Strategy Execution Playbook

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StrategyExecutionPlaybook

ATrustedCompanion for Leading Initiatives

BettinaBüchel

MahweshKhan

CatherineAgamis

Introduction

Strategy Execution Playbook

CoPreface and Acknowledgments

Strategy Execution Playbook

A Trusted Companion for Leading Initiatives

The idea for this book emerged from our work with clients hoping to transform their organizations without using “traditional” consulting firms. And while leading a transformation with internal talent helps to mobilize a wider group of individuals to work on the initiatives that matter most to the organization, it also requires skills and knowledge often found in a consultant’s “toolbox.” Therefore, we wanted to equip those individuals and teams within an organization with the tools that will help them successfully structure and deliver strategic initiatives. Our goal is that this book will serve as a trusted companion that provides a step-by-step guide for leading strategic initiatives and intertwines theoretical frameworks with practical tools. While there is no “perfect” framework or tool to use during the analysis and implementation phases of an initiative, making an informed choice about the appropriateness of using a specific framework or tool and understanding its consequences is important because the choice often impacts the initiative’s outcome. We, therefore, provide the reader with the context for when it is appropriate to use the different frameworks and tools along with guidelines—a "how to" for using them. We have embedded execution and change management suggestions throughout and included selected

examples of digital and sustainability frameworks because their importance continues to grow. We want to thank our partners, children, colleagues and friends who have endured us during the writing process, helped answer some of our questions and generally been supportive of our work.

Bettina Büchel, Mahwesh Khan, Catherine Agamis

September 14, 2023

Introduction

Strategy Execution Playbook

About theAuthors

Bettina Büchel Bettina Büchel has been an IMD Professor of Strategy and Organization for over 20 years. She focuses on strategy implementation, new business development, strategic alliances and change management. At IMD she has led open programs such as Orchestrating Winning Performance, Strategic Leadership and TransformTech. Her primary focus is to facilitate strategic transformation programs for client companies and build capabilities that enable the implementation of strategic priorities. Her mission is to help organizations address their challenges in order to create positive impact on stakeholders. Mahwesh Khan Mahwesh Khan has 20 years of experience working on governance and strategy issues with corporate boards and the C-suite. She has facilitated transformation journeys for companies and banks in the Middle East, South Asia, Europe and the United States. At IMD since 2019, Mahwesh has been supporting IMD Faculty in research, data analysis and diagnostics, as well as delivery of advisory projects across business domains. She has most recently coauthored and published articles in Harvard Business Review (March 2021) and Sloan Management Review (September 2020). Mahwesh has an MPhil in Management Studies from the Judge Business School, University of Cambridge (UK).

Catherine Agamis Catherine Agamis has a strong business background with over 20 years of consulting experience, assisting in the transformation of large organizations. Catherine’s research interests are driven by a desire to contribute to the world’s challenges and the transition to a more sustainable future, with a focus on circular bioeconomy and natural services. At IMD, Catherine designs open and customized learning programs and coaches senior executives. She collaborates with IMD Faculty to help organizations solve their challenges through the cocreation of their change, growth and transformation agendas for positive impact.

Introduction

Strategy Execution Playbook

Contents

Introduction

Strategy Execution Playbook

Contents

List of Figures List of Boxes Introduction

viii xii 32 34 38 58 68 80 90 98 110 120 130 156 104

172 178 190 204 214 224 230 244

Engage the Organization Pilot and Learn Quickly

Deploy the Initiative

Welcome to the Strategy Execution Playbook!

