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Every organization must make a big strategy shift at some point or another to stay at the forefront of its industry. In some cases, a big strategic change may also be necessary to simply survive. Successfully shaping and executing a new strategy is challenging, but there are a few standout examples we can all learn from. ClearPoint Strategy provides tools that can make this process more efficient and measurable, ensuring that strategies are not only planned but also successfully implemented.
Here are 5 companies with good strategy execution, coming from different markets and industry positions.
TL;DR
The City of Germantown took a unique approach to planning and strategy execution because it chose to follow a corporate framework versus a more traditional local government model. The city views its citizens as customers, staff as teams, and operations as goods and services.
This shift in thinking came about in 2015 after city administrators read the book, âWe Donât Make Widgets: Overcoming the Myths that Keep Government from Radically Improving.â The general idea is to build and successfully execute a strategy around what citizens want, focusing on outcomes. For example, citizens donât want a bigger police force; they want whatever ensures a safe community and low crime rate.
The cityâs first step in taking a âfor-profitâ approach to organizational strategy was to create the âGermantown Forward 2030â vision. The 2030 vision was built over a methodical, one-year process by a 30-person steering committee and incorporated input from more than 200 citizens. Once the vision was finalized, a citizen task force created a measurable, actionable strategic plan with objectives, projects, and performance measures.
Every quarter, Germantownâs city administrator meets with department directors to review progress and results, which are then shared publicly with citizens via a community dashboard built by ClearPoint Strategy. Strategic planning isn't always easy, but the City found great ways to overcome the biggest pain points in the process to achieve success.
Over the past four years, Germantown has seen success with this approach to planning and strategy execution. The city operates more efficiently and cost-effectively, and there is greater transparency both internally and externally on goal progress. The results have been so positive that Germantown won a 2019 Malcolm Baldrige National Quality Award from the U.S. Department of Commerce. The city is one of only four municipalities nationwide to have ever earned this presidential-level honor, which is the highest level of recognition for performance excellence that a U.S. organization can receive.
ClearPoint Strategy supports such public sector initiatives by providing robust tools for strategic planning and community engagement, tracking progress transparently.
Best Buy is an ideal example of a company that completely reinvented itself and found the secrets to successful strategy execution. In 2012, Best Buy had plummeting profits, sales, and stock prices. It had lost relevance and was failing to compete with Amazon.
In a last-ditch effort to survive, the company hired Hubert Joly as its CEO. Joly proved to be a visionary leader, most notably for launching Best Buyâs Renew Blue transformation strategy. Here are the five key goals of the strategy, including some of the most successfully executed initiatives for each:
The Renew Blue strategy planning and execution has been an unheralded success. When Joly transitioned from CEO to executive chairman in June 2019, Best Buy had five consecutive years of comparable sales growth, increased its non-GAAP operating income rate, achieved $1.9 billion in cost savings and efficiencies, improved profitability and shareholder return, increased its Net Promoter Score, and hit record-low employee turnover rates.
By using strategic tools like ClearPoint Strategy, companies can monitor such comprehensive transformations in real-time, ensuring that every strategic initiative is aligned with corporate goals.
In 2017, Origin Bank realized it was losing traction in the market and wasnât keeping up with the banking industryâs pace of innovation. The bank decided to completely scrap its strategic plan and start fresh with a new strategy that focused on:
Using these guidelines, Origin Bank began its strategy execution process by whiteboarding its high-level goals. From there, it became a âwaterfallâ approach where goals were broken down into objectives, objectives divided into projects, and projects into action items. Origin Bank also developed measures to track progress for each of those waterfall elements.
Companies with good strategy execution always take this next step, too: developing a reporting process to consistently monitor and evaluate performance. Origin Bank established three meetings, each with a distinct purpose, to be held each quarter. The focus of the meetings ranges from a general performance overview of the strategy to detailed âred alertsâ indicating where strategic elements are off track. Every quarter after the meetings, proposed changes to the strategy are presented to Origin Bankâs board of directors for approval.
Changing its strategy has helped Origin Bank increase its profits and customer service levels. Overall, the bank has been able to take an innovative approach to its operations with a strategic plan that reflects its vision, includes more accountability and collaboration, centralizes strategy execution management, and requires all changes to be vetted through a âdecision tree.â
With ClearPoint Strategy, financial institutions can manage and track their strategic execution, ensuring alignment across all levels of the organization.
