Strategy “Crash” Test

Strategy development and execution is an expensive exercise. Its failure can cost even more. In particular, it can cost the careers of the accountable managers.

Our strategy crash test is used to predict if the strategy may fail under the pressures of execution. It enables our clients to understand where and what may be done to increase the probability success. To understand what the consequences of a failed strategy are see below.

Strategy Execution

Low success rates for strategy execution are well-known, well-described and well-analysed. Key statistics remind us about the issues with strategy execution:

Social Bottom Line Management: Processes

At En-Sync 8020, we utilise the following key processes to ensure an effective management of Social Bottom Line Management:
0 %
0 %
0 %
0 %
0 %
of well-formulated strategies succeeded due to poor execution
of successfully executing companies, effectively translate their strategy into operational mechanisms
of successfully executing companies, limit the number of strategic initiatives they focus on
of successfully executing companies, build
budgets / resources around strategy
of executives, fail within the first 18 months of being promoted or hired

Expensive Strategy Failures

Strategy Development and Execution is an expensive exercise for any company. Failures are very costly, including the careers of executives. Executives listed some other prevalent costs in a survey conducted by En-Sync 8020:
Cost of strategy development
Loss of investment in strategy execution
Lost and unrealised opportunities
Loss in market capitalization
Redundancies
caused by Executives

Strategy “Crash” Test

En-Sync 8020 assist companies to deliberately “crash” a strategy (or various strategic scenarios), under controlled conditions, in order to evaluate and improve its ability to withstand an execution and reduce number of strategic outputs achieved by finding out the strategy’s breaking points under pressure of strategy execution.

Strategy “Crash” Test: Process

Our practice which includes the following key steps shows that the best sequence of actions to “crash” test your strategy with best results at optimised cost:
Your
Strategy
“Crash” Test
Parameters
“Crash” Test
Scenarios
Accelerated
“crash” Test
Improved
Strategy
Identify strategy or its critical path for “strategy “crash” Test
Collect data on the parameters of Strategy “crash” Test
Identify and analyse scenarios for strategy execution with the data collected
Simulate consequences of the strategy execution with current parameters
Identify the parameters of the strategy to be improved

Strategy “Crash” Test: Parameters

The analysis of strategy failures, by En-Sync 8020, shows a set of frequent and most repeated causes of strategy execution failure that are categorised into THREE main groups of parameters:
Quality of
Strategy
Execution
Capability
Strategy
Acceptance
The way a strategy is developed and described from the start can doom its execution
Poor organisational conditions that lead to errors in the strategy execution and non-delivery of some or all the strategic objectives
Lack of positive support from the employees and other stakeholders to support the strategy and its objectives

“Crash” Parameters: Quality of Strategy

Research on the quality of the strategy, by En-Sync 8020, uncovered FOUR key qualitative parameters that can “crash” the execution of the strategy and its success:
Value
Chain
Triple
Bottom Line
Strategy
Drivers
Strategy
Milestones

Value Chain Complexity Level (8 Levels of complexity)

Business Strategy Complexity level (8 Levels of complexity)

Match between Value Chain Complexity and Business Strategy Complexity

Strategy has three types of objectives: economic, social and environmental

Economic, Social and Environmental Objectives of the strategy has the same level of complexity

Economic targets match % of economic bottom line increase

Non-negotiable goals

Strategy Value Drivers

Critical Success Factors

Critical Tasks

Outputs (Quantity, Quality, Time)

Resources per critical task

Strategy has milestones that match the complexity level of the strategy.

For example, the strategy of Level 5 complexity must have:

10 year, 5 year, 2 year, 1 year, 3 months milestones at least

“Crash” Parameters: Execution Capability

Even the most perfect strategy can fail if the company lacks the execution capability to deliver the strategy and every strategy task (at least critical ones). Our research identified THREE types of execution capabilities:

Systems

Structure

People

Critical tasks of the strategy differ in the complexity level of work required to deliver the outputs, e.g.:
  • Level 2 Task requires a business process to have a successful delivery
  • Level 3 Task needs a mature functional system, etc.
Critical tasks of the strategy require a certain level of standardization based on level of work complexity (standards, procedures, policies, etc.)
Organizational roles differ in level of complexity (8 levels of complexity)
  • Every critical task must have an accountable role
  • Level of role accountable for a task must match the level of work complexity of the task
  • The role accountable for the critical task must have the authorities required
Critical tasks must have 7 types of horizontal working relationships set
Every critical task of the strategy has the profile of the competency requirements that a role holder must have to deliver the tasks effectively:
  • Skilled knowledge
  • Experience
  • Qualifications
  • Values
  • Information processing capability
Competencies of the role holder accountable for the critical task must match the competency requirements

“Crash” Parameters: Strategy Acceptance

Acceptance of the strategy by its stakeholders is a critical set of parameters, that are frequently forgotten and not measured, but taken into account by En-Sync 8020 in the strategy “crash” test.
Strategy Acceptance is positive intention of strategy stakeholders to support the strategy and its objectives.
Strategy
Stakeholder
Support
Definition
Acceptance
Levels

All the strategy stakeholders are identified (employees, shareholders, communities, unions, etc.)

Support from every stakeholder group must be clearly defined using context of support, action, target of support, time for support

Acceptance levels by various stakeholder groups are quantified, measured and analysed

Strategy “Crash” Test: Benefits

Acceptance of the strategy by its stakeholders is a critical set of parameters that are frequently forgotten or not measured, but taken into account by En-Sync 8020 in the strategy “crash” test.
Success
Rate
Cost of
Capital

ROCE
Management
Turnover
Increased % of strategic objectives achieved and critical tasks completed with the outputs expected
Optimised cost of capital invested to support the strategy
execution / implementation
Improved Return on Capital Employed (ROCE) in the strategy execution and implementation
Reduced turnover among the managers accountable for strategy execution and implementation

Accelerated Learning Technology

En-Sync 8020 utilises a combination of accelerated learning, dynamic factor modelling, economic, social and environmental value drivers that allow active learning and trial & errors in a safe simulated environment to disrupt old perceptions and ideas about the single economic bottom line strategy.
3BL Accelerated Learning & Development allows the executives of the companies to see the consequences of ignoring the triple bottom line equilibrium today, in future whilst learning about the benefits of changing their perceptions and behaviours about the triple bottom line management.
Are you interested to know:
  • Where your strategy may “crash” under the pressures of execution?
  • How much will the failure of the strategy cost for your company?
  • How to improve the quality of your strategy?
  • How to improve delivery capability of your company and its alignment with the complexity of your strategy?
  • How to improve the acceptance of the strategy by key stakeholders?
Секция 1
Секция 2