Measure, Monitor and Follow-Through

Setting Up for Success

Embed

Explore

Embed Your Transformational Impact

Frame the Issue Build Hypotheses

Tools

2 3 4 5 6 7 8

Gather Data

Undertake Analytics and Validate Hypotheses

Develop

Ideate Solutions

Narrow the Options Envisage the Solution Develop the Roadmap

Introduction

Strategy Execution Playbook

Contents

Strategic andAnalytical Tools

246 248 250 254 258 260 262 264 268 274 276 280 282 284 286 290

A.16 Product Life Cycle

294 298 300 302 304 306 308 310 314 316 318 320 322 324 326 332

A.1

Industry Attractiveness

A.17

Adoption Cycle

A.2 PESTEL Framework

A.18 Experience or Learning Curve Effect

A.3

Porter’s Five Forces

A.19 A.20 A.21 A.22

Product Substitution S-curve Price Elasticity of Demand

A.4 SWOT Analysis A.5 Competitor Analysis

Economies of Scale Scenario Planning

A.6 A.7 A.8 A.9

Benchmarking

Growth Share Matrix

A.23 Value Chain

Market Sizing Market Share Segmentation

A.24 Core Competencies Analysis

A.25 Capabilities Analysis

A.10 A.11

A.26 Businessor BusinessUnit Profitability

Conjoint Analysis

A.27 Cost Structure Analysis A.28 Relative Cost Position

A.12 Value Proposition A.13 Key Purchase Criteria

A.29 ABC Analysis

A.14 Customer Experience Journey

A.30 Financial/Ratio Analysis

A.15 Customer Satisfaction

A.31

Business Case

Introduction

Strategy Execution Playbook

Contents

Operational Efficiency Tools Integrated Product Team

334 336 338 342 346 348 350 352 354 356 358 362 364 368 372 374

B.16 Capacity and Demand Profiles B.17 Overall Equipment Effectiveness

376 380 382 384 386 388 390 394 396 398 400 404 408

B.1

B.2 Value StreamMapping

B.18 B.19 B.20 B.21 B.22 B.23 B.24

Total Productive Maintenance

B.3

Voice of The Customer

Push, Pull and Kanban

B.4 Affinity Diagram B.5 Kano Analysis

Just-in-time Takt Time

B.6 SIPOC

Level Scheduling and Small Batches Single-Minute Exchange of Dies (SMED)

B.7 FiveWhys

B.8 Ishikawa or Fishbone Analysis

Line Balancing

B.9 VA and NVA Analysis

B.25 Error-proofing or Poka-yoke

B.10 Waste

B.26 Control Chart

B.11 B.12

StandardWork

B.27 Quality Function Deployment B.28 Failure Modes and Effects Analysis

B.13 Flow and Lean Layout

B.14

Queueing Theory

B.15 Theory of Constraints

Introduction

Strategy Execution Playbook

Contents

Project andChangeManagement

410 412 414 418 422 424 426 428 430 432 434 438 440 442 444

C.15

Balanced Scorecard

446 448 450 452 456 458 462 466 470

C.1

Lean Leadership

C.16 Team Charter

C.2 Hoshin Kanri

C.17 Team Assessment

C.3 C.4

Visual Management

C.18 RACI

Logic Tree

C.19

Change Readiness Assessment

C.5 Data Collection Plan

C.20 Stakeholder Analysis and Engagement

C.6

Interviews

C.21

Managing Resistance to Change and Conflict

C.7 Focus Groups

C.22 Communication Plan

C.8

Surveys

References

C.9 Company Data Extraction

C.10 C.11 C.12 C.13

Project Governance

Project Charter

Project Plan

Risk Log

C.14 Flash Report

Introduction

Strategy Execution Playbook

List of Figures

Introduction

Strategy Execution Playbook

List of Figures

0.1 0.2 0.3 0.4 0.5

Diverge/Converge Pattern Stages of Team Formation

37 42 44 46 50 53 54 56

2.3 Hypothesis Development Statement 2.4 Hypothesis Map for Diagnostic Purposes

84 86 88 96

Belbin Team Roles

2.5 80% Result With MECE

Team Charter Framework Project Management Steps

3.1

External Data Sources

Develop

0.6 Project Management Approaches

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6.1 6.2

HowMight We Question Design Thinking Approach

113 114 116 118 118 118 118 118 124 126

0.7

Plan–Do–Check–Act

0.8 Project Charter

Brainstorming

Explore

Roleplay

1.1

The Relationship Between Risk, Return and Type of Initiative

Brainwriting

Mindmap

1.2 1.3 1.4 1.5 2.1 2.2

Standard Stakeholder Mapping

71 74 76 78 82 83

Journey Map E-storming

Stakeholder Mapping

SCQ Approach MECE Approach

UN Sustainable Development Goals

Sweet Spot

Why Map?

Why Map Example

Introduction

Strategy Execution Playbook

List of Figures

7.1

Lean

134 136 138 146 148 150 158 160 167 168 170 181 184 191

12.1 12.2 12.3

Measuring Operational Performance

215 218 219 233 239 242 249 252 255 259 261 265 269 275

7.2 7.3 7.4 7.6 8.1 8.2 8.3

Six Sigma

Milestone Review Initiative Tracker

Kaizen

Lozano Framework

Embed

7.5 Five-step Approach to PSA

13.1

Initiative Adoption

Materiality Assessment Create an Initiative Vision

13.2 Team Effectiveness Framework 13.3 Team Learning Reflections

The Emotional Cycle of Change

Tools

Risk Management Steps

A.1

Industry Attractiveness: GE–McKinsey Matrix

8.4 Gantt Chart

A.2 PESTEL Framework

8.5 Risk Assessment

A.3 Porter’s Five Forces Framework

A.4 SWOT Analysis A.5 Competitor Analysis

9.1 9.2 10.1

Engaging Stakeholders to Implement Change

Commitment and Influence

A.6 Boston Consulting Group Growth Share Matrix

Differences Between Business Efficiency and Growth Initiatives

A.7 A.8

Market Size Evolution (Illustration)