In the 1980s, IBM was the dominant technology brand, with sky-high revenue and market share. But the company failed to evolve along with customersâ computing needs, and it became siloed and dependent on hardware sales. IBMâs power position eroded over the next decade, culminating with the announcement of an $8 billion second-quarter loss in 1993 (the largest in corporate Americaâs history at the time).
Louis Gerstner, brought on as IBMâs CEO in 1993, led the companyâs transformational shift from products to services. In essence, IBM changed its strategy from being a multinational technology provider to a holistic, shared-services partner. Core elements of the strategy were to:
IBMâs new strategy worked and is hailed as one of the greatest corporate turnarounds of all time. IBM quickly proved that the services business was more viable than hardware product sales, successfully diversifying its offerings and investing in strategic growth areas. During Gerstnerâs tenure from 1993-2001, the company increased its income from $3 billion to $7.7 billion, revenue from $64 billion to $86 billion, and stock market value to $180 billion.
Tools offered by ClearPoint Strategy can aid such significant transformations by aligning company-wide efforts and resources effectively.
Cobb EMC, a not-for-profit electric cooperative, made a distinct strategy shift in 2014 after consistently underperforming and failing to achieve key goals. There was a lack of alignment across the organization, with no clarity on whether they were making progress on the strategy and aligning departments to corporate results.
Cobb EMC deliberately and thoughtfully formed a new strategy that would play out over the next few years:
Taking these steps to create a new strategy was hugely beneficial to Cobb EMC. The company had centralized, real-time data for the first time and created its first three-year strategic plan that closely aligned departmental projects and corporate goals. Within two years of executing its plan, Cobb EMC was able to uncover new operational efficiencies and cost savings: The company saved $8 million through restructuring, lowered utility rates by $5 million for its customers, and gave $1.3 million to charity. Additionally, Cobb EMC was able to increase staff morale levels throughout these significant changes.
ClearPoint Strategy provides platforms that facilitate such strategic alignment and execution, enhancing both internal and external transparency.
Whether the goal is to stay at the front of the pack or avoid extinction, strategy shifts are critical for organizations in every industry. As youâve read, this process can take many formsâwhatâs most important is that you execute the new strategy you carefully created.
Successful strategy execution is not just about what you do, but how you do it. The key lies in aligning your organization's culture, resources, and processes with your strategic goals. Regularly monitoring progress, adapting to feedback, and maintaining clear communication channels are also crucial to turning strategic plans into tangible outcomes.
By integrating these key principles, your company can achieve its strategic goals and foster a culture of continuous improvement and innovation. Discover how to elevate your strategy execution by exploring the 5 secrets of strategy execution. This guide could be the catalyst your organization needs to refine its execution approach and secure a competitive edge in your industry.
Effective strategy execution is built on a foundation of clear objectives, precise planning, and robust communication. It involves:
1. Strategic clarity and commitment: Ensure that every member of the organization understands the strategic goals and their role in achieving them. Secure commitment from all decision-makers and stakeholders to align efforts and foster a unified approach to execution.
2. Alignment of resources and roles: Align jobs, resources, and processes with the strategic objectives to ensure cohesive movement towards the goals. Design roles and responsibilities to optimize performance in line with the strategy.
3. Effective communication and engagement: Maintain clear and continuous communication to empower employees with the knowledge of how their work contributes to the broader strategy. Foster a culture of engagement and motivation, celebrating milestones and encouraging team involvement in the strategic journey.
4. Execution framework and adaptability: Implement a structured approach to execution, like the "waterfall" method, to break down strategic goals into actionable steps. Regularly monitor progress using key performance indicators (KPIs) and be prepared to adapt the strategy based on performance data and evolving circumstances. Use a tool like ClearPoint Strategy to enhance strategy execution. ClearPoint Strategy is a comprehensive platform for aligning goals, tracking progress, and adapting plans based on real-time data and insights.
5. Balancing innovation with control: Encourage innovation and experimentation within the framework of the strategic plan, allowing for creativity while maintaining focus on the strategic objectives. Develop processes to evaluate and integrate new ideas and opportunities, ensuring they contribute positively to the strategic goals.
Ready to transform your strategic vision into impactful results? Discover how ClearPoint Strategy can revolutionize your approach to strategy execution. With ClearPoint, you can seamlessly align your goals, monitor progress with real-time insights, and adapt your strategy to meet the ever-changing demands of your industry. Don't let your strategic plans fall by the wayside. Book a free trial of ClearPoint Strategy today!
Shannon works with the Sales Team to generate high quality leads and provide insights on market trends.