© TURNER, 2018
SNELLER VERBETEREN, VERNIEUWEN EN INNOVEREN IN EEN NIEUWE TIJD. IMPROVE, RENEW AND INNOVATE FASTER IN THE NEW ERA
STRATEGY = EXECUTION
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© TURNER, 2018
Improve Strategy-execution. Why bother?
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Faster improvement, renewal and innovation in a new era.
Based on 60 interviews with executives, 75 cases and 300 articles and books with one question: what makes or breaks modern day strategy execution and innovation? The research is published under the title Strategy = Execution. Want to know more about masterclasses and specific interventions? See: www.turner.nl/strategie-executie/strategy-execution/
Organizations that excel in strategy execution start on average 3 months earlier with execution (the ‘lead-time-to-execution’), reduce execution- and innovation processes by 50% and realize 15 – 25% more of their objectives. Just as interesting: they increase their execution capability every year. Strategy = Execution provides ground breaking insight in modern day success factors.
Stra
tegy
= E
xecu
tion
© TURNER, 2018
SNELLER VERBETEREN, VERNIEUWEN EN INNOVEREN IN EEN NIEUWE TIJD.
OLD AND NEW FAILURE
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© TURNER, 2018
Your top 3 failure factors In
tera
ctiv
e - m
entim
eter
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GO TO WWW.MENTI.COM AND ENTER THE FOLLOWING CODE
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© TURNER, 2018
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Cliche factors of failure: 1. Bad strategies 2. Badly implemented key roles 3. Lack of alignment 4. Horrible estimation of ‘what it takes to
tango’ 5. Deficient information supply or
information overload 6. No ownership
Non-cliche factors of failure: 7. No differentiation,
everything piled together 8. A foolish portfolio 9. Unclear execution process, only able to
work in an ad hoc manner 10. Spending time and money unwisely 11.Insuffience attention to the soft side 12.Imbalance between top-down versus
bottom-up 13.Imbalance between ‘change leadership’
en ‘change manangement’ 14.Overly fanatic methods The new failure in fundamental innovation: 15.Innovation as a hobby 16.Dangeous and unnecessary mystique
Three categories of causes of failure
Yawn. Alright!
>60% of all Strategy-execution initiatives do not succeed C
ause
s of
failu
re
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Failure in five steps: A wrong application of resources, ‘set-up to fail’.
Board of directors
Primary process
Division 1 Division 2 Division 3
Business Unit 1
Business Unit 2
Business Unit 3
Department 1 Department 2 Department 3
Why Strategy-execution fails so often. Fa
ilure
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Goal Dream 1 Strategy 2 Analysis 3 Redesign 4 preparation of 5 execution 6 execution and secure
Evaporated development method
Horrible pace
Conceptual waterhead
The three most common archetypes of failure practices: the waterhead, the horrible pace, and the imbalance
Appr
oach
es fo
r fai
lure
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Sources: 1. McKinsey’s Richard Foster rekende in zijn boek Creative Destruction voor dat de levensduur van in de Fortune 500 genoteerde bedrijven daalde van 75 jaar in 1950 tot minder dan 15 jaar in 2000. 2. Standard & Poor’s bevestigt dat beeld. 3. Het Verkenningsinstituut Nieuwe Technologie van IT-dienstverlener Sogeti 4. De Shift Index van Deloitte
1 Average life expectancy organisations
2 Rotating market leaders (pace of change)
4 Development S&P index
3 Typical life cycle product
5 Bankruptcies established companies
6 Revenue share innovations
8 Patent applications 7 Go-to-Market time innovations
75
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0 1950 ‘00 ‘15 ‘16 1950 2010 2015 2030
0% 30% (new)
10% 20%
‘90-’00 ‘10-’20 ‘00-’10
The context of innovation is tricky, but fantastic for someone who can recognize opportunities
The new normal is (as of yet) broadly acknowledged and shows unambiguous effects.
The
new
nor
mal
© TURNER, 2018
SNELLER VERBETEREN, VERNIEUWEN EN INNOVEREN IN EEN NIEUWE TIJD.
