Advisor I Mentor

Sparring partner

Piotr

Kania

It is commonly believed that success is only 1% strategy and as much as 99% identification with it and its practical execution. This perspective essentially fully answers the question of when a company's strategy has the right to be successful and when it will be just a list of unfulfilled ambitions and promises. It seems simple: focus on developing the strategy, ensure employees understand it, and execute it. If the solution is so obvious, the question remains, why are so many organizations still unable to effectively implement their strategies? To answer this question, one must first examine the process of designing a company's strategy.

In the assumptions, before such a document is created, usually in the first step (1) the owner or management presents their idea for the company, its purpose, and mission. They often need to answer the questions: “Why do we exist?” “What will happen if we are not here?” The higher purpose of the operation should justify the sense of running the business, explaining the way to create value for customers and the community.

The realization of the already presented mission (higher purpose) cannot be limited to the personal involvement of the owner or management but will only be possible with the cooperation of the entire organization working together based on established rules. The more ambitious the goal and the more complex the structure, the more important it is to agree on common “rules of the game.” Defining a more or less formal code of values (2) and behaviors (3) that should prevail in the company is fundamental, just as it is in a home environment or on the road.

The next step is to define the vision (4), the company’s ambitions for the coming years. The vision should present the company in a 3-5 year perspective. It is a picture of the future described both by numbers and the quality of internal and external relationships. The company's vision confirms and supports the realization of the higher purpose (mission) of the company. It is a step in its final fulfillment.

Translating the vision into concrete actions is a set of strategic goals (5). These are key undertakings that ensure that the individual elements of the vision will be realized. Strategic goals usually relate to customers, employees, the market and social environment, self-improvement, and process optimization. Goals (3-5) should be concrete, presented in numbers or in another way that allows for determining their achievement within the assumed time. After the period of the announced vision and strategic goals ends, a process of analyzing the achieved results follows, and the cycle of setting goals for the next 3-5 years repeats. Another stage in the realization of the higher purpose is planned, taking into account changes in the external environment and within the organization.

Strategic goals, often quite general, defined at the level of the entire organization, are then broken down into tactical and operational goals (6), which are specific actions to be performed by individual departments, teams, and individuals. The action plan, responsibility, deadlines, and possibly the budget should be closely monitored and updated depending on the situation.

The above description of the strategy creation process is widely known and implemented by most organizations. So what causes strategies built on this seemingly simple model to often fail? The most common reason is the lack of the seventh (7) key element, which is the cooperation of the entire organization in designing the “future of the company” and co-responsibility in consistently implementing this concept in life, said in one word: alignment. 

Omitting this last element in the strategy creation process by owners or management nullifies all previous efforts, perpetuates the status quo, undermines faith in the effectiveness of change among employees, and calls into question the future of the organization. Where does this lack of cooperation and co-responsibility manifest itself? It is primarily the failure to include a broader group of employees in the strategy creation process, insufficient communication among employees, and consequently, a lack of understanding of the connection between the “big slogans” and the day-to-day work and duties, lack of consistency, engagement, and integrity in implementing the developed strategy.

Setting the direction, i.e., the mission of the company or organization in the more or less distant future, is definitely the responsibility of those at the top of the company hierarchy. It is hard to imagine that upon being created by the owner or partners, the company would not have a defined purpose, even if it were only financial. An inspiring leader has a concept, has a vision of the future, and is not afraid to speak boldly about it.

Unfortunately, very often the further process of developing the strategy also follows the principle: “The higher I sit, the farther I see, the better I know.” The top-down message does not end with setting the direction but includes all the previously discussed elements of building the strategy. A common practice is that the company’s management gathers at an internal off-site meeting, locks themselves in a conference room, and in a week develops a set of values, behaviors, i.e., the foundation of the organizational culture, creates a vision, and outlines strategic goals. More ambitious teams may even attempt to create a set of tactical and operational actions, thus creating a complete plan for the coming years. And all this in a few days, at most a week!

The natural consequence of this approach is the lack of identification by both managers not included in the group developing the strategy assumptions and the rest of the company’s employees with the presented vision. Even the best strategy, if it does not take into account the opinions of all major employee groups, their ideas, and suggestions, will remain just a wish list of “those at the top.” Being excluded from the strategy creation process is perceived by the team as a lack of trust, a belief by management that employees could not contribute anything significant to the work on the document. This perception directly affects the team’s motivation and engagement in implementing the strategy in their daily activities.

As important as co-creating the strategy with the largest possible group of employees is internal communication within the organization. Even the most extensive consultation process will usually not cover all employees (unless it is a company of a few people). It is simply too time-consuming an undertaking, and not all employees at this stage of the process are ready to participate actively. Hence, ensuring that the entire team fully understands what lies behind often quite general slogans and how each employee can personally realize the strategy by performing their daily duties well is crucial for the success of the whole process. The group that particularly needs to be cared for in the process of informing is middle management. It is the team leaders, branch managers, and working groups who must be convinced of the new strategy and able to “infect” their teams with it. Even the most ambitious and engaged management board will not be able to fulfill this role.

Finally, as with any change, in the process of creating and implementing a new strategy, full engagement and consistency in its implementation are necessary. The responsibility for successfully implementing the planned actions (goals, deadlines, responsibilities, budget) lies with all employees, but especially in the initial period, the tone for the changes must be set by the leaders. The voice of the owner, CEO, or managing director of the company, heard in the organization throughout the process, is crucial for maintaining faith in the success of the new strategy, ensuring the motivation of management and operational employees, and reinforcing the belief in the inevitability of the changes. In the next step, it will be equally important to reinforce this message by the management within the teams, branches, and working groups.

Maintaining the set “course” will not always be easy, given the changing market conditions, often different corporate priorities, pressure to achieve current financial results, or fear and resistance to change within the company. However, only a firm stance, focus on the higher purpose, and determination to bring the initiated project to a successful conclusion can ensure the long-term success of the implemented concept. At the same time, consistent implementation of the planned actions, cyclical tracking of achieving the set goals, and gathering feedback from the teams by managers will ensure the practical implementation of the strategy.

So, can a strategy be successful? Definitely yes. Of course, there is no guarantee that even the best-formulated assumptions, well-prepared and conducted processes, and determination in its implementation will end with a “happy ending.” However, taking into account all 7 integral elements in the strategy creation process significantly increases the likelihood of success and building a stable foundation for the company's future.