This document summarizes a presentation about translating strategy into execution. It discusses how most strategies fail due to poor execution. The presentation outlines the "4 C's" of effective execution: clarify the strategy, communicate the strategy, cascade the strategy down through the organization, and confirm progress by measuring and monitoring. It provides details on each step, such as how to test and align the strategy, communicate it to different audiences, set goals and link them to capabilities and outcomes, and measure impact and monitor initiatives. Capturing the average 37% performance loss in strategy execution is also summarized.

1. The Role of Leadership in
Translating Strategy to Execution
Mason Holloway • October 5, 2011
October 5–7, 2011 SHRM 2011 Strategy Conference

2. Agenda
Where are we now and how do we fail?
The 4 C’s of execution
Capturing the performance loss
Q&A and Wrap-up
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3. How Important is it?
The Institute for Corporate Productivity study, the Top Ten
Critical Human Capital Issues of 2011:
1. Leadership development
2. Succession planning
3. Strategy execution/alignment
4. Managing/coping with change
5. Talent management.
6. Innovation and creativity
7. Performance management
8. Knowledge retention
9. Engagement
10. Coaching
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4. How is Strategy Like a Promise Unfulfilled?
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5. Strategy – Where we go Wrong
37% Average Performance Loss = white)
Section Title (12 point Arial; color
7.5% Inadequate or unavailable
resources
5.2 % Poorly communicated strategy
4.5% Actions required to execute not
63% clearly defined (no clear outcomes)
Average Realized
4.1% Unclear accountabilities for
Performance execution
3.7% Organizational silos and culture
blocking execution
3.0% Inadequate performance
monitoring
3.0% Inadequate consequences or
rewards for failure or success
2.6% Poor senior leadership
1.9% Uncommitted leadership
0.7% Other obstacles (including
* Harvard Business School Publishing, 2005 inadequate skills and capabilities)
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6. 9 out of 10 Strategies Fail!
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7. The Four C’s of Strategy Execution
Clarify
Communicate
Cascade
Confirm
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8. The First C - Clarify
Clarifying the Strategy is made up of two important parts:
• Testing your strategy
• Aligning your strategy
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9. Clarify - Test your Strategy
Does your strategy fit with
(and support):
Your mission?
Does the strategy support the story
of “what you do?”
Your vision?
Does it tell the story of where want
to go?
Your values?
Does it honor who you are
(including the market and employee
perspectives)?
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10. Align with your Mission, Vision and Values
Past Performance Current Performance Predicted Performance
Vision How has the workforce How closely does our current What will the workforce need to
translated the vision into strategy support our vision? do with the strategy in the future
action in the past? to align more closely with the
What factors prevent better vision (In performance terms)?
Where have the disconnects alignment?
occurred? Should the Vision be
Does the new strategy enable updated/modified to reflect future
How have you addressed this the vision to resonate in the trends?
in your new strategy current market and workforce?
Mission How has our mission been How does our performance What effect will modifying our
carried forward or been against our current strategy mission (if the new strategy
changed by our past align with our mission? requires it) have on the
strategies? workforce?
How will disconnects be dealt
with in the new strategy?
Business How well has our workforce How well is our workforce What can (or should) be changed
Model executed strategy within our aligned to drive the strategy (either business model or
business model? within our current business workforce) to drive greater
model? success given the new strategy?
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11. Align with your Human Performance Capability
Align Human Performance to your Strategic Plan in 3 Steps:
STEP Identify Performance STRENGTHS that you can Leverage
Identify and include key performers from high performing functions in the
planning process
Get input on how their performance could support or extend opportunities to
drive toward the organizational goals and vision.
STEP
Look for performance gaps that if closed would create
opportunity
Focus on answering the question: if this performance gap were closed,
what incremental or even transformational opportunities would become
possible? (e.g new initiatives based on excess capacity.)
STEP Identify performance capability that does not currently exist, but
is necessary for successfully executing the strategy
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12. The Second C - Communicate
On your mark…
Get set…
GO!!
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13. Communicate your Strategy
How are strategic decisions are being made?
