[전략 이야기] Thoughts on strategy Strategy development Strategy should be extremely simple while the development content and analysis can be hard efforts Strategy should clearly lay out what we will do and what we would not do Strategy should clearly define where we will participate (country/geography, product, segment, channel, outsourcing vs. in-sourcing), and how we will differentiate. Logic behind where to participate should base on industry performance, best performers, our past performance (hence our capability). For example, bank performance is heavily influenced by market share (10% scale play, 2~10% range can be profitability trap) Strategy should be translated into short list of “collective” agenda, real actions to be taken to make real differences. Collective agenda means aligned action points rather than collection of agenda. Execution of strategy Structure of organization should be as simple as possible. Overly complex design for ideal stage would not be able to perform what is required Required skills should be defined to deliver the strategy and all training and coaching programs should be aligned Consistency of strategy is more important than continuous fine-tuning Leadership team should be stable to deliver the long journey rather than short term replacement for short outcome Measurement of performance should be aligned to deliver the strategy Leadership to execute strategy Communications with staff is critical. Everyone should be able to explain what the strategy means to me on daily basis Symbolic action from the top is real implementation driver of the strategy. Leading by example, leading by actions is the only way to penetrate strategy into daily life of frontline who are real delivery of the strategy Acquisition and divestiture are critical element of strategy execution. What is missing for strategy should be filled in and what is off strategy should be sold. We can buy cheap when we do not have to buy. Crisis provides ample opportunity to buy cheap which can be day 1 income generator. What needs to be done can be communicated by broadcasting. How to do that should be shown by leader’s example. Why we need to do should be communicated through physical contact with staff and this is most important element of communications to engage frontline to strategy execution. Transformation and turnaround Understanding brutal reality with humble assessment is a starting point of change program. Laying off people is easiest and worst way of managing cost Trying to do too many things at once is less effective than trying to do a few things really well Usually problems are revealed with symptoms. Execution bottleneck cannot be resolved when the symptoms are addressed while root causes persist Alignment Risk of strategy should be well articulated and should be managed with long term consistent view When small issues happen, we should be calm and do not over-react. Constant alignment of various activities across different businesses and functions are critical not to waste fragmented energy Constant listening to frontline pain points and continued efforts of removal is important to enhance execution of strategy. Leaders should be connected to the front by listening and conversation with frontline Delegation to middle management would be the only way to make strategy real. Micro-management kills innovations and creativity of the organization where the leaders do not have real visibility and understanding. Leaders should be careful in driving agenda. If the agenda is pushed too hard, then that agenda becomes dogma and show-and-tell business rather than delivering what is really important. If target becomes above and beyond stretched but deliverable, then politics begins. The culture should reward candid leaders rather than manipulative but satisfactory messenger. Many problems cannot be solved individually. Eco-system view is required. Your time spent as a leader demonstrates what is important to the staff Building real team at the top is critical before and during the journey. Team at the top should be able to have open and candid conversation while the message should be delivered to staff as one voice. Small fixes would not solve the problem. Real hard decisions are required to solve the problem from the root. Under performance difficulty, sharing brutal reality, showing top team sacrifice, having transparent and fair criteria on who stays and who leaves and vision after the transformation are four essential elements of program. Unless it simplifies the work on the ground, changing reporting line only increases confusions. Recognition sometimes and possibly usually more powerful tool than promotions and higher financial package. Financial reward only solves hatred factor. Love factor comes from recognition and engagement, with inspirational leadership.
Posted on: Sun, 18 Aug 2013 02:56:06 +0000
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