Turning Strategy into Action
Defining strategy is merely the first step; executing it is the subsequent challenge.
After exploring orienting through context rather than content and delineating the importance of clear and understandable strategy, we've only laid the groundwork; it's time to build the house: turning strategy into operational concreteness.
According to a Strategy& study conducted on over 6000 companies, 74% of the interviewed top managers believe their company hasn't converted strategy into concrete actions.
Likewise, 74% of those surveyed believe their strategy mandates working on too many priorities simultaneously.
How do we resolve these issues?
(For the latter, a simplified approach to strategy like the one proposed in my previous article can do wonders.)
The key lies in providing teams and individuals with a compass to guide them in daily decisions and keep them oriented toward strategic objectives.
There are many structured approaches to strategy execution, but I prefer OKRs (Objectives and Key Results) for their effectiveness in connecting vision and action.
The Guiding Vision
Before delving into "how," it's crucial to understand "why."
Why are those objectives important?
Why should every team member strive to achieve them?
The answer lies in the ability to convey a compelling vision, one that not only explains the objectives but also illustrates their importance within the broader framework of the company's mission.
This not only motivates but also provides a sense of purpose and direction.
OKRs: Your Strategic Compass
OKRs come into play precisely here, bridging the gap between high-level strategic vision and daily actions.
This method, increasingly adopted by companies of all sectors and sizes, allows for setting clear objectives and measuring results in a quantifiable manner.
OKRs, if managed well, have the ability to provide clear and measurable direction while allowing flexibility in approach to achieving objectives.
In essence, they show the "what" and the "why," leaving ample room for a flexible approach to the "how."
Another aspect I truly appreciate about OKRs is their ability to transform how we work.
Therefore, OKRs are not merely a tool but a way of working.
From Theory to Practice
But how does all of this translate into practice?
My colleagues and I have written a rather detailed white paper on how to implement OKRs in organizations based on our experience working with dozens of organizations.
It's free and quite easy to read; you can find it here.
Basically, it works like this:
From strategic priorities, we derive organizational OKRs, which we also call strategic OKRs.
Strategic OKRs pose a question that organizational leadership asks its teams: "This is what we want to achieve in the next period; how do you intend to contribute?"At this point, teams respond to the question by creating, based on strategic OKRs, their own OKRs (team/department/function), which we call tactical OKRs.
The two sets of OKRs are then aligned (no cascading, no impositions) through different methods and techniques depending on the company's context.
When all OKRs are defined, implementation begins by defining initiatives, adopting rituals that allow for constant progress monitoring, and adapting rapidly.
Working in this way allows:
Teams to always have a clear direction of where they are heading and how they are contributing to the company's success;
Every individual to understand how their work contributes to team and organizational goals;
Everyone within the organization assesses actions based on how they contribute to goal achievement through both the progress they make and the learning they enable (here's autonomy).
If you want to delve deeper, the white paper is the document for you; there you can get into the technical and process details of our methodology.
Autonomy and Decision-Making
In summary, by providing teams with well-defined objectives and key results with OKRs, we also promote a sense of autonomy and accountability.
Each team member, knowing the direction and success parameters, can make informed decisions aligned with the overall strategy, working with greater independence and confidence.
Nevertheless, let's not forget that transforming strategy into action is not a linear path but requires a holistic approach that integrates vision, clear and measurable objectives, and a profound sense of purpose.
OKRs represent a powerful tool in this process, but their effectiveness depends on the ability to communicate and share the guiding vision behind every action.
In the next article, we'll explore the importance of continuous feedback, how it can be used to drive improvement, and how to integrate it into our approach to promote autonomy and organizational effectiveness.
Stay tuned!