The 6-Step to Strategy Implementation (Retail Strategy 12.06.2021)

The 6-Step to Strategy Implementation

There are six steps in strategy implementation that we can follow and ensure that our strategic plan evolves from just a plan, into a strategic implementation:

 

1. Define your strategy framework

2. Build your plan

3. Define KPIs

4. Establish your strategy rhythm

5. Implement strategy reporting

6. Link performance to strategy

 

Step #1: Define your strategy framework

Strategy is something that should be embedded in everything that we do. It should be in the DNA of the organization and its people. On the other-hand, if we don't make an effort to call it out explicitly, we won't get the focus or traction that we need.

 

We need to start with a simple framework that introduces a strategy dictionary that everyone can understand and get behind. When someone asks 'how are our strategic objectives going' - everyone should be on exactly the same page about what that actually means.

 

Step #2: Build your plan

The next step of strategy implementation is start creating our plan. Now that we have got our framework(s) in place, we are to move onto the actual creation of our strategic plan.

Steps to build your plan.

1. Gather the leaders of the organization (founders, CEO, directors, etc) to agree on their vision.

 

2. At the same workshop, start to write down the values that the organization holds.

 

3. Finally write down 3 or 4 focus areas that the team think need to be addressed in order to reach the vision.

4. Take a basic framework back to team(s) and start to get them to independently input ideas for strategic objectives under each of the focus areas.

 

Step #3: Define KPIs

Key performance indicators are one of the oldest management tools around - because they work. They keep us honest about our progress, and focused on our outcomes. They need to become our focus for implementing strategy.

some examples of KPIs are;

1. Keep them simple

2. Choose at least 1 KPI for each of strategic objectives

3. Don't make them too hard to measure quickly.

4. Don't make them all about the - sure, profit and revenue might be our end-game, but KPIs should be the drivers of those things - measuring the outcomes alone adds little value.

 

Step #4: Establish our strategy rhythm

Step 4 of strategy implementation is where we can start to establish our strategy rhythm. The ironic thing about strategy implementation is that even though everyone acknowledges how important it is - it's often the first thing to be forgotten about when the going gets tough.

 

People get so caught up in the day-to-day that they don't have time to focus on the big picture items that will keep the organization moving forward. This rapidly becomes a self-fulfilling cycle and is one of the most common reasons why strategies fail.

 

Step #5: Implement consistent & simple strategy reports

Step 5 of strategy implementation focuses on reporting. Now that our meetings are in place, we will want to choose a consistent way of reporting the progress of our strategy implementation. The main objectives of this report should be:

Consistency. Everyone knows what to expect and what they need to update prior to the meeting(s).

Simplicity. The report should give an at-a-glance view of how the strategy is progressing.

Accountability. Ensure that the report includes the names of the owner of each goal (accountability), as well as the names of the people actually getting things done (recognition).

Insightful. The report needs to include not only an overview of how the strategy looks now, but how it's progressing over time.

 

Step #6: Link performance reviews to strategy

The first 5 steps of strategy implementation are the absolute basics to ensure that we have success implementing and executing our strategy. But organizations who truly succeed are those who manage to weave strategy implementation into the fabric of their existence. An easy way to get started with this is to create a formal link between strategy and performance reviews. Nothing shows people how important strategy is more than when it impacts their reviews and potentially even their reward / remuneration.