Increasing the Organization's Focus on Executing
Strategy
Situation
The Chief Executive Officer and the newly hired Vice
President of Operations of this mid-market business
services company were concerned that the Operations
organization was not focused on the strategy of the
company.
A services company with the value discipline of
"customer intimacy", operations was the
value-creation source in the company. Their
operational capability was the main distinguishing
factor - it drove customer service, customer
retention, customer upsell, customer referrals and
new customer acquisition. They could outsource sales
or develop multiple sales channels, but operations
was the heart of the organization.
People were working very hard on getting their jobs
done but it was not adding up. Work done was mostly
reactive as opposed to pro-active. Groups did not
have goals for themselves and there were no goals
for all of Operations as well. So where ever they
ended up at the end of each quarter in terms of
achievements, become their goal.
Solution Approach
The solution approach was to crystallize the
company's strategy and then articulate succinctly in
a graphical/diagrammatic visual to make it easy to
understand. Develop goals and objectives for each of
the groups that are derived from the strategy and
help implement/advance the strategy.
Solution and Results
After interviewing the senior executives, the
strategy was articulated in clear terms. Glossaries
were developed to describe the strategic business
terms so it became easy for the rank and file
employees to understand them. This succinct and yet
holistic view of the company goals, high-level
strategies and tactics allowed middle management and
employees to be able to see for the first time - how
the different ideas and business directions they had
heard from senior executives on various occasions
fit together.
Groups developed objectives that supported the
strategy and cross-calibrated with each other to
ensure alignment of focus. Specific owners were
assigned to each of the action items. The whole
discussion on strategy and the objectives and action
items helped middle management voice their concerns.
Concerns either about not understanding the details
of the strategy or disagreeing with the details. At
the high-level agreement was easy. It was in the
detailed interpretation that different views were
expressed. Working through the process, it became
clear to all involved that while not all the details
had been worked out, this was the first time that an
effective and productive exercise was ensuing and
not just an endless and circular discussion.
The initiative was very successful - it helped bring
the team closer in a very meaningful way. The
biggest challenge of course lay ahead. Senior
executives and middle management needed to stay
focused and continuously follow-through on the
process of executing strategy. Change had been
introduced gently in the organization, however for
habits to form continued repetition was critical.
Also the strategy and tactics needed to be actively
updated to ensure relevance to the changing business
and market landscape.
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