Let's talk Transformation : The business leaders podcast #124 The Execution revolution with Johan Gronstedt
"More than 95% of the strategies that comes across my desk are highly dependent on cross functional work. The ability to execute cross functional things will be a question of competitive advantage"
Johan and I delve into the world of strategy and execution and how to obtain aligned results. How do we ensure alignement when executing strategy in the digital business landscape ? What effect is AI having on these strategies and operations ?
We discuss the need for simplified methodologies inspired by Agile practices and the fact that despite technological advancements, current strategic processes remain manual, necessitating better use of data, A/B testing, and AI for automated reporting and enhanced strategy execution. Executing strategy effectively is about refocusing on what matters – strategy must be simplified for busy managers to aid implementation, given that the CEO/strategic process is far less digitised than other parts of organisations.
Digital tools enable frequent monitoring and adjustments, moving away from infrequent reviews, while transparency in communication aids progress tracking and alignment. Storytelling is crucial for connecting strategy formation with execution during digital transformation and successful execution requires stepping out of the overwhelm, narrowing initiatives and effective resource allocation.
‘Future’ trends in strategy execution are happening now thanks to AI. We discuss how AI helps leaders focus on strategic activities, identify key initiatives and analyse unstructured data. AI also offers help for reactive leaders by providing meta data to suggest activities and support priorities and by creating space for senior leaders to make quality decisions, keep across operations and empower their teams.
We explore the critical role of proactive leadership in connecting operational practices with strategic discussions. By translating concepts like digitalisation and sustainability into actionable projects, organisations can achieve clarity and accountability in their initiatives. Think about how your organisation is adapting to these challenges and where the pitfalls are for you.
The main insights you'll get from this episode :
- Executing strategy effectively is about refocusing on what matters – strategy must be simplified for busy managers to aid implementation, given that the CEO/strategic process is far less digitised than other parts of organisations.
- Moving from strategy to execution requires a good methodology and the model is shifting due to behavioural responses and the inability of the C-suite to give strategy meaning and make it actionable.
- The fast-moving external environment requires agility, but agile has become too binary for the complexity of the topic, which involves two major phases: strategy formation and strategy execution.
- Strategy formation tends to be overambitious, and management consider engagement with strategy execution too low, but from an external point of view, it starts at the top with a failure to prioritise and take a cross-functional view.
- A good strategy formation process is both top-down and bottom-up – good ideas combined with management responsibility – but digital acceleration can be a distraction and dilute strategy.
- The real value of digitalisation is the ability to aggregate deviations to a higher level where they can be resolved quickly and enable faster follow-up – simply ‘beautifying’ the process does not help.
- AI offers help for reactive leaders by providing meta data to suggest activities and support priorities and by creating space for senior leaders to make quality decisions, keep across operations and empower their teams.
- Incentive structures do not optimise for strategic aspects as it is the companies that execute well and quickly that will have a competitive advantage, despite not having the most innovative products.
- In terms of strategy execution, there are four key elements: most important goals (starts with the management team); strategic initiatives (big bets); key activities (how to support initiatives); and regular strategy standups (debriefs, stating commitments).
- Assessment can be used as a tool to gain different perspectives on execution, e.g. a structured interview with the CEO; looking at the management team; setting up initiative teams with milestones and cross-functional planning – different personas have different levels of resistance.
- ‘Future’ trends in strategy execution are happening now thanks to AI. Beyond that, there is a trend towards cross-functionality across the board and shorter strategy horizons coupled with new paths to reach goals (quickly), alongside the digitalisation of all roles to create value.
- AI for its part will improve the quality of plans, capture unstructured information and measure sentiment; ‘analogue CEOs’ must make way for change makers, given that digital proficiency in the C-suite correlates to financial performance.
Find out more about Johan and his work here :
https://www.linkedin.com/in/jgronstedt/?originalSubdomain=se
https://open.spotify.com/show/1b3wspOi3VqmVYUzlhtwgr
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