Market Share Example

11.1

Questions to Ask during an AAR

205

Introduction

Strategy Execution Playbook

List of Figures

A.9

Traditional Segmentation and Segmentation for Differentiation

277

A.24 Example of an ABC Analysis

325 327 328 330 339 343 347 349 351 353 355 357 361 363 365 373

A.25 Financial Ratios A.26 Profitability Ratios

A.10 Example of a Conjoint Analysis

281 284 287 291 296 299 301 302 305 306 312 315 318 320

A.11

Key Purchase Criteria

A.27

Dupont Model

A.12 Illustration of a Customer Experience Journey A.13 Customer Satisfaction Evaluation Criteria

B.1

Example of a Value StreamMap

B.2 Voice of the Customer

A.14 Product Life Cycle Stages

B.3 Affinity Diagram B.4 Kano Analysis

A.15 Product Adoption A.16 Experience Curve

B.5 SIPOC

A.17 A.18 A.19

Product Substitution S-curve

B.6 FiveWhys

Price Elasticity

B.7 Fishbone Diagram B.8 VA/NVA Example B.9 Sources ofWaste

Economies of Scale

A.20 Company Value Chain

A.21

Core Competencies Analysis

B.10 Example for ProcessCapacitySheet

A.22 Profitability Ratios A.23 Cost/Benefit Analysis

B.11

B.12 Queueing Costs and Service Levels Trade-off

Introduction

Strategy Execution Playbook

List of Figures

B.13 Theory of Constraints B.14 Demand and Capacity

375 377 377 380 382 385 387 391 395 397 398 401 405

C.1

Lean Leadership Principles

413 415 419 422 424 434 438 441 442 444 447 448 453 458 463 467

C.2 Example of a Hoshin Kanri C.3 Visual Management Example

B.15 Runner/Repeater/Stranger Classification B.16 Overall Equipment Effectiveness Example B.17 Total Productive Maintenance Framework

C.4

Logic Tree Example

C.5 Data Collection Plan

B.18 Kanban Card

C.6 Project Governance and Management Framework

B.19 B.20 B.21 B.22

Just-in-time Elements

C.7 Project Charter

Leveling Example SMED Concept

C.8 C.9

Project Plan Example

Risk Log

Line Balancing Example

C.10 Flash Report

B.23 Error-proofing Example B.24 Control Chart Example

C.11

Balanced Scorecard Concept

C.12 Team Charter C.13 RACI Example

B.25 QFD Example

C.14

Stakeholder Mapping

C.15 Example of a SPOC Matrix to Analyze Impacts

C.16 Communication Plan

Introduction

Strategy Execution Playbook

Listof Boxes

Introduction

Strategy Execution Playbook

List of Boxes

0.1

Understanding the Stages of Team Formation Ensure Role Compatibility

4.1 5.1 5.2

Statistical Analysis

102 114 116 118 134 136 138 142 145 150 160 168 170 184

Understand Design Thinking and Ideation

0.2

44 46 50 52 54 56 74 76 78 86 88 94 96

Ideation Technique: Brainstorming

0.3 Team Charter Framework 0.4 Project Management Life Cycle 0.5 Project Management Approaches

5.3 Additional Ideation Techniques

7.1

Lean

7.2 7.3 7.4 7.6 8.1 8.2

Six Sigma

0.6 Project Reporting: Plan–Do–Check–Act

Kaizen Philosophy

Developing a Business Case

0.7

Project Charter

7.5 Business Model Canvas

1.1

Stakeholder Mapping

Materiality Assessment

1.2 1.3

SCQ: Situation, Complication, Question Mutually Exclusive, Collectively Exhaustive (MECE) Framework

Change Readiness

Traditional Project Management

8.3 Risk Assessments

2.1 2.2 3.1 3.2

Develop Hypotheses

9.1

Design Your Organizational Engagement Plan

Rules for Hypotheses Development

Company Data Extraction

External Data

Introduction

Strategy Execution Playbook

List of Boxes

10.1

Choosing Pilot Sites for Business Efficiency

196 200

10.2 Choosing Pilot Sites for Business Growth Initiatives

11.1

Team Dynamics Necessary for an After-Action Review

206

13.1

Maturity Model

236

Introduction Strategy Execution Playbook Introduc tion

Introduction

Strategy Execution Playbook

WelcometotheStrategy ExecutionPlaybook!

can be prioritized and tested. These hypotheses are then verified by gathering and analyzing data. The DEVELOP section helps the project team zero in on ”solutions.” The team is able to propose a range of options and evaluate them before proposing "the" solution that is most feasible, desirable, viable and sustainable to execute. To do so, the team creates a compelling vision and engages with and takes input from key stakeholders. This helps it envisage the most optimal solution, for which it then creates a compelling case and pitches it to stakeholders using a solution roadmap.

