Figure 1 - Dominant Player
Strategy Management
Strategy management incorporates three unique parts: Formulation, Implementation, and Execution. This approach keeps the project decision-making processes within the framework of the strategic plan at the appropriate organizational levels. Not understanding the importance of a distinct Implementation process can ultimately lead to failure in achieving strategic targets.
"There are meaningful distinctions between strategy, implementation, and execution that are helpful to running a company or business in the real world. Ignoring, blurring, or getting them wrong creates sloppy thinking, deciding, and doing at all levels of an organization.” Ken Favaro[i]
The distinct elements of each part of the strategy management process requires integration and allows each level of the organization to own specific responsibilities for achieving progress toward strategic targets. This integration and alignment of process and responsibility ensure that the critical questions are answered at the right time by the right people with the right information.
Organizations often don’t include or don’t separate the strategy implementation process because they fail to see or understand its value. The strategy implementation process is important because it converts the strategic plan into assessment criteria and a portfolio of proposed and approved projects that clearly demonstrates the alignment of each with the strategic plan. This process also serves as a transparent communication conduit between all the players.
Not having a complete strategy management process can allow the organization to unknowingly drift away from its strategic targets. Some organizations may claim to be incorporating all of these activities but often the tools, techniques, and applications are missing or not properly aligned with the appropriate process or resources. At best, this situation will lead to inconsistent decision making when selecting projects. At worst, it can lead to a decision making process that is polluted through various political and negative influences, such as currying of favors, appeals to authority, dominant players, and personal agendas.
Having the tools, process, policies, and culture for a clear strategy management process with a distinct strategy implementation component will allow the organization to—
- Consider different proposals for the same project and provide a quantifiable selection of the best option.
- Build a portfolio of projects that are quantifiably aligned with the organization’s resources and long-term goals.
- Determine, communicate, and monitor priorities throughout the organization.
