In general, a company's success depends not so much on the quality of its strategy definition, but on the ability and discipline to carry it out.
When anxiety takes center stage, decisions become rushed, and the organizational consequences can be very negative.
That is why a strategy expert like Robert Kaplan, maintains thatThe success of a strategy lies more in its execution than in its definition.
However, most organizations struggle to implement strategic commitments, even when their leaders are clearly aware that their execution will bring enormous benefits to the company.
The difficulty is associated with the fact that senior management typically fails to assume its most important role: monitoring the action plans for each area, which is how the strategy becomes a reality. Only through detailed plans and rigorous execution can companies advance in the vital task of reinventing themselves by creating continuous learning and doing what has been identified as vital to maintaining competitiveness and market share.
When senior management is able to assume this role, it sends a clear signal to employees, customers, suppliers, and shareholders. It demonstrates that the company's executives understand that one of their most important tasks is to align people and organizational processes to achieve objectives.
We agree with Kaplan that strategic alignment is one of the five basic principles of successful management. These principles are as follows:
1. Leadership: Successful organizations operate with a clear vision, mission, and strategy, and each member is responsible for fulfilling their role.
2. Translate the strategy into operational terms (Action Plans): This way we make sure we do the right things instead of doing the wrong things correctly.
3. Align the organization with its strategy: Leading companies are those that work continuously and systematically (methodically) to align people and organizational processes to achieve their strategic objectives.
4. Communicate and motivate: Without participation, there is no commitment. That's why ongoing communication is essential. In successful companies, employees understand the goals and have the energy and enthusiasm to achieve them.
5. Follow-up: Successful organizations continuously monitor their performance using management indicators, adjust plans based on reality, and integrate these indicators into daily decision-making at all levels of the organization.
To do this successfully, companies need a management system that allows them to translate these principles into operational reality.
TPM and 5 “S”, are some of the most successful comprehensive management systems around the world. But they are always associated with the credible and deeply committed leadership of those responsible for creating the necessary cultural change.
Unfortunately, as Robert Kaplan points out, companies run the risk of sacrificing their long-term strategic objectives in favor of short-term financial goals. This is why plans alone are insufficient to implement strategy throughout the organization. Sufficient energy and vision are required to continue moving forward even when the summit is not entirely clear. True leaders seek the support of their peers and their people to try to decode the signs along the way and thus remain steadfast in achieving what was identified as strategic.
Strategically managing a company also involves identifying the synergies between the various areas to reap the benefits that come from teamwork. The best soccer team isn't the one with the best players, but the one with a leader (a coach) who knows how to bring out the best in everyone to achieve the best coordination.
By adopting a strategy and then implementing a comprehensive management system to make it a reality, companies explicitly define the role of coordinating, aligning, and measuring the different areas and units. This achieves the discipline and method necessary to ensure high productivity and improved profitability.