This Playbook is designed to be a trusted companion for sponsors, teams or leaders of strategic initiatives. 1 It provides the necessary theoretical frameworks and practical tools to help guide teams in successfully implementing strategic initiatives (interchangeably referred to as “projects” 2 in this Playbook). The Playbook follows a methodological guideline for implementing both “exploratory initiatives” 3 and “exploitative initiatives.” 4 [15] This is done in a step by-step, modular way (explained in more detail in the ”Setting up for success” section). The Playbook’s structure broadly follows the phases of a strategic initiative’s execution – EXPLORE–DEVELOP– DO–EMBED. In the EXPLORE section of this Playbook, we focus on team formation, the project scope and understanding the business stakes. At this stage, the key strategic question – the one question that your entire project answers – is identified, the stakeholders are consulted and the outcome expectations are clarified. At the end of this stage, the project team performs a robust diagnosis of the current situation and identifies the likely root causes or opportunities for improvement. It progresses from identifying key questions to developing a set of hypotheses (often based on assumptions) that

The roadmap provides the logic behind the sequencing of various actions and should guide teams on the ”what” and ”how” that are needed to ensure effective execution. The DO section provides detailed guidance on piloting the solution, onboarding result critical stakeholders across the organization, managing change and designing a project monitoring system to evaluate the performance of the initiative deployment. It also includes details on an after-action review, which will ensure broader learning is captured. Finally, the EMBED section helps sustain the initiative within the organization and ensure market success. You may have spent significant time and energy in the EXPLORE–DEVELOP–DO phase building the future, but without ensuring the adoption of practices and products, the return on investment will be difficult to demonstrate. The EXPLORE–DEVELOP–DO–EMBED parts of the book are broken into different steps (interchangeably referred to as chapters). Each part aims to identify the specific steps that the project team needs to take. Before you delve into the EXPLORE–DEVELOP–DO– EMBED phases of any strategic initiative, we call your attention to the very first step – Setting up for success. In this section, we introduce the project and team management philosophy. We recommend you start with these preliminary frameworks and tools to ensure a strong foundation is established for your initiative team and we encourage you to come back to these tools as and when needed during any of the EXPLORE– DEVELOP–DO–EMBED phases. Upon completion of your

initiative, we also encourage you to review the impact you have achieved and its wider implications for the organization and you as an individual. At the end of the Playbook, we refer to the most common management tools that will help you in your strategic initiative decision making. Keep in mind that critical thinking is at the core of any approach you take or tool you use for your strategic initiative. So, carefully think about which framework works best for your initiative – be a critical thinker yourself as you apply the frameworks and tools. While the Playbook by no means presents all available tools and frameworks, it includes those that, based on years of experience with organizational transformations and strategic initiative implementations, we have seen work well. The tools used depend not only on their inherent properties, but also on the context and interpretations of those selecting the tools. While we think there are tools that fit certain situations better than others, there isn’t a right or wrong tool for each situation. Each person’s choice of tool is shaped by their preferences, which will likely influence their decision and the outcome. We often find that it is not the “fit” of the tool with a particular situation which determines whether or not it will be used. Rather, such a choice is dictated by the ease and standardized way in which such a tool can be deployed in an organization. According to Jarzabkowski and Kaplan [51] , tools that are simple and offer clear visual representations are easier to remember and use. Quantitative tools are attractive to users because numbers can signal rationality, but this attractiveness is offset by potentially greater difficulty in using the tool.

1 By strategic initiative, we mean an action-oriented choice through which an organization translates its goals and visions into practice in order to help achieve the organization’s success over the next few years. 2 A project is a specific strategic initiative that you as a learner and practitioner and your team are assigned to execute. 3 Exploration focuses on finding innovations beyond the current horizon. The business impact is derived from exploring new possibilities that will drive growth through new products and/or services in the longer term. 4 Exploitation requires looking for ways to improve existing operations and so the focus is on business efficiency [15] . The business impact is derived from improvements that make current practices more efficient (or help exploit within the existing operational context) typically in the short-term.

