Strategy execution

According to research, companies barely achieve two-thirds of their potential on average. This can be attributed to poor planning and the inability to implement strategy within the organisation. Typical challenges for CEO’s striving for execution of their business strategy include:

• Key staff are not or insufficiently involved in defining strategy
• The strategy is not clearly communicated
• The strategy is not implemented correctly because of different interpretations
• Implementation was not built into the strategy
• A gap between CEO and staff
  A strategy-to-performance gap is often invisible for CEO’s (e.g. critical action is not taken, resources not deployed according to plan, competition does not respond as expected). As a result, it is virtually impossible to take the appropriate corrective action

Our customers implemented the following capabilities

Perpetos clients have managed to successfully close the strategy-to-performance gap, by implementing the following capabilities:
 

• Defining corporate DNA and making sure it does not dilute over time; as a result, staff will automatically act in line with the corporate strategy and vision
• Identifying internal & external blocking & boosting factors, and act upon them
• Involving key staff in defining and communicating strategy
• Keep it simple, make it concrete. Strategy should not be an abstract concept
• Replacing ‘competence-based hiring’ by ‘DNA-based hiring’
• Stimulating involvement, self-development and the sharing of knowledge
• Introducing a common language across all departments
• Bringing remuneration in line with strategic objectives

The result

A leading European software supplier was able to speed up its revenue growth from 9 to 19% and its EBITDA from 10 to 17,7% in the year after implementing above capabilities.