The ability to quickly develop and execute superior strategies is what makes an organization sustainably successful. In my opinion and experience, the successful organization has 4 key processes working very well:
1.- Strategy: many organizations are drifting due to a lack of direction. A relevant, clear, simple, widely shared and understood Strategic Plan, provide employees with the opportunity to “buy-in”, support and promote the plan. This generates the sense of belonging and commitment necessary for people to actively contribute to the organization’s success.
2.- Execution process/system: the majority of plans fail due to poor execution. An adequate process/system ensures the plan is being properly executed, and that adequate and timely actions are taken in the face of deviations. This includes, at least: goal setting for each employee, meeting structure to follow-up on the plan, and the KPI’s for the business.
3.- Leader Development: another reason why plans fail, is lack of capability by management to execute them. An organization must systematically develop the leaders and managers its plan requires. Providing systematic coaching and feedback, based on an individual development plan, will help people grow and allow them to deliver better results. These leaders, in turn, will develop other leaders to fuel the organization’s growth and performance improvement.
4.- Governance: the lack of clear governance structures is another factor that frequently makes execution difficult, and sometimes even impossible. The organization must have clarity on whom, when and how decisions are made, seeking for them to be made closest to the issue. Within this, the adequate design of Boards and Family business governance are very important.
A key role for Board Members and CEO’s is to ensure these processes are in place and working properly.