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Your Strategy Misses the Mark: Here’s Why

May 28, 2024

In today's fast-paced business world, leaders meticulously plan and execute strategies to navigate their organizations through complex transformations.

Yet, many still find themselves falling short of their goals, despite diligent efforts and meticulous planning.

Why do we often struggle to achieve what we set out to in our strategic vision?

In this edition, I uncover the 7 levers that form the foundation of effective strategy execution, revealing how a subtle imbalance can derail even the most well-crafted plans.

Let's explore the invisible yet critical forces that shape successful transformation and learn how to bridge the gap between strategy and reality.

Note: This article includes images, please download those images to get the full experience.


The 7 Levers of Strategy Execution (or, how I like to call it, Strategy to Future)

Mastering the Balancing Act: Priorities, Capacity, and Risk in Strategic Transformation

In the rapidly evolving business landscape, leaders engaged in strategy and transformation face an ongoing challenge: the intricate balancing act between priorities, capacity, and risk. This balancing act is a necessary skill and a strategic imperative determining any transformative agenda's success. Here's why understanding and managing these three critical dimensions is essential for leaders steering their organizations through change.

Trio 1: The Strategic Triad of Priorities, Capacity, and Risk

At the heart of every strategic decision lies the balance between what an organization aims to achieve (priorities), what it can handle at any given time (capacity), and the uncertainties it must navigate (risk). This triad forms the core of strategic execution and is crucial for several reasons:

  • Alignment with Vision: Balancing these elements ensures that the organization's actions are aligned with its long-term vision. It prevents drift and keeps the organization on a path that leverages its strengths while mitigating its weaknesses.

  • Capacity Optimization: Proper balance helps in optimal resource allocation, ensuring that there is no overstretching or underutilizing, which is crucial in times of budget constraints or market fluctuations.

  • Risk Mitigation: Understanding the interplay between capacity and priorities helps anticipate and manage potential risks, making the organization resilient and adaptive in the face of challenges.

Knowing What You Are After and What You Are Truly Ready For

Transformation requires clearly understanding the organization's current stage and readiness to move to the next level. Whether laying down the business foundation, scaling operations, undergoing a full transformation, or pursuing innovation, each phase demands a different focus on priorities, capacity, and risk.

  • Foundation Building: At this stage, the focus is on establishing robust processes and a solid operational backbone. Priorities are often internally focused, capacity is built step-by-step, and risk is managed through conservative growth strategies.

  • Scaling: Scaling up involves amplifying successful processes and replicating them at a larger scale. Here, capacity needs to be expanded rapidly, and priorities shift towards market expansion, requiring a higher appetite for risk.

  • Transformation: True transformation requires a realignment of priorities and a substantial increase in capacity for change and often entails higher risks.

  • Innovation: Pursuing innovation focuses on breakthrough ideas and products. It requires a flexible allocation of priorities, significant risk tolerance, an adaptive budget process, and a dynamic capacity to experiment and iterate.

The Imbalance Inevitability

Attempting to keep priorities, capacity, and risk-balanced at all times is unrealistic. Instead, leaders should strive for a dynamic equilibrium where these elements are not equally balanced but in a state that best supports the organization's strategic objectives.

  • Strategic Prioritization: Not all goals are created equal. Effective leaders identify which priorities drive the most value and allocate resources accordingly, accepting that some areas will be less attended to.

  • Capacity Adjustments: Capacity should be viewed as fluid, with leaders ready to scale up or down based on strategic needs and external pressures.

  • Risk Appetite: The organization's appetite for risk will vary depending on the stage and circumstances. Leaders must adjust their risk thresholds to seize opportunities without jeopardizing the core business.

Trio 2: The Invisible Fabric of Adoption, Capabilities, and Culture

The invisible fabric that holds Trio 1 together often gets missed or underestimated. This trio is the skeleton structure on which all your work hangs. Not having this is like buying clothes but not having hangers to showcase them in your shop. The trio is crucial:

  • Change Adoption: The change you aim to create will only be effective when it penetrates the organization's fabric and manifests in how your people and customers interact with the change, how they work with it, and how they relate to it.

  • Business Capabilities: These are your organizational muscles that make things possible. Your capabilities are the backend engine that produces the change you need. The integrity, integration, and maturity of those capabilities are key to executing your strategy, creating change adoption, and building a solid foundation for your next change.

  • Culture: Culture is like soil to a plant. It can nurture or slowly kill the plant's “change.” If your change and transformation program has a clear vision and strategy for what culture changes are needed to make the change work, then you're essentially building a sandcastle and hoping it stays upright until the morning!

Conclusion: The 7 Levers from Strategy to Future

Mastering both Trio 1 and Trio 2 is crucial for any leader driving transformation. Trio 1 provides the foundational balancing act between priorities, capacity, and risk.

Integrating Trio 2 ensures the adoption, capabilities, and culture necessary for strategic execution.

These six levers, combined with the overarching 7th lever, leadership, create a robust framework to align current capabilities with future ambitions.

By understanding the unique demands of each stage of business growth and adjusting these seven levers accordingly, leaders can craft a responsive, resilient roadmap that empowers their organization to thrive amid change and secure a meaningful future.



Till next week

Jess Tayel

Founder of the People of Transformation membership & community.

Elevate Change & Transformation high-performing leaders to soar above the sea of sameness and achieve new heights in mastery, influence, & impact without the drag of going solo or slow progression.

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