Many companies are good at strategic planning but fall short on the execution. To successfully execute strategy, companies must align strategy to operations.
The work force must understand the strategy of the organization and how their everyday decisions can contribute to successful implementation of the strategy.
This means employees must be engaged in strategy execution by providing them with the information, tools and processes they need to support their decision making.
Research has shown that, by engaging, informing and empowering front-line employees, companies can reap long-term sustainable results and maintain their competitive advantage.
To successfully drive business performance, management must build and foster a culture focused on strategic performance management and intelligent execution.
Better execution comes from better decision making and better decision making comes from the availability and use of evidence-based management.
The 2008-2009 Global Financial Crisis, the ongoing Eurozone Debt Crisis, budget constraints, increased globalization, new competitors and emerging markets just shows how the business landscape is evolving at an unprecedented pace.
Companies are under constant pressure to do more with less and to deliver better returns than the competition.
Whether it’s sustaining growth, entering emerging markets or developing new products, the key to achieving these goals is in learning how to drive performance throughout the organization.
When faced with constrained budgets, weak market conditions or other tough operating conditions, companies must develop capabilities to drive business performance.
The starting point involves empowering people to make better decisions. Gone are the days of relying on a restrictive command-and-control management style to improve business performance.
Managers must adopt a more participative approach in order to drive business performance. By involving more employees in the decision making process, they feel more empowered to take responsibility of their performance, more accountable for results and thus deliver greater impact.
Managers that are serious about driving business performance should be able to execute more effectively with each person inside the company. Successfully doing so will result in increased margins, growth or market share, cost savings, and customer satisfaction.
This will eventually improve the competitive position of the organization.