VISION: SEVEN MODERN FACTORS FOR SUCCESS
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Your top 3 success factors In
tera
ctiv
e - m
entim
eter
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GO TO WWW.MENTI.COM AND ENTER THE FOLLOWING CODE
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© TURNER, 2018
1. Distinguish run and change and three types of change Su
cces
s fa
ctor
1
RUN Day-to-day management
CHANGE Improve, renovate, innovate
Project and program-based approaches are conditional
How? With 6 factors for success & 4 accelerators
Excellence in strategy-execution
Hard
So
ft
Improvement Renewal Innovation
1
2
3
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© TURNER, 2018
2. Spent 20% of their time on strategy and 80% on sheer execution
Succ
ess
fact
or 1
Instead of strategic analysis and design Old
Focus phase 2-3 months
Design phase 3 months
Preparation 3 months
Implementation 3 – 6 months*
* Lead time until implementation
* Lead time until implementation
Ideal Start up phase
Design phase
Implementation 3 – 6 weeks*
80% 20%
20% 80% New
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© TURNER, 2018
3. See strategy execution as a process
Succ
ess
fact
or 3
Accelerator 1 CHOOSE
1 Aspire 5 Must have 9 Benefit 13 Adjust
2 Select 6 Break- through
10 Keep developing
14 Open architecture
3 Appeal 7 Excellent start
11 Accelerate 15 Learn
4 Activate 8 Psycholo- gical check-in
12 Bridge 16 Extra mile
Accelerator 2 INITIATE
Accelerator 3 REAP
Accelerator 4 SECURE
Overall Strategy Per initiative
Project/program management = Condition
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4. Choose sharply Su
cces
s fa
ctor
4
Balanced portfolio Unbalanced portfolio Type 1
Improvement Type 2
Renovation Type 3
Innovation Low
High
Ris
k
Short (1 years)
Medium (1-2 years)
Long (2-5 years)
Horizon
No focus
Too high gamble
Too risky
Too conservative
High focus on short term
Strategic priority, dark is high (Size is net present value
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Archetypes / examples initiatives
Innovation
Sales-effectiveness boost
Reduction and growth program
Recovery / cost savings
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5. Have a two-sided Janus-face Su
cces
s fa
ctor
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BU 1 BU 2 BU 3
RUN CHANGE RUN CHANGE
EXPLOITE INNOVATE! &
Loosely coupled
Innovate 3 Improve
Renew
1
2
Scor
e O
rgan
izat
ion
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6. Work with execution coalitions Su
cces
s fa
ctor
6
1. Assignment giver
2. Fellow sponsor(s)
3. Execution leader (design & execution)
4. Involved execution aide(s)
5. Benefit executive
Key roles
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© TURNER, 2018
7. Ensure a psychological check-in from every key-player Su
cces
s fa
ctor
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8 Psychological check-in
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© TURNER, 2018
Organizations that excel in strategy execution: St
rate
gy =
Exe
cutio
n
RUN CHANGE OUD
NIEUW
LOOSELY COUPLED
Distinguish run and change en three types
of change
Spent 20% of their time on strategy and 80% on
sheer execution
Choose sharply See strategy execution as a process
Have a two-sided Janus-face Work with execution coalitions
Ensure a psychological check-in from every key-player
1 2 3 4
5 6 7
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© TURNER, 2018
What can and will you use?
Inte
ract
ive
- men
timet
er
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GO TO WWW.MENTI.COM AND ENTER THE FOLLOWING CODE
16 30 44
© TURNER, 2018
What can and will you use?
Inte
ract
ive
- men
timet
er
20
GO TO WWW.MENTI.COM AND ENTER THE FOLLOWING CODE
16 30 44
© TURNER, 2018
Thanks! Curious about the other succes factors and more?
Endi
ng
1. More info or reactions? See: www.turner.nl/strategie-executie/strategy-execution/ [email protected] / @JPijlTurner / https://nl.linkedin.com/in/jacquespijl/ #strategieisexecutie
2. Want to know more? Contact Wendelina Fieret, [email protected]
Jacques Pijl, Directeur Turner
Order your copy of the book
Apply for the masterclass (open or incompany)
Recommendations from 24 top managers and scientists about the book.
Preview copy of Strategy = Execution.
More information on the book, the authors, and Turner.
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© TURNER, 2018
STRATEGY = EXECUTION IS THE FAVORITE BOOK OF CEO’S OF INNOVATIVE ORGANIZATIONS. SOURCE: FINANCIELE DAGBLAD
NR.1 & 250 DAYS IN BESTSELLER TOP 100
FOURTH EDITION WITHIN 1 YEAR
NOMINATED FOR MANAGEMENTBOOK OF THE YEAR 2017
FEATURED IN FD, EMERCE, FRANKWATCHING AND CFO
24 RECOMMENDATIONS FROM TOPMANAGERS
100 INCOMPANY WORKSHOPS AT THE TOP 25-50 ORGANIZATIONS, AVERAGE SCORE 8,7
More information, see: www.turner.nl/strategie-executie/strategy-execution/
STRATEGY = EXECUTION IS THE NR. 1 TOPIC FOR LEADERS AND EXECUTIVE BOARDS
STRATEGIE = EXECUTIE
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