
• Drive the plan throughout the organization
Six Steps to Improved Strategy Execution (continued)
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5. Motivate for tangible results • Incentivize for the desired results and
then publicize good efforts
o Imbed goals/metrics into management and leadership performance evaluation
• Segment the employee base and appeal to their specific interests
o Matters of loyalty, career paths or skills gained, work/life balance, etc.
6. Metrics and Monitoring • Certainly, balanced scorecards and the like
• Choose metrics wisely (e.g., easy to access)
• Imbed monitoring into pre-existing meeting structure
• Consider strategy mapping (Kaplan and Norton)
o Financial performance
o Value proposition
o Internal processes
o Learning and growth
• Periodic plan review and update
• Ongoing process management – review, revise, reward
Six Steps to Improved Strategy Execution (continued)
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Implications for Finance Executives
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Implications for Finance Executives
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Managing the uncertainty of FFS to value-based payment transition
Demonstrate an interest in execution and push for attention to it
Force selection of fewer priorities , but…
Avoid the “Just Say No” mentality
Q & A
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