Introduction

Strategy Execution Playbook

Given that the choice falls on you to some degree (unless you are constrained by what someone more senior prescribes), it is important that you understand your options before making a choice. The greater your knowledge of the tool options upfront, the more you can try to obtain the best fit between the situation and the tool you want to employ. In the application of tools, remember that this provides a space for exchange with your colleagues and that a common language provides the ground for better conversations across functions, hierarchies or geographies. As there is often more than one tool that makes sense to use, be aware that certain tools will focus your attention on some strategic issues more than others. This means that positions or viewpoints are more likely to come to the forefront, while others can become blind spots. We often look at the success of a tool from two perspectives: one that is widely adopted; but more importantly, one that leads to the right decision. For a tool to lead to a good decision, it should provoke new explorations and enable interim decisions that allow you to move forward with a project ; it should satisfy either internal or external clients ; it should allow you to demonstrate competence ; and it should ideally highlight, surface and help resolve the different viewpoints or positions that people might have relative to the decision to be made.

Throughout the book, we are introducing three types of tools : 1 Strategic and analytical tools 2 Operational efficiency tools 3 Project and change management tools While strategic and analytical tools are the most useful for exploratory growth initiatives, operational efficiency tools are useful for business efficiency initiatives, while project and change management tools are useful for all initiatives. Remember there are other tools available, so explore those we have listed and test and use them if you find them appropriate in your context. Ultimately, we hope this Playbook helps you on your journey as a critical thinker and executor of your strategic initiative! Red Threads in the Playbook As you go through the Playbook, you will notice the following red threads: 1. The diverge/converge pattern. To avoid coming to a conclusion too early, teams often need to diverge in their thinking before converging. This is often done at each phase, i.e. while exploring, developing and doing. During the EXPLORE phase, the divergence involves understanding the context from multiple perspectives before developing hypotheses. In the DEVELOP phase, it involves ideating solutions and diverging before making choices. In the DO phase, it involves learning from pilots before scaling up the implementation. Finally, in the EMBED phase, it involves ensuring that the future solution is fully institutionalized.

Diverge

Converge

Diverge

Converge

Diverge

Converge

Create Choices

Make Choices

Create Choices

Make Choices

Create Choices

Make Choices

Embed

Develop

Explore

Figure 0.1: Diverge/Converge pattern

2. Efficiency and growth initiatives. Performance improvements are typically achieved through two different types of initiatives: business efficiency and growth initiatives. Business efficiency (also sometimes called "exploitative") initiatives derive their benefits from continuous improvements to existing processes or systems often achieved in the short term. Growth (also sometimes called "exploratory") initiatives are about exploring new possibilities that will drive new revenues through new products and/or services in the longer term. While some customer-focused initiatives could deliver incremental revenues and, therefore, do not neatly fall into one of the two types of initiatives, this is a helpful way of thinking about initiatives as, typically, different analyses are required to successfully achieve the expected results.

3. Change management. Any strategic initiative is essentially a process of transforming from one state to another. Irrespective of the complexity of the initiative, there is a need to involve stakeholders throughout the change management process. As you go through this Playbook, we will elaborate on the change management steps along the way and repeatedly point toward the need to also get buyin for any changes to the business that you suggest.

Introduction

Strategy Execution Playbook

SettingupforSuccess

Team Dynamics Teamdynamics 5 evolve over time and form a critical base for driving any strategic initiative. Each team, given its context and the diversity of its members, will demonstrate different characteristics. Individuals do not act the same in all teams. The dynamic of the team is shaped by the individuals, but the dynamic within the team also shapes individual behaviors. Thus, it is critical that you recognize the team’s working preferences and align the teammembers accordingly. Below are some steps (with frameworks) you can use to help develop efficient teams: • Understand the stages of team formation because team dynamics have the potential to make or break a project (Box 0.1, p. 42). • Allocatework to ensure the balance and compatibility are commensurate with the team members’ preferences and competencies. Using a framework such as Belbin’s Team Roles (Box 0.2, p. 44) provides an easytouse method to structure the teammembers’ roles and responsibilities within the team. • Develop the rules of engagement. They will help navigate the teamwhen it is faced with challenging decisions and timelines or even conflict. It can be done as a group exercise and formalized through a team charter. An example of a team charter is provided in Box 0.3, p. 46.

Engage your Project Sponsor The sponsor provides resources and support for the initiative. As the sponsor is accountable for the initiative, s/he should have a high stake in it. The high-level sponsor should confirm the scope, set the direction, priorities and target objectives as well as provide the big picture in terms of how the initiative fits within the overall strategy. They will likely also be involved in major decisions throughout, such as the selection of the team leader, go/nogo decisions or decisions to replace team members. The sponsor should have a reputation for getting things done. S/he should monitor teamwork over time, provide the necessary information, challenge the team’s ideas, raise the “what ifs” or naïve questions and look at the potential risks or unexpected events/surprises that would result in redirecting the initiative. The sponsor must demonstrate a high level of personal commitment and expect the team to maintain its energy throughout. S/he should be a role model to inspire others in terms of supporting the initiative, talking about it, communicating news about it, particularly to the rest of the organization. Indeed, the sponsor is not just the one that kicks off the initiative, S/he should ensure that the initiative stays on track and dedicate several hours per week to follow through.

