“Behind every story of shareholder value, there is another story of value creation. That is the real story of strategy execution.”
Having had the privilege today to proof read the delegate materials for the upcoming Dave Norton Progress Conference on the 11th September, I cannot resist offering a little sneak preview of the 100 plus slides he has prepared for his South African audience.
In essence, he says, strategy must be a core competence and his presentation shows you precisely what you need to accomplish to make it a core state of the art competence. You can be assured of rich content with case studies and real life applications relevant to both the Private and Public sectors. His content flows seamlessly, offering delegates a deliberate journey through which they can contextualise their strategy execution efforts. And behind every success he shares with you he also tells the story of how the value was created.
THE STRATEGY MANAGEMENT VACUUM
First and foremost he will show how management systems have STILL not changed to keep up with the way the world has changed. This is what he calls a Strategy Management Vacuum. He goes on to reveal his research into why strategies continue to fail and offer solutions to overcome this sadly, prevalent reality.
MAKING INTANGIBLE TANGIBLE
I was fascinated by his take on intangible assets and how describing your strategy begins by understanding the value the intangibles offer. He cites Apple, General Electric, IBM and others and will illustrate how Tom Stewart’s thinking in respect of how knowledge that exists in an organisation creates differential advantage. Dave remarks, “A good strategy focusses on the processes and people that have greatest impact on customer satisfaction.”
CLOSING THE STRATEGIC PERFORMANCE GAP WITH CAUSE AND EFFECT LOGIC
Dave has prepared a prolific set of strategy maps, scorecards and themes that have been applied within leading organisations. He asserts that your strategic theme is critical to create change and value.
“Intangible assets are bundled”, he says. “One initiative is not enough to execute strategy. You require a portfolio of several initiatives that are interdependent and cannot be treated on a stand- alone basis.” And again, he provides real management tools to show you how to include specific ways to define your strategic architecture, create robust strategy maps and tailor relevant strategy themes. In particular he provides delegates with specific Balanced Scorecards to show how they consistently fill the strategy management vacuum
LEADERSHIP IMPERATIVES FOR EFFECTIVE STRATEGY EXECUTION
Dave also says, “It is not a simple process for a CEO to mobilize transformation.” But his content goes on to provide tried and tested leadership essentials for certain success. He shows what is required in terms of left and right brain thinking to build your effective strategy management systems and why leadership issues are most often the dominant barrier to effective strategy execution. Just one barrier cited is how politics, in 89% of cases, is the major factor that prohibits the successful execution of strategy. Enter Dave’s right brain change management techniques and priorities, with ways to break down silos, get politics out of the way and cascade the strategy and scorecards to all key executives, business units and departments with appropriate accountability.
What follows on from there are the left brain change management tools that he has observed and that have been shown to achieve desired results.
MAKING STRATEGY EVERYONE’S JOB
Dave illustrates how Hilton Hotels did just this by linking their Balanced Scorecard to education, personal goals, incentive compensation and communication. Looking forward to how he will unpack this for us on the day.
SETTING TARGETS & FUNDING THE STRATEGY
Be prepared for prolific content and techniques to define your measures and targets and determine adequate funding.
SUCCESSFUL HUMAN CAPITAL DEVELOPMENT ATTRIBUTES
An annual survey of CEO’s Presidents and Chairman showed that Human Capital Development is the most important issue facing senior management. “People driven strategies counter slow markets and economic conditions. The Balanced Scorecard Hall of Fame shows that successful strategy execution begins with Human Capital Development”, he says. And then goes on to share the results of Public & Private sector results whilst showing you which are the key Human Capital Value Multipliers. He will also show us how to develop competency profiles for each essential strategic job family and in particular how to determine the gaps between individual and group level.
THE CHERRY ON THE TOP: BUILDING YOUR EFFECTIVE OFFICE OF STRATEGY MANAGEMENT: THE EVOLUTIONARY PROCESS
As he insists that strategy is a core competence and that managing strategy is a whole new ball game very different to managing functions, he will show you why new organisation approaches are needed to facilitate cross-functional alignment. He defines the responsibilities of the office of strategy management and suggests the best practices in terms of conducting your meetings and reviews to keep your strategy on course including frequency and structure.
This blog barely scratches the surface or even does justice to what Dave Norton has in store for delegates on the 11th September, but hopefully provides you with some ideas to provoke and challenge your thinking in respect of your strategy execution efforts.
Dr David Norton is the co-creator of the Balanced Scorecard and leading global practitioner in applying the Balanced Scorecard in both the Private and Public Sector. Together with Professor Robert Kaplan, he has been acclaimed by Harvard Business Review for his significant contribution to the management profession in the past 75 years. More recently Thinkers 50 have ranked them in their Hall of Fame alongside Tom Peters, Kenichi Ohmae, Warren Bennis, Howard Gardner, Henry Mintzberg, Charles Handy, Philip Kotler and Ikujiro Nonaka for their mammoth contribution to business management and leadership.