Why does strategy usually sound so magnificent but doesn’t actually appear in everyday actions of the company?

One reason is the conflict between a rigid and management driven strategy process that companies even these days tend to have, and the fact that successful strategy execution actually requires participation of each person in the organization. In addition strategy studies mainly concentrate on forming strategy even when it is clear that strategy has no value until it is executed. A new kind of viewpoint to the strategy process is needed. As an answer to challenges in strategy execution The H₂O team published their book “Strategia toimeksi – Muutosvoimana ihmiset (Strategy into action - people empowered to change)” on 5^th February. This book gives a fresh and people based view to success factors of strategy execution.

The heart of strategy execution is a clear and inspiring strategy. It is important to be able to express the strategy in a simple way and to make it understandable for people on all organizational levels. Employees need to see what concrete actions this strategy means to me.  When strategy is formed through active interaction and discussions it is easy for employees to adapt. An inspiring strategy is like a story which captures peoples minds and makes people want to be part of the story.

Beside strategy itself the core success factors in strategy execution are giving managers the tools and the execution responsibility, a wide participation of employees and building an execution culture. Leaders are the enabling power in execution. They have the main responsibility in strategy execution and they take care that a common understanding of strategy is created.  Leaders ensure that the actions, which are needed to execute the strategy, are carried out.

Participation has a great psychological effect in decreasing resistance to change and motivating people. People are more willing to work for the execution when they are actually planning it and are not just the objects of changes. Participation engages people to strategy and they can find possibilities to show their competence.

Strategy, people and operative action as a connected entity enable a real execution culture. In the execution culture everyone knows what they are expected to do and how performance is evaluated. Management is present and living along in the organization’s everyday life and get actions done through employees. Consistent management behavior and disciplined management practices keep up the execution culture which gives energy to the whole organization.

A good strategy is visible in everyday actions. To support the core success factors it is essential to choose projects and people carefully and pay attention to performance management so that the link to strategy is evident. Empowered people are the energy that is needed to put the changes into everyday action.

Strategia toimeksi – Muutosvoimana ihmiset book was published 5.2.2010. Many thanks to everyone who participated in the publishing event! The new book is sold in all Finnish bookstores.