Get to know your project team, prepare your work plan and allocate tasks.

Leading strategic initiatives is not possible without a core team that is dedicated to understanding, analyzing, ideating and solving the problem or pursuing the opportunity. Before embarking on the EXPLORE DEVELOP-DO-EMBED phases of a strategic execution journey, let us look at what is needed to start strong as a team. For your specific initiative, it is critical that you create alignment with the project expectations among your team members. During this step, together with your team, you will: • Understand the stages of team formation. • Learn about the different work styles in a team. • Define and put in place the rules of engagement. • Implement key project management tools and processes. • Understand how to engage with stakeholders critical to your project’s success, primarily the project sponsor.

To set up for success, you need to work on three dimensions: Understanding team dynamics, building an effective project management approach and establishing meaningful engagement with the project sponsor. Taking the time to set up for success helps create synergy within the team, whereby the combined value it delivers becomes higher than the sum of all its parts. It also allows you to agree on the project management approach that will structure the work of the team from the very beginning and ensure that you are aligned with the project sponsor from the outset. Similarly, understanding what the project sponsor expects from the team and, in turn, ensuring that the sponsor’s support remains available for the project team, requires early and regular engagement between the project team and the project sponsor. Two points to consider are: • A strong team is a necessary component of successful strategic execution. Team strength lies in not only the depth of experience and subject matter expertise of the team, but also the effective team dynamics and behaviors. • Project management and work plan development provide clarity in navigating the initiative’s execution journey.

5 Toegel, Ina. ”Top Tips for Better Collaboration.” IMD Tomorrow’s Challenges, November 2017.

Introduction

Strategy Execution Playbook

A healthy team dynamic is crucial to high performance; it allows team members to make effective use of their time, be truly engaged creatively and, therefore, find optimal solutions to problems [111] 6 . IMD’s Professor Ina Toegel suggests that you can enhance your team members’ selfawareness and foster trust with teams by focusing on the following: • Feedback. Members (including the initiative/ group leader) are comfortable giving and taking feedback from each other, and they do so in a predefined, consistent and regular fashion. When teams institute regular weekly or monthly feedback sessions, members become more skilled at formulating and receiving feedback. • Check-in and check-out. High-performance teams begin and end their meetings with a discussion about their relationships. A “checkin” is a short sharing of feelings, with each member sharing positive or negative sentiments, such as: “I worry about this deal because …” “I was anxious last week because …” or “I feel relieved because ….” A ”checkout” might revolve around questions, such as: ”How satisfied are we with this meeting?” ”How well did we listen to each other?” and ”To what extent did we resolve the tensions in the room?” It is the team leader’s task to role model that it is safe to share such sentiments, as long as they are constructively phrased. Both the checkin and the checkout provide an opportunity for team members to share positive emotions or unburden some frustrations. When negative emotions are not verbalized, they tend to build up and, therefore, magnify tensions in a team and decrease productivity. Members are encouraged to speak up to test assumptions about issues under discussion.

• Creating psychological safety to foster innovation. Paying attention to team relationships is important not only for productivity and efficiency, but also for innovation. Team members who feel safe and supported by the team are not afraid of making a mistake, and they feel greater freedom to experiment. Psychological safety is the difference between traditional efficiency-focused organizations and more innovative learning-focused companies. Conversations that enhance empathy and engagement within the team have a positive effect on the bottom line.

6 IMD. Ina Toegel, Top 6 tips to create a highperformance team and better collaboration. https://www.imd.org/research-knowledge/leadership/articles/how-to-create-a-high-performance-team/ (visited on 06/23/2022)

Introduction

Strategy Execution Playbook

Box0.1: Understanding the Stages of Team Formation

About

Teams need to be prepared to tackle different challenges and be ready to explore synergies when working together. Bruce Tuckman, an American professor, published “Developmental sequence in small groups,” [113] in which he describes the four phases that teams go through when the members create interpersonal bonds and work together toward a common goal. • Each phase has its own challenges and behaviors. Anticipating them allows the team to preempt and overcome them. • Teams can leverage their understanding of the phases to discover opportunities to improve group dynamics, such as organizing team social events. • Throughout the life cycle of the project. • At the start of each new activity, you can review how the team works when faced with team conflicts. • If team efficiency is not deemed optimal.

