Presentation on theme: "Take Flight 21-22 September 2010. EXECUTING STRATEGY : THE BASICS THE ROLE OF STRATEGY What is Strategy? Why is Strategy Important? How is Strategy Formulated?"— Presentation transcript:
EXECUTING STRATEGY : THE BASICS THE ROLE OF STRATEGY What is Strategy? Why is Strategy Important? How is Strategy Formulated? STRATEGIC PLAN : FOUR KEY ELEMENTS Direction Statement Strategic Objectives Priority Issues Action Plans PLANNING PROCESS Analyse External and Internal Factors Perform Swot Analysis Develop High – Level Action Plans Finalize the Plan
SWITCHING FROM PLANNING TO EXECUTION COMPONENTS OF THE ACTION PLAN Priority Issue (Broad area that the team plans to focus on, and why it’s important); Objectives (Allow your team to measure how it’s performing six months, one year, two years ahead); Steps (Outline the four to five high-level tasks that need to be completed) Who, What and When
Resources (People, cost, technologies, office space, systems, strategic partners, time, training); Cross-functional Collaborations (Departments/units working in tandem); Impact Estimate (Anticipated cost and revenue potential of the project).
PRIORITY ISSUES Merchandise Stock availability / Improved size curve Value propositions Establish key suppliers Point of difference Fashion skewed towards freshness and newness First in product Quality Create Unique Shopping Experience Image Layout and displays Presentation of merchandise Feel and touch
PRIORITY ISSUES continued Improve Customer Service Leadership levels at stores Training Motivation Communication with customers Marketing Point of sale signage Media events Internet Database of customers Market Research Quality Control Packaging Care instructions Returns Policy Stock and cash compliance
ESTABLISHING ACCOUNTABILITY (Advice for securing this key to execution success) Identify Responsibilities (Determine who will be responsible for each of the different steps required to execute the plan) Establish accountability for tasks; Consider getting input from people; Clarify how much autonomy people will have in carrying out their responsibilities Clarify team members capabilities and preferences Hold regular meetings (evaluate success, learn from failures) Reward star performers accordingly Gathering Input From Others (Get input from the owners of action plan tasks) (Getting input from people with varying levels of experience).
CREATING AN ENVIRONMENT FOR EXECUTION EXCELLENCE (Recommendations for laying a foundation for success) Developing A Strategic Mind Set In Your Group (Strategy is EVERYONE’S job) Why company’s strategy is necessary How initiatives being carried out support the corporate strategy What will happen if the team succeeds in implementing plans What will happen if the team fails to implement its plans What attitudes and behaviours are expected from each person on the team (willingness to go the extra mile, ask for help when needed). Considering Your Culture Resolve conflicts, interact with each other Choices to work on and quality of their work Instill right values for a strategic mind set.
Foster Leadership Identifying team members who excel Putting stars in key positions Look for team members who exhibit the following qualities: * Integrity * Visionary thinking * Analytical and conceptual thinking * Effective decision-making * Interpersonal and communication skills * Drive and initiative * Commitment to successful execution (make the best use of their talents
Identifying And Addressing Resistance Outright defiance Agreement to do something, but failure to follow through Emotional attachment to the way things were previously done Diminishing commitment to the job. Options For Resisters Give the person plenty of information about market conditions forcing the Company to change Involvement (invite the person to participate as much as possible) Coaching (Identify reasons behind the resistance fear of change or lack of information) Performance improvement plans
Training People For The Future Ongoing training is essential for a team to excel at executing strategy Identify any new skill individuals will need (Holding meetings, giving presentations, communicating with customers)