The Gap Between Strategy And Operations

One of the biggest challenges that businesses face is the gap between their strategy and operations. While people are often excited and motivated by strategic goals and long-term visions, this excitement is often short-lived as they focused on short-term success and crisis management. This can lead to a lack of passion and commitment to the overall vision.

Many organisations display their five or three-year visions along the walls and in offices. Some even briefly revisit their vision document at annual management conferences. While this is a good start, it is not enough. The vision needs to be deeply ingrained in the hearts and minds of all staff members, guiding their daily work and actions. 

It is important to establish well-defined goals, objectives, KPIs, and measures for each department. These should be inspired by a deep understanding and commitment to the organisation’s vision rather than enforced from the top-down with fear as the only motivator.

To bridge the gap between strategy and operations, organisations should take a holistic approach that combines clear communication, strong leadership, empowered teams, effective performance management, and a culture that embraces change and continuous learning.

What is the relationship between business strategy and operations strategy?

Business strategy and operations strategy are two sides of the same coin, working together to drive an organisation’s success. While business strategy sets the overall direction and goals, operations strategy provides the roadmap for achieving those goals.

Like two sides of the same coin, business strategy and operations strategy are essential components of an organisation’s success. While business strategy sets the overall direction and goals, operations strategy provides the roadmap for achieving those goals. 

• Business strategy is the “what”: It outlines what the organisation wants to achieve.
• Operations strategy is the “how”: It translates that “what” into concrete actions and processes.

Business Strategy:

• Sets the overall direction and goals for the organisation.
• Identifies target markets and competitive advantages.
• Defines the organisation’s mission, vision, and values.
• Establishes strategic priorities and initiatives.

Operations Strategy:

• Translates the business strategy into actionable steps.
• Designs processes, systems, and workflows to achieve business objectives.
• Optimises resource allocation and production methods.
• Sets performance targets and metrics to track progress.

How to Bridge the Strategy Execution Gap

The gap between strategy and execution is a common challenge for organisations. Bridging the strategy execution gap requires a holistic approach that combines clear communication, strong leadership, empowered teams, effective performance management, and a culture that embraces change and continuous learning.

Here are 5 ways to bridge the strategy execution gap:

1. Clarity and Alignment:

• Clearly define strategic goals: Make them SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
• Align strategy and operations: Ensure all processes and resources directly support your goals.
• Communicate effectively: Foster understanding and buy-in from all stakeholders.

2. Cascading and Ownership:

• Translate strategy into action plans: Assign ownership and accountability for tasks and initiatives.
• Empower teams: Delegate decision-making and provide resources to foster ownership.
• Regularly review progress: Monitor progress, identify roadblocks, and adjust plans as needed.

3. Performance Management and Incentives:

• Align performance management systems: Tie individual and team performance to strategic goals.
• Implement effective incentives: Reward achievement of strategic objectives.
• Measure and track progress: Monitor key performance indicators to assess progress and identify areas for improvement.

4. Culture and Change Management:

• Build a culture of execution: Value execution and accountability, empower employees to take initiative.
• Embrace change: Be prepared to adapt strategies and plans as needed.
• Invest in training and development: Equip employees with necessary skills and knowledge to execute the strategy.

5. Continuous Improvement:

• Promote a learning mindset: Encourage continuous learning and improvement, value feedback.
• Conduct regular strategy reviews: Ensure your strategy remains relevant and aligned with your goals.
• Celebrate successes and learn from failures: Recognize achievements and learn from mistakes to improve future execution efforts.

What is the difference between strategy and operational effectiveness?

While both strategy and operational effectiveness are crucial for organisational success, they differ in their focus and aims:

Bottom Line:

The secret of successful organisations is that they align daily activities with the long-term focus. They have a clear sense of purpose that is shared by all employees. They do not become distracted or driven by urgency. They know that strategy looks at things that are important; that strategy is no daily “to do” list, but rather a culmination of many activities and processes that focus on achieving a long-term objective.

In the fast-moving world that we live in, change is a way of life. If we are not touching base with the strategy regularly and making adjustments where required, we will not keep up with the fast-changing world.

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Credits:

Clive Howe
Faculty– Strategy and Leadership Management