Performing

Merits

Norming

Forming

When to Apply

Performance of Team

Storming

Time

Figure 0.2: Stages of Team Formation

Source: Tuckman (1965) [113]

Introduction

Strategy Execution Playbook

Box0.2: Ensure Role Compatibility

About

Dr. Meredith Belbin has defined the role of a team as “a tendency to behave, contribute and interrelate with others in a particular way.” [4] After studying teams for many years, he identified nine team roles that people seemed to take on when working in teams: Shaper, Implementer and Completer Finisher are Action-oriented Roles; Coordinator, TeamWorker and Resource Investigator are People-oriented Roles; and Plant, Monitor Evaluator and Specialist are Thinking oriented Roles. • Helps team members not only develop self awareness, but it also helps them understand each other better. • Allows team members to play on their strengths but stay aware of their weaknesses, thereby minimizing the potential for friction. • Provides a learning opportunity and helps individuals move beyond their “default” settings. • Celebrates the diversity of the team rather than seeking homogeneity.

Plant: Innovators & ideas. Prefer to work alone.

Thinking-oriented Roles

Monitor Evaluator: Separate good ideas from bad.

Specialist: Skills in a specialist job.

Shaper: Challenge norms. take lead, push team.

Merits

Action-oriented Roles

Implementer: Executors of plans.

Completer Finisher: Complete the fine details.

Coordinator: Natural team leaders.

TeamWorker: Diplomats, keep team cogs turning.

People-oriented Roles

Resource Investigator: Find external resources.

When to Apply

•

At the project kick-off.

• To be revisited as members evolve from one role to another over time, or if the team welcomes a new member.

Figure 0.3: Belbin Team Roles

Source: Belbin Team Roles, Belbin, Meredith Dr. (1981)

Introduction

Strategy Execution Playbook

Box0.3: Team Charter Framework

About

A team charter enables the team to discuss its aspirations, rules of engagement and critical information upfront. You can use this charter when kicking off a team’s work on a strategic initiative. Developing a team charter has proven to be an essential first step in the successful delivery of a project. • Serves as a directional tool to think about the critical elements of the project. • Establishes critical rules of engagement, based on determination of the team values and roles, as well as considering the personal goals of individuals within the team. • Provides a good focal point for the teams to return to when they need to realign or reassess their assumptions. • During the first week of the project’s kick-off. • At the start of each new step. • As a reference when faced with team conflicts. • As a reference when team efficiency is not deemed optimal.

• Share relevant individual learning goals • Identify content preferences • Individual preferences (Hogan/Belbin) • Discuss how team members will support each other • How and when will you exchange constructive feedback

• Discuss personal demands and individual lifestyle preferences • Decide how team will manage its schedule around these

Merits

Individual Development

Rules of Engagement

Team Management

Team Values

Roles

When to Apply

• Plan the teamwork and team meetings • Define how the team will make decisions • Agree on how conflicts will be handled • Decide how individuals will share their work with the team • Review team charter regularly

• Identify team values • Review professional conduct guidelines • Discuss confidentiality • Decide how you will monitor team spirit • Determine how you will have fun as a team

• Confirm team roles and how you will interact • Determine anticipated involvement level • Identify knowledge resources within team/ or within organization

Tools to Use

•

Team charter (see Annex C.16, p. 448)

Figure 0.4: Team Charter Framework

Introduction

Strategy Execution Playbook

Project Management

Without establishing and agreeing on project management structures and processes, the risk of derailment becomes quite high.

• Understand the stages in the project management life cycle and choose a project management framework. Being familiar with the project life cycle will help the team develop clarity about activities, deliverables, key milestones, required resources, timeline and success measurement. • The Project Management Institute (PMI) has developed The Project Management Body of Knowledge (PMBOK), which provides a well recognized standard framework for managing projects. It describes the project management life cycle and breaks it down into five main process method and the agile method. While the waterfall method uses sequential phasing, the agile method uses iterative work cycles often called "sprints" to complete projects. See Box 0.5, p. 52 to understand the comparison between these two approaches. • One method for managing projects is through a PDCA (plan–do–check–act or plan–do–check– adjust) approach. PDCA is an iterative fourstep management method useful for teams and individuals as shown in Box 0.6, p. 54 . It helps when managing performance, reviewing progress and learning from successes and failures. Other “must have” project organization tools that have proven to be very effective include RACI (responsible, accountable, consulted and informed) charts, risk logs, Gantt charts, flash reports, etc. Some of these tools are presented in the Appendix at the end of this book. groups discussed in Box 0.4, p. 50. There are fundamentally two different approaches for managing projects – the traditional waterfall

• You may discuss and agree on the project

management tools, such as developing a project charter, to help your team agree on a common understanding of the project intent (see Box 0.7, p. 56) . It also provides a useful support for communicating your project’s intent with others.

