"Successful Strategy Execution"
by Michel Syrett (Profile Books 2007)
This is the latest “Economist” guide, published by Profile Books. Michel Syrett is a prolific author and in this book he has faced the unsolved conundrum of converting vision into achievement. The gap between the potential value of business strategies and their realisation has been estimated at 40% in a recent survey by the Economist Intelligence Unit and there is little evidence of likely improvement. This shortfall is mainly attributable to inadequate planning and failings in execution. Michel Syrett is convinced that this underperformance can be improved by more effective management processes and by better use of the talents of those who are tasked to deliver the strategies. His book addresses how to succeed in logical steps.
Underlying this book is the military model of “mission command”. This has been derived from Napoleon, von Moltke and later commanders and is based on the principle of a fixed and well understood mission, with delegated freedom of action to delivery it. Germany’s early successes in World War II derived from mission command; the final defeat of Germany was partly due to Hitler’s increasing insistence on micromanagement. Napoleon’s system allowed for the development of a cadre of self-motivated marshals who extended his strategic scope until he overreached himself in Russia and Spain. Growing executive timber is practised by many successful companies notably GE and Tesco, some of whose top managers now lead their own companies.
Michel Syrett sets out a process for successful strategy execution with the following steps:-
Setting the scene. Involving all key players in strategy formulation, so that strategies are deliverable and properly resourced. He shows how many companies have similar visions and fail to differentiate themselves and allow space for innovation. Most importantly, they do not eliminate friction.
Friction. Friction occurs for many reasons, including staffing changes, internal politics, personal agendas, poor operational accountability, imperfect information and the actions of middle managers. Harvard Business School research shows that such actions can enhance or destroy strategies depending on the degree of focus on corporate vision which is achieved.
Focus. This is achieved by articulating goals clearly and breaking them down into specific tasks. This helps to prioritise effort and to allocate resources. It also clarifies feedback of results and the definition of problems. Focus is on tasks, not how to go about delivering them.
Communication. Communication is crucial in defining tasks and in reporting outcomes. Change and uncertainty will complicate delivery, and communication at all levels is essential to provide resilience in achieving tasks. Communication is both formal and anarchic – involving intense networking to devise solutions to unexpected situations.
Behaviour. Individual and group behaviours determine whether a strategy does or does not succeed. Key elements of behaviour identified by Deutsche Bank research are:-
The degree of willingness by the individual to perform beyond the usually expected level (engagement)
The urge of the individual to remain part of the organisation (retention).
The individual’s emotional involvement with the organisation (identification)
These elements may also be affected by group dynamics and collaboration.
Based on research by Julian Birkinshaw of LBS it is necessary to maintain an effective balance between –
Stretch. Pushing for high quality results and being accountable for them
Support. How individuals obtain the tools, coaching, etc. to help them perform
Space. How individuals gain freedom to choose their own path to success
Boundaries. Specifying clear limits beyond which individuals may not stray.
Measurement.
Performance should be measured long term as well as short term. Assessing earlier strategic performance helps to shape better strategies.
Gaps between strategies and performance foster a culture of under-performance. Strategies must be realistic and properly resourced to enforce accountability
Strategic measurement is a key task of the Chief Executive’s office.
Leadership. The key roles of the Chief Executive are to motivate and facilitate, generating engagement by others to drive the implementation of strategies.
Change. Change management is intrinsic to successful strategy execution, developing resilience and renewal of the business to face new challenges.
Innovation.
If people are clear about the main objectives of the business they can be given maximum discretion to be innovative in achieving them
Innovation should be rewarded and blame used sparingly
Teamwork is essential for stimulating and testing innovation
Care must be taken to learn from failure. Failures could be successes in different circumstances.
Pathway. The first nine headings shape a pathway to achieving successful strategy implementation. The pathway has to be built on the following foundations:-
Transparency. Letting everyone see what each is doing
Engagement. Involving workers in shaping strategy as well as delivering it
Collaboration. Building trust between people inside and outside the business
Disruption. Encouraging non-conformity as a key agent of change
Networking. Creating a free flow of ideas and the development of centres of best practice
Amoebic Response. Adapting and shifting in line with changes below the surface.
This is a challenging book and its key steps are punctuated with well-chosen case studies. These illustrate the underlying theme of the book, which is that performance has to be maintained and enhanced every day. A key model is that of military command, but parallels can be drawn with sports leadership. In both cases success or failure are clear and absolute. For many businesses decline is slow and only obvious when disaster is imminent. Too many managements are able to mislead shareholders and pursue their own agendas unhindered. The process described in Michel Syrett’s book is a powerful antidote to corporate underachievement and brings together the key elements of the sustained success of companies such as Reckitt Benckiser, Diageo, GE and Tesco.
Adrian Davies
15th December 2007
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