A Discussion with Robert S. Kaplan About Executing Business Strategy
Today, I spoke to Robert S. Kaplan, who is a Harvard University professor, as well as the chairman of the Palladium Group, Inc and the author of many books, including his latest called “The Execution Premium.” As you read this discussion, think about ways you can apply these business strategies in your own life. Robert has an abundance of knowledge in this area and you are guaranteed to learn a great deal with this blog post.
One example of how Robert’s comments are relevant to your personal brand is that we all need to have values, as well as a vision and mission statements. Many of these strategies can be incorporated in our own development plan and at the end of this conversation, Robert talks about how he manages multiple hats.
Why do so many companies have a hard time actually executing their business strategies? Why do people fail to act?
A key issue is to recognize that strategy and operations (or tactics) are both important but they are different. The normal course of events is for companies to focus on day-to-day operations and short-term problem solving. This is reinforced by their short-term financial measurement system, based on the annual budget. Management meetings focus on budget shortfalls, fighting fires and fixing problems. Often little time and few resources get committed to strategic issues.
We don’t advocate abandoning an intense focus on operations and their improvement. But we do advocate that planning strategy, not just describing it is important, and that the senior management team needs to have regular, probably monthly, meetings that focus only on strategy. We describe in the book the different roles, frequencies, participants, and agendas for operational review meetings and strategy review meetings. We open the book with a great quote “Strategy without tactics is the long road to victory; Tactics without strategy is the noise before defeat” (often but perhaps inaccurately attributed to Sun Tzu, The Art of War). This quote highlights the importance of integrating strategy and operations, a central theme in our strategy execution system.
What tools are available to develop an effective and successful business strategy?
Before formulating a strategy, managers need to agree on their company’s purpose (mission), its aspiration for future results (vision), and the internal compass that will guide its actions (values).
The mission is a brief statement, typically one or two sentences, that defines why the organization exists, especially what it offers to its customers and clients. Novartis, the global pharmaceutical company, presents a good example: “We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life. We also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in our company.”
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