The importance of context in strategy execution. Five tips

Publication date:
20.8.2024
Category
Strategy execution
Author(s)
Casper Hendriks
Lidia Swinkels

In a previous blog, Casper Hendriks, management consultant, and Lidia Swinkels, one of the founders of Summiteers, explained why a deep understanding of context is important for a strategic plan to succeed. In this blog, using concrete examples, they provide five practical tips for navigating the complex dynamics of organizational change.

Strategy execution is tailor-made

Strategy execution is tailor-made, where a thorough understanding of the context is essential. Only when we have insight into the context can we design a customized plan that not only takes into account content, process, and behavior, but also resonates with the target group. That is why we invest a lot of time and attention in understanding these elements. This is how we make sustainable change possible. These tips will help you do that.

1. Look beyond the question

A leading Dutch retail company came to us for a capacity scan. Before we started working on that, we took the time to really understand what the need was. Why did the company specifically request a capability scan? What do they mean by a capability scan? It turned out that the e-commerce team had ambitious growth goals. To achieve these goals, the team wanted to find new people with the right competencies. However, our research showed that there was actually another challenge on the table: the e-commerce team was dependent on other teams, which were surprisingly unaware of the growth goals set. Without attention to this interdependence, the growth goals would remain unattainable, no matter how good your people or competencies are. Instead of starting with a capability scan, we first zoomed in on cooperation with the other teams. This is how we made it clear what the e-commerce team in the other departments needed. A plan was created that went far beyond just a scan of necessary capabilities. Only at the end of this process was the question of the necessary competencies addressed. This shows how important it is to ask customers thoroughly to find out what they really want and not to blindly start with the initial question.

2. Ensure shared support

Creating shared support is also extremely important. Resistance to change is a natural response, and overcoming it starts with involving all your employees in the process. For example, in decentralized companies, where decisions traditionally come from a central headquarters, the lack of involvement of decentralized teams can lead to the “not invented here” syndrome. This hampers the implementation of new strategies. Other organizations may also face similar challenges of resistance to change. Therefore, when executing strategy, make sure you focus on collaboration and inclusiveness. By actively involving everyone, from all levels within the organization, in the process, you create a solid foundation of shared understanding and commitment. This not only increases the chances of success, but also strengthens the cohesion and overall resilience of the organization.

3. Take into account the capacity for change

Another determining factor is the change capacity of your organization. No matter how big your ambitions are, your organization's capacity to change has limits. As an organization, you sometimes have to make choices. For example, we worked on setting up a new organizational structure at a company that was implementing a new ERP system at the same time. An ERP implementation hits an organization to the core. It requires adjustments in almost all business processes. At that time, we also advised that you first successfully complete the ERP process and only then get started with the new organizational structure. If you don't do that, you run the risk that employees will be completely stuck. Of course, both are very important, but it's better not to make those kinds of changes at the same time.

4. Ensure the right balance between content, process and behavior

Sometimes the management team is not on the same page, which can be a signal that you need to focus more on the behavioral side. A series of focused sessions with the management team can then offer a solution. If the strategic dot on the horizon isn't clear, start refining the content. If a clear direction already exists, concentrate on planning the route there. Whichever interventions you choose, the context determines the center of gravity — whether that's with content, process, or behavior lies. By sharply analyzing what is needed and formulating the right approach, you ensure that your plans are not only sharp but actually realized.

5. Connect to your target group

A common stumbling block is not joining the people you want to include in the change. I remember a situation where, as a consultant, I was involved in an organization that was about to make a significant strategic change. The management proudly presented their vision, full of top sports metaphors. The message? We are the top of the top. One mistake: the people in the workplace couldn't identify with that image at all and dropped out in no time. You saw them thinking: “Nice idea, there in that ivory tower, but we're never going to get that anyway. Just keep talking, soon I'll just go back to what I've always done. ' Understand what your target group finds important and make sure things like your message, ambition and goal match it.

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