You’ve invested time, energy, and money in crafting a well-formulated strategy a vision for what your business could be and do. The team is excited about what could be achieved and feels the energy to get going. This energy fuels an initial surge of progress, but soon, there’s a loss of traction due to the competing distractions of business as usual, capacity constraints, or potentially too many initiatives in play at the same time. Now, there’s a gap between what you were all expecting to achieve and what you’re actually achieving. Does this sound familiar?
It is not uncommon. In fact, around 87% of business strategies fail due to poor execution. So, how do we get it right? How do we successfully gain traction on executing strategic projects and then maintain the momentum towards the destination? We’ve learned that successful strategy execution requires more than a set of tools and skills, although these are necessary. Ultimately, the mindsets of leaders and teams need to shift to create a new way of thinking about what we do and when. It’s only through a renewed mindset that a new way of working will be embedded across the business.
Successful strategy execution requires mindsets to shift in two areas:
- How we think about outcomes and
- How we think about ownership.
How we think about outcomes
Many companies have a strong strategy, but when it comes to execution, teams don’t know what to do next. People default to working on business as usual, and the organisation makes no progress towards its strategic ambitions. The reality is there is a missing link between longer-term strategy and the daily actions of teams. To close the gap between strategy, the big-picture vision and actions, and the things people do daily. Strategic projects need to be appropriately and realistically prioritised, and those priority projects need to be broken down into shorter-term goals.
The critical part here is for these shorter-term goals to be articulated as outcomes – the results you want to achieve. Outcomes aren’t simply more projects to complete but rather tangible results and value that the organisation needs to experience upon completing these projects. If goals are articulated as outcomes, we enable intelligent individuals to make decisions and find the best way forward, as opposed to telling them what to do.
When goals are articulated as outcomes, the outcomes can be cascaded to departments and teams across the organisation, ensuring alignment and focus horizontally and vertically throughout the business. This environment allows each person in the organisation to know the priorities, what needs to be done next, and how they individually and together, contribute to the progress. Now, mindsets start shifting, and individuals and teams begin thinking about what they need to do that will actually move the needle rather than the next task to mark off on their to-do lists.
By translating the broader strategy into actionable, shorter-term outcomes, everyone in the organisation can see the path forward. This clarity turns abstract strategic objectives into concrete, manageable steps. Teams can then understand how their daily tasks align with the overarching goals, fostering a sense of purpose and direction. This alignment is crucial because it drives engagement and motivation, as people can see the tangible impact of their work on the organisation’s success.
How we think about ownership
Ownership is often viewed as analogous to autonomy, but autonomy without alignment leads to silos. Alignment within teams, across teams, and throughout the business ensures that teams are rowing the boat in the same direction towards the common ambition. However, many teams are still “managed”. “Managed” teams operate hierarchically, with decision-makers at the top and the do-ers structured below. These types of teams probably respond quickly to crises but often lack innovation, growth, and ownership.
Teams should be arranged as networks rather than hierarchies to enable a culture of ownership. Networks allow for better alignment across teams and autonomy within teams. When networked teams clearly understand the outcomes they want to achieve, they have the freedom to work collaboratively to reach them, enhancing their level of accountability and ownership. These teams understand that accountability is a privilege, not an onus or obligation. In a culture of safety, leaders share collaborative ownership and are accountable to each other as they work together to achieve greater results.
Communication flows more freely in a networked team structure, and collaboration is encouraged across different levels and functions. This interconnectedness fosters innovation and adaptability, as team members feel empowered to contribute their unique perspectives and skills towards the common goal. When people take ownership of their roles and responsibilities, they are more likely to go above and beyond to ensure success. This sense of ownership also promotes a proactive approach to problem-solving, as individuals feel personally invested in the outcomes.
It doesn’t stop there
Once leaders and teams are thinking differently about outcomes and ownership, execution gains traction, and organisations start experiencing momentum. But we can’t let it stop there. Shifted mindsets lead to new ways of working, and these new ways of working need to be embedded as “how we do things around here.” These are routines and habits that help teams continuously monitor progress, assess obstacles and solutions, celebrate successes, and communicate these across the organisation. These are the habits of successful strategy execution, which are part of the organisation’s rhythm.
Successful strategy execution requires a fundamental shift in how leaders and teams think about outcomes and ownership. By breaking down strategic goals into short-term outcomes that have actionable steps and fostering a culture of accountability and collaboration, organisations can bridge the gap between vision and execution. Embedding these new ways of working into the fabric of the organisation, ensures that teams remain aligned, focused, and motivated, driving long-term success and growth.
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