How to make the future happen
The question that currently needs to be asked is why strategy is now gaining renewed attention among many companies. In our opinion, this can be attributed to two developments: First, over the past few years, external influences such as political decisions or shorter technology cycles on companies and their market environment have increased significantly in strength and speed. This puts the added value that companies generate for their customers under much more rapid and sustained pressure than was the case a few years ago. Another is that many companies are experiencing more and more problems with implementing their strategic initiatives. Recent studies have shown that the rate of ineffective strategic initiatives is around 50%. This translates to a waste of resources that companies can no longer afford.
For companies, the consequence of these two developments is a necessity to implement excellent processes of strategy development and execution if their long-term success in the market is to be ensured.
From Vision to Execution
The strategic focus of a company can be broken down into two main phases: the concept creation and the implementation of the strategy. The concept creation describes the development of approaches that are to be used to achieve the future image or rather the objectives on the normative level. The implementation and oversight of the strategy constitute the second phase. The Japanese concept of “Hoshin Kanri” is a response to the question of how a company can best implement a strategy, typically designed for a period of 3 to 5 years, in its day-to-day operations.
Apart from the purely procedural and methodological components that strongly shape both the development and the execution of strategy, a second aspect, albeit almost more essential, is often neglected. Involving all employees is a key component towards effectively aligning the organization. Only if we succeed in engaging this target group and getting them to act in line with the vision and strategy are we able to create added value for the organization. Peter Drucker, the pioneer of modern management theory, once remarked, “Strategy is a commodity, execution is an art!” Of course, without a properly developed strategy, no meaningful strategy development can be achieved, yet the greater hurdle for companies often lies in the implementation.
The consultants look at our business in a completely different way. They closely question us and repeatedly assume an alternative point of view, which is important and necessary. The methodological strength and experience of Staufen allowed us to move forward with the strategy process in a much more focused way, rather than feeling our way through leaning by doing.Herbert Gieringer
CEO, Ernst Umformtechnik GmbH
The Staufen Strategy Excellence approach guides companies methodically from their corporate vision through strategy to implementation, while ensuring effectiveness
by agreeing on the target image in top management so as to ensure that management carries the strategy through to the organization
by addressing the process landscape at the operational level in detail so that projects can be effective with the greatest possible certainty
by installing early indicators (success factors) so that negative influences on the strategic goals can be dealt with appropriately
Strategy Excellence links vision and goals, derives strategic projects, anchors them in processes, and ensures effective implementation through transparency, measurability, and a sense of purpose for employees.
- Strength and timeliness of the vision
- How clear and accepted is the vision in your company from top management to the operational level?
- How do you show employees their own contribution to the corporate vision?
- How do you focus innovative breakthroughs within the company’s goals?
- Validity of the strategy development
- How up-to-date and well-founded are your analyses of the internal and external view?
- How do you identify the “right” projects to achieve objectives?
- How do you demonstrate driver-effect relationships between projects and goals in your company?
- Effectiveness of the strategy execution
- How do you manage to generate implementation energy among employees throughout the organization and ensure that goals are achieved?
- What is your ratio of planned projects at the beginning of the year to implemented projects at the end of the year?
- How do you measure the success of your projects within the company?
- Maturity level of the leadership system
- How do you use your company key figures (rear-view mirror or leading indicator)?
- How do your leaders handle variances and problems?
- How much do leaders drive strategic initiatives in your company?
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In the white paper “Strategy Excellence” you will learn how we believe a corporate strategy can be efficiently effective. Our team looks forward to answering your questions and talking to you in person.