Introduction

Strategy Execution Playbook

Box0.4: Project Management Life Cycle

About

Merits

The Project Management Institute (PMI) [49] breaks down project management into five stages:

• Takes a generally accepted standardized approach to project management. • Helps teams progress.

When to Apply

•

Throughout the life of the project.

• Stages 1 and 2 are typically used to manage the EXPLORE phase of your strategic initiative execution. • Stage 2 supports the team during the DEVELOP phase. • Stages 3, 4 and 5 help you effectively manage the project during the DO and EMBED phases.

Tools to Use

•

RACI chart (see Annex C.18, p. 452)

•

Gantt chart

•

Flash report (see Annex C.14, p. 444)

Project Conception & Initiation 1

Project Definition & Planning 2

Project Launch or Execution 3

Project Performance & Control 4

Project Project Close 5

•

Risk log (see Annex C.13, p. 442)

Source: PMI. The Project Management Institute ( https://www.pmi.org/ )

Figure 0.5: Project Management Steps

Introduction

Strategy Execution Playbook

Box0.5: Project Management Approaches

About

A good project management framework should include a spectrum of components required for planning, managing and governing projects, while remaining cognizant of the timeline and need for iterations. There are several frameworks that can be used according to the context and nature of a strategic project. Usually, the most common project management frameworks fall under two categories: • Waterfall. An approach that requires a project to be planned beginning-to-end, and each phase of the project starts after the previous one has ended. • Agile. An incremental and evolving approach designed to remain flexible and adaptive to the changes that occur throughout the life of the project.

Agile

Waterfall

t o

Requirements

n i

u i

r e

n t

T r

Design

Implementation

2 P l a n

e l e a s

Verification

Maintenance

s i

e l

When to Apply

• Throughout the life of the project, but the framework that makes the most sense should be chosen during the project kick-off stage.

•

Continuous cycles

•

Sequential/linear stages

• Small, high-functioning, collaborative teams • Multiple methodologies • Flexible/continuous evolution • Customer involvement

• Upfront planning and in-depth documentation • Contract negotiation • Best for simple, unchanging projects • Close project manager involvement

Figure 0.6: Project Management Approaches

Source: PMI

Introduction

Strategy Execution Playbook

Box0.6 Project Reporting: Plan–Do–Check–Act

About

Merits

A PDCA (plan–do–check–act or plan–do–check–adjust) [100] is an iterative four-step management method that helps manage performance, review progress and accelerate learning from successes and failures. Planning and doing is indeed not enough to drive continuous improvement; you also need to check and adjust.

•

Ensures clarity and accountability.

•

Helps teams progress.

When to Apply

Throughout the life of the project during the following phases: • P lan. Key activities to meet objectives, critical milestones, timelines, people to involve (the level of planning and contingency consideration increase with the project’s level of difficulty and complexity). Set SMART objective(s) – specific, measurable, achievable, realistic and time bound. Think through and list all key activities you need to perform to meet objective(s), identifying interdependencies along the way. Plan regular meetings/communication activities, and decide on critical milestones, success measurement and tracking process. • D o. Carry out plan/activities for what the team is accountable for. Identify and select options to move forward, follow up on agreed next steps. • C heck. Take the time weekly to review the performance against milestones and timescales, capturing what went well and what needs to be improved, what are the results versus the targets. • A djust. This involves modifying your plan to incorporate learning and celebrate successes.

PDCA

PDCA is a four-step problem-solving method for continuous process improvement

Act/Adjust

Plan

•

Take action to improve further

•

Identify the root cause of the problem Set goals and objectives

•

Define corrective actions

Check

•

Monitor and measure Verify that the problem is resolved

•

Implement the improvement process Test potential solutions

•

Figure 0.7: Plan–Do–Check–Act

Source: Adapted fromWalter A: Shewhart and William E. Deming

Introduction

Strategy Execution Playbook

Box0.7 Project Charter

About

A project charter a is an excellent communication tool that provides a simple and common framework to launch a project and gain buy-in. It is the team’s blueprint for success. Project charters provide focus and direction for the team and help communicate the purpose to sponsors and stakeholders. • Aligns the team around a common vision of the project. • Serves as a roadmap for the team and a communication tool for the stakeholders. • To help the team understand and develop confidence in the scope and rationale for the strategic initiative as well as prepare the team for the kick-off.

Project Overview

Project Timeline

Merits

Project Communication Plan

Project Charter

Project Details

When to Apply

Tools to Use

• Project charter template (see Annex C.11, p. 438)

Project Resource Planning

Project Scope

Project Team Organization

Figure 0.8: Project Charter

a Source: PMI

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