A robust corporate strategy is essential for the long-term success of any business. Most, if not all, organizations will claim to have a strategy. However, many fail to translate it into actionable plans that drive real-world results. One of the critical factors contributing to the gap between strategy and execution is the lack of alignment between strategic objectives and operational activities. This can lead to units operating in silos, pursuing objectives that are not in sync with the overarching goals of the company. In this blog, we offer our tips on cascading strategy through your organization.
Develop individual plans and clarity around roles
When developing a corporate strategy, it is essential to develop individual strategies and plans for each business unit that align with the company’s overall goals. These plans should outline specific actions, metrics, and timeframes, ensuring that every team member can see how their own work connects to the broader aims of the organization. When employees understand how their roles contribute to the company’s success, they are more engaged and motivated to perform at their best.
Create a playbook dashboard
Successful companies typically create a playbook to facilitate the implementation of a corporate strategy by segmenting markets, geographies, categories, product families, and sub-families, then assigning proven strategy attributes. The playbook dashboard provides a visual representation of performance against the strategic plan, allowing all stakeholders to easily track progress and alignment across the organization, and get an inventory of best practices to guide gap-closing actions.
Foster collaboration
Through regular communication and collaboration, business units can continually realign their activities with the broader strategy, ensuring that every decision and action supports the achievement of its strategic goals. This alignment encourages everyone to think like an executive, fostering a culture of collaboration, strategic thinking, and accountability, driving performance and innovation across your organization.
Operationalizing strategy with Integrated Business Planning
Integrated Business Planning (IBP) is a decision-making process used to align strategy with portfolio, demand, and supply plans. The result is a single operating plan over a 24+ month rolling horizon, to which the senior executives hold themselves and their teams accountable. The plan is reviewed and adjusted through the monthly IBP cycle to ensure it still meets the company’s overarching objectives. When done well, IBP becomes the formal way your business is managed, connecting strategy to execution and facilitating better decision-making and resource allocation.
Developing a business strategy is vital, but a strategy is redundant without successful execution. Cascading strategy through business units and functions is the key to its integration with day-to-day operations, aligning objectives, and driving performance. By adopting an integrated approach and fostering a culture of strategic thinking, companies can bridge the gap between strategy formulation and execution, ultimately driving sustainable growth and business success.
Are you struggling to deploy your business strategy? Take a look at our white paper series, ”Deploying Strategy with Integrated Business Planning,” for further tips and advice, starting with the first paper – ”Connecting Strategy to Execution.”
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