What Is Strategy Execution video - Institute for Strategy Execution

Summary

This video explores the evolving role of strategy execution in modern organizations. It discusses how functions like HR and IT have shifted from being undervalued to strategic assets, and predicts that strategy execution will soon be seen as a core business domain, similar to marketing or sales. The video emphasizes that strategy execution is not just about action plans but about decision-making at all levels, aligning day-to-day choices with broader strategic goals. It highlights the importance of communication and building long-term capabilities for successful strategy implementation.

Takeaways

• 😀 Strategy execution is becoming an increasingly important business domain, similar to marketing, sales, and operations.
• 😀 In the past, strategy execution was often overlooked or delegated, but it is now recognized as a key function for business success.
• 😀 Strategy execution is not just about action planning; it involves facilitating decision-making in line with the overall strategy.
• 😀 Helping people make day-to-day choices aligned with the big strategic objectives is a core aspect of strategy execution.
• 😀 As businesses adapt to changing environments, strategy execution will play a vital role in realizing current strategies and building capabilities for future ones.
• 😀 Strategy execution is expected to become a formal domain within organizations, much like how HR and IT have evolved over time.
• 😀 The role of the Chief Information Officer (CIO) has gained importance in aligning strategy with technology, similar to how strategy execution connects with organizational decision-making.
• 😀 By 2020, strategy execution is predicted to be recognized as a dedicated business domain in many organizations.
• 😀 Effective strategy communication is a key aspect of strategy execution, helping to ensure clarity and alignment across all levels of the organization.
• 😀 Strategy execution involves long-term capability building that will continue to support future strategic goals beyond just immediate action plans.

Q & A

What is strategy execution?

Strategy execution is the process of helping people make small, day-to-day decisions in line with the big strategic choices made by an organization. It focuses on facilitating decisions rather than just implementing action plans.

How has the importance of HR evolved over time?

In the past, HR was seen as a secondary function, mainly concerned with paying employees. However, today HR plays a crucial role in business success and is often represented at the management level, emphasizing the value of talent management.

What shift occurred in the perception of IT technology in business?

In the 1980s, IT was viewed as a non-strategic, technical function. Today, however, technology, especially in industries like banking, is recognized as integral to strategy, with roles like the CIO becoming central to business leadership.

Why is strategy execution becoming more important in business?

As organizations increasingly recognize that execution is as important as strategy itself, strategy execution is expected to become a formal business domain, similar to functions like marketing, sales, and operations.

How have business schools adapted to the importance of strategy execution?

In the past, business schools did not offer courses on strategy execution. However, today, many business schools include strategy execution as a key area of study, reflecting its growing importance in the business world.

What distinguishes strategy execution from action planning?

Strategy execution is not just about creating action plans. It is more about facilitating decisions that align with the organization’s strategic goals, ensuring that day-to-day choices reflect the big-picture strategy.

What role does communication play in strategy execution?

Effective strategy communication is crucial in strategy execution. Organizations that excel at communicating their strategy can continue to leverage this skill when launching new strategies, ensuring alignment across the company.

What is the long-term nature of strategy execution?

Strategy execution is not a short-term initiative. It involves building long-term capabilities that support current strategies and help organizations adapt to future strategies over time.

How does strategy execution compare to marketing or sales?

Like marketing and sales, strategy execution is a business domain, but it is focused more on the decisions and actions that ensure alignment with strategic goals. It involves facilitating decisions in the field, rather than simply following an action plan.

Why do some leaders underestimate the importance of strategy execution?

Some leaders still view strategy execution as less important than strategy itself. They may delegate execution to others, thinking it is merely about implementing action plans, when in reality it requires active facilitation of decisions that align with the broader strategy.