One of the greatest failures of strategic planning is the lack of execution on the other side of planning. Great ideas and newfound desire for strong leadership
emerge from strategy retreats, only to be left to notebooks and memories a few months later.
The key principle to remember in executing change is that anything that is not consistent with the strategy will deter the success of your strategy. Everything.
This includes your organizational structure, your measures, the processes you reengineer, measures and incentives, the types of people hired, job goals, how you lead. Everything.
Many companies have great planning systems, but they are focused on financial outcomes alone. Others have great ideas about how to be different than the competition, but their ideas never get translated into actions. Year-by-year they are doing the same old things. Both companies fail their people and their customers.
Companies need to get different and get better. Companies competing as commodities need new strategies. Existing market leaders need enhanced points of differentiation. Both must develop even better execution skills to create the organization’s desired future. Even the lowest cost provider in a commodity market must be attuned to changes as companies with different business models can disrupt a market and threaten the lowest provider’s position
Let's get it straight:
- Strategy without execution is a plan that sits on a shelf, at least until next year. Communication of the competitive strategy and alignment of departmental and team actions to the strategy is required to create the desired differentiation.
- Annual plans are the current year execution of strategies; they are the itineraries for attaining the organization’s strategic goals and vision.
The marketing-sales plan, operational plan, leadership plan, and financial plan must be aligned with one another.
- Process improvement that is not linked to creating a meaningful point of distinction from the competition is a feel-good exercise that will help the bottom line in the short term, but is unlikely to create a meaningful shift in your market position.
- The Balanced Score Card is a useful tool for measuring whether strategy is being executed and whether the strategy is having its anticipated effect on key performance measures. Linking individual and process objectives to balanced score card measures is a critical part of alignment.
- The leadership team plan is also a critical part of alignment. It will insure that the organization creates future leaders and that today’s leaders are doing the work only they can do: setting direction and creating change to align the organization to create its desired future.
- Systematic review of market changes will help the organization evolve its competitive strategy so as to maintain differentiation. A marketing department plays a critical role in this process.
- There are two types of marketing – strategic and tactical. Tactical marketing decisions, e.g., pricing and advertising are – for the most part – the domain of the marketing professional, working in collaboration with the Sales Department. Strategic marketing decisions, e.g., competitive and growth strategy decisions, must rest with the entire leadership team.
The Marketing Department creates the strategic analysis used by the leadership team to both identify strategic issues and opportunities and define new strategies.
- Ignoring needed marketing activities is like driving without being able to see beyond two feet. Organizations without strong marketing skills are generally unfocused and reactive.
- Sales and Marketing serve different roles in a company. There is great danger in combining the two roles in the same person as sales requirements always win out over marketing. Sales is the most expensive resource in the company. You must therefore minimize how much time is spent on non-selling activities. Don’t ask sales people to do Marketing’s work.
Implementation of new competitive strategies or enhancing execution of an existing competitive strategy creates superior value for customers and therefore market victories.
Implementation is enhanced by balanced score card measures and annual marketing, sales, operational, financial, partnering, and leadership team
plans that translate strategy into desired near-term outcomes. This focuses all the efforts and initiatives of the organization on a shared direction.
In a very real sense, implementation is the art of introducing and managing change. Management tools, such as budgeting, measurements and rewards, individual job objectives, timetables and evaluation of results are all valuable in this work.
Aligned planning is a key tool for building collaboration and tackling the "system" causes of distrust and weakened relationships across parts of the organization. With all these advantages, what are you waiting for?
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For Strategic Marketing Consultancy, contact Dickie Aguado at
Tel. No. 514-5868, via Mobile Nos. 0917-990025 or 0922-8990026.
You may also send an email at grassrootscommunication@gmail.com
For more details of how Dickie handles strategic marketing planning, click to open http://grassrootmarketing.multiply.com/profile/resume/resume.M.
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Magna Kultura conducts Cause-Related Marketing Campaigns and
Corporate Social Responsibility (CSR) programs for Private companies
as an entrepreneurial approach to raise funds for the foundation,
at the same time, sustaining relationship with the communities
serviced by the organization. The synergy between private corporations
and community-based organizations, helps the informal economy
and fosters social enterprises in communities we serve.
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