By small senior group, including CEO or
52
equivalent
With formal strategic planning process 23
By business unit leaders 11
By CEO or equivalent 10
By sector leaders 2
By frontline employees 1
% respondents1
Other 1
1All data weighted by GDP of constituent countries; respondents who answered ‘don’t know’ are not shown; figures sum to
100% because of rounding.
Source: July/Aug 2006 McKinsey Quarterly survey of business executives
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14. Communicate to the Head
Is “telling” enough?
We have to
educate
People throughout the organization must
understand the ‘What, Why and How’ of the
strategy.
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15. Communicate to the Heart
What does the strategy MEAN to me?
What will change?
How will it affect me?
What should I fear?
What should I look forward to?
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16. Communicate to the Hands
What is the call to action?
What do we want them to do?
EXACTLY?
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17. The Third C - Cascade
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18. Cascade - From Vision to Reality
Convert your Strategic Vision into Capability in 3 Steps:
STEP Identify Priority Plans
• Consider the overall vision and strategy as well as the strategic vision or
your organization.
• Document the top 3 initiatives that your organization must achieve in
order to accomplish the strategy..
STEP Move from Initiative to Goal
• Determine and set goals that would naturally help you accomplish the
Initiatives you identified.
• For each of the initiatives, identify 2 goals that, if achieved, would drive
results and lead to achievement of the initiative.
STEP Clarify and Align
• Ensure that yours are specific, measurable, and can be easily and clearly
communicated and understood.
• Align to team performance capabilities using an approach like
Performance DNA to assess.
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19. Cascade – Identify and Prioritize
Use a brainstorming and prioritization approach to translate
your strategy into initiatives
Brainstorm Affinitize Prioritize Align & Assign
Priority #1
Owner:
Results needed:
Performance resources:
Measurement:
Contribution to Goal:
Governance
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20. Cascade – Move to Initiatives
Make your initiatives measureable with goals and success
descriptors
Goals That Lead to How will I know if we are How will I know this (result
Plan Achievement successful? described in previous
column) has occurred?
Initiative #1 Goal #1
Goal # 2
Initiative #2 Goal #1
Goal # 2
Initiative #3 Goal #1
Goal # 2
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21. Cascade – Make your Goals Real
Link your goals to current capability
 Identify gaps
 Assign owners
Goal Critical Team If Yes, Key Team
Capabilities Members Members to Support
(Human with Right This Goal
Performance) Capabilities (* indicates lead)
Available?
Goal #1: Yes No
Goal #2 Yes No
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22. Cascade – Goals to Outcomes
Link your goals to measureable outcomes
 Identify measurable outcomes at the individual level
 Identify measurement criteria
Goal Key Team Member Outcomes Measurement
Identified Required for Criteria
Goal
Achievement
Goal #1:
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23. The Fourth C - Confirm
“However beautiful the strategy, you
should occasionally look at the results.”
- Winston Churchill
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24. Confirm your Strategy
Confirm your strategy in two parts by:
• Measuring the impact of
your strategy
• Monitoring the ongoing
progress of initiatives
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25. Measure and Monitor
• Monitor progress toward your strategic objectives
• Measure the achievement of outcomes for initiatives
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26. Capturing the Performance Loss
37% Average Performance Loss = white)
Section Title (12 point Arial; color
7.5% Inadequate or unavailable
resources
5.2 % Poorly communicated strategy
4.5% Actions required to execute not
63% clearly defined (no clear outcomes)
Average Realized
4.1% Unclear accountabilities for
Performance execution
3.7% Organizational silos and culture
blocking execution
3.0% Inadequate performance
monitoring
3.0% Inadequate consequences or
rewards for failure or success
2.6% Poor senior leadership
1.9% Uncommitted leadership
0.7% Other obstacles (including
* Harvard Business School Publishing, 2005 inadequate skills and capabilities)
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27. Questions?
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28. Wrap up
Mason Holloway, Director
CONTACT Beacon Performance Group
www.beaconassociates.net
mholloway@beaconassociates.net
443-995-4797
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