Four Keys Linking Execution With Strategy
By Richard Berlin, JD, MBA
Leading and managing a chamber or non-profit is never easy. Challenging goals. Tight budgets. Demanding volunteers. Difficult employees. The reality is that most organizations fail from time to time. Why? According to Fortune magazine, over 70% of organizational failures were caused by poor execution of good strategies.
How can your organization reach breakthrough goals, drive new revenue growth, or operate more effectively as a team? Achieving these goals and more depends on how effectively your organization executes strategy. Leveraging a tool like the Balanced Scorecard is an effective way to execute strategy. Originated by Drs. Robert Kaplan (Harvard Business School) and David Norton, the Balanced Scorecard is a strategic management and performance measurement system that considers not only financial measures, but also customer, business process, and learning measures to dramatically increase operating surplus for the short and long term.
The Balanced Scorecard was created to provide a more effective way to manage and measure businesses and organizations. Traditional financial reporting systems provide an indication of how an organization has performed in the past, but offer little information about how it might perform in the future. For example, an organization might reduce its level of customer service in order to boost current earnings, but then future earnings might be negatively impacted due to reduced customer satisfaction.
Regardless of the tool or methodology used, successful organizations ultimately find that that the four keys to link execution more effectively with strategy are to:
Clarify strategy. Translating strategic objectives into quantifiable measures clarifies the management team's understanding of the strategy. In turn, this helps to develop a coherent consensus among key decision makers.
Communicate strategic objectives. Time and time again, organizations create masterful strategies, but do a poor job of communicating their strategy throughout the organization. It is vital to translate high level objectives into operational objectives and communicate the strategy effectively throughout the organization. This involves having regular discussion sessions with all members of the organization and getting their feedback to ensure they understand the strategies.
Plan, set targets, and align strategic initiatives. Another common pitfall that companies fall into is to not set ambitious but achievable targets for their strategic initiatives. Specific plans, targets and measures must be set and cascaded to all employees in the organization. This allows strategic initiatives to be aligned with efforts to reach the targets.
Gain feedback and learn. It has often been said that receiving feedback is a gift. This is most certainly the case. Feedback allows individuals and organizations to learn, grow, change and improve. Building in regular checkpoints for feedback on whether the strategy implementation is proceeding according to plan is vital for success. This is often referred to as “double-loop learning.” An organization must work to detect errors in any strategy implementation, then modify underlying norms, policies, objectives, or processes that caused the errors to occur in the first place. It is a continuous cycle of improvement.
Following these four keys will inevitably link execution your organization's execution more effectively with your strategy. As Thomas Edison once said “the three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; and third, common sense.”
About Richard Berlin and Fremont Development Group
P. Richard Berlin, JD, MBA is a Senior Principal at Fremont Development Group, a fundraising consulting firm. Since 1994, Fremont Development Group has used its proven methodologies and innovative strategies to help raise funds, increase charitable giving, and clarify vision for Chambers, non-profits, and economic development organizations across the United States.
As a fundraising consulting company, Fremont partners with clients who seek to grow their financial resources and execute successful campaigns. By assisting clients in developing a clear vision, involving diverse stakeholders, planning for the future, and executing against plan, Fremont helps non-profits accomplish their mission by generating the revenue needed to become self-sustaining organizations.
Headquartered in Atlanta, Georgia, Fremont Development Group serves clients across the United States. Please visit www.fremontdevelopment.com to learn more or call (404) 459.0401.