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Monitoring strategy execution is essential — but insights are typically elusive
Only 43% of executives consider their enterprise highly effective at assessing its ability to successfully execute strategy. Most are working to change that — for example, by meeting more often to assess strategic plans or monitor execution performance. But the sheer number and inherent complexities of cross-enterprise initiatives, as well as ongoing resource constraints, limit the efficacy of monitoring efforts.
To tackle these challenges and maximize performance, function leaders need an actionable framework and clear visibility into critical initiatives.
Maximize strategy performance with a balanced, comprehensive approach
Enhance your function’s strategy-monitoring processes by taking the following four actions.
Create line-of-sight visibility into critical initiatives
The high number and diversity of strategic initiatives within a function can make it difficult to maintain a clear overview while also capturing crucial details. For an explicit picture of how individual initiatives contribute to broader functional and enterprise goals, use a planning tool such as the objectives, goals, strategies, initiatives and measures (OGSIM) framework.
Your monitoring system should address two fundamental questions:
Who is the intended audience for the strategy performance metrics/information (e.g., board, senior leadership, initiative owner)?
What is the overarching purpose of the monitoring efforts?
The answers will be context-specific for your function and are likely to evolve over the course of different strategic initiatives.
Tailor the approach based on your unique needs. Consider factors such as typical review cadence (e.g., quarterly, weekly or at key milestones), triggers for special reviews (e.g., unexpected market shifts or leadership changes), and the format and channels for communicating findings (e.g., executive summaries versus detailed reports or case studies).
Uncover hidden execution risks
Predictively tracking factors that impact ongoing functional initiatives is critical — and it starts with recognizing the potential impact of other enterprise initiatives.
Initiatives that serve as input for, or are closely linked to, other business initiatives can significantly impact functional strategy execution. This often results from shared resources (which can lead to delays for one or both projects), conflicting priorities (which can create tension and undermine progress) and interconnected outcomes (which can create a domino effect of failure).
To better predict potential execution risks, look closely at your interdependencies in the context of the enterprise initiative portfolio. This will help break down silos and help managers understand connections and solve problems together.
Establish a culture that enforces and rewards team candor
When executives are unable to dive into granular detail across all initiatives, they rely on the leaders of those initiatives to flag developing issues. But initiative leaders may believe they can handle things on their own, that the issues are not severe or systemic or that seeking help will result in negative consequences.
Encourage transparency and candor throughout the review and reporting process by installing protocols backed by good management principles — such as comprehensive storytelling, objective investigation, blame-free reporting and recognizing value gained from stopped work.
Upholding these principles helps project leaders feel more comfortable providing an upfront, accurate picture of performance.
Use technology to monitor higher volumes of performance signals
Historically, monitoring strategic initiatives has been a fragmented and time-consuming process fraught with issues like poor cross-enterprise visibility, difficulty consolidating information and excessive manual effort for data collection and analysis.
To keep tabs on initiatives more effectively at scale, take advantage of emerging technologies like execution monitoring applications, cloud analytics and machine learning that create, share, update and generate execution plans and dashboards.
Strategy performance FAQs
How does performance monitoring contribute to effective strategy execution?
Poor strategy execution is a primary reason that new growth initiatives fail. Performance monitoring enables function leaders to track the progress of key initiatives, identify deviations and adapt strategy as needed to ensure that their function is executing effectively and delivering its intended business value.
What does functional strategy performance monitoring entail?
Key aspects of strategy execution performance monitoring include tracking progress against key performance indicators (KPIs), assessing the function’s strategic alignment with shifting enterprise goals and communicating insights to ensure the function can proactively course-correct and continue to support business outcomes.
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