Objectives of the session
► To appreciate the importance of excellent implementation
of strategy
► To be able to work through Kotter’s 8 steps to managing a
strategic implementation
► To be able to develop a balanced scorecard as a way of
making strategy relevant to an organisation
“70% of major … strategy
implementation projects fail …because
organisations do not take a holistic
approach to seeing change through”
John Kotter
Implementing Strategy
STRATEGYFlawed Sound
EXECU
TIO
N
Sound
Fla
wed
Doomed from the outset
Flirting withdisaster
A pretty good
chance
A botchedjob
Kotter’s Eight Steps
1. Create a sense of urgency
2.Create a guiding coalition
3.Create a vision for the strategy/change
4.Communicate the vision
5.Remove obstacles
6.Create some short term wins
7.Build on what you have started
8.Anchor the strategy/changes into the corporate culture
Step One: Create a Sense of Urgency
-Compelling reasons.
-Spark the initial motivation.
For change to be successful 75% of the management needs to
buy in to it
Step Two: Form a Guiding Coalition
- Strong leadership.
- Coalition, or team, of influential (not hierarchical) people.
-
Step Three: Create a Vision for the Strategy/Change
- Easily grasped and remembered.
- Help everyone understand why.
Can you communicate the vision in 5 minutes?
Step Four: Communicate the Vision
- Communicate it frequently and powerfully.
- Keep it fresh on everyone's minds.
Step Five: Remove Obstacles
- Empowers the people you need to execute your vision.
Are all your internal processes aligned with the vision?
Step Six: Create Short-term Wins
- Plan for a taste of victory early in the change process.
- Have results that people can see.
Step Seven: Build on What you have Started
- Don’t declare victory too early.
- Keep looking for improvements.
The first sign of improvement does not signify a war won!
Step Eight: Anchor the Changes in Corporate Culture
- Make the change part of the core of the organization.
Changes stick when they become ‘the way we do things round here’
WHAT ARE WE TRYING TO ACHIEVE HERE? (HOW WILL WE KNOW?)
FINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL PROCESS PERSPECTIVE
LEARNING AND GROWTHPERSPECTIVE
INCREASEDINCOME
REDUCED COST
EXCELLENTEXECUTION
CUSTOMERUNDERSTANDING
GREAT PRODUCT
INNOVATIONCONTINUOUSIMPROVEMENT
ENVIRONMENTALAWARENESS
THE RIGHT SKILLS
THE RIGHT TECHNOLOGY
A POSITIVECULTURE
KPI/
UN
IT O
F M
EASU
RE
TO BE THE PERSONAL TRANSPORT BRAND OF CHOICE BY MAKING OUTSTANDING PRODUCTS
FIN
AN
CE
PERSPECTIV
ECU
STO
MER
PERSPECTIV
EIN
T.
PRO
CESS
PERSPECTIV
E
LEARIN
G &
G
RO
WTH
PERSPECTIV
E
40% GrossMargin by 2014
10% Net Profit by 2012
20% turnover growth year on year
15% Unit Sales growth year on year
Maintain cash Position£1m in the Bank
Right Productto customer at the right time
Innovate on existing coreoffering
Create newMarkets &Develop existingones
Provide better Information to The customer
Provide Excellentservice
New Productsto market
FairPricing Strategy thatReflects International differences
Improve dealer info management
Improve order & invoice completion and tracking
Improve employee engagement
Improve quality cost and delivery
Improve knowledge and infomgmt
Greater representation in the community
Greater ethical compliance, Waste management and recycling
Give people the tools and permission to be effective
Improved communication
Improved recruitment and on-boarding
Greater visibility of leadership
Improved performance management process
Great at managing resources. Inspirational leadership, change
IMPLEMENT MEASURES TO REDUCE PRODUCTION COSTS
MAINTAIN CORE REVENUE GROWTH AND IDENTIFY AREAS OF IMPROVED REVENUE OPPORTUNITY
Our Mission is to be “The personal transport brand of choice by making outstanding products.” Our reputation will be about producing something that is truly outstanding – that is why people will choose us!
So how will we do that? Well we clearly must make sure that the business itself continues to grow and we have identified two clear areas for focus:
1.Maintain core revenue growth and identify areas of improved revenue opportunity2.Implement measures to reduce production costs
We will achieve these very demanding financial progress by focusing our attention fully on our customers and:- Making sure we have the right product for every customer and we get it to them at the time they expect it- Providing excellent service EVERY time the customer makes contact with us, for whatever reason.
If we do these things with our customers, we will achieve the stretching financial targets we have set ourselves.
However, we cannot do any of them unless we:- Improve our overall dealer information management and keep on top of their own performance.- Deliver improvements on quality, cost and delivery
We could not do it without the support and dedication to quality of every member of the organisation. And there are a number of things we are now working on that we think will improve this whole area:
- We want to improve communication generally across the whole business. - As a leadership team need to be more visible - helping you to do your job by listening to you and taking away the things that get in the way.
- We want to review our recruitment, induction and performance management processes so that every member of Brompton staff will understand exactly what is required of them, and what will happen when the meet or exceed those requirements.
In summary
It is hard work developing a strategy
It is hard work executing it
It is particularly hard work when neither are done properly.
Strategy is about knowing where you are, where you want to be, and understanding the steps you need to take to get there.
Then it is about taking those steps!