A thought leader in Business Simulations and President of Simulation Studios which creates business simulations for top companies globally.
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Strategy execution refers to the implementation of a strategic plan developed by an organization or business in an attempt or effort to achieve organizational goals. It entails daily structures, operational objectives and systems that set up for success individuals entrusted with specific duties in an organization. Without the proper strategy execution, an organizational strategic plan can fail. Therefore, it is an important way for an organization to execute its strategic objectives.
Many organizations with a well-developed strategic plan do not succeed in achieving the goals aimed by the plan due to the existing gap between strategic planning and execution. As evident in most prominent companies, a company might develop the right strategy, which will enable such a company to be ahead of the competitors in the market. Still, without a proper criterion for executing such a plan, the plan is just mere writing that has no impact on the company. There exists three keys to the successful execution of a strategic plan.
First, an organization has to commit to a strategic plan. Before executing a strategic plan, it is critical to ensure that all decision-makers and entire stakeholders agree on the strategic plan. The Harvard Business Review reported that 71% of employees in companies with weak execution believe strategic decisions are second-guessed, as opposed to 45% of employees from companies with strong execution. The objective behind remaining committed to a strategic plan ensures that all stakeholders concerned with implementation remain aligned to similar goals. This establishes a shared understanding of the strategic plan entirely within the organization. Suppose all are aligned to a similar purpose. In that case, it means the organization has higher chances of achieving the set goals because all relevant stakeholders will be working in an informed way toward a common objective.
Second, an organization has to align jobs with strategy. One of the most significant barriers to the successful execution of a strategic plan is not designing employees' roles with strategy in mind. This often occurs when employees are hired before a strategy is developed or functions are developed consistent with previous organizational strategies.
Thirdly, to properly execute a strategic plan, an organization has to communicate more openly and transparently to empower employees. Not all employees are aware of the company's strategies. Therefore, the management must ensure that all employees have been communicated with regarding the company's strategies. Execution of a strategy depends on the understanding of such a plan by employees who are bestowed with the duty to execute it.
How Things Fail Without Focusing On Execution
Strategy execution involves translating organization goals or strategic initiatives into action. It is a crucial aspect of any company, and therefore, if not adequately ascertained, various consequences might arise to the organization. Every organization or company aims to achieve specific goals and believes these goals, if achieved, place them in a more advantageous position than the competitors. But achieving the set goals is not an easy task; an organization must choose the proper criteria for executing the strategy.
Suppose an organization fails to select the correct strategy execution. In that case, it then means that all previously ejected resources during the development of a strategic plan will go to waste. This then means that an organization will continuously waste a lot of help in developing the plan. Still, it fails to benefit from such an investment because the plan will not be implemented due to lack of good strategy execution. In certain instances, a company might lose its customers.
The majority of customers would want to explore more advanced goods and services, and they will go to organizations or businesses having better services that address their needs. These advancements can only be achieved through strategic planning, assessing the market and competitors and developing the strategic plan for advancing the goods and services. Upon developing such good plans, a company must have a good strategy execution to keep up with the new demands by consumers. But a majority of businesses fail to succeed in advancing due to poorly developed strategy execution, and as a result, the majority end up losing their customers. Therefore, lack of good strategy execution risks an organization's chances of keeping up with the rapidly changing consumer tastes and preferences. A majority of organizations end up losing clients to their competitors in the market.
How Business Simulations Can Be Effectively Used To Accelerate Strategy Execution
Through simulations, the training of corporate leaders instills new skills, polishes the old ones and acquires professional muscles useful in tackling corporate nightmares, such as those posted by strategy execution. These newly acquired skills empower leaders with the proper knowledge and steps to execute plans properly. The mere existence of strategic implementation is not sufficient; the execution phase of any project ought to be conducted after adequate preparation and executed with precision. Practice for executing a strategic plan revolves around training leaders to acquire the right skills necessary for that execution.
The Benefits Of Using Business Simulation Within Strategy Execution Initiatives
Strategic change and execution demand strategy acceleration, which transforms ideas into actions. In an organizational setup, time is critical and every second matters. Therefore, strategy execution is not sufficient by itself, but rather it requires a catalyst that hastens the execution of strategy. Simulation equips corporate leaders with adequate skills necessary to hasten the strategy execution process more realistically by following the proper criteria for performance. Essentially, simulation is essential because it equips leaders with skills needed for the appropriate implementation of strategic plans.
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