Editor’s Note: Below is an excerpt from the article “The Challenge to the C-Suite: How to Build Execution Into Strategy,” written by Adia Manea and published in the latest edition of Performance Magazine. It presents trends, solutions, and best practices for strategy and performance management through in-depth articles, first-hand how-to’s, concept presentations, case studies, and expert insights.

Strategies remain strategies until they are executed. Why is it hard for some organizations to translate what transpires in the boardroom into action?

Only 3% of the 1,526 business professionals who responded to a global survey commissioned by the American Management Association in 2019 said that their organizations were “very successful” at executing strategies.

In today’s business climate, it is critical to adopt a performance management system that makes the parts of an organization operating asynchronously to stick together like puzzle pieces. This leads to real initiatives for change and supports decision makers as they forge ahead or change course as necessary. 

A Roadmap for Results

How can leaders build execution into strategy and generate results from strategy analysis and planning? First, let’s assess the existing challenges. Although there are hundreds of failed strategies, they do not serve as a lesson. Nevertheless, researchers noticed a list of issues that stamped the misalignment of activities to corporate strategy over the years. According to Forbes, unclear communication and priorities, the lack of coordination across units, the silo behavior (unwillingness of a group to share information with another group), resistance to change, and the lack of performance culture are persistent factors that shift away the efficiency of execution from the strategy plan. 

The silo behavior prevents organizations from becoming agile, and this aspect still dominates the corporate culture. Only 9% of managers say that they can rely on colleagues in the company all the time, according to a research conducted by Harvard Business Review (HBR). Unfortunately, when confronted with this perspective, the need to compensate appears, but the result undermines the strategy as without help, they duplicate efforts, overdue the deadline or cannot meet promises made to customers. 

The same study shows that 30% of managers recognize that the failure of coordination across departments increases the chances for the performance commitments to not be reached. It also intervenes in the poor quality of performance culture as it may not promote support among units. The resistance to adapt to market circumstances is a major obstacle for an effective execution. But companies do not always fail to adapt at all. 

The problem is that most organizations react slowly to the change so there is a risk of not being able to embrace fleeting opportunities. Being reluctant to change activates the incapacity of mitigating emerging threats or even losing sight of the strategic direction.

Designing a performance management architecture leads to a bird’s view of the actual context and progress of projects or processes conducted internally. By approaching a set of performance management practices, a better structure, alignment, integration, and use of what is already in place will dominate the organizational context. In other words, the organizational strategy is digested through an integrated performance management system.

Companies must develop a strategy execution framework that aligns projects with initiatives to achieve their desired results. The project-based work is composed of activities that bring the organizational state closer to specific goals. By looking into project portfolios, one can assess the strategies in which the company chose to invest. The aim of the strategy execution framework is to align the project portfolios with the strategy. Once implemented, the framework adds a filter to the way management leads and executes in the sense that the steps taken are towards executing the strategy and not just walking around it.

Now, what is the connection between the performance management system and the strategy execution framework? Imagine the process of strategy execution as an octopus. The head is the performance management system in which the strategy is fragmented through the vision, mission, values, objectives and initiatives, while the arms are the projects conducted in portfolios that convey the alignment of resources and align with the overall strategy.

Discover how organizations can overcome strategy execution challenges by reading the rest of the article in the latest edition of Performance Magazine. Download your FREE COPY now!

Dear partners and beloved community,

On behalf of The KPI Institute, I would like to wish you all a wonderful spring and success in all your projects!

The first part of the year, as well as the beginning of a new season, brings a plus of energy in our lives, and hopefully, we can use this positive vibe to improve the organizations we are part of and to contribute to making the world a better place.

As we look forward to the challenges and opportunities 2022 has for us, I invite you to reflect on the latest practice in strategy and performance management by exploring the first printed edition of PERFORMANCE Magazine this year.  

You will find valuable insights related to adapting strategy to highly volatile business environments and structuring better performance management-related processes and tools. You will discover how employee performance is managed by modern organizations, trends in business analytics, and success stories from the public sector around the world.

For the Cover Story, I presented the highlights of The KPI Institute’s 2021 global practices report related to strategic planning, performance measurement, and strategy execution. The full version of the report will be released in April. Follow The KPI Institute’s LinkedIn page and stay tuned for the announcement!

Equipping you with the latest research and industry know-how to achieve performance excellence has always been the core of The KPI Institute’s existence. The latest issue of PERFORMANCE Magazine is just one of the many exciting things we have planned for you this year.

Enjoy reading and thank you for making us a part of your learning journey!

Cristina Mihăiloaie

Business Unit Manager – Research Division

The KPI Institute

If 2020 was the year for survival mode, 2021 was the year for adapting to changes that came our way. Adaptability is not just about keeping up with modern technologies and trends. It’s more about how we use them to accelerate change and foster a culture of innovation in the workplace, and this won’t be possible without valuing learning and development.

That is why The KPI Institute continues to deliver quality live-online certification programs in strategy and performance management. These learning sessions are designed to help organizations and professionals address business challenges, gain competencies, and achieve results.  They are packed with tools, frameworks, resources, exercises, and expert recommendations.

Before we put 2021 behind us, let us revisit the courses that made a mark on you. According to our data, here are the top live-online training programs of The KPI Institute that received the highest number of participants last year.

1. KPI Certified Professional and Practitioner: “Embedding more than 15 years of research, this educational program will provide you the necessary knowledge and skills to differentiate yourself from other professionals through a rigorous and structured approach to measuring performance.”
2. Strategy and Business Planning Professional Certification: “The course aims to offer participants a chance to build up a strategic mind-frame, understand key strategy planning concepts, use strategy planning tools, in individual and team exercises, and reflect on the best practices in the field through case studies and debates.”
3. Balanced Scorecard Management System Professional Certification: “The training course provides the pillars, tools, and resources required for an immediate application and Balanced Scorecard Management System in your own organization.”
4.  Certified Performance Management Professional and Practitioner Certifications: In this course, participants will “Obtain a premium recognition for your competencies both as a professional and practitioner to demonstrate your ability to monitor and improve current performance levels in different scenarios, in a standardized and effective manner.”
5. Certified OKR Professional: “The three-day course trains participants in how to set and work with OKRs and offers them the opportunity to get certified on the ability to deploy and use OKRs in accordance.”

To learn more about other certification programs, check out the Performance Management Training